EDF and allies file comments in support of Department of Labor rule protecting Americans’ retirement savings from climate change

December 13, 2021

Sharyn Stein, 202-905-5718, [email protected]

(Washington, DC – December 13, 2021) The US Department of Labor is expected to finalize a rule that will help protect Americans’ retirement funds from the financial risks posed by climate change, according to comments filed today by Environmental Defense Fund, the Institute for Policy Integrity at NYU Law School and the Initiative on Climate Risk and Resilience Law.

The groups comments posted in support of the rule proposed by the Ministry of Labor Prudence and loyalty in the selection of plan investments and the exercise of shareholder rights. The proposal would clarify that pension plan managers have the capacity to take into account the financial damages of climate change, like any other factor affecting the risk and return of investments, when making investment decisions, and to manage Consequently.

Research shows that climate change is an emerging financial threat, pose a major risk the stability of the US financial system and its ability to support the US economy. The rule addresses constraints on the ability of plan managers to account for climate risks that “distort the selection of investments and the exercise of shareholder rights in a way that could lead to lower returns, higher risk. high or other costs to beneficiaries, ”the groups say in their comments.

The rule proposed by the Ministry of Labor states that pension plan managers “can take climate risk into account in decision-making, and, moreover, should do it ”where climate change poses financial risks to Americans’ retirement savings, according to the group’s comments. This ensures that fund managers have the ability to make the best possible decisions for their clients after taking all risks – including those related to climate change – into consideration.

You can read the full comments here.

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