Biden to revisit US DOL ESG ruling

The Biden Administration said last week that it will not enforce a Department of Labor rule that would have excluded many ESG funds from US pensions.

The Trump administration rule required 401(k) plans and pension funds to make investment decisions based solely on “pecuniary” factors rather than other considerations including ESG. This posed a threat to the growth of ESG investing in the US despite strong opposition from fund managers. The DOL says that after hearing from funds and other stakeholders, it will revisit the rule, and in the meantime, not enforce it.