Oregon Investment Council, Tigard, amended its investment policy to adopt a set of environmental, social and governance principles to its statement of investment and management beliefs.
The council, which runs the $76.8 billion Oregon Public Employees Retirement Fund, approved the integration of ESG into the statement at its Sept. 9 meeting, spokeswoman Rachel Wray confirmed in an email.
The statement reads that the integration of ESG factors "may have a beneficial impact on the economic outcome of an investment and aid in the assessment of risks associated with that investment."
Commenting on the inclusion, Oregon state Treasurer Tobias Read, a member of the council, said in a Monday news release: "By formalizing our expectations that ESG is an important facet to consider as we evaluate investment opportunities, we're saying to the companies and managers we invest in that how you do your work matters. We're also confirming to staff that improving our understanding of how ESG relates to the bottom line matters, too. The revised policy will help us continue to apply a high standard to how we invest money on behalf of Oregonians."
While the council informally included ESG factors in the assessment of managing assets for the Public Employees Retirement Fund, this is the first formal resolution to integrate ESG factors into the management of the fund, the news release said.