News & Events

Senior Counsel George Gerstein was quoted in a Pensions & Investments article titled, “DOL secures key dismissal in challenge to ESG rule.” The article explored the Department of Labor’s (DOL) recent win in a lawsuit challenging its rule that allows retirement plan fiduciaries to consider ESG factors when choosing investments. George explained that the current rule and the DOL’s track record should provide plan fiduciaries a sufficient framework to manage their responsibilities under the Employee Retirement Income Security Act (ERISA), but noted the risks associated with factoring ESG issues into investment decisions. “I think ERISA fiduciaries should recognize that there is perhaps a heightened litigation risk, at least in the short- to medium-term, when ESG-related factors are being incorporated, and, therefore, be prepared to defend the decision-making process as being one of cool-headed prudence,” he said.

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