Bloomberg Law
Feb. 6, 2023, 10:02 PM

ESG 401(k) Rule ‘Misunderstood’ By Foes, Top Labor Officials Say

Austin R. Ramsey
Austin R. Ramsey

A new US Labor Department rule permitting consideration of socially and environmentally conscious factors in retirement funds has been misconstrued as a green investment mandate, according to a top agency official.

The department’s ESG rule is intended to strike a neutral tone on environmental, social, and corporate governance investment factors, Lisa Gomez, assistant secretary in charge of the Employee Benefits Security Administration, said during a Monday webinar.

Introduction of the do-good retirement investing rule in 2021 set off a whirlwind of controversy that has undermined the agency’s true objectives to “level the playing field” with respect to ESG considerations, Gomez ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.