Oregon's Treasury is rolling up its sleeves to cut carbon emissions from its state pension fund. In a big eco push, a strategy was unfurled yesterday aiming to slash carbon emissions to net zero by the midpoint of this century. The plan, with details handed to the Oregon Investment Council by Treasurer Tobias Read, spells out a number of commitments for greening the Oregon Public Employees Retirement Fund (OPERF) by 2050.
OPERF, with assets totaling a hefty $93.8 billion as of January 2024, is now aiming to reduce its carbon emissions intensity by a significant 60% by 2035. In his presentation to the Council, Read, who spearheaded the yearlong blueprint crafting, announced plans to triple the fund’s climate-positive investments to $6 billion and increase its percentage of environmentally-aligned public equity holdings. Read was quoted in an official statement from the State of Oregon, saying, "The impacts of climate change are being felt across the globe, including in Oregon. Planning and taking action now to address the investment risks – and opportunities – of the climate crisis is a critical next step."
New private market fund investments that major in fossil fuels are now out of the picture, and the plan also envisions a beefed-up chunk of the portfolio pushing for credible net zero transition plans. This initiative leaps beyond just sweeping the emissions under the rug, shifting the onus onto someone else. Rather, the strategy is rooted in financing climate solutions while bolstering shareholder engagement to push for real-world emission slashes.
With Read at the helm, the Treasury has been crunching numbers, rallying stakeholders, and plotting with consultants to get a grip on the climate risks OPERF faces. Oregon Governor Tina Kotek threw her weight behind the initiative, saying in a nod to Read's leadership, "We know the climate crisis is already impacting Oregon, so we need to push with every innovation we can." Firefighter and legislator Representative Dacia Grayber, who daily faces the perils of climate change, called the plan "a critical first step."
Multiple voices chimed in, hailing the policy, from those in education like Reed Scott-Schwalbach of the Oregon Educators Association to union leaders like SEIU Local 503 President Mike Powers. The tight-knit circle of advocates in Divest Oregon is also among the supporters, valuing regular discussions with the coalition to ensure that fund investments remain both savvy and sustainable. However, as the Divest Oregon coalition notes, "But this is just the beginning: the success of this decarbonization effort requires the Treasury's commitment to transparent reporting, a sense of urgency, and responsive policy-making," as stated by the State of Oregon.
With a portfolio emissions baseline covering 80% of total assets, touted to be among the top percentages in North America, Oregon's Treasury is ready to set the wheels in motion with a few steps taken immediately. Yet, as Read presented, there's more homework to be done this year, from conducting a carbon-intensive stock-take of public holdings to transparent reporting meters, all gearing towards a greener future for Oregon and its public workforce.
