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Fiduciary concerns may have prevented plan committees from considering “economically targeted investments” (ETI) – such as investments that observe environmental, social or governance responsibility (ESG) standards – as alternatives for their plans. Recent Department of Labor guidance, Interpretive Bulletin 2015-01 (the “Bulletin”), provides helpful clarity and should alleviate many of these concerns. (For convenience, we use the term “plan committee” to refer to the responsible investment fiduciaries of a plan.)

Employee Benefits and Executive Compensation Practice Group
By Fred Reish, Bruce Ashton and Josh Waldbeser