Compliance Stuff

  The U.S. Department of Labor (DOL) indicated in court documents that it intends to begin new rulemaking to replace a previous rule that permitted 401(k) plan fiduciaries to consider environmental, social, and governance (ESG) factors when choosing investment options in the plan. Quick Hits The DOL will no longer apply a previous rule that allowed retirement plan fiduciaries to take ESG factors into account when selecting investment options . Twenty-six states challenged the rule in the Fifth Circuit Court of Appeals. Plan fiduciaries may continue to rely on financial factors to make decisions about which investments to include in the plan. Under the Employee Retirement Income Security Act (ERISA), retirement plan fiduciaries are required to select and monitor plan investments in accordance with ERISA’s fiduciary duties. Among those duties are the requirements to prudently select and monitor plan investments, to diversify plan investments in most cases, and to act solely in the i...

  I n today’s business landscape, Environmental, Social, and Governance (ESG) criteria have become pivotal for companies aiming to enhance sustainability, ethical practices, and long-term viability. While most discussions surrounding ESG focus on environmental impacts or governance structures, one smaller yet critical aspect often overlooked is the safety of contractors. Contractor safety is more than just a regulatory obligation; it is a key factor that ties directly into an organization’s wider ESG goals, helping to foster a safer workplace, improve social responsibility, and promote good governance. In this article, we’ll detail how contractor safety plays a role in business’ success in their ESG programs, as well as best practices in implementing adequate contractor management tactics to aid in a wider safety structure. Understanding ESG goals Before diving into the intricacies of contractor safety, it’s important to define ESG and its general objectives. These criteria provid...

In this Comment from a Reuters magazine, the author attempts to rescue the underlying environmental, social and governance principles from the often disparaged term, “ESG.” ESG, he observes, was “[o]riginally conceived as a financial tool to frame how corporations disclose their impact and investment,” but has now become a term that is “fraught with debate, lacks a clear definition and is often misunderstood.” However, he contends, people actually associate many of the values and concepts underlying ESG with business success.  Perhaps the term should be retired, he suggests, in favor of something less freighted.   “Responsible business” might do the trick—especially “responsible business” that correlates with positive corporate performance. In some circles, particularly conservative circles, the author observes, ESG has become almost synonymous with “woke capitalism”—a perspective that a “growing segment of American voters” rejects: those hostile to ESG and “seeking to influe...