Oregon Treasurer Elizabeth Steiner has taken a firm stance in the fight against the effects of climate change on public funds, specifically urging state legislators to pass House Bill 2200, which aims to shield the Oregon public employee retirement fund (OPERF) from the financial pitfalls associated with investments in carbon-emitting companies. In a deliberate testimony before the House Committee on Emergency Management, General Government and Veterans, Steiner highlighted the real-world devastation that climate change is delivering to local communities and businesses, highlighting the necessity for OPERF to evolve its investment strategies in anticipation of a global shift toward sustainable energy sources, according to a report by the Oregon Treasurer's Office.
With Oregon encountering an array of climate-induced tribulations such as heatwaves, wildfires, and droughts, Steiner's call to action reflects an urgent need to proactively address the inherent financial risks of clinging to the old carbon economy, and concurrently OPERF has made strides to embrace climate-positive investments, seeing a 20% increase in energy transition infrastructure since 2016, even though fossil fuel investments represented a shrinking but still significant $3.6 billion of the portfolio back in 2021, "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," Steiner said, emphasizing the link between safeguarding the financial future of retirees and the broader imperative of protecting the climate, according to the press release.
The updated version of HB 2200 that Treasurer Steiner has thrown her support behind includes several key provisions, such as affirming that investment decisions must take into account climate-related financial risks, a preference for investments that support a climate positive agenda, the requirement for comprehensive biennial Treasury reports to the Legislature, and the identification of climate positive investments as a priority for their potential for attractive returns. This legislation piece would simply serve as the next coherent step following former Treasurer Read's 2024 "A Pathway to Net Zero" declaration, setting a bold aim for OPERF to reach net zero emissions by the mid-21st century, as stated in the press release.
Reaffirming her allegiance to the Net Zero goal, Steiner stated in her testimony, "Climate change threatens the long-term performance of OPERF, which is why Treasury set the Net Zero goal," this pledge mirrors the broader sentiment that as the inevitability of climate change looms over us, it brings with it an opportunity to capitalize on the emerging clean energy market which could offer substantial profits for investors who are willing to adapt, 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, as per the press release.
For those interested in following the legislative developments or viewing the public testimonies regarding HB 2200, the House Committee on Emergency Management, General Government and Veterans offers a live feed of the hearings, along with archives of prior sessions, accessible on their official website.
