Retirement Plans Become New Battleground for ESG
All these issues are related. Danielle Fugere, president of As You Sow, explains that most companies put employees who don’t choose specific investments into target-date funds for their retirement plans. (This is why they’re called the “default” option.) Such funds “are fairly high in high-carbon companies such as oil and gas,” Fugere says. In the past, companies have argued that Erisa prohibited them from addressing issues like climate change. A Trump-era rule previously banned consideration of ESG issues in decisions related to default options. Read More →