Rule confirms that considering environmental, social, and governance risks is critical to sound retirement investment planning 

FOR IMMEDIATE RELEASE

MEDIA CONTACT: Stefanie Spear, sspear@asyousow.org, 216-387-1609

BERKELEY, CA—NOV. 22, 2022—The Department of Labor (DOL) today released its long-awaited “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights” rule that empowers plan fiduciaries to safeguard the savings of America's workers by clarifying that fiduciaries of employee retirement plans can consider material environmental, social, and governance (ESG) risks when making investment and proxy voting decisions. As You Sow applauds this important step in protecting workers’ and retirees’ financial security. 

As You Sow CEO Andrew Behar had this to say about the DOL’s new rule:

“This new rule codifies ESG as a framework for assessing risk. This is a core tenet of fiduciary duty and enables plan fiduciaries to act in their beneficiaries’ best interests to consider and minimize portfolio risk. Ignoring climate change, racial injustice, abuse of worker’s rights, and poor governance in employees’ retirement assets doesn’t make that risk go away. While some state politicians play political games with retirees’ hard-earned money, the administration’s new rule will protect employees and their families.”

As You Sow President and Chief Counsel Danielle Fugere had this to say about the DOL’s new rule:

“Many of the same companies that have announced ambitious greenhouse gas goals to reduce climate risk nonetheless insist that federal law prohibits them from considering climate or other ESG risk in employee retirement plan options. This new rule demonstrates that nothing could be further from the truth. Today’s rule should prompt reconsideration by companies that are willing to address climate risk when it impacts their bottom lines, only to claim their hands are tied when it comes to protecting their employees’ retirement funds.”

As You Sow offers tools to help investors understand what companies are held inside mutual funds and ETFs, and how those funds are aggregated into a retirement plan portfolio. Invest Your Values is a simple-to-use, free tool that exposes fossil fuels, coal, dirty utilities, deforestation, private prisons, weapons, and gender inequality in funds so that every person can align their investing with values.

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As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.