RECENTLY, THE US DEPARTMENT OF LABOR issued guidance about investing retirement plans in socially responsible companies. In what appeared to be a reversal of the previous administration’s guidance, DOL stated that investments based on environmental, social and governance (ESG) criteria aren’t always a “prudent choice” and that such factors shouldn’t “too readily” be considered as economically relevant.
There’s some truth to this, but it’s really no different from saying that non-financial criteria ANYWHERE might cloud your view in making purely financial decisions.
Here’s the problem: This is taking a very narrow and short-term view of investing.
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