Bloomberg Law
May 25, 2018, 2:21 PM

Labor Dept. Asked to Clarify Social Investment Guidance

Madison Alder
Madison Alder

The Government Accountability Office is calling on the Labor Department to further clarify guidance it recently issued on “do good” investments by retirement plans.

The federal auditor’s May 22 report comes just a couple of weeks after the DOL in a field assistance bulletin (FAB 2018-01) advised plan fiduciaries to be wary of making environmental, social, and governance—or ESG—investments that have a negative impact on plan participants. The DOL also advised fiduciaries to avoid tying up too many plan funds in shareholder activism.

The DOL’s guidance came out after the agency reviewed a draft of the GAO’s general ...

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