By Brian Croce
Source: Pensions & Investments
Democrats in the Senate and House introduced a bill Thursday that would amend ERISA to make clear that retirement plans may consider ESG factors in their investment decisions and that ESG investments are permitted as qualified default investment alternatives in ERISA-covered plans.
Under the bill — the Financial Factors in Selecting Retirement Plan Investment Act, sponsored by Sens. Tina Smith, D-Minn., and Patty Murray, D-Wash., and Rep. Suzan DelBene, D-Wash. — plans would have to consider ESG factors in a prudent manner consistent with their fiduciary obligations, the same legal standard that ERISA already applies to non-ESG investment factors.