The Oregon State Treasury has released the first annual progress report on its Net Zero Plan, an initiative rolled out in early 2024 by Oregon State Treasurer Tobias Read that aims to transition the Oregon Public Employees Retirement Fund (OPERF) to a net zero carbon emissions portfolio by no later than 2050. The annual report captures progress made toward the plan’s goals, highlighting completed portfolio assessments, the formation of a beneficiary advisory group, and shareholder engagement and advocacy activities.

“The Net Zero Plan is a proactive, comprehensive approach to addressing the risks and opportunities that climate change poses to Oregon’s public employees’ retirement fund,” said Treasurer Read. “The progress captured in this year’s annual report reflects the dedication and expertise of our team in laying the groundwork for the Net Zero Plan. From assessing heavy emitters’ transition readiness to engaging with investment managers and establishing a beneficiary advisory committee, these are critical first steps towards achieving our goals of reducing real-world emissions and ensuring the resiliency of the retirement fund.”

Key accomplishments shared in the 2024 annual report include:

• The appointment of a beneficiary advisory group composed of active and retired members of the Oregon Public Employees Retirement System (PERS) to help provide feedback and input directly to Treasury.
• A completed assessment of companies in certain carbon-intensive industries within OPERF’s public equity portfolio to identify their clean energy transition readiness and those requiring more focused engagement.
• In-depth engagement with investment managers and continued collaboration with peers and stakeholders to advocate for transparency and accountability in corporate sustainability practices.

Developed with Treasury’s obligation to produce sustainable investment returns for beneficiaries first, the Net Zero Plan identifies specific actions Treasury will take in the short- and long-term to reduce carbon emissions associated with OPERF investments. The plan emphasizes investing in renewable energy and low-carbon industries while reducing exposure to high-emitting industries, conducting rigorous assessments of climate risks across the portfolio, and collaborating with companies and policymakers to advocate for sustainable practices and policies. By aligning its investments with long-term environmental and economic goals, the Treasury aims to protect the fund’s resilience and support Oregon’s climate commitments.

Valued at $100.9 billion as of November 30, 2024, Treasury manages OPERF to meet long-term obligations to beneficiaries and short-term operational needs, such as over $476.8 million in monthly retirement payments to Oregonians.

Treasury remains committed to building on this year’s foundational work to deliver long-term solutions that support a sustainable transition to a net zero portfolio, encourage real-world emissions reductions, and allows OPERF to continue to meet its fiduciary obligations to Oregon’s hard working public employees and retirees.

The 2024 Net Zero Plan Annual Progress Report is now available at: https://www.oregon.gov/treasury/Documents/Site-Documentation/Landing-Page-Documents/Sustainable-Investing/2024-Net-Zero-Plan-Annual-Progress-Report.pdf

Treasury’s Net Zero Plan is available at: https://www.oregon.gov/treasury/Documents/Site-Documentation/Landing-Page-Documents/Sustainable-Investing/OST-Net-Zero-Plan.pdf