Labor Dep. Delivers ‘Boost for US Responsible Investing’
ai-cio.com| November 25, 2015
US institutions’ use of social and environment-oriented investment strategies could accelerate following guidance issued by the Department of Labor (DOL), according to consulting firm Callan Associates.
Last month the department published an “interpretive bulletin” acknowledging that environmental, social, and governance (ESG) factors “may have a direct relationship to the economic and financial value of an investment.”
“When they do, these factors are more than just tiebreakers, but rather are proper components of the fiduciary’s analysis of the economic and financial merits of competing investment choices,” the DOL stated.
A survey of US institutions by Callan showed a rise in the portion of investors incorporating ESG factors into their decision making, from 22% in 2013 to 29% this year.