Oregon State Treasurer Elizabeth Steiner, MD, applauded state senators and representatives for passing House Bill (HB) 2081A, Oregon’s Climate Resilience Investment Act. The law encourages the Oregon State Treasury (OST) to 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). HB 2081A was introduced with the backing of Oregon State Treasurer Steiner. The Governor is expected to sign the legislation into law.

The Climate Resilience Investment Act directs OST to pursue clean energy investment opportunities, build a more climate-resilient fund that safeguards its long-term value, and produce regular reports to the legislature. The legislation confirms OST’s fiduciary responsibility to retirees.

OST currently manages approximately $101 billion in OPERF assets. Oregon has the 17th largest retirement fund in the nation. As of 2021, fossil fuel investments accounted for approximately 3.7% of OPERF’s holdings.

The law keeps Oregon at the forefront of state climate investment legislation. While a handful of state and municipal public employee pension funds have announced emission reduction targets and timelines, few states have passed climate positive investment legislation.

“The Climate Resilience Investment Act is a clean energy investment law, not a divestment mandate.” Treasurer Steiner said. “Global markets are making the transition to cleaner sources of energy that reduce greenhouse gas emissions, provide cleaner air and water, and protect our communities. The Climate Resilience Investment Act protects employee retirement funds by enabling Treasury’s investments to take full advantage of the opportunities the clean energy transition creates.”

The Climate Resilience Investment Act earned the support of labor unions and business leaders.

Mike Powers, political and policy strategist at SEIU Local 503 said, “Hard-working public employees deserve a stable, secure, and healthy future. Through this law, Oregon is keeping faith with retirees by improving investment risk analysis and taking advantage of the returns the global transition to a cleaner energy offers.”

Investment experts underscored the global momentum toward clean energy and the investment opportunities that the transition away from fossil fuels presents for state pension funds.

Tim Miller, director of Oregon Business for Climate said, “The world is moving toward a carbon-free future and it’s not turning back. That creates opportunities for innovation and growth for companies and investors who are able to adapt. The Climate Resilience Investment Act keeps Oregon at the forefront of states that are staying on top of these opportunities as markets and businesses move away from carbon risks.”

OPERF contributes 70% of every dollar going to Oregon’s public agency retirees.

Investment losses from fossil fuel investments could lead to worsening unfunded liabilities for PERS over time, which would cut into budgets that fund the services and programs state and local agencies, school districts, and other public entities provide.

Treasurer Steiner said, “The state Treasury has a fiduciary responsibility to protect the retirement security of teachers, firefighters, and other public employees. I appreciate the strong support this bill received from labor leaders and other retirement fund beneficiaries.”

The legislation now goes to Governor Kotek for signing. The bill takes effect 91 days after passage.

Click here to view Climate Resilience Investment Act overview video from Treasurer Steiner.
If you are interested in obtaining footage for news segments, please contact Elissa Gavette.

###

About Oregon State Treasury
Oregon State Treasury improves the financial well-being of all Oregonians. We provide low-cost banking, debt management, and investment programs for governments and empower Oregonians to invest in themselves and their loved ones through the Oregon College Savings Plan, Oregon ABLE Savings Plan, and OregonSaves. Treasury also manages the state's Unclaimed Property Program.