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ESG

The Freedom to Retire Sustainably: Biden takes on Trump-era rules regarding ESG funds

In the last days of the Trump administration, the Trump Department of Labor (“DOL”) finalized a rule that made it more difficult for socially conscious investments to be included in retirement plans.  The Trump-era rule discouraged employer 401(k) and other retirement plans from offering funds from managers that consider Environmental, Social and Governance (“ESG”) factors over investment returns or risk in their due diligence.  Despite this, ESG funds continue to gain in popularity, and the new Biden administration has stated that it will not enforce the Trump-era rule as it considers reversing it.