George Michael Gerstein, an ERISA attorney with Stradley Ronon, dissects the DOL’s final rule regarding ESG investing in retirement plans, calling it a compromise that might be here to stay.

According to Michael Hunstad, head of quantitative strategies at NTAM, it is undeniable in 2019 that ESG issues are material to financial performance; more debatable is the best way to leverage ESG themes in institutional portfolios.

Surveys find plan sponsors and participants have a growing interest in environmental, social and governance issues.

Both quantitative and qualitative research suggest bonds issued by companies with favorable environmental, social and governance (ESG) ratings can offer downside mitigation during periods of market turbulence.

A big part of the challenge is that everyone’s view of exactly what constitutes social and environmental responsibility is different.

The lawmakers say their proposals to require more disclosure of environmental, social and governance information build on the proven principle that sustainable investing and profitable investing are not mutually exclusive.

More retirement plans could begin offering environmental, social and governance funds in their lineups.