“Secretary of Labor Eugene Scalia explained the rationale for the new rule: ‘Private employer-sponsored retirement plans are not vehicles for furthering social goals or policy objectives that are not in the financial interest of the plan. Rather, ERISA plans should be managed with unwavering focus on a single, very important social goal: providing for the retirement security of American workers.‘”
[COMMENTARY] One can sense the US administration’s frustration with the growing importance of ESG by fund managers. How about the fact that ESG funds are outperforming their conventional counterparts? Isn’t that evidence of providing the best opportunity of providing for the retirement security of American workers.?
How To Read The Proposed New ERISA Rule And What It Gets Wrong On Sustainable Investing, by Bhakti Mirchandani, June 25, 2020, Forbes, USA.