Oregon is charting a course for a more sustainable future, thanks to a new piece of legislation aimed at greening the state’s financial interests. The Oregon State Treasury is set to refocus its investment strategies following the passage of House Bill (HB) 2081A, the Climate Resilience Investment Act. As reported in a statement from Oregon State Treasurer Elizabeth Steiner, MD, this act will prod the Treasury towards clean energy investments, steering the Oregon Public Employee Retirement Fund (OPERF) toward a cleaner energy future.
Aligning with global market trends transitioning away from fossil fuels, HB 2081A is positioned to protect OPERF, valued at roughly $101 billion, by focusing on long-term climatic and financial resilience. Treasurer Steiner, in her public commendation of the bill’s passage, emphasized that this strategy supports the twin imperatives of environmental stewardship and fiduciary duty, stating, “The Climate Resilience Investment Act is a clean energy investment law, not a divestment mandate.” The Treasurer went on to highlight the dual benefit of reducing greenhouse gas emissions while promising climatic protection for communities in Oregon.
While steering the Treasury towards profitable clean energy opportunities, HB 2081A also mandates regular reports to the legislature on the fund’s climate resiliency. SUPPORT comes from a broad coalition that includes labor unions and business leaders, united in the pursuit of a stable and secure future not only for public employees but for the financial health of the state itself. Tim Miller, director of Oregon Business for Climate, touted the legislation saying, “The world is moving toward a carbon-free future and it’s not turning back,” detailed by Oregon State Treasurer’s release.
OPERF is crucial to the livelihood of Oregon’s public agency retirees, contributing 70% of every dollar received in retirement. With the passing of the Climate Resilience Investment Act, the fund’s exposure to the volatile fossil fuel sector—previously 3.7% of holdings as of 2021—is poised for reevaluation. This shifts the onus onto cleaner, more sustainable investments, therefore mitigating future investment losses and potential unfunded pension liabilities. As a steward of public funds, Treasurer Steiner acknowledged her role and the State Treasury’s broader responsibility, stating, “The state Treasury has a fiduciary responsibility to protect the retirement security of teachers, firefighters, and other public employees.” This sentiment echoes the commitment to preserving the welbeing of the state’s beneficiaries into the future.
With the bill set to take effect 91 days after passage, Governor Kotek’s signature will enact one of the nation’s most forward-thinking climate investment legislations. This turn of events keeps Oregon at the vanguard of states that are proactive in adapting to the inherent opportunities presented by the dovetailing of climate awareness and investment strategy, sending a clear signal that Oregon is committed to fostering not just a lush green physical environment but an equivalently green economic landscape.
