The legislation introduced Thursday would amend the Employee Retirement Income Security Act to specifically allow plans to consider ESG factors ‘when they are expected to have an impact on investment outcomes, provided plans consider them in a prudent manner consistent with their fiduciary obligations.’
The two rules were among the most heavily contested measures instituted by the DOL under former Secretary Eugene Scalia, with the 401(k) rule drawing nearly 9,000 public comments, most of which opposed it.
The agency would start reversing Trump policies like the ESG investing rule as quickly as possible.
With demand from investors growing, plan sponsors focus on their fiduciary duty.
Institutional investors use environmental, social and governance factors to align with stakeholders, according to a report by Callan.
Even as the regulator moves to stem the funds in retirement plans, there are ample opportunities, according to speakers at the NAPA 401(k) Summit.
