Biden Administration Will Improve Regulatory Climate for Sustainable Investing
The rule from the Trump administration will not be enforced by the DOL.
Editor's note: This article originally ran in November 2020. It’s since been updated this year to reflect changes under the Biden administration.
The Department of Labor said today it won’t enforce the ESG rule in retirement or the proxy voting rules, moving away from the Trump administration’s decidedly anti-ESG stance. These rules ignored substantial evidence that the use of ESG considerations can improve long-term investment returns for retirement plans and were already having the effect of shutting off growing demand for ESG options in defined-contribution plans.