The Department of Labor sent a proposed rule, titled “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights,” to the White House’s Office of Management and Budget. In the article “DOL’s New ESG Rule Under White House Review,” Ignites turned to benefits and executive compensation partner Brad Campbell for insight on the proposed rule, which is related to environmental, social and governance (ESG) investments.
“I think it’s very likely the rule will encourage consideration of material ESG factors, but I also think there is a strong chance it will go a lot further,” said Campbell. “The truth is that this will be the first major ESG regulatory statement from the Biden administration, coming well before the Securities and Exchange Commission’s regulations.”
Campbell continued, “The president issued not one, but two executive orders on this rule … an unusual amount of White House attention for an Employee Retirement Income Security Act rule,” Campbell said. “Politically, this is much bigger than the fiduciary interpretation issue at its heart.”
The full article is available for Ignites subscribers.