The DOL’s About-face on ESG for ERISA Plan Fiduciary Investment Decision-making

In the latest installment of our Ropes & Gray podcast series addressing emerging issues for fiduciaries of 401(k) and 403(b) plans to consider as part of their litigation risk management strategy, ERISA and benefits partner Josh Lichtenstein, benefits consulting group principal David Kirchner, and benefits consultant Aneisha Worrell revisit the Department of Labor’s (DOL) regulation of ERISA investment duties and ESG considerations, and in particular, its recently re-proposed rule. As compared to the prior rule passed by the Trump administration at the end of last year, which Messrs. Lichtenstein and Kirchner and Ms. Worrell discussed in the first episode of this series in February, the latest proposal signifies a major shift in the Department’s attitude towards ESG factors, and if finalized, would significantly alter the investment landscape for ERISA plan sponsors and fiduciaries.

Please stay tuned for part two of this discussion, where we will discuss the implications of the DOL’s ESG proposal for asset managers.