Congressman Andy Levin (MI-09), Congresswoman Cindy Axne (IA-03), Congresswoman Suzan DelBene (WA-01) and Congressman Jesús G. "Chuy" García (IL-04) led their colleagues in a letter to Secretary of Labor Marty Walsh inquiring about the Department of Labor's (DOL) plans regarding environmental, social, and governance (ESG) investing.
While the Trump Administration-instituted "Financial Factors in Selecting Plan Investments" rule is no longer being enforced, new regulation is necessary to mitigate the perception that fiduciaries face legal risks when utilizing ESG principles in potential investments. As workers strive to see their retirement investments reflect their values, the Department of Labor should clarify that fiduciaries can offer ESG plans without consequence.
"ESG investing is growing at a tremendous rate. In 2020 alone, $51.1 billion in net investments went into sustainable funds, nearly double the previous annual record," the lawmakers wrote. "We believe this is evidence of workers' desire to make sure that their retirement investments reflect their values. This desire is backed up by evidence that shows that investments that consider ESG principles generally performed as well as or better than comparable conventional investments. Workers do not have to make a trade-off between getting a return on their investments and their principles, and the rules and regulations governing pension investments should not force them to. Instead, those rules should provide clarity so that sustainable investing is not burdensome."
Levin, Axne, DelBene and García were joined by Terri Sewell (AL-07), Carolyn Maloney (NY-12), James Langevin (RI-02), Suzanne Bonamici (OR-01), Rashida Tlaib (MI-13), Mondaire Jones (NY-17), Judy Chu (CA-27), Michael San Nicolas (Guam-At Large) and Jimmy Panetta (CA-20).
Source:https://andylevin.house.gov/media/press-releases/levin-axne-delbene-garcia-question-department-labor-sustainable-investing
