State leaders and advocates take action to address pensioners’ financial climate risk in Oregon

State leaders and advocates take action to address pensioners’ financial climate risk in Oregon

As a record number of bills are making their way through the 2025 Oregon legislative session, the Private Equity Stakeholder Project (PESP) voiced support for two bills aimed at mitigating climate-related financial risk at the Oregon Pension Employee Retirement Fund (OPERF). 

PESP submitted supportive testimony for HB 2200 and SB 681. HB 2200 directs the Oregon Investment Council (OIC) to reduce the carbon intensity of its investments and manage the financial risk of climate change. SB 681 prohibits the OIC from making new investments in private markets funds that intend to invest in fossil fuels. 

HB 2200 was introduced by the Oregon Treasury and supports the Net Zero Plan’s goal of net zero carbon emissions by 2050. PESP’s legislative comment filed in support of HB 2200 outlined the pervasive and and intense anticipated impacts of climate change on the world’s financial system saying:

“The climate crisis is accelerating, shows no signs of abating, and projections of economic damages are skyrocketing – yet the capital markets are still lagging on an energy transition. Since 2021, the US alone experienced climate-related weather disasters costing over $460 billion that caused over 1,800 deaths.  For fiduciaries with a long-term investment horizon, the forecasts are even more alarming. Climate change damages are projected to cost $38 trillion a year by 2049, cutting nearly 20% of global income.” 

SB 681 was conceived by Divest Oregon, a statewide grassroots coalition with the goal of advocating the State Treasury to address climate change in their investments. The bill drew nearly 300 public letters of support and about 30 in opposition.  PESP’s legislative committee testimony in support of the bill used findings from the PE Climate Risk Scorecard report, of which OPERF has investments with 11 of the 21 private equity firms:

In addition to hearing from subject matter experts like PESP, the Oregon Senate heard from directly impacted stakeholders, like Stephen Siegel, a public school teacher whose pension is invested by the OIC:

These bills exemplify how fiduciaries and advocates alike see the need to address the financial risks that may lay ahead for the retirement funds of public pensioners by decarbonizing their portfolios. As state-level leaders navigate a new administration that aims to undermine efforts to curb climate change, investors, now more than ever, must protect their investments from the long-term impacts of financial climate risks.