If it deems it relevant, a plan fiduciary may consider ESG factors as part of its risk/return analysis, which is fundamental to the prudence requirement. It’s another financial factor, like inflation, supply chain issues, conflicts in regions where a company operates, and all the financial and economic indicators that a steward would analyze and evaluate as a prudent investment.
Is that really what’s going on with the new ESG rule?
American Retirement Association CEO Brian Graff asks the DOL’s Tim Hauser to clarify. Here’s what he says.
THE FULL INTERVIEW CAN BE FOUND HERE