https://estonianfreepress.com/news/united-states/biden-administration-approves-rule-that-funnels-workers-retirement-funds-into-left-wing-causes/
) plans. That means workers could be supporting causes that don’t align with their political views.
It also rescinds Trump-era regulations that require retirement plan administrators and asset managers to choose investments based solely on participants’ financial interests.
Labor Department officials said the Trump administration rules “unnecessarily restrained” fiduciaries’ ability to weigh ESG factors when choosing 401(k) investments.
“A final rule is necessary to reverse the [Trump-era] rule’s chilling effect on the integration of ESG factors into the investment selection and asset management process,” Lisa M. Gomez, assistant secretary of labor for the Employee Benefits Security Administration, told reporters during a conference call to discuss the rule.
Ms. Gomez emphasized that investment managers may consider ESG factors when making decisions but are not required to do so.
“While climate change is a critical issue, that’s not what this rule is about,” she said.