Partner Elizabeth Goldberg and associate Rachel Mann wrote a Law360 Expert Analysis article discussing the congressional, judicial, and state legislative activities regarding environmental, social, and governance (ESG) investing that have added complexity to retirement plan fiduciaries.
Elizabeth and Rachel note that these developments underscore the care and diligence that fiduciaries regulated by the Employee Retirement Income Security Act of 1974 (ERISA) should use when considering ESG factors in investment decisions made regarding plan fiduciaries.
“These new laws and court challenges are unlikely to ban ESG disclosures entirely — rather, they will likely serve to hone fiduciary focus on how to consider and, as appropriate, incorporate ESG factors into the ERISA investment decision-making process,” they wrote.