Directs the Oregon Investment Council and the State Treasurer to take certain actions to manage the risks of climate change to the Public Employees Retirement Fund.

83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
House Bill 2081
Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of House In-
terim Committee on Revenue for Representative Nancy Nathanson)
CHAPTER .................................................
AN ACT
Relating to state finance; and prescribing an effective date.
Whereas the purpose of the Public Employees Retirement Fund portfolio is to seek strong re-
turns for beneficiaries, as per the fiduciary relationship described in ORS 238.660, 293.721 and
293.726 and in consideration of ORS 192.355 and contractual obligations; and
Whereas the expected global economic shifts due to a rapidly changing climate call for invest-
ment solutions that are likely to encourage a transition to a net-zero future; and
Whereas fluctuations in federal policy and market trends can have a long-term impact on an
investment strategy to address the financial risks related to a changing climate; and
Whereas the increasing frequency and severity of extreme weather events pose significant risks
to infrastructure, operations and supply chains across multiple sectors; and
Whereas the urgency justifies taking every possible action in the fund portfolio to reduce in-
vestment risks associated with a rapidly changing climate; now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1.
(1) As used in this section:
(a) “Just transition” means efforts to ensure that the transition to a low-carbon econ-
omy is fair, collaborative and inclusive.
(b) “Scope 1 emissions” means emissions from sources that a firm owns or controls di-
rectly.
(c) “Scope 2 emissions” means emissions from the production of energy used by a firm.
(2) The Oregon Investment Council and State Treasurer, in the State Treasurer’s role
as investment officer for the council, shall act reasonably and in a manner consistent with
ORS 238.660, 293.721, 293.726 and 192.355 and contractual obligations to:
(a) Actively analyze and manage the risks of climate change to the Public Employees
Retirement Fund, including reporting on and analyzing the risks of the levels of scope 1 and
scope 2 emissions of fossil fuel investments within the fund;
(b) Analyze how the integration of climate change analysis will help to achieve overall
portfolio return objectives;
(c) Pursue the goal of reducing the carbon intensity of the fund through a preference for
investments that reduce net greenhouse gas emissions in order to participate in the energy
transition; and
(d) Provide a report, in collaboration with beneficiaries of the fund, to the Legislative
Assembly each biennium about the progress toward an investment program that addresses
Enrolled House Bill 2081 (HB 2081-A) Page 1
the impact of climate change factors on the investment portfolio, which may include, without
limitation:
(A) Reporting on progress toward carbon intensity investment goals as established by the
State Treasurer;
(B) Reporting on progress toward investing in public equity holdings that incorporate the
tenets of a just transition in their overall priorities and portfolio; and
(C) Incorporation of pertinent advancements and methodologies in measuring progress
towards goals and benchmarks, recognizing that the science and methods of carbon intensity
measurement are regularly evolving.
(3) The Oregon Investment Council, jointly and individually, the State Treasurer and
employees of the office of the State Treasurer shall be indemnified and held harmless by the
State of Oregon from all claims and damages incurred pursuant to this section.
(4) Nothing in this section requires the Oregon Investment Council or the State Treas-
urer to take any action pursuant to this section unless the council or State Treasurer de-
termines in good faith that the action is consistent with fiduciary responsibilities as
described in ORS 238.660, 293.721 and 293.726.
SECTION 2. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
Passed by House May 1, 2025
..................................................................................
Timothy G. Sekerak, Chief Clerk of House
..................................................................................
Julie Fahey, Speaker of House
Passed by Senate June 16, 2025
..................................................................................
Rob Wagner, President of Senate
Received by Governor:
........................M.,........................................................., 2025
Approved:
........................M.,........................................................., 2025
..................................................................................
Tina Kotek, Governor
Filed in Office of Secretary of State:
........................M.,........................................................., 2025
..................................................................................
Tobias Read, Secretary of State
Enrolled House Bill 2081 (HB 2081-A) Page 2