While the Biden administration’s Department of Labor (DOL) final environmental, social, and governance (ESG) rule went into effect, I think it’s much to do about nothing. I think most advisors will not offer an ESG choice on a fund lineup and even if they do, they are just going to get very little investment by plan participants.

The DOL’s final rule on ESG allows plan fiduciaries to incorporate ESG factors into their investment options but doesn’t require them to do so. Out of dozens of plan sponsor clients, I only know one plan that offers an ESG fund. In the end, is it worth all this fighting over a rule that will likely be jettisoned if a Republican takes the White House in the 2024 elections? I don’t think so, just sounds like wasted energy.