OAKLAND – California Attorney General Rob Bonta today, leading a multistate coalition, urged the U.S. Department of Labor (DOL) to finalize rules clarifying that fiduciaries of private-sector employee retirement plans, such as 401(k) plans, can consider environmental, social, and governance (ESG) factors when making investment decisions. Fiduciaries — including investment managers — are legally mandated to make decisions in the best interest of the people whose money they manage, in this case the millions of employees who put some of their income each month into an employer-sponsored retirement plan. By allowing fiduciaries to consider ESG factors, particularly the costs and impacts of climate change, fiduciaries can make investment decisions that better address the long-term investment horizons of the employees they represent.

“When you put part of your paycheck into a 401(k) or another retirement account, you’re planning for the future. Those making decisions with your money should be able to do the same,” said Attorney General Bonta. “The fact is: The costs of climate change are only going to rise. Whether you’re a major corporation or an individual investor, that's a reality you can't deny. We've urged the SEC to require corporations to disclose their risks to climate change, and now, we're urging DOL to empower those managing everyday Americans' retirement savings to make decisions with those risks in mind.”

For many Californians who work in the private sector,...

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