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Is Trump’s Bid to Curb ESG to Protect Retirees or Oil?

US-HEALTH-VIRUS-ELDERLY

Photographer: Chandan Khanna/AFP via Getty Images

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The Trump administration says it wants retirement investing to be all about making the most money for retirees. That hardly sounds controversial. But many of the world’s largest asset managers say a new proposal toward that end is misguided, with others calling it a ploy meant to limit so-called ESG investing to help fossil fuel companies that are big supporters of President Donald Trump.

In June, the U.S. Department of Labor proposed a new rule that would change the Employee Retirement Income Security Act of 1974 (ERISA) to require those overseeing pension and 401(k) plans to always put economic interests ahead of what it called “non-pecuniary” goals.