On December 2, 2022, the Department of Labor published a final rule adopting amendments to the ERISA Investment Duties regulation. These amendments clarify the application of ERISA's fiduciary duties of prudence and loyalty in certain areas, and emphasize that these duties may often require fiduciaries to consider the economic effects of climate change and other ESG factors.
The adopted amendments reverse and modify certain amendments to the Investment Duties regulation adopted in 2020 by the Trump administration, which created confusion over the extent to which ERISA fiduciaries could incorporate ESG considerations into their decisionmaking.
This rule will go into effect on January 30, 2023.