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EBSARulemakingEBSA-2021-0013

Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights

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Dec 1, 2022
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closed 1688d ago
Environmental Defense Fund filings
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Environmental Defense Fund filed 2 comments on this docket between Dec 28, 2021 and Dec 28, 2021. 71 other organizations filed here. The comment window closed 1688d ago.

What Environmental Defense Fund filed (2)

Dec 28, 2021· 1210-AC03 petition 05 Environmental Defense Fund (4810)· EBSA-2021-0013-0004

Dear Acting Assistant Secretary Khawar, I respectfully submit this letter in support of the Department's proposed rule, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights ("the Proposed Rule.") This important proposal builds on decades of conscientious stewardship of private-sector American retirement savings. Employee Retirement Income Security Act (ERISA) plans help create retirement security for working Americans. In 2020, under the prior administration, the Department enacted new rules that effectively prohibited ERISA plans from considering climate or other ESG factors in their investment selection and proxy voting. These 2020 rules left retirement savers unnecessarily exposed to the negative economic impacts of climate change, and silenced their voices on important issues of corporate governance. The Proposed Rule would fix this. Retirement savings must be protected from climate-related financial risk Managers of retirement plans must be free to evaluate all factors that impact plan investments. Climate related disasters are increasingly frequent, with a record 22 events causing over $1 billion damage each in the US during 2020 alone. In response to the climate crisis, new regulation and changes in consumer demand will create significant market and investment opportunities. These risks and opportunities are especially relevant to retirement investors, who invest over decades. Many professional investors recognize these risks and opportunities, and have updated their investment strategies to deal with the realities of our changing environment. Individual investors share these concerns. Climate change and other ESG risks will be a significant driver of investment risk and return for the foreseeable future. But because of these 2020 rules, very few American retirement savings plans are designed to protect their beneficiaries from climate risk. The Proposed Rule will allow these savings plans to better manage these and other ESG risks. It is now clear that climate change poses an existential challenge to our very livelihoods. But if we can embrace the changes required to meet this challenge, the US economy has tremendous potential to grow, creating jobs and wealth. The Proposed Rule clears the way for ERISA plans to provide access to these investment opportunities. It is consistent with Department policy that has served American workers well in the nearly 50 years since ERISA became law. I appreciate the Department's hard work in drafting this timely and thoughtful Proposed Rule.

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Dec 28, 2021· 1210-AC03 comment 0697 Environmental Defense Fund, the Institute for Policy Integrity at NYU School of Law, and the Initiative on Climate Risk and Resilience Law 12132021· EBSA-2021-0013-0702

To Whom It May Concern: Environmental Defense Fund, the Institute for Policy Integrity at NYU School of Law, and the Initiative on Climate Risk and Resilience Law respectfully submit the attached materials to the Department of Labor in response to its proposed rule "Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights" (RIN 1210-AC03), published on October 14, 2021. Respectfully Submitted, /s/ Stephanie Jones Stephanie Jones Michael Panfil Environmental Defense Fund sjones@edf.org mpanfil@edf.org /s/ Sarah Ladin Sarah Ladin Jack Lienke Alexander Song Institute for Policy Integrity at New York University School of Law sarah.ladin@nyu.edu jack.lienke@nyu.edu alex.song@nyu.edu Attachments (9): (1)Environmental Defense Fund, Institute for Policy Integrity, & Initiative on Climate Risk & Resilience Law, Comment Letter on Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights (RIN 1210-AC03) (Dec. 13, 2021) (with Appendices of Sources) (1A)Appendix A (1B)Appendix B (1C)Appendix C (2)Environmental Defense Fund & Institute for Policy Integrity, Comment Letter on Financial Factors in Selecting Plan Investments under the Employee Retirement Income Security Act of 1974 (RIN 1210-AB95) (July 30, 2020) (with Appendices of Sources) (2A)Appendix 1 (2B)Appendix 2 (2C)Appendix 3 (3)Environmental Defense Fund & Institute for Policy Integrity, Comment Letter on Fiduciary Duties Regarding Proxy Voting and Shareholder Rights under the Employee Retirement Income Security Act of 1974 (RIN 1210-AB91) (Oct. 5, 2020)

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Abstract

The Department of Labor (Department) in this document proposes amendments to the Investment Duties regulation under Title I of the Employee Retirement Income Security Act of 1974, as amended (ERISA), to clarify the application of ERISA's fiduciary duties of prudence and loyalty to selecting investments and investment courses of action, including selecting qualified default investment alternatives, exercising shareholder rights, such as proxy voting, and the use of written proxy voting policies and guidelines.

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Co-filers (71)

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