Oregon Treasurer Elizabeth Steiner called on legislators to pass HB 2200, which would provide legislative direction to support Treasury’s ability to pursue the near- and long-term investment strategies needed to reduce the risks of losses in the Oregon public employee retirement fund (OPERF) from investments in carbon emitting businesses.

In her testimony before the House Committee on Emergency Management, General Government and Veterans, Treasurer Steiner said, “From deadly heat domes to destructive wildfires and devastating droughts, Oregonians are increasingly seeing their lives, their businesses and their communities disrupted by climate change. As investment stewards for public employees, it is our responsibility to protect Oregon’s state retirement fund from declining value in carbon emitting businesses as the national and global economy moves to cleaner, climate positive energy sources. The businesses we invest in are facing the same challenges. By protecting the financial future of our retirees and beneficiaries by assessing climate-associated financial risk, we’re also protecting our children’s climate future.”

Treasurer Steiner supported an amended version of HB 2200, which would:
1) State that investing with a climate positive agenda aligns with our fiduciary responsibilities to account for financial risks in the portfolio.  
2)State a preference for climate positive investments, which includes proactive strategies to address climate-associated financial risk. 
3) Require biennial reports from Treasury to the Legislature that are robust and evolve with the best available science. 
4) Clarify that the urgency of climate change is increasing the opportunity for climate positive investments with attractive returns, which makes this area a priority investment strategy. 

In February 2024, former Treasurer Read released, “A Pathway to Net Zero: Positioning the Oregon Public Employee Retirement Fund for a Net Zero Carbon Future,” which defined Treasury’s plan to achieve net zero emissions in OPERF by 2050.

In her testimony, Treasurer Steiner reiterated her commitment to the Net Zero goal. She said, “Climate change threatens the long-term performance of OPERF, which is why Treasury set the Net Zero goal. Going forward, we will keep our investment strategies up to date with the evolving climate science and the emerging growth opportunities the transition to clean energy offers.”

Based on the latest available data, fossil fuels investments accounted for $3.6 billion in 2021, or 3.7% of the overall $93.8 billion OPERF portfolio.

Treasury has already taken significant steps to leverage its investments and its role as an institutional investor to fulfill its fiduciary responsibilities by reducing OPERF’s exposure to climate risks. For example, OPERF’s investments in energy transition infrastructure have increased 20% since 2016.

A live feed of the House Committee on Emergency Management, General Government and Veterans public hearing, and recordings of previously completed hearings, is available on the Committee’s website here.

The full text of Treasurer Steiner’s testimony can be found here.