How can you make sure your retirement nest egg is green? Not easily.
By Aryn Baker, Published May 12, 2021
Far stricter laws govern American pension fund administrators than laws for retail investing. Last November, the Department of Labor issued a notice that further constricts private employer-sponsored retirement plans. Because there are very severe penalties for interfering with the Employee Retirement Income Security Act (ERISA), and until the Biden Administration gives formal encouragement to take ESG issues into account, American workers who utilize a 401(k) will be limited on how they can use sustainability factors while making decisions about investments for their retirement.
The issue? Well, one among several is that the demand for ESG investing is increasing as more and more investors want to take action and create change with their investments. To top it off, high ESG portfolios outperformed low ones by 16 basis points per year!
Do you think that anyone should be able to chose if their investments go into sustainable investments?