ESG investment considerations – DOL releases pecuniary criteria for 401(k) plan fund selection
Abstract: Interest in “socially responsible” investment funds for retirement plans isn’t new. However, plan sponsors need to be mindful of the shifting regulatory landscape for funds that factor in the environmental, social and corporate governance (ESG) practices of potential investments. This article reviews the U.S. Department of Labor’s recently issued final regulations regarding investment decisions by plan sponsors. A short sidebar looks at the growth of ESG funds.