“We are pleased that the DOL has established a level playing field for ESG investment considerations in retirement programs, consistent with ERISA’s requirement that plan fiduciaries’ decisions be first and foremost prudent, and in the best interests of plan participants and beneficiaries,” Graff said.
Executives at fund companies that offer ESG products praised the new proposed rule.
Jim Roach, who leads marketing of Natixis Investment Managers’ ESG Target Date Fund, said he “applauds the DOL for listening to the investment community about the role of ESG in investment portfolios, and for creating a proposed rule that is clear and understandable.
“Fiduciaries should consider all the risks when evaluating investments for clients, and ESG is not a replacement for the fundamentals of sound investing, rather an extra layer of evaluation. ESG investing is clearly here to stay and we believe this newly proposed DOL rule addresses a demand of increasing importance to investors,” Roach said.
The public has 60 days after the rule is formally published in the Federal Register to comment on the proposal.