Veto Time
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Im no fan of ESG but this seems a little hyperbolic. The administration rule simply allows their use, it doesn’t mandate them.
Im no fan of ESG but this seems a little hyperbolic. The administration rule simply allows their use, it doesn’t mandate them.
Yeah, that was my first thought, too… But, there’s nothing preventing fund managers from considering ESG anyway… There never was. Biden’s “rule” was an overly strong suggestion by the Chief Executive for plan administrators to include ESG in their calculations. The new Senate resolution is simply an extremely strong recommendation to not consider ESG in their planning…
It seems like a whole lot of sound signifying nothing on both sides…
The Brad
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Im no fan of ESG but this seems a little hyperbolic. The administration rule simply allows their use, it doesn’t mandate them.
Yeah, that was my first thought, too… But, there’s nothing preventing fund managers from considering ESG anyway… There never was. Biden’s “rule” was an overly strong suggestion by the Chief Executive for plan administrators to include ESG in their calculations. The new Senate resolution is simply an extremely strong recommendation to not consider ESG in their planning…
It seems like a whole lot of sound signifying nothing on both sides…
@LuFins-Dad said in Veto Time:
… But, there’s nothing preventing fund managers from considering ESG anyway… There never was. …
That’s wrong. The Trump administration finalized a rule in October 2020 that prevents ERISA-covered plans from investing in ESG vehicles.
https://www.marketwatch.com/story/trumps-labor-rule-discouraging-esg-investing-in-retirement-plans-is-finalized-over-swell-of-objections-11604089492
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The rule finalized Friday stipulates that fiduciaries for private pension plans covered by the Employee Retirement Income Security Act of 1974 (ERISA) cannot invest in ESG vehicles that sacrifice investment returns or take on additional risk. It specifically requires that ERISA plan fiduciaries “select investments and investment courses of action based solely on financial considerations relevant to the risk-adjusted economic value of a particular investment or investment course of action.”
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