Last year the U.S. Labor Department proposed a regulation that would tell retirement-fund managers to consider ESG factors such as “climate change” and “collateral benefits other than investment returns” when investing employees’ money.
These types of regulations will encourage pension plans to invest in politically correct but unproven ESG Strategies. ESG is short for (environmental, social and governance) funds. These regulations are also in conflict with the fiduciary responsibilities of retirement and pension-fund managers. These managers are legally required to make every investment decision with one purpose – maximizing retirees’ financial interests. There is even a law adopted in 44 states called the Uniformed Prudent Investor Act. The UPIA makes it clear that “no form of so-called ‘social investing’ is lawful if the investment activity entails sacrificing the interest of beneficiaries in favor of the interests supposedly benefitted by pursuing the particular social cause.”