The Department of Labor (DOL) proposed a new rule that would restrict using ESG funds in retirement plans.
The new rule would require those running pension plans to ONLY consider the financial return on an investment rather than ESG (Environmental, Social, Governance) or other factors.
EGG use has grown considerably since the early 2000s. In 2013, ESG investments began to grow rapidly, and in 2019 alone attracted more than $20 billion.
The rule is still under consideration and is under a 30-day comment period.