Biden administration won't enforce Trump-era ESG rule for 401(k) plans
The Biden administration said Wednesday it won't enforce a rule issued by the Trump administration that makes it harder to offer environmental, social and governance or ESG funds in 401(k) plans.
ESG funds may, for example, invest in energy firms that aren't reliant on fossil fuels or in companies that promote racial and gender diversity. Investors poured a record $51 billion into ESG funds last year.
The Trump-era Labor Department rule, issued in 2020, doesn't explicitly call out or outright forbid ESG funds in 401(k) plans.
But it may stymie already lackluster uptake by changing requirements for employers to select them as 401(k) investments, according to experts.
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https://www.msn.com/en-us/money/markets/biden-administration-won-t-enforce-trump-era-esg-rule-for-401-k-plans/ar-BB1escQs?ocid=DELLDHP