Moratorium on PERS Private Investments in Fossil Fuels

The Oregon Treasury's "Climate Risk Assessment" Report (Oct 2021) & “Climate Risk Scenario Modelling” Report (Feb 2022) commissioned by the State Treasurer showed that the state’s investments are at significant risk under current investment strategies due to climate change. The impacts of the changing climate pose risks to supply chains, threaten property and transportation infrastructure, force insurance companies to pull out of entire geographic areas, and disrupt commodity markets. Private investments comprise approximately 60% of the PERS portfolio, are illiquid, long term contracts of 10-12 years, and account for about half of the carbon emissions of the PERS portfolio. 

The moratorium on long-term private investments in fossil fuels outlined in this 2025 bill will address the urgency to not dig the hole deeper while the Treasury is starting to implement the Treasurer’s Net Zero Plan. With a 5-year moratorium, this bill will ensure legislative accountability and leadership while giving the Treasury time to transition toward a model of investing in a green future, choosing safer investments for Oregon’s public employees. 

This bill codifies a key aspect of the Net Zero Plan. The Treasurer and Oregon Investment Council have asked the legislature, in their October 2021 letter to the legislature, to provide this type of guidance. The legislature needs to provide this continuity of investment trajectory, since Treasurers are elected every 4 years.