On Friday, the U.S. Department of Labor finalized a burdensome rule for retirement savers amid an ongoing public health crisis and mere days before the November 3 election. The U.S. Impact Investing Alliance is still analyzing the final rule, but it is clear that our significant concerns remain unaddressed.

The Alliance and 95% of public commenters opposed the rule, citing its failure to account for the widely accepted materiality of environmental, social and governance (ESG) factors. At a time when retirement savers are worried about their health and economic wellbeing, regulators should be mindful not to threaten a plan sponsor’s ability to account for long-term material risk.

This latest action by the Department is unfortunately just one of many aimed at stifling the ESG market. The Alliance remains committed to its work to push back against these negative trends and to position impact investing as a powerful tool in building an equitable recovery.