As we count down these last few days before the Biden Labor Department finalizes its new rule on environmental, social, & governance (“ESG”) investments, the big question is: when will fiduciaries be permitted to take ESG values into account when making investment decisions for 401(k) plans? The Department of Labor, which sent its final version of the rule to the White House for approval, has wrestled with when and how fiduciaries can consider non-economic ESG factors for over 30 years, and it has issued guidance in each of the Clinton, Bush, Obama, and Trump administrations. If the regulatory instability has you worried, we’re here to help.
In the BenefitsPro article, “A New ESG Rule’s Coming, But Is There Investor Demand for These 401(k) Funds?”, Groom principal Kevin Walsh and associate Jacob Eigner address the partisan divide on considering ESG factors in investments, what the Biden administration’s ESG rule may require, and the arguments for and against ESG considerations in 401(k) plans.
To read the article, click here.
