In “DOL’s final ESG rule puts an end to Trump administration restrictions,” benefits and executive compensation partner Brad Campbell talked to InvestmentNews about the Department of Labor’s (DOL) final environmental, social and governance (ESG) rule. Campbell said it is an improvement over its original proposal because the final rule took “a more neutral stance” toward ESG investing.
“It makes clear fiduciaries may appropriately consider ESG factors but does not mandate their consideration,” Campbell explained. “The final rule returns the authority to fiduciaries to decide what is relevant to their investment decision making and reiterates that the goal is to provide for the economic security of plan participants.”
Regarding a change from the original proposal to the final rule, Campbell stated that such changes take the “thumb off the scale” that favored ESG investing. He added, “This rule doesn’t allow fiduciaries to place political considerations ahead of participants’ economic interests.”
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