Investment plans could consider ESG initiatives under Biden plan to revoke Trump guidance

By Levi Sumagaysay, Oct 15, 2021

The Biden administration has proposed changes to make it clear that administrators of retirement-investment plans can consider environmental, social and governance factors in their investment decisions.

The proposal is in line with President Joe Biden’s executive order to safeguard Americans’ financial security from climate-related financial risk, according to the Department of Labor. It follows through with the current administration’s decision not to enforce the rules finalized under the Trump administration last year, which contained language requiring retirement-plan fiduciaries to make investment decisions based solely on “pecuniary,” or financial, factors.

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