Oregon Treasury's

"Climate Resilience Investment Act"

HB 2081

House Bill 2081, once signed into law, 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 the PERS fund by evaluating the Scope 1 and Scope 2 greenhouse gas emissions of the fund's investments.

Carbon Intensity Reduction


The bill sets the goal of reducing the carbon intensity of PERS investments by favoring  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, in an effort to ensure 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.


Why Divest Oregon Supported HB 2081

  • 1. Legislative recognition of climate change risks

    Divest Oregon has demonstrated that the effects of climate change endanger the fiscal viability of the PERS fund. The Treasury’s own data outline the risks. This bill signals to Oregonians, PERS beneficiaries, asset managers, and fossil fuel companies that the state of Oregon recognizes the current and looming economic risks associated with climate change, and is willing to take action to protect the future of PERS.

  • 2. Just Transition principles highlighted

    HB 2081 emphasizes investing in public equity holdings that incorporate the principles of a just transition, to ensure 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 the risks of climate change to PERS investments.

  • 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. 

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. OST’s private equity funds are shielded from disclosure to the public (opaque) and locked in for up to 10 years, making them difficult to sell (illiquid). This opacity can conceal significant investments in fossil fuels, posing financial risks. Because it does not require transparency in this substantial portion of the portfolio, the bill falls short of ensuring a comprehensive and honest assessment of the state's investments. Refer to our efforts to remedy this in SB 681. 


  • 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 just transition.