The DOL proposes rules that would curb proxy voting by plan fiduciaries on shareholder proposals.

By Paul A. Davies, Paul M. Dudek, Ryan J. Maierson, and Kristina S. Wyatt

Continued DOL Antipathy Toward ESG

On August 31, 2020, the US Department of Labor (DOL) issued proposed rules that could induce Employee Retirement Income Security Act (ERISA) plan fiduciaries to either abstain from voting on shareholder proposals related to environmental, social, and governance (ESG) matters or establish policies that would have plans default to voting in favor of management’s recommendations. This latest development comes on the heels of DOL actions designed to limit fiduciaries’ consideration of ESG factors in their investment decisions, as discussed in this blog post.