Bend, OR – In a significant step toward sustainability, Oregon State Treasurer Tobias Read has announced the release of the first annual progress report on the state’s Net Zero Plan for the Oregon Public Employees Retirement Fund (OPERF). The initiative, launched in early 2024, aims to transition the fund’s portfolio to net-zero carbon emissions by 2050, aligning financial strategies with Oregon’s climate goals and ensuring the long-term resilience of the state’s public employees’ retirement system.
The report, which highlights the first-year progress of the ambitious plan, outlines key accomplishments and sets the stage for continued efforts toward achieving a carbon-neutral investment portfolio. According to Treasurer Read, the initial year has been foundational in assessing climate risks, engaging with stakeholders, and laying the groundwork for future action.
One of the most notable accomplishments of the past year was the formation of a Beneficiary Advisory Group. This group, made up of active and retired members of the Oregon Public Employees Retirement System (PERS), has been tasked with providing feedback and insights directly to the Treasury on the Net Zero Plan’s progress. The group’s input will be critical as the Treasury continues to shape its investment strategy in response to climate change.
Another milestone highlighted in the report was the completion of an assessment of carbon-intensive industries within the OPERF public equity portfolio. This analysis aimed to evaluate the readiness of companies in these sectors to transition to cleaner energy sources. The Treasury identified those companies requiring more focused engagement and outlined plans to address transition challenges in high-emission sectors.
Additionally, the report details in-depth efforts in shareholder engagement and advocacy. The Treasury has been actively collaborating with investment managers and other stakeholders to push for greater corporate transparency and accountability on sustainability issues. This advocacy is central to the Net Zero Plan’s long-term goal of reducing carbon emissions across the portfolio while encouraging companies to adopt sustainable business practices.
The Net Zero Plan has been designed with an emphasis on balancing sustainable investment returns with the Treasury’s fiduciary responsibility to OPERF beneficiaries. Treasurer Read emphasized that the plan is not just about reducing carbon emissions, but also about ensuring the resilience of the retirement fund in the face of climate-related risks.
“We are committed to ensuring that Oregon’s public employees can rely on the long-term stability of their retirement fund,” said Treasurer Read in a statement. “The progress reflected in this report demonstrates our dedication to both the health of the fund and the broader climate goals that benefit all Oregonians.”
The plan identifies a series of short- and long-term actions the Treasury will take to achieve net zero emissions. These include investing in renewable energy and low-carbon industries, while simultaneously reducing exposure to high-emitting sectors. The Treasury will also continue to conduct rigorous climate risk assessments across the portfolio and collaborate with companies and policymakers to advocate for sustainable practices.
As of November 30, 2024, the Oregon Public Employees Retirement Fund was valued at $100.9 billion. This fund plays a critical role in meeting the long-term retirement obligations for public employees across Oregon. The Treasury is responsible for ensuring that these obligations are met while managing over $476.8 million in monthly pension payments to retirees.
Treasurer Read emphasized that the Net Zero Plan will not only help reduce the carbon footprint of the fund but will also strengthen its ability to meet future obligations. By aligning investments with the state’s long-term environmental and economic goals, the Treasury aims to protect the fund’s performance and contribute to a sustainable future.
With the foundation laid in 2024, the Oregon State Treasury is committed to building on this progress in the coming years. The report notes that future efforts will focus on expanding the scope of carbon assessments, deepening engagements with high-emission companies, and advocating for stronger sustainability policies at both the corporate and governmental levels.
“As we move forward, our work will continue to focus on both achieving real-world emissions reductions and ensuring that OPERF remains a reliable source of retirement security for Oregon’s public employees,” Treasurer Read concluded.
The Net Zero Plan represents a bold step for Oregon in integrating climate action into its financial management, and the 2024 progress report highlights the state’s commitment to creating a more sustainable and resilient future for its public employees and retirees.
