ESG Factors in Retirement Plan Investments

In selecting investments for qualified retirement plans, a fiduciary’s duty of prudence must be based on factors that the fiduciary reasonably determine are relevant to a risk and return analysis. The Department of Labor issued a final rule allowing fiduciaries to consider environmental (climate change), social, and governance (ESG) factors in making investment decisions; ESG factors are effectively deemed to be relevant. #IdeaoftheDay