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Climate-Positive Investing

Climate-Positive Investing

 Content Editor

Protecting Retirees Through Climate-Positive Investing

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Treasury's Commitment to Climate-Positive Investing

The Climate Resilience Investment Act (HB 2081A) is landmark legislation that promotes profitable clean energy investments while protecting the long-term value of the Oregon Public Employees Retirement Fund (OPERF). Championed by State Treasurer Elizabeth Steiner, MD, the Act reflects a key priority to align Oregon’s investment strategy with global clean energy trends and fiscal responsibility.

What The Climate Resilience Investment Act Does

The Climate Resilience Investment Act directs the Oregon State Treasury to:

  • Pursue clean energy investment opportunities

  • Build a more climate-resilient fund to safeguard OPERF’s long-term value

  • Regularly publish transparent reporting to the legislature

Read more here

A New Chapter in Responsible Investing

The Climate Resilience Investment Act builds on Treasurer Read’s Net Zero Plan and years of work by the Oregon State Treasury to incorporate environmental, social, and governance (ESG) considerations into sound, long-term investment strategies. Treasury is taking steps to assess climate-related financial risks, engage with companies on sustainability practices, and identify resilient investment opportunities. The Climate Resilience Investment Act reinforces and accelerates that direction by clearly aligning investment goals with the global clean energy transition. Guided by its fiduciary duty, Treasury will continue evolving its approach to ensure OPERF remains strong, forward-looking, and well-positioned to protect retirement security for Oregon’s public employees.

FAQ

The Climate Resilience Investment Act is a bipartisan bill that encourages the Oregon State Treasury (OST) to build a climate resilient fund and capitalize on profitable investments in clean energy and support the transition to a cleaner energy future in managing the Oregon Public Employee Retirement Fund (OPERF).

It protects employee retirement funds by enabling Treasury’s investments to take full advantage of the global market shift toward clean energy and address the financial risks of climate change.

The bill explicitly states all actions must be “consistent with fiduciary responsibilities.” Retirement security comes first.

No. This doesn’t create any new taxes. It only mandates consideration of and advocates for how existing PERS funds are invested to reduce financial risks from climate change.

Physical risks from extreme weather events that damage infrastructure, operations, and supply chains, plus economic transition risks as markets shift toward a lower-carbon economy.

As of 2021, only 3.7% of PERS holdings are in fossil fuel investments.

No. The bill focuses on “reducing carbon intensity” and “preference for investments that reduce net greenhouse gas emissions,” not mandatory divestment. Investment decisions and portfolio construction continue to prioritize risk/returns considerations.

91 days after the 2025 legislative session ends.

Biennial reports to the Legislature that reflect carbon emissions of the pension plan ensure public accountability.

PERS beneficiaries include teachers, first responders, and other public employees who will benefit from better long-term returns and reduced investment risks. At the same time, all Oregonians benefit when PERS investments perform better. More profitable returns mean that public agencies – like schools and first responder agencies – have more money to spend on services for the public.


Timeline of Noteworthy Actions

  • • Oregon state legislature passes landmark Climate Resilience Investment Act (HB 2081A)

  • • Treasury publishes inaugural Net Zero Plan Annual Report

    • Treasury releases plan to achieve net zero carbon emissions within the Oregon Public Employees Retirement Fund by no later than 2050.

    • Formation of a beneficiary advisory group composed of active and retired PERS members to help provide feedback and input regarding Net Zero Plan activities.

  • • Treasury launches proxy voting database, providing increased transparency and accountability around shareholder activity by offering easy access to voting decisions and related information.

    • Proxy Voting Informational Guide

  • • Treasurer Read announces intent to decarbonize Oregon Public Employee Pension Fund (OPERF) by 2050.

    • Treasurer Read pens op-ed in New York Times opposing efforts in other states to limit the consideration of ESG factors in investment decisions.

  • • Treasury was part of a coalition of shareholders that voted to change the board of directors at Exxon, bringing new members with climate expertise to the table.

    • Treasurer Read submits formal comments to the Securities and Exchange Commission on climate change disclosures.

    • Public equity and fixed income portfolios made available on Treasury website, boosting transparency around how pension fund dollars are invested.

  • • Oregon Investment Council formalizes importance of ESG to Treasury's investment decisions.

    • Treasury completes study to evaluate real estate holdings and the potential effects of climate change.

  • • Oregon Investment Council revises foundational ‘Investment Beliefs’ policy to reflect commitment to advancing diversity among staff, managers, and contractors.

  • • Treasurer Read announces stepped-up shareholder climate action to enhance corporate disclosure, advance sustainable returns.

    • Treasury hosts the Oregon Sustainable Investing Summit. Treasurer Read announces Treasury has reached its 2015 goal of doubling renewable energy holdings two years early.

    • Treasury hires an investment officer who is responsible for assembling and analyzing ESG material data.

    • Treasury supports investor-led effort to improve transparency and standardize private equity reporting.

  • • Treasury recouped $5.2 million through securities related legal actions over misrepresented profits and price fixing.

    • Treasury representatives meet directly with executive management teams and advocated for enhanced financial reporting and improved board diversity.

  • • Treasury sets goal to double renewable energy holdings by 2020.