Dear John,
Do you participate in a 401(k), 403(b), or private pension plan? If so, you’re one of over 60 million Americans who do and we have great news for your investments!
On November 22, the Department of Labor (DOL) announced the adoption of a final rule clarifying that 401(k) plan sponsors can consider climate and other ESG factors in investment decisions. This rule removes restrictions imposed during the previous administration that made it difficult for 401(k) and other retirement plan sponsors to include climate-aligned and other ESG funds in the list of options available to participants.
In 2021, we asked you all to help us respond to the DOL’s original proposal and voice your support to ensure that millions of Americans can access sustainable investment options. Today, we are excited and grateful to see the impact of that effort come to fruition in a powerful final rule.
So what does this mean for you and your retirement savings?
Currently, less than 10% of 401(k) plans include climate-friendly options, in stark contrast to the explosive growth in demand for environmental, social, and governance (ESG) investment options in the broader market. When the rule takes effect on January 30, plan fiduciaries will be free to consider climate change and other ESG factors, as they would any other relevant factors, when selecting the menu of investment options available to plan participants and determining proxy voting preferences.
Now that the regulation is confirmed, you have the power to ask your employer about their current 401(k) investment selections and request climate-aligned options be made available. |
| Join Ceres and EDF on February 6 for
"Climate and 401(k) Plans: The DOL’s New Rule Levels the Field for ESG”,
a webinar welcoming the rule, unpacking the details and addressing how it can be implemented in retirement plans now. Martin J. Walsh and Lisa M. Gomez will join us from the U.S. Department of Labor for this important discussion. We hope we will see you there. |
