Seeking to combine socially responsible investing with defined contribution management, New York-based RLP Capital Inc. has created The Green 401k, an opportunity for employers to offer DC investing with a social and environmental theme.
The Green 401k gives employers with at least 100 employees a chance to choose from among 130 SRI mutual funds as well as from more than 8,000 traditional mutual funds, said Bud Sturmak, managing director of RLP Capital and founder of The Green 401k. “Our clients have asked us to incorporate socially responsible investing into their 401(k) menu,” he said in an interview.
RLP Capital assumes the role of co-fiduciary for an employer's plan, taking legal responsibility for plan management, according to a news release from RLP Capital.
Although traditional mutual funds have some elements of socially responsible investing, The Green 401k applies a proprietary rating system that illustrates the degrees of such investing based on multiple social and environmental screens, Mr. Sturmak said. The system assigns five ratings ranging from “not socially responsible” to “exceptionally responsible.” — Robert Steyer