Legislators move to boost ESG in 401(k)s
The legislation introduced Thursday would amend the Employee Retirement Income Security Act to specifically allow plans to consider ESG factors 'when they are expected to have an impact on investment outcomes, provided plans consider them in a prudent manner consistent with their fiduciary obligations.'
Bills introduced Thursday in the House and Senate would formally overturn the Department of Labor’s 2020 rule, Financial Factors in Selecting Plan Investments, and seek to make 401(k) sponsors more comfortable with ESG investing.
The Senate legislation, sponsored by Sen. Tina Smith, D-Minn., an
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