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
Reporter

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 ...

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