Outside Publication

Takeaways From DOL’s Final ESG Rule For ERISA Fiduciaries, Law360

November 30, 2022

Partners Elizabeth Goldberg, Julie Stapel, and Michael Richman, and associate Rachel Mann, wrote an article for Law360 outlining key takeaways of the US Department of Labor’s rule clarifying that fiduciaries regulated by the Employee Retirement Income Security Act may take into account environmental, social and governance (ESG) factors when making investment decisions. Among other things, the rule takes a “middle-of-the-road approach to ESG factors,” in making clear that consideration of ESG factors is allowed but not prescribed.

“While the final rule does give a thumbs up to ESG investing in certain circumstances, it actually deemphasizes the focus on ESG in particular and provides a broader gloss on appropriate fiduciary decision making processes in general. Notably, it does not specifically require ERISA fiduciaries to consider ESG factors in investment decision making,” the article said.

Read the full Law360 article >>