Menu
Banking Exchange Magazine Logo
Menu

Impact investors celebrate DOL ruling

The department has finalized a rule replacing the Trump-era decision to limit ESG-related investing

  • |
  • Written by  Banking Exchange staff
Impact investors celebrate DOL ruling

Leading US impact investing groups celebrated over Thanksgiving after the Department of Labor (DOL) completed its overhaul of rules to allow for environmental, social and governance (ESG) investing.

The DOL announced a final rule last week that allows pension funds “to consider climate change and other ESG factors when they select retirement investments” and vote their shares.

The US Impact Investing Alliance said the rule was “a clear win for American workers” as it “ensures their retirement savings will be invested in line with prudent risk management practices”.

“Given the recent wave of misinformed political attacks seeking to undermine the validity of ESG strategies, this rulemaking provides much needed clarity for investors and fiduciaries that ESG factors are indeed material,” the alliance said in a statement.

“The common-sense approach offered by DOL leaves investment decisions in the hands of workers and investment professionals, not at the mercy of politically motivated interests. We strongly support the final rule and applaud the DOL for its leadership on this issue.”

Lisa Woll, CEO of US SIF, a leading forum for sustainable investment, said: “The final rule recognizes that the consideration of ESG criteria can help protect the long-term interests of retirement beneficiaries and should be treated like any other investment criteria used by plan fiduciaries under the duty of loyalty and care.”

Woll added that the rule was “catching up to where the marketplace has been for years” in allowing investors to account for staff welfare, tax, lobbying, supply chain, and climate-related issues.

The DOL has been working on the rules since President Joe Biden took office in 2021, rolling back measures put in place by the previous administration to restrict the ability of investors to account for non-financial risks in their investment decisions.

back to top

Sections

About Us

Connect With Us

Resources

Technology is rapidly changing the way accountants perform and manage month-end activities. Spreadsheets, email, and shared drives no longer should slow us down. Automation generally supercharges any process and brings its value to the forefront. To get to the next level of closing, automation is a must so that repetitive, predictable, and laborious tasks can be automated.

Join us as we present a "sneak peek" into SkyStem's month-end close solution – ART. In under four weeks, your team can start reaping the benefits of month-end close automation by vastly reducing spreadsheets, cut down on reconciliation work, speed up the month-end close, and better manage your remote team.

Some results our customers have enjoyed include:

REGISTER NOW!

This webinar is brought to you by:
skystem logo