Biden Labor Agency Won’t Enforce Trump-Era ESG, Proxy Rules (1)

The U.S. Labor Department won’t enforce two Trump administration rules widely regarded as attempts by the prior administration to curb retirement investments in environmental, social, and corporate governance funds.

The Employee Benefits Security Administration said in a policy statement Wednesday that it wouldn’t enforce the Trump-era investment duties or proxy voting rules nor pursue enforcement actions against plan fiduciaries who fail to comply with them. Officials said the department will revisit the rules.

Discussions with stakeholders led EBSA senior staff to conclude that both rules had created a perception that fiduciaries were at risk if they evaluated ESG factors as ...