The Oregon Investment Council, with Treasurer Tobias Read at its helm, oversees all State of Oregon investments. Here are more details about the Treasury and Oregon Investment Council.

The market size of the Retirement and Pension Plans industry in the US, measured by revenue, is $688.2 Billion in 2021.

• Preliminary data for 2020 show that pension funds held over USD 35 trillion of assets worldwide at end-2020, exceeding 2019 levels despite the headwinds due to COVID-19, according to OECD’s Pension Funds in Figures.
• A small sample of OECD pension funds alone invest at least 79 billion Euros in fossil fuel assets, suggesting that OECD pension funds may invest between 283–987 billion Euros in fossil fuel companies.
• Assuming that fossil fuel resources and infrastructure are globally phased out by 2050, these assets could abruptly devalue – perhaps by as much as $185 trillion on a global scale – as the carbon bubble bursts.

A pension fund has a fiduciary responsibility to manage the funds in its care. As the Treasury says: it “has a duty of exclusive loyalty to fund beneficiaries by ensuring that related monies are invested as efficiently and productively as possible while adhering to applicable standards of prudent judgment and care.” However, other standards are used as well: “The consideration of ESG factors within the investment decision-making framework is important in understanding the near-term and long-term impacts of investment decisions. The OIC believes that understanding how social and environmental factors impact investments is an important step towards building a more sustainable portfolio.” The Divest Oregon position is: the fossil fuel industry is no longer a prudent investment but instead is becoming more and more risky.

Absolutely! But divesting isn’t guessing the market. Given that every investment is based on an interpretation of where the market is headed, a steady trend over a decade with every indication it will continue is solid evidence upon which to make investment decisions. Portfolios that exclude fossil fuels have outperformed portfolios that include fossil fuels for over a decade.

You are describing an engagement model of change. The Oregon Treasury calls on this model whenever they are challenged to divest. Engagement is too slow and too limited in its ability to change corporate practice; while it can have some effect, it isn’t enough to meet the crisis we are in. An added note: most shareholder votes are simply advisory.

You raise the good point that it can be very complicated to define just what investments should be dropped. However, if we could divest from all the clear sources of carbonization, we would be making huge progress! And this problem has been addressed and solved, well enough, by the institutions who have already divested well over $40 trillion in fossil fuel assets. 

Energy companies are not necessarily fossil fuel companies, and one could define divestment to exclude those companies that are using green fuels such as solar. Also, our demands include: By 2026: Transparently phase out all CURRENT fossil fuel investments and move to climate-safe investments, using a social justice framework. We definitely want to enable companies leading a transition to renewables.

There are two parts to this answer. First, many companies are working to present their efforts as meaningful change when they are not. This “greenwashing” is rampant and was recently acknowledged when an Exxon lobbyist was recorded talking about this strategy–but there are a myriad of examples. Second, there needs to be a rapid shift to NO further exploration for fossil fuels and radical shifts in use of fossil fuels–tar sands and methane particularly.

Yes, and this is a concern, with North Sea holdings as one example. And, looking at the big picture, most fossil fuel repositories are controlled by state governments that are not likely to be influenced by the divestment movement. But every entity that abandons fossil fuels as an investment influences the market. Our work is to educate investors that fossil fuels are no longer a good investment–and so drive down the price. We also work to undercut demand for fossil fuels by getting insurers to stop supporting fossil fuel infrastructure projects.

Divestment is a long term strategy. The fossil fuel industry is the architect of a massively-funded disinformation campaign that has spanned decades. It has enormous influence on federal and state governments, the Supreme Court, and Wall Street. The current perception of the oil industry has been influenced by divestment as well as by climate degradation and market forces. Our goal is essentially to keep the pressure on to make clear that fossil fuel holdings are both socially unacceptable and economically risky.

The New York Times provided some helpful information about ytimes.com/2024/11/18/climate/sustainable-investing-tips-fossil-fuels.html?unlocked_article_code=1.c04.ntFG.3lFWzKLpvN6_&smid=url-share" label="" type="url" href="https://www.nytimes.com/2024/11/18/climate/sustainable-investing-tips-fossil-fuels.html?unlocked_article_code=1.c04.ntFG.3lFWzKLpvN6_&smid=url-share" target="_blank" data-runtime-url="https://www.nytimes.com/2024/11/18/climate/sustainable-investing-tips-fossil-fuels.html?unlocked_article_code=1.c04.ntFG.3lFWzKLpvN6_&smid=url-share">greening your portfolio (Nov 2024). You can also use this guide: How to move your money.

Right now, there is no Oregon 529 that's fossil fuel free!  Check out the Green 529 group - they are pressuring the College Savings Network, where the Oregon Treasurer is chair, to provide fossil fuel free funds.