When 401(k) and 403(b) plan fiduciaries do a risk and return analysis to choose investment options for their retirement plans, that analysis “may include the economic effects of climate change and other ESG considerations.”
As the Secretary of the Department of Labor Martin Walsh said in a webinar on the new guidance yesterday: This is about giving investment advisors the *freedom* to make the best decisions they can to protect the retirement savings of investors, including considering environmental and social risks and opportunities.
Other important things from the DOL did with this new guidance:
As Secretary Walsh said this morning, “We are charged with making sure retirement savings are safeguarded,” and giving employers, advisors, and investment managers the option to consider the very real risks and opportunities associated with climate change helps accomplish that goal.
Don’t hesitate to get in touch to learn more at email@example.com.