Just Transition and the Oregon Treasury
A Report by Divest Oregon
October 2025
Akil Mazumder
A Just Transition ensures that no one is left behind
It benefits all workers, low-income & frontline communities, and future generations.
The global transition to clean energy
is our chance to build a more sustainable future
A new future is possible.
A sustainable society that centers the well-being of people and the planet.
A Just Transition is necessary to safeguard
the long-term return on investments
Social inequality and climate change each pose a systemic risk to the global economy.
Inequality increases the probability of financial crises and depresses economic growth.
A Just Transition is a legal requirement
The Oregon Treasury's Climate Resilience Investment Act (2025) mandates that the Oregon State Treasury consider just transition principles in its public market investments.
Oregon would not be alone
Other pension funds have already committed to actions supporting a just transition.
A Just Transition requires adequate screening of investments
See Oregon Treasury’s Investment Screening Failures report.
What should be in a Just Transition Policy?
1. Free, Prior and Informed Consent (FPIC)
FPIC ensures Indigenous Peoples’ right to give or withhold consent
to any activities that affect their lands, resources, and territories.
Free, Prior, and Informed Consent (FPIC) is a safeguard against reputational and financial risk.
- When companies fail to appropriately implement FPIC, projects may be delayed or abandoned.
- Inadequate implementation of FPIC can lead to unexpected costs and lawsuits, diminished returns, and stranded assets.
For example, Oregon State Treasury’s current
portfolio includes projects that have suffered negative economic consequences due to lack of community FPIC and violations of Indigenous Peoples’ rights as
reported by Divest Oregon.
Protestors oppose the BC Coastal GasLink pipeline project in solidarity with Wet'suwet'en First Nation. Darren Taylor/SooToday
Pension funds should adopt and implement policy upholding Indigenous Peoples’ right to Free Prior and Informed Consent, to guide internal and external asset managers in the screening, monitoring and oversight of investments.
2. Labor Rights
A Just Transition ensures respect for fundamental principles and rights at work, and
be in accordance with international labor standards.
Promoting labor rights is financially prudent: workforce management practices that benefit employees are correlated with long-term value creation.
Investing in employees
such as increasing wages, enhancing benefits, and improving diversity, equity and inclusion (DEI) in the workplace ... is associated with higher return on investment capital, higher annual sales growth, and lower employee turnover. By improving health and safety in the workplace, companies can reduce costs associated with injury and illness.
My / Pexels User
Pension funds should adopt and implement policy upholding workers’ rights and establishing labor standards, to guide internal and external asset managers in the screening, monitoring and oversight of investments.
