Oregon’s Landmark Climate Resilience Investment Act: A Win for Pensions and the Planet

In June, the Oregon Climate Resilience Investment Act, HB 2081A, championed by Oregon State Treasurer Steiner, officially became law, making Oregon the first state to formally endorse a sustainable investing plan for its state pension. This landmark legislation is a testament to the growing understanding that climate change poses a significant financial risk and that safeguarding public employee retirement funds means shifting investments away from fossil fuels and toward a clean energy future.

PESP testified in support of the bill, emphasizing the urgent financial imperative of ending investments in high-risk fossil fuels and seizing the opportunities to invest in the clean energy sector. As Nichole Heil, Senior Campaign Manager & Researcher, Climate at PESP, stated, “This legislation demonstrates a clear understanding that climate change is a material financial risk and that investing in fossil fuels jeopardizes the retirement security of dedicated public servants.”

The new law instructs the Oregon Investment Council (OIC) and the State Treasurer to proactively reevaluate their investment strategies, analyzing and reporting on climate risks and progress toward their goals. This includes the potential to end investments in private equity funds concentrated in fossil fuels and increase allocations to climate-friendly assets, including that the OIC and Treasurer will “Pursue the goal of reducing the carbon intensity of the fund through a preference for investments that reduce net greenhouse gas emissions in order to participate in the energy transition.” This strategic shift will not only protect public employee pensions but also champion the growth of a resilient, clean energy economy.

Oregon has now set a powerful precedent for other states across the country, proving that climate action and financial stability are inextricably linked. PESP remains committed to advocating for similar legislation nationwide, ensuring that retirement funds are protected from climate volatility and aligned with a sustainable future. We urge other states to follow Oregon’s lead and embrace responsible financial stewardship that benefits both people and the planet.