Salem, Oregon- Oregon Gov. Tina Kotek on Monday signed the Climate Resilience Investment Act, a new law that directs the state treasury to adjust investment strategies for the Oregon Public Employee Retirement Fund with an emphasis on reducing financial risks linked to fossil fuels.
The measure, also known as HB 2081A, instructs the Oregon State Treasury to consider “climate positive” investments that may strengthen the long-term value of the $101 billion retirement fund. It requires staff to report regularly to the Legislature, with the goal of reducing exposure to fossil fuel industries while pursuing profitable opportunities in other sectors.
“The risks of climate change go beyond the immediate hazards of floods and wildfires – they are financial,” Kotek said at the signing ceremony. “This bill is both responsible and forward thinking, protecting state workers’ retirement investments and moving us closer to a clean energy future.”
State Treasurer Elizabeth Steiner, who supported the measure, said the law aligns with global market trends.
“Most markets around the world are moving toward a cleaner energy future,” Steiner said. “Clean energy will play a larger role in meeting the energy needs of Oregon and the rest of the world. This law gives Treasury the tools to take profitable advantage of this accelerating shift, grow the PERS fund, and reduce our exposure to dirty, outdated fossil fuel investments.”
As of 2021, fossil fuel investments represented about 3.7% of the retirement fund’s holdings, according to Treasury data. Oregon’s fund is the 17th largest public retirement system in the United States.
The bill was backed by labor unions, environmental organizations, and investment analysts. Nearly a dozen supporters attended the Capitol signing event.
SEIU Local 503 President Johnny Earl said the law balances financial security with broader economic changes.
“The stability of PERS is important to our members and all Oregonians,” Earl said. “By moving away from risky fossil fuels investments and supporting clean energy, we can create secure retirements and good jobs. We thank former Treasurer Read, Treasurer Steiner, our labor partners, and Governor Kotek for their leadership in passing HB 2081.”
Oregon joins a small number of states that have passed similar legislation; some others have announced emission reduction targets for their public pension funds without adopting formal laws.
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