DOL Clarifies ESG Investing Guidance

The DOL recently released Field Assistance Bulletin (?Ç£FAB?Ç¥) No. 2018-01, which provides guidance on earlier-issued Interpretive Bulletins 2015-01 and 2016-01 (the ?Ç£IBs?Ç¥) regarding how ERISA plan fiduciaries may exercise shareholder rights and the extent to which such fiduciaries may take into account environmental, social, or corporate governance (?Ç£ESG?Ç¥) considerations when making plan investments. FAB 2018-01 includes additional observations regarding the IBs and cautionary notes for plan fiduciaries regarding (i) treatment of ESG factors as being economically relevant to a particular investment choice, (ii) following guidelines related to ESG factors in a plan?ÇÖs investment policy statement, (iii) selection of ESG-themed investment alternatives as a plan?ÇÖs ?Ç£qualified default investment alternative?Ç¥, and (iv) incurring significant plan expenses for shareholder engagement activities related to plan investments. View the FAB 2018-01.