The Biden Administration is working on a regulation which will reverse a Trump regulation which restricted the ESG program.
The forthcoming Biden regulation is a pacesetter because:
- It is a formal rulemaking issued by the Department of Labor
- Virtually every major player will submit comments, and
- Most importantly there is a private sector enforcement mechanism which could keep the participants honest.
Private Sector Enforcement Mechanism
Here is the textbook definition of an ESG Investment Fund: