The C$700 billion fund, which is part of Canada’s national retirement system, stated that “forcing alignment with rigid milestones could lead to investment decisions that are misaligned with our investment strategy.”
“To avoid this risk — and to remain focused on delivering results rather than managing legal uncertainties — we have made a deliberate decision to no longer uphold a net-zero by 2050 commitment,” the statement continued.
CPPIB also suggested that the decision was partly influenced by recent amendments to Canada’s Competition Act, which now require companies to substantiate any environmental claims they make.
Last year, the Act was updated to prohibit companies from making climate-related commitments without “adequate and proper substantiation in accordance with internationally recognised methodology.”
“Recent legal developments in Canada have introduced new considerations regarding the interpretation of net-zero commitments,” said CPPIB, which initially pledged to achieve net zero by 2050 in 2022.
source: ipe.com
