Greener Living
Companies Face Rising Pressure to Offer ESG Retirement Options
Is your 401(k) supporting fossil fuels? This year may see more employee pressure on companies to provide sustainable investment options.
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Most corporate retirement plans are awash in fossil-fuel investments. But that could start to change this year as a new US rule comes online and employee pressure builds for more climate-friendly options.
Starting on Jan. 30, a Department of Labor rule will take effect that explicitly allows fiduciaries to consider climate change and other environmental, social, and governance (ESG) factors in the selection of corporate-sponsored retirement plans. The rule clarifies Trump-era guidance that left unclear whether climate factors could be considered material risks.