In late June, the US Department of Labor (DOL) proposed a new rule that would significantly curtail responsible investments made by pension funds. If passed, pension fund administrators would be required to prove that financial returns are not at risk in order to pursue ESG (environmental, social and governance)-based investments. As a result, incorporating risks such as climate change impact into investment strategies would be more difficult. While the DOL expressed skepticism, the SEC’s response was more agnostic. At a recent conference, senior SEC official Elad Roisman called for better 'green' labelling and noted his reservations about requiring companies to disclose ESG information for regulators and investors.
Sophia Chowdhury - 03 Aug - 4 min read