the trump DOL nominee will make ESG investing illegal as a violation of ERISA and ntrs has plans to eliminate this practice to avoid lawsuits
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Go woke go broke!
NTRS went WOKE totally against its rich and conservative clients. It still pushes wokeism/ESG/DEI and clients have had enough. Clients are leaving and NTRS is dead as a promoter of wokism/communism in 2025.
RIP Byron Laflin Smith. You heirs wrecked the company.
ESG investing violates the core ERISA principle of fiduciary duty, which mandates acting solely in the financial interest of plan beneficiaries.
- Solely Financial Interests Requirement:
o ERISA fiduciaries are legally obligated to act with "exclusive purpose" in providing financial benefits to plan participants and beneficiaries.
o ESG factors often consider non-financial elements like social justice, environmental policies, or corporate governance structures, which may not have a direct correlation to financial performance.
o Prioritizing ESG factors can therefore divert focus from maximizing financial returns, conflicting with ERISA's duty of loyalty.
- Risk of Reduced Returns:
o ESG-focused investments may exclude profitable industries (e.g., fossil fuels or defense) based on ethical or sustainability criteria rather than financial performance metrics.
o This exclusion could limit diversification and reduce potential returns, breaching the fiduciary duty to optimize investment performance.
- Lack of Objective Standards:
o ESG metrics are often subjective and inconsistent across different rating agencies, making it difficult for fiduciaries to measure financial impact objectively.
o ERISA demands a prudent process based on measurable financial criteria, while ESG metrics may reflect ideological preferences rather than consistent financial factors.
- Heightened Compliance Risk:
o Courts and regulators could view ESG-driven decisions as politically motivated or lacking a clear financial justification.
o Fiduciaries must document financial benefits as the primary driver, yet ESG's mixed motivations make it harder to demonstrate compliance with ERISA standards.
- Precedent and Regulatory Guidance:
o Historical Department of Labor (DOL) guidance has emphasized financial returns as the paramount fiduciary duty under ERISA.
o While recent guidance has softened, the foundational requirement remains that financial interests must dominate decision-making, making ESG inclusion legally risky.
in 2022 biden changed/LOWERED fiduciary standards to force ESG adoption.
OVER in 2025!!
https://www.dol.gov/newsroom/releases/ebsa/ebsa20221122