The U.S. Department of Labor (DOL) released a proposed rule (2021 Proposal) that would amend the DOL’s regulations for considering environmental, social and governance (ESG) factors when selecting investments for retirement plans subject to the Employee Retirement Income Security Act of 1974 (ERISA). That marks the latest step in the evolution of the DOL’s stance on the inclusion of ESG and other non-pecuniary factors in retirement plan accounts. Strafford CLE Webinars recently hosted a program featuring David C. Olstein, partner at Stroock, that analyzed the latest developments in ERISA issues. This second article in a two-part series breaks down each iteration of the DOL’s stance on ESG factors in plan investments since 1979, along with the material changes introduced by the 2021 Proposal. The first article evaluated the latest regulatory and legal developments impacting the ability of plan fiduciaries to include PE and hedge fund investments in 401(k)s, as well as provided tips for performing an ERISA review of private fund documents. See “Potential Fallout of DOL Guidance Deterring ESG Investing and Authorizing PE Investments in 401(k)s Under ERISA” (Mar. 9, 2021).