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Are Things Heating up for ESG?

ESG Investing

There’s been a lot of shifting in the ESG dialogue and debate these past two years—this week, we’d like to know where you stand today—and if/how that’s been influenced by those shifts.

A little over two years ago, the Trump Administration stirred things up with its proposal about ESG (environmental, social and governance) investments and retirement plans. Since then, the Biden Administration has weighed in with a very different take (after announcing it wouldn’t enforce the final rule from the Trump Administration)—this week we’d like to know how you—and your plan sponsor clients—are feeling about the issue.

Yes, even as we wait for the Biden Administration’s final proposal, the tides—both for and against that emphasis—seem to be strengthening, leading some states to specifically preclude ESG as a consideration in their investment pools (though others have long embraced it), while legislation has been introduced in the U.S. Congress to curb those investments in retirement plans. 

In July 2020, we asked NAPA-Net readers to weigh in on the subject—and a year later we asked again. It’s fair to say there’s been some shift in sentiment(s) as the subject garners more discussion and focus. But that, as they say, was then. 

This week we thought we’d check in again to see not only how you’re feeling about the topic, but how your plan sponsor clients and prospects are feeling about things now—and how, or if, that’s changed.

You can reply to this week’s NAPA-Net Reader Radar poll at https://www.research.net/r/GVV868G

 

 

 

 

 

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All comments
Bo Agan
1 year 7 months ago
Just my 2 cents... As some one who works at the RIA/BD level we hardly ever have anyone ask for ESG products to be placed in the lineup. If it doesn't pass the IPS criteria and has to be excluded from overall monitoring for a participant, over time, this could potentially lead to several funds being included and not included in the monitoring process adding to the confusion when articulating to a PS all that is going on. Seems easier to have all this done via a Self directed brokerage account when they seek funds/ETF's for crypto, ESG, etc.
Timothy Brown
1 year 7 months ago
My experience has been exactly the same. Our clients and prospects are not asking about it. And our IPS does not mention ESG, and we do not anticipate that changing.
Timothy Brown
1 year 7 months ago
My experience has been exactly the same. Our clients and prospects are not asking about it. And our IPS does not mention ESG, and we do not anticipate that changing.