Why is Treasurer Read’s Net Zero Plan significant?

• It acknowledges that climate change risk is a financial risk to the Oregon Public Employee Retirement System (PERS) that threatens the benefits for retired state employees and commits to mitigating that risk.
• It brings the Oregon Treasury in line with all other State agencies that were mandated by executive order in 2020 “to take actions to reduce and regulate greenhouse gas emissions” (Governor’s Executive order 20-04).
• It commits to measurably reducing the “greenhouse gas footprint” of the PERS retirement fund and begins by partially quantifying that footprint with industry standard methodology.
• It includes private investment funds in the emissions analysis, which most other such plans omit.
• It takes several immediate steps to begin to address PERS financial climate risk:
• It commits to no new investments in private funds that are “primarily” (undefined) fossil fuel focused.
• It directs Treasury staff to review publicly traded investments that derive >20% of revenues from thermal coal, oil sands and fracked shale oil and gas by February 2025.
• It calls for increased staffing at Treasury to be able to implement other longer-term strategies for mitigating climate risk.
• It sets specific targets for OPERF emissions reductions, although they are very long term (2035 and 2050).

While a significant event, the Net Zero Plan also contains significant weaknesses and raises many questions:

1. Will the Net Zero Plan actions occur soon enough to protect OPERF beneficiaries from climate risk?

2. Is the Net Zero Plan’s measurement of investment emissions comprehensive enough to identify all of OPERF’s significant climate financial risk?

3. Will engagement with fund managers and companies to ensure OPERF investments have “climate-or-transition aligned” or “credible net zero transition plans” – the Net Zero Plan’s core strategy – be effective?

4. How will PERS beneficiaries and the public know this plan is working to protect pensions with the urgency called for by accelerating climate change? 

5. How will the Net Zero Plan become a formal OIC policy? 

6. Why is the Net Zero Plan limited to OPERF? 

Read the report to learn more.