A former employee is suing Cushman & Wakefield over claims the real estate giant failed to protect retirement savings from climate-related risks, potentially impacting $12tn in US staff funds. Renee Kvek alleges the company breached its fiduciary duty by offering only the Westwood Quality SmallCap Fund as an investment option, which she claims had excessive climate-related financial risk and high fees.

Kvek's lawsuit argues the fund explicitly chose not to manage climate risk despite numerous warnings, resulting in chronic underperformance and undue risk of future losses. The case, filed in Washington state district court, is unusual in targeting a US retirement plan's failure to assess climate risk adequately. It could set a precedent for how pension plans must factor material climate change risk into investment decisions.

This legal action stands in contrast to a 2023 case where an American Airlines pilot claimed the company failed workers by pursuing ESG strategies. The outcome could influence broader questions about how long-term climate risks apply to fiduciary duties. Fidelity Investments, named as record keeper and trustee, stated it did not select investment options for the retirement plan. Cushman & Wakefield declined to comment on the litigation.