Don’t Fall for ESG Investments

 In Uncategorized


In November, the U.S. Department of Labor announced a final rule that allows retirement plan fiduciaries to consider climate change and other environmental, social, and governance (ESG) factors when selecting retirement investments—all based on Executive Order 14030, signed by President Biden in May of 2021.

However, in late January, 25 states, two fossil fuel companies, and an oil and gas advocacy group filed a lawsuit against the Department of Labor and called for its rule to be overturned. The suit seeks to gain a preliminary injunction against the rule, which was slated to take effect on January 30.


While ESG investments have gained popularity in recent years, they lack standardization, come with higher costs, and lead to a lower return on investment. There are limited options available, unverified claims to attract ESG-conscious investors, and obvious conflicts of interest not aligned with an individual investor’s goals.

What this means for you

We won’t be recommending ESG funds for your plan(s). We just want you to know your options and what is available to you.

If you have any questions, please call us and we’ll gladly take a look at your plan(s) to be sure your investments have not been impacted by the rule.

Recent Posts
SECURE Act 2.0