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Michael Dunne: I'm Michael Dunne. If one thinks of a state as a business, it's a business that takes in a lot of money and also spends a lot of money. The entity in charge of managing where that money comes and goes is largely the state treasurer. In Oregon, our state treasurer, Elizabeth Steiner, is carrying on a tradition of investing the state's money in a variety of places, including a large portion in environmentally sustainable programs and companies. Additionally, a good deal of the state's pension program derives money from clean energy and other environmental projects. Today on the show, you'll hear from Steiner, as well as a partner in these kinds of environmental investments, the Sierra Club, and learn how clean energy has been and continues to be a good bet for Oregon's financial future. Oregon Treasurer Elizabeth Steiner and the Sierra Club's Oregon Director Damon Motz-Storey. Welcome to you both. Thanks so much for coming in.
Both: Thanks for the invitation. Thank you so much.
Dunne: Treasurer Steiner, I'm going to start with you. We want to talk about some of the climate-positive investments that the state of Oregon has made. But let's back up a bit and take us behind the curtain. How do you and your team go about making investments in general? What's the criteria?
Elizabeth Steiner: That's a great question. The first criteria is that we're investing, especially our pension fund, for the long term. Today, we are investing for April 23, 2056, and tomorrow we'll be investing for April 24, 2056. We work on a 30-year time horizon, because that's what a pension fund should do. We've got to have it available forever. So we look to diversify our portfolio across a bunch of different kinds of assets, whether that's fixed income like bonds, publicly traded stocks, private equity or a whole host of other things, so that when one part of the market does well, we do great, but we aren't dependent on that one thing because different asset classes change. We look to diversify our portfolio across different asset classes and lots of different market segments, different types of companies, different types of businesses. Some of our investments we make internally, which means we decide which company to invest in or which bonds to buy, and some of it we outsource to experienced managers who have, on the public side, what are called exchange traded funds, or on the private side, a good track record of building private equity funds that, from our perspective, behave in the right ways. With some air quotes there: they're looking to truly build value in companies.
Dunne: I know you were a champion of something called the Climate Resilience Investment Act. Tell our audience what that is and what it does.
Steiner: We're really excited about the Climate Resilience Investment Act, which we refer to as CRIA. It passed in 2025 and it's a pretty straightforward bill. It says a few things. First, it says we always have to focus on our fiduciary responsibility, which means we always need to remember that we are the stewards of the pension fund and every other large fund that the Treasury invests. Second, it says that in the context of being fiduciaries, when possible, we should focus on climate-positive investing, because that is where the world is going, and we need to work on reducing the carbon footprint of Oregon's portfolio and simultaneously make money. Third, it says we have to be transparent about it, so we have to report to the legislature every two years. We're very excited about that, and we'll be issuing our first report in January 2027.
Dunne: Damon, I'm going to go to you. How does the Sierra Club get involved in advocating for states to direct pension funds toward programs like the Climate Resilience Investment Act?
Damon Motz-Storey: We have a lot of different things that we work on, including a sustainable finance campaign that advocates with and advises different pension funds across the country on their progress toward shifting to climate-positive investments and using every tool at their disposal to push for decarbonization, climate action, climate resilience and a just transition. That means putting the most impacted people first for the benefits of the clean energy transition. It's a really rare and exciting opportunity to advocate for these issues, because a lot of people don't think about environmental justice or climate action when they think about pensions and investment policies. But it really has a huge, profound impact, and we can make a lot of positive change through the way we structure our investment policies. Oregon has been doing quite well, and we were huge supporters of the Climate Resilience Investment Act that Treasurer Steiner was just talking about.
Dunne: Treasurer Steiner, I'm going to go back to you. Is utilizing public pensions for environmental sustainability a fairly new strategy?
Steiner: Oregon has had an ESG, or Environmental, Social and Governance, lens on our investing for quite some time now. We do that because we believe those factors are material, meaning they have a financial impact on the companies we invest in. As we make decisions about which funds or companies to invest in, we are asking questions about their environmental practices, their social practices, how they treat their workers and how their boards are constructed, because the evidence shows that paying attention to those things improves the company's bottom line. And fundamentally, as a fiduciary, as the steward of a pension fund, we are obligated to think about what's going to help the companies we invest in do well. Lots of pension funds across the country are thinking hard about these issues. Many are starting to make big commitments toward climate-positive investing. We are the first state in the nation to actually pass legislation to support that.
Dunne: Damon, you mentioned that Oregon is doing pretty well with this. What do you mean by that?
Motz-Storey: I think it's just amazing that Treasurer Steiner has made climate such a big focus as our state treasurer, because we really can walk and chew gum at the same time. We can deliver strong fiduciary returns to pensioners who have dedicated their lives to public service, and that doesn't come at the expense of climate action. We can do both. And one of the things that has been most pleasantly surprising to me is that oftentimes the investments that are best for the earth and best for human public health and well-being are also the ones giving us the best financial returns. So it's just sound investment policy to be pursuing climate-positive investments. Oregon is one of only a few states in America to have both a net zero investments policy and a climate solutions investment policy. There are real plans here and, as Treasurer Steiner said, actual policy that no other state has, directing us to pursue this work. Those plans focus not just on public equities, but on real-world investments in climate solutions, assets and infrastructure. That means some of the money invested by the Oregon public pension fund is going to real projects that are building renewable energy in communities and leading to concrete benefits. Not only that, but we have a big voice in shareholder resolutions and the governance of some of the companies we're invested in, and the votes Oregon has cast on shareholder resolutions have been really strong and have made Oregon a real leader among other state pension funds.
Dunne: Treasurer Steiner, remind folks about the Net Zero program and what that means.
Steiner: My predecessor, Treasurer Read, who is now our secretary of state, issued a net zero plan in 2024. The goal is to reduce the carbon footprint of our portfolio, the emissions intensity, by 60 percent by 2035, and get us to net zero by 2050. We're making great progress toward that. We issued a net zero report in January of this year. It's available on our website, and I urge interested listeners to take a look. It shows that comparing our portfolio in 2022 to our portfolio in 2023, our emissions intensity dropped already by 50 percent. I want to be really clear: the market gets most of the credit for that, and this is to Damon's point about walking and chewing gum at the same time. It is absolutely possible, and we see this in our own portfolio, to make climate-positive investments that do really, really well. For example, one of the things the net zero plan called for was to significantly increase our investment in climate-positive real assets, things like solar installations and battery storage. We doubled that investment from $1.2 billion to $2.4 billion. Over the past five years, the climate-positive investments have returned 20 percent on average, while the carbon-intensive investments in real assets have returned 12 percent. We are making great money by doing climate-positive investing, and we think we can continue to do that.
Dunne: I know a lot of folks sometimes wonder: Does environmental sustainability actually pay off for business?
Steiner: 100 percent yes. There's a lot of conversation now about actions by the current federal administration to reduce federal investment in wind and solar projects. I'm not happy about that in the slightest, as somebody who cares deeply about the future of our planet. But that lack of investment creates more opportunity for investors like us, because the business community recognizes that we are moving toward a clean energy future.
Dunne: Damon, a lot of people may not realize how much sustainable energy, like solar and wind, has caught up to fossil fuel power generation. Talk a little bit about that.
Motz-Storey: It's true. We've reached several global tipping points where renewable energy generation is starting to outpace some older, outdated forms of energy generation, like coal power, which are incredibly dirty and polluting, both in the near term and also in driving the climate catastrophe that's unfolding. The truth is that the economy is much bigger than Trump. It's much bigger than America, and that factors into a lot of different things. There are supply chains for renewable energy that have been scaled up over time, and that does not suddenly come to a screeching halt just because Trump was elected in 2024. So I think it's important to keep an eye on the bigger picture. It is exactly true what Treasurer Steiner is saying: the economy is booming, and the renewable economy is booming particularly, even though there are serious headwinds from federal policy decisions being made in Washington. That is not stopping these projects. In fact, some of the wind projects that were slowed down by executive orders have recently been successful in overturning some of those initial roadblocks. Renewable energy is booming not just around the world, but in America, and it means that these investment opportunities are increasingly important for us to get on board with, no matter how we feel about one source of energy versus another. It's just the best financial decision. That signals that the work activists have done globally to make this an urgent issue and to push forward the existential justification for transitioning from fossil fuels to clean energy has been successful. It has moved us forward enough that we're seeing snowballing momentum. We certainly can't rest on our laurels. We have to continue making intentional choices to invest even more in these solutions. But I think we can take heart in knowing that we shouldn't collapse into a doom spiral just because we have some obstacles to progress in our capital.
Dunne: Treasurer Steiner, yesterday was Earth Day. How important is it for state governments to lead on this? It does take investment, leadership and momentum. Talk about what you and the rest of the executive office have been doing in Oregon.
Steiner: I think state action is really important. If you look at emission standards for cars, it was California that led the way, setting very rigorous emission standards many years ago. As a result, basically every car sold in the United States meets those standards, and California set the example that the federal government ultimately followed. States are, as Jefferson said, the laboratory of democracy, and we are often the places where we can get something moving faster. Gov. Brown, when she was governor, put forward an executive order because we couldn't quite get cap and trade across the finish line in the legislature. That's been a work in progress at the executive branch level, and it's been challenging in court, but we're making some progress. I had a meeting yesterday morning with a large group of climate advocates in the Eugene area, including the director of the Oregon Department of Energy, who is really committed and just put out a five-point plan on energy and environmental transition and protection for Oregon. It lays out ways we can move this conversation forward and still maintain affordability for Oregonians. Having a governor and a state treasurer and so many others committed to moving our climate and our energy utilization in the right direction makes a big difference.
Dunne: Damon, as the treasurer just said about the importance of state government leadership: The Sierra Club is obviously a very big driving force in environmental sustainability. Talk about the nonprofit community and the business community as being part of this solution.
Motz-Storey: Oregon has such a green reputation, and it's well deserved. We've often been an incubator for some of the best environmental policy ideas that we've then been able to export to other states. We had the nation's first bottle bill, which leads to such high can recycling rates. We also have really innovative land use policies that help keep urban sprawl to a minimum. These are things that are unique and very foundational to the Oregon identity. A lot of people feel really proud to be environmentalists here, and that cuts across sectors. We see a huge number of people in the business community who share these exact same values as everyday people who enjoy recreating in our outdoor spaces. There is a huge public mandate for climate action in this state, and we've seen that play out. There are a lot of amazing environmental interest groups that work together in a really unique coalition with conventional climate advocates and business leaders for climate, but also environmental justice advocates who are pushing for good community outcomes for Black and Brown communities, Native American communities and low-income folks. It's a really huge and amazing coalition of advocates that have won some amazing victories over the years.
Steiner: I just want to add one more thing. We talked earlier about the tipping point where renewable energy is now as affordable as, if not more affordable than, electricity generated by fossil fuels. One of the things I learned in my 13 years in the legislature is that it's possible to frame the same argument in different ways, and not to be disingenuous about it. It is simultaneously true that moving toward renewable energy protects our planet and helps reverse some of the challenges we're facing with climate change, and it cuts the cost of the energy that businesses use to thrive. It's really important that we have conversations that talk about all the things Damon is talking about, and also talk about the fact that to have a thriving economy in Oregon, we have to have affordable electricity. Whether that's to make sure every Oregonian can pay their electric bill without taking away from food or rent, or to make sure our businesses can pay their electric bills and grow our economy, it doesn't really matter to me. This is not an either/or. This is a both/and conversation.
Dunne: I'm going to ask you both our last question, and Damon, I'll start with you. You talked about the challenges from the federal government. What gives you optimism that not just Oregon, but the rest of the nation can push through toward net zero and these kinds of audacious goals?
Motz-Storey: What gives me hope is seeing how many everyday people have gotten organized or have spoken up about what they're unhappy about with the current administration. That speaks to a huge drive and desire among communities to push for something better, not just in the 2026 midterms, but every day.
Dunne: Treasurer Steiner, last word to you.
Steiner: There's a lot of things that give me hope. The first is that, as I said, the business community recognizes that we're past the tipping point, and that regardless of what the federal government says, we have to invest in renewable energy to continue to grow our country, to serve Americans across the country and to set an example for the rest of the world. I think the other thing that excites me is that Damon mentioned the challenges of data centers. There's a really intriguing company in Portland called Panthalassa. I urge your listeners to take a look at it. It's looking at an innovative way to use wave energy with co-located servers to handle AI calculations, which would not have the same environmental impact, would not take away from other resources and would not require clean water to cool the process. We're looking at ways to simultaneously meet the needs of a future where AI has a big role without the adverse impact Damon alluded to. There's a lot of innovation going on in Oregon and across the nation and across the world to help get us to a clean energy, less carbon-intensive future.
Dunne: She is Oregon's treasurer, Elizabeth Steiner, and he is the Sierra Club's Oregon director, Damon Motz-Storey. Really appreciate the conversation with both of you. Thanks so much.
Both: My pleasure. Thanks so much for having us.
Dunne: That's the show for today. All episodes of Oregon on the Record are available as a podcast at KLCC.org. Monday on the show, a University of Oregon political science professor will talk about the politics and political ramifications of the U.S. war in Iran. I'm Michael Dunne, host of Oregon on the Record. Thanks for listening.
