Death by Paperwork? ESG Investing Probe Hints at Onerous Pile-On

A series of form letters sent to retirement plans hint at how the Labor Department may enforce a new requirement that sponsors justify socially conscious investments.

One such letter obtained by Bloomberg Law presses plan administrators to provide 13 types of supporting documents, including: the names, addresses, and duties of those responsible for making investment decisions, proxy voting policies, and myriad financial statements associated with the plan design.

The letters predate a proposed rule by the Employee Benefits Security Administration, which would require sponsors to fully document their reasoning for investing in environmental, social, and corporate governance (ESG)-focused funds, according ...