Oregon

Title

Key Dates

Nature of
Action

ESG Category

Summary

Effective date
1/1/2025

Adopted
4/10/2024

Introduced
2/5/2024

Treasurer Releases Statement on Decarbonization

Adopted and in effect
11/16/2022

Treasurer Position

Promote Divestment from Certain Industries

■Underlining the importance of achieving net zero emissions by 2050 and outlining a plan to do so, including a review of carbon intensive investments.

Oregon Investment Council Formally Integrates ESG

Adopted and in effect
9/14/2020

IPS Revisions

Promote ESG Factors in Investment and/or Proxy Voting Decisions

■Recognizes that integrating ESG factors into investment decisions may improve the economic outcome of investments and aid in risk assessment.

Title

Key Dates

Nature of
Action

ESG Category

Summary

 ■ Stipulates that a fiduciary shall discharge the fiduciary’s duties with respect to a pension benefit plan: (1) solely in the pecuniary interest of the participants and beneficiaries for the exclusive purpose of: (a) Providing pecuniary benefits to participants and their beneficiaries. A fiduciary’s evaluation of an investment, or evaluation or exercise of any right appurtenant to an investment, must take into account only pecuniary factors. A fiduciary may not promote nonpecuniary benefits or any other nonpecuniary goals. 

■ Environmental, social, corporate governance and other similarly oriented considerations are pecuniary factors only if they present economic risks or opportunities that qualified investment professionals would treat as material economic considerations under generally accepted investment theories. The weight given to those factors must solely reflect a prudent assessment of the factors’ impact on risk and return. A fiduciary considering environmental, social, corporate governance or other similarly oriented factors as pecuniary factors shall examine the level of diversification, the degree of liquidity and the potential risk-return in comparison with other available alternative investments that would play a similar role in the plans’ portfolios. Any pecuniary consideration of environmental, social or corporate governance factors must necessarily include evaluating whether greater returns can be achieved through investments that rank poorly on such factors.

■ All shares held directly or indirectly by or on behalf of a pension benefit plan or the beneficiaries of a plan shall be voted solely in the pecuniary interest of plan participants. Voting to further nonpecuniary, environmental, social, political, ideological or other benefits or goals is prohibited.

SB681: Ban on investing State Treasury assets in private funds that deal heavily in fossil fuels.

Introduced
1/13/2025

Legislation

Promote Divestment from Certain

■ Prohibits the State Treasurer from renewing investments in or making new investments in a private market fund if the managers of the fund have stated an intention to "invest in fossil fuels," subject to fiduciary duties. Sunsets on January 2, 2031. 

■ “Invest in fossil fuels” means to make investments, or to intend to actively consider
making investments, of at least 10 percent of assets under management in companies engaged in any combination of: (A) Producing, exploring for or extracting fossil fuels; (B) Transmitting or exporting fossil fuels; (C) Creating, maintaining or dealing in infrastructure dedicated to fossil fuels, including pipelines and terminals; and (D) Refining or processing crude oil or natural gas.

HB2200: Relating to sustainable investing.

Introduced
1/13/2025

Legislation

Promote Divestment from Certain Industries

■ Directs Oregon’s Investment Council and the State Treasurer to take certain actions to reduce the carbon intensity of state investments and address certain investment risks relating to climate change. Directs the State Treasurer to report on the carbon intensity of certain investments and to make efforts to achieve net zero carbon emissions within the fund by the year 2050. 

Title

Key Dates

Nature of
Action

ESG Category

Summary

HB3478: Relating to Climate Risk Disclosures

Introduced, but did not pass in the 2023 legislative session

Legislation

Promote Divestment from Certain Industries

■Requires State Treasurer to make climate risk disclosures to potential investors when marketing securities, including bonds or finance agreements.

HB3219: Relating to pension benefit plans offered by public bodies

Introduced, but did not pass in the 2023 legislative session

Legislation

Restrict Use of ESG Factors; Focus on Pecuniary Characteristics

■Requires fiduciaries of pension benefit plans offered by public bodies to consider only pecuniary factors. Environmental, social, corporate governance and other similarly oriented considerations are pecuniary factors only if they present economic risks or opportunities that qualified investment professionals would treat as material economic considerations under generally accepted investment theories.

■Requires that all shares held directly or indirectly by or on behalf of a pension benefit plan or the beneficiaries thereof to be voted solely in the pecuniary interest of plan participants.

HB2601: Requiring State Treasurer to Divest from Certain Carbon-Intensive Investments

Introduced, but did not pass in the 2023 legislative session

Legislation

Promote Divestment from Certain Industries

■Requires the State Treasurer to ensure no carbon-extensive investments are acquired for any investment fund and prohibits the State Treasurer from executing or renewing contracts that would result in any such acquisitions.

■The State Treasurer shall exit from any publicly traded investment held in an entity listed on the Carbon Underground 200 within six months, any publicly traded investment held in an entity listed on the Urgewald Global Coal Exit List or the Urgewald Global Oil and Gas Exit List within two years, and all carbon-intensive investments (whether or not publicly traded) no later than January 1, 2035.