Debevoise Discusses the Labor Department’s Proposal on ESG and ERISA

On October 14, 2021, the U.S. Department of Labor (the “DOL”) issued proposed regulations that represent the first step in meeting President Biden’s directive to revise or rescind the recent Trump-era rules addressing a fiduciary’s duties under Section 404 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).[1]

As a refresher, in late 2020 the Trump administration DOL issued final rules that addressed ERISA fiduciary duties with respect to (a) considering environmental, social and corporate governance (“ESG”) factors when selecting investments and investment courses of action and (b) deciding whether to vote proxies and the use … Read more