Oregon Treasurer urges lawmakers to pass bill directing 'climate positive' retirement investments
PORTLAND, Ore. (KOIN) – Oregon State Treasurer Elizabeth Steiner is calling on the Oregon legislature to pass a bill that directs the treasury to make "climate positive" investments in the Oregon public employee retirement fund.
House Bill 2200 directs the Oregon Investment Council and State Treasurer to take actions to reduce carbon intensity of state investments and to address investment risks related to climate change. The bill was introduced at the request of former State Treasurer Tobias Read.
On Tuesday, Treasurer Steiner testified before the House Committee on Emergency Management, General Government and Veterans in support of the bill, saying it would allow her department to make investments that reduce the risks of losses in the OPERF due to investments in carbon emitting businesses.
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“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," Steiner said during her testimony.
The bill comes as fossil fuel investments made up $3.6 billion, or 3.7%, of the overall $93.8 billion OPERF portfolio in 2021, according to the Treasury.
Steiner supports an amended version of the bill, which would state that investing in a “climate positive agenda” aligns with the treasury’s fiduciary responsibilities to account for financial risks in the portfolio.
Additionally, Steiner supports a bill that clarifies “the urgency of climate change is increasing the opportunity for climate positive investments with attractive returns, which makes this area a priority investment strategy,” the Treasury noted.
The bill comes after former Treasurer Tobias Read created a PERS plan to reach net zero emissions in the portfolio by 2050.
“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,” Steiner said.
The department has already taken steps towards a more climate-friendly portfolio, including investments in energy transition infrastructure, which have increased 20% since 2016, the Treasury said.