WASHINGTON — The Labor Department signaled it could pursue additional rules to shield retirement savings and pensions from climate-related financial risk, furthering its commitment to ensure plan sponsors consider environmental, social and governance factors in investment decisions.
The department last month issued a notice asking for information to help determine what actions the Employee Benefits Security Administration could take to ensure sponsors protect retirement contribution plans, such as 401(k) plans and pensions, from physical risks and transition risks of climate change.
While it is too early to know what guidance or rule-making could rise from the request for information, the department’s solicitation will likely cement climate as part of a larger set of factors that plan fiduciaries must consider under laws known as the Employee Retirement Income Security Act of 1974 and the Federal Employees’ Retirement System Act of 1986.
