- In an announcement last week about the final rule last week, the department criticized the Trump administration, saying it has concluded that two rules issued in 2020 “unnecessarily restrained plan fiduciaries’ ability to weigh environmental, social and governance factors when choosing investments, even when those factors would benefit plan participants financially.”
Labor Secretary Marty Walsh said the rule “clarifies that retirement plan fiduciaries can take into account the potential financial benefits of investing in companies committed to positive environmental, social and governance actions as they help plan participants make the most of their retirement benefits.”
ESG, which has been slammed by Rep. Chip Roy (R-Texas) as a “woke scam,” seeks to leverage investments to urge corporations to adopt progressive environmental and social policies.
