The ability to choose an SRI portfolio that meets the values of certain investors may be at risk due to a recent proposed ruling from the Department of Labor that would limit 401(k)s and other ERISA covered retirement plans from screening companies according to their ESG. We at HAS are paying close attention to this activity, and we wanted to bring it to your attention. 
 

Socially Responsible Investing and the screening of companies for their Environmental, Social, and Governance performance is growing more popular year after year. Per our recent blog post, some SRI and ESG investing strategies have performed strongly during the pandemic, as well as over the past 10 years. Some commentators have predicted that as a result of the pandemic, Socially Responsible and ESG investing may experience record inflows, as people search out strong, resilient companies, which SRI provides.  Another reason why people invest in Socially Responsible portfolios is because of their unique values. They want to invest in companies that are doing well while doing good, and that align with what they believe in. ESG screening can help to achieve this with many investors.

Your voice and your opinion matters in determining how the Department of Labor will rule on this new ruling.  There is a commentary period at regulations.gov that will expire at the end of this month.   If you wish to voice your opinion, click here:  https://www.regulations.gov/comment?D=EBSA-2020-0004-0002

For more details on this proposal, click here.  

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