Oregon Pension Publishes Inaugural Progress Report on Net-Zero Plan

The Oregon Public Employees Retirement Fund is one of many public pension funds aiming to achieve a net-zero portfolio, despite an expected pullback in investing based on environmental, social and governance principles. The fund expects its portfolio, which today stands at about $100 billion in assets, to produce zero carbon emissions by 2050.

On December 30, 2024, the fund released the inaugural annual report on its net-zero plan, rolled out by Oregon State Treasurer Tobias Read in early 2024. As part of the plan, the fund expects to achieve a 60% reduction in portfolio emissions intensity by 2035, as based on 2022 figures.

In 2022, the fund’s public equity portfolio comprised 47% of the total portfolio emissions, 1.8 million tons. Real assets comprised 30%, 1.14 million tons. Private equity comprised 16% of the fund’s emissions, 598,157 tons. Real estate comprised 5%, 134,646 tons, and fixed income comprised 3% of OPERF’s emissions, 134,646 tons.

“From assessing heavy emitters’ transition readiness to engaging with investment managers and establishing a beneficiary advisory committee, these are critical first steps towards achieving our goals of reducing real-world emissions and ensuring the resiliency of the retirement fund,” Read said in a statement.

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So far, progress on the plan includes the appointment of an advisory group of Public Employees Retirement System members and retirees to provide feedback on the plan to the treasury. The fund also completed its assessments of carbon intensive companies in the portfolio, including those involved with coal, tar sands, oil and gas. The fund is assessing the transition readiness of these companies.

The fund also tripled its $2 billion in investments in climate-positive real assets and private equity holdings and has excluded private market funds that invest primarily in fossil fuels.