Biden Ties ESG Retirement Investing to Government Climate Action

Oct. 14, 2021, 7:00 PM

A new U.S. Department of Labor proposal would help connect retirement savers with surging private-sector investments that promote sustainability and social consciousness by giving plan sponsors a big nudge to consider government action on climate change and social justice trends.

The Biden administration’s proposed regulation, unveiled Wednesday, seeks to undo Trump-era DOL rules that curbed environmental, social, and corporate governance investment criteria and shareholder powers. It would break new ground by directly tying the financial materiality of those considerations to actions the government has taken to address climate change—and even the Biden regulatory agenda on climate.

Fiduciaries’ duty of ...

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