The guidance could cause plan sponsors to think twice before implementing ESG strategies, according to Alex Bernhardt, U.S. head of responsible investment at consulting firm Mercer. Last month the U.S. Government Accountability Office also asked the Labor Department to clarify its latest guidance.
But firms like Natixis, the Boston-based unit of the French bank, are moving ahead with young investors in mind. The firm started the first suite of ESG target-date funds specifically for U.S. retirement savers last year after a survey of millennials found that 71 percent would put more money in retirement plans if they thought the investments were doing social good.
This article was provided by Bloomberg News.