# Pension Funds Warned Over Climate Risks in LNG Investments Advocacy group threatens legal action against Canadian pension funds over fossil fuel stakes. - **Source:** [The Globe and Mail – Canada](https://www.theglobeandmail.com/canada) - **Published:** 2026-11-11 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/0fa50dca-7d25-4c3d-b2d8-b4de3793dd45 ## Legal Warning Issued Environmental advocacy group Stand.earth has engaged the law firm Trudel Johnston Lespérance to issue formal warnings to six major Canadian pension funds. The letters caution trustees against investing in liquefied natural gas megaprojects, citing potential climate-related financial risks that could expose plan administrators to significant future legal action and liability. ## Targeted Pension Funds The warning was sent to the Canada Pension Plan Investment Board, Public Sector Pension Investment Board, and Ontario Municipal Employees’ Retirement System. Other recipients include the Ontario Teachers’ Pension Plan, the University Pension Plan, and the Healthcare of Ontario Pension Plan, which collectively manage approximately $1.6 trillion in total assets. ## Legal Firm Background Trudel Johnston Lespérance is known for handling high-profile class action and public interest litigation. The firm previously secured a $32.5-billion settlement against major tobacco companies and is currently involved in litigation against opioid manufacturers. Their involvement signals a shift toward using aggressive legal strategies to challenge institutional fossil fuel investments. ## LNG Canada Investment The warning follows news that four pension funds plan to acquire a non-controlling stake in the Mitsubishi Corp. subsidiary holding interests in LNG Canada. This project, located in Kitimat, B.C., recently received approval for a second phase to double output, designated as a national-interest project under recent federal infrastructure legislation. ## Fiduciary Duty Debates Lawyer Anne-Julie Asselin argues that as fossil fuel risks become more foreseeable, ignoring them violates fiduciary obligations. She urged funds to refrain from direct or private LNG investments unless they can demonstrate a transparent assessment proving these assets align with their statutory duties to manage funds without undue risk of loss. ## Pension Fund Responses The Public Sector Pension Investment Board confirmed receipt of the letter but rejected the group's assessment of LNG risks. They stated that investment decisions are made in accordance with their governing statutes and mandate to achieve maximum returns for beneficiaries, emphasizing that they operate within all applicable legal and statutory obligations. ## Broader Legal Context This warning coincides with an existing lawsuit filed by four young Canadians against the Canada Pension Plan Investment Board. The plaintiffs allege the fund fails to protect the long-term interests of future retirees by maintaining fossil fuel investments, a case currently facing a motion to be struck by the court. ## Future Escalation Risks Stand.earth describes legal action as a tool of last resort but remains prepared to pursue litigation if pension funds proceed with LNG investments. As these institutions manage retirement savings for millions of workers, the tension between long-term climate risk mitigation and immediate financial return targets remains a critical point of conflict. ## Sources covering this story - https://www.theglobeandmail.com/business/article-legal-warning-sent-to-pensions-over-climate-related-risks-of-lng/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._