ESG in DC: despite headwinds, more plans embracing responsible investing
It would seem obvious that defined contribution plan sponsors who are tasked with helping their employees create long-term retirement security would champion ESG investing — the wider environmental, social and governance factors that impact long-term corporate performance — as a core approach on their investment menu. After all, plan participants have become more vocal in demanding ESG-related options on DC plans. But adoption has not been as rapid as one might think. How are DC plans responding and ramping up their education around ESG considerations? A panel of industry experts — John Streur, president and CEO of Calvert Research and Management; Emily Chew, global head of ESG research and integration at Manulife Investment Management; and Edward Farrington, executive vice president of Natixis Investment Managers — all longtime practitioners of ESG investing, demystify the confusion around ESG perspectives for DC plans, decipher the fiduciary concerns and offer ways for plan sponsors to move forward to embrace ESG investing.