Season 3 Episode 10 – Suits Strike Polarizing Positions on ESG
Amidst a highly politicized environment, retirement plan litigation focused on the inclusion of ESG (environmental, social & governance) factors – or the lack thereof. Nevin (Adams) and Fred (Reish) examine the issue(s) and implications.
While the Biden Administration’s final rule on ESG investments (more properly “prudence and loyalty in selecting plan investments”) seems to have landed pretty much where the Trump Administration’s final rule on ESG investments did (save for the reliance on the term “pecuniary”), the issue remains polarizing (almost as though people hadn’t actually read the final regulation), triggering a number of suits involving retirement plans – most recently one brought by an American Airlines pilot-participant regarding investment options in that plan’s 401(k). However, American Airlines has moved to dismiss that suit – on interesting grounds. Come check it out!
