House Bill 2081 (2025)

House Bill 2081 (HB 2081), signed into law in 2025, mandates that the Oregon State Treasury (OST) and the Oregon Investment Council (OIC) actively manage and report on climate-related financial risks to the Oregon Public Employees Retirement System (PERS). The legislation, introduced by State Treasurer Elizabeth Steiner, aims to align PERS' investment strategies with the state’s climate goals while upholding fiduciary responsibilities.

Key Provisions of HB 2081:

Climate risk assessment



The Treasury and OIC are required to analyze and manage the risks of climate change to PERS by evaluating Scope 1 and Scope 2 greenhouse gas emissions associated with the fund's investments.

Carbon intensity reduction


The bill sets a goal to reduce the carbon intensity of PERS by preferring investments with low greenhouse gas emissions, thereby supporting a transition to a net-zero future.

Just Transition



HB 2081 emphasizes investing in public equity holdings that incorporate the principles of a just transition, ensuring that the shift to a low-carbon economy is fair and equitable.

Biennial reporting:


The Treasury is mandated to report to the Legislature every two years on:

  1. Progress toward carbon intensity investment goals.

  2. Advancements in investing in public equity holdings aligned with a just transition.

  3. Incorporation of new methodologies and advancements in measuring progress, acknowledging the evolving nature of carbon intensity metrics.


What Can We Celebrate About HB 2081 ?

  • 1. Legislative recognition of climate change risks

    Tangible legislative acknowledgement regarding the severity and impending impacts of climate change is definitely a step in the right direction. This bill signals to Oregonians, PERS beneficiaries, asset managers, fossil fuel companies, other states, and more– that the state of Oregon recognizes the current and looming economic risks associated with climate change, and is willing to take action to protect both the future of Earth and PERS. 

  • 2. Just Transition principles highlighted

    HB 2081 emphasizes investing in public equity holdings that incorporate the principles of a just transition, ensuring that the shift to a low-carbon economy is fair and equitable.

  • 3. Enforceable commitment

    While the Oregon State Treasury previously outlined intentions to decarbonize PERS through a Net Zero Plan, HB 2081 provides the first enforceable mandate. It requires the OIC and the State Treasury to integrate climate risk analysis into investment decisions, advancing Oregon towards low emission goals.

  • 4. Step in the right direction by preferring low-emission investments

    The bill stipulates a preference for investments that reduce net greenhouse gas emissions, aiming to decrease the overall carbon intensity of the PERS portfolio. This directive aligns with the broader goal of transitioning to a low-carbon economy and reflects a proactive stance in addressing climate change through financial strategies.

  • 5. Increased transparency and accountability

    The required analysis and reporting by the OST and OIC promotes transparency, allowing stakeholders and the public to monitor and hold accountable the entities responsible for managing public funds. Transparency is a large component of Divest Oregon’s demands, and will bring more accountability to the investment decisions made by the Treasury. 

What are the Shortcomings of HB 2081 ?

  • 1. Exclusion of scope 3 emissions

    HB 2081 fails to mandate the evaluation of Scope 3 emissions (indirect emissions that occur in a company’s value chain). In the oil and gas sector, these emissions can constitute the majority of a company's carbon footprint. By omitting Scope 3 emissions, the bill fails to provide a complete picture of the environmental impact, undermining efforts to fully assess and address the carbon intensity of investments.


  • 2. Lack of transparency and a plan of how to deal with private equity investments

    The bill does not require analysis or reporting on private equity holdings, despite these investments comprising nearly 60% of the PERS portfolio. Private equity funds are opaque and illiquid. This opacity can conceal significant investments in fossil fuels, posing financial risks. Without transparency in this substantial portion of the portfolio, the bill falls short of ensuring a comprehensive and honest assessment of the state's investments.


  • 3. Absence of frontline community acknowledgment

    While HB 2081 references Just Transition principles, it does not explicitly identify or define frontline or vulnerable communities. These communities, often including people of color, low-income populations, rural, and tribal groups, are disproportionately affected by climate change. Tenets of the Just Transition principle emphasize the importance of centering these voices in climate policy to ensure equitable outcomes. The bill's lack of specificity in this area risks marginalizing those most impacted by environmental degradation.


  • 4. Insufficient specificity and accountability

    Without clear definitions, timelines, and accountability mechanisms, the bill may allow for superficial compliance without substantial progress toward decarbonization. This vagueness undermines the bill's potential effectiveness in driving a transition to sustainable investment practices.