WASHINGTON, D.C. – The U.S. Department of Labor issued a final rule today that would undermine the ability of fiduciaries that manage private sector pension plans to consider the environmental, social and governance (ESG) risks in the investments they manage. Rachel Curley, democracy advocate for Public Citizen, released the following statement:
“Trump’s Labor Department rushed this rule through at lightning speed, because officials know that this rule would crumble if exposed to prolonged scrutiny. It deprives private sector employees from critical investing opportunities given that ESG investments are outperforming the market, especially in 2020.
“The overwhelming majority of public comments on this rule opposed it, further demonstrating that this rule is a handout to huge corporations. Big businesses have been waging a war against disclosure of important matters like political spending, climate impacts and human rights, because they object to regulation that encroaches on their profits. Given the massive opposition from investors and the public, this rule should be at the top of the list for reversal.”