Key Takeaways:

[2:35] A little bit about Michael and what he does for BDO Wealth Advisors.

[4:45] What’s new in ESG investing?

[6:40] Why is ESG important and how does it affect plan sponsors?

[7:00] In a recent report, 56% of plan participants discuss it is very important to have ESG alternatives available to them.

[7:45] Why is ESG different from other investment opportunities?

[10:10] ESG is growing in markets outside the U.S.

[12:25] What policies and procedures need to be in place to show that you’re following through on all the ESG requirements? This is still a bit of a gray area.

[14:35] The younger generation wants their core values expressed in their investment dollars.

[19:20] If you look at the marketing messages at investment firms, mutual funds, and investment advisors, ESG investing is at the forefront.

Resources:

BDO’s ERISA Center of Excellence

Beth on LinkedIn

Michael on LinkedIn

Email Questions and Comments to [email protected]

Quotes from the Episode:

“The enactment in 2021 — the legislature really was written to try and clear up some of the confusion about what a fiduciary requirement was in terms of including ESG investing in portfolio options and what was the standard for plan sponsors.”

“ESG — what it’s trying to do is bring social governance to the investing world and allow people to make money and grow their assets for retirement, but also to put their core values into play.”

“What’s important to the parent’s generation may not necessarily be the same for the younger generation, and there’s a push to have their core values expressed in their investment dollars.”