The Labor Department released Friday a request for information seeking comment on further actions Labor's Employee Benefits Security Administration should take to protect retirement savings and pensions from threats of climate-related financial risk.
President Joe Biden issued an executive order in May on climate-related financial risk, which directed the Labor secretary to reconsider rules enacted under the Trump administration limiting environmental, social and governance focused investments in retirement plans.
In October, Labor proposed a new rule that will make it easier for 401(k) plans to choose investments based on ESG factors.
Labor's proposed rule, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights, is designed "to empower plan fiduciaries to safeguard the savings of America's workers by making it clear that fiduciaries may consider climate change and other ESG factors when they make investment decisions and when they exercise shareholder rights, including voting on shareholder resolutions and board nominations," the RFI states.
