alerts & publications
Law360: Despite DOL Proposed Rule, ESG Investing Faces Barriers12월 14, 2021
O’Melveny counsel William Pollack authored this bylined article discussing the U.S. Department of Labor's proposed rule, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights. The rule permits retirement plan fiduciaries to consider environmental, social, and governance (ESG) factors when selecting investments and exercising shareholder proxies. “The DOL's action has been hailed by social and environment activists as a momentous development, but the potential impact may be reduced by retirement plan fiduciaries' cautiousness in the face of the recent flood of Employee Retirement Income Security Act litigation,” Pollack wrote. “In short, there is reason to believe that the new DOL regulations will accelerate the already sizable shift of assets into ESG funds, which could have many beneficial impacts. The DOL's regulation does not, however, lessen the litigation risk faced by fiduciaries who may, accordingly, act cautiously in anticipation of future developments ... before making a change.”
Read the full article here.
Thank you for your interest. Before you communicate with one of our attorneys, please note: Any comments our attorneys share with you are general information and not legal advice. No attorney-client relationship will exist between you or your business and O’Melveny or any of its attorneys unless conflicts have been cleared, our management has given its approval, and an engagement letter has been signed. Meanwhile, you agree: we have no duty to advise you or provide you with legal assistance; you will not divulge any confidences or send any confidential or sensitive information to our attorneys (we are not in a position to keep it confidential and might be required to convey it to our clients); and, you may not use this contact to attempt to disqualify O’Melveny from representing other clients adverse to you or your business. By clicking "accept" you acknowledge receipt and agree to all of the terms of this paragraph and our Disclaimer.