Consideration of environmental social governance (ESG) factors in investment decision-making for ERISA retirement plans has been a contested issue for several decades. Various presidential administrations have sought guidance from the Department of Labor (DOL) about how — or if — ERISA plan fiduciaries should value ESG components.
When plan sponsors and financial professionals choose plan investment options, their aim is to provide all participants with choices that are appropriate for their retirement savings objectives, while acknowledging that different people’s objectives are likely to vary widely.
