Circular economy: Fiera Capital, Navigating PFAS liabilities

Fiera Capital engaged with a US-based industrial company to address PFAS related liabilities tied to legacy operations following a spin off in 2020. PFAS, often termed ‘forever chemicals’, persist indefinitely in the environment, contaminating soil, water, and wildlife, and presenting significant health and regulatory risks.

These liabilities stemmed from the manufacturing and sale of aqueous film forming foam, a firefighting product that contained PFAS as a key component and contributed to the contamination of numerous firefighting training sites and surrounding groundwater.

The team has been actively monitoring PFAS-related challenges since 2019, developing a comprehensive understanding of the potential legal, financial, and operational risks posed by such liabilities. To deepen our understanding of the company’s specific exposure, they engaged with multiple legal experts, former regulatory agency employees and scientists. Also initiating discussions with the company to assess its approach to managing this risk.

The process was closely followed through its progression of cases in the court system, and frequent expressions of a preference for the company for a more proactive approach to address these liabilities were made. Ultimately, in 2023, the entity holding the problematic assets was carved out and filed for bankruptcy, with those assets eventually being sold to a private equity group.

The matter reached final resolution in 2024, with a comprehensive settlement covering the vast majority of both current and future PFAS-related liabilities.

At time of publishing, May 2025, Fiera Capital is one of our partners on our High Alpha Global Equity portfolio