Jan 30, 2023
A new Biden Administration rule took effect Monday, allowing retirement plan administrators (fiduciaries) to base investments on Environmental, Social and Governance (ESG) goals, rather than only on the maximum financial benefit of their clients. The U.S. Department of Labor released the final rule under the Employee Retirement Income Security Act (ERISA) to allow plan fiduciaries to consider climate change and other environmental, social, and governance (ESG) factors when they make investment decisions and when they exercise shareholder rights, including voting on shareholder resolutions and board nominations.