Posted on 11/23/2022 6:07:53 AM PST by Red Badger
The Labor Department cleared the path for employers to consider environmental, social, and governance principles when choosing investment funds for their 401(k) plans.
The move, which was announced on Tuesday, rolls back restrictions put in place during the Trump administration that made ESG considerations more challenging for employers. The final rule on the matter will take effect in 60 days.
REPUBLICANS AIM TO TURN ESG INTO 2024 LIABILITY FOR DEMOCRATS
The change is part of a broader push in favor of the ESG movement that has pleased Democrats and earned derision from Republicans.
The previous restrictions “unnecessarily restrained” plan fiduciaries’ ability to weigh ESG factors when picking investments, even when those factors would benefit plan participants financially, the Labor Department said in a news release.
“Today’s rule clarifies that retirement plan fiduciaries can take into account the potential financial benefits of investing in companies committed to positive environmental, social, and governance actions as they help plan participants make the most of their retirement benefits,” Labor Secretary Marty Walsh said.
“Removing the prior administration’s restrictions on plan fiduciaries will help America’s workers and their families as they save for a secure retirement,” he added.
The change is welcome news for those involved in pushing for ESG investing, which includes major financial institutions such as BlackRock. Other agencies, including the Securities and Exchange Commission, have also pitched rules aimed at expanding the ESG movement.
For instance, the SEC proposed a rule to compel companies to disclose climate-related risks, a policy that would lead to indirect pressure on the private sector to turn away from fossil fuels and reduce carbon emissions.
Republicans have been fighting against the growing wave of ESG investing. They contend that the concept runs counter to the most fundamental tenet of investing, which is to return value. Opponents of ESG contend that it uses finance as a vehicle to achieve political ends rather than simply making the biggest gains possible.
BlackRock has been the biggest target in the GOP crusade against ESG. Earlier this month, South Carolina Treasurer Curtis Loftis’s office confirmed it will be divesting all its BlackRock holdings. Several other states also divested from the firm.
Some, including West Virginia Treasurer Riley Moore, expect the fight over ESG to grow and become more prominent as it becomes increasingly wedged into the national political debate.
“It’s gonna be part of this national conversation, I think. If you’re at the national level, they are talking about this issue,” Moore told the Washington Examiner during a recent interview.
Made available and ultimately a required 401k holding?
if this dumba$$ had done nothing (after stealing the election) except play golf, he would have gone down as one of the greatest presidents ever.
I don’t care if there are ESG funds available in my 401(k) as long as there are regular index funds as well.
Everything that is allowed is compulsory...........
death by 1000 cuts...
If all corporations, funds and all indexes are REQUIRED to be ESG.......................
ESG: Extra Stupid Globalists.
Biggest fraud in history - FTX - had the highest ESG score.
bmp for later
The left will have to generate numerous Dorkbama-level “judges” in order to counter the numerous lack of fiduciary care suits from the poor folks unfortunate enough to allow their monies to be invested in woke companies. And we will also have to generate numerous guillotines to take care of the public demands after we spend a winter or two suffering from cold and starvation. Oh, those guillotines will need rusty and very dull blades. I cannot wait to watch. And rest assured, it’s gonna happen.
So the unions will be “ encouraged’ to invest their pension funds into federal govt-approved climate schemes run by progressive liberal activists…what could go wrong?
Ummm…Solyndra?
Does this mean we can use the identity of ESG funds to screen them out of our investments? Sort of a red flag if they green flag?
Yep! A great idea!.... STAY WAY FROM THEM!.................Leftists never think about the consequences of their actions!..........
Black Rock thanks you Brandon for all the money you send their way.
Does the Big guy get 10%?
5.56mm
ESG in 401k’s is ridiculous, of course. But, it’s THIS STUFF that gets RINO’s really exercised - not the base’s concerns of inflation, energy, open borders, or perverts in schools.
It’s a threat to their personal retirement largesses that worries them most.
“It’s a threat to their personal retirement largesses that worries them most.”
Why is it that none of these “public servant” SOB’s are never audited? Gotta wonder how they become millionaires after a few years of “serving the people”.
“Consider” will soon be “mandatory”
The GOP could have done something about it during Trump's first two years, but they did nothing (which is why Trump had to take ESG on via rule changes). It will just be another campaign pledge that will never be fulfilled.
Sure glad I NEVER had any such thing.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.