NAPA Net - Polling Places 091622

Are Things Heating Up for ESG?

A little over two years ago, the Trump Administration stirred things up with its proposal about ESG (environmental, societal, governance) investments and retirement plans. Since then the Biden Administration has weighed in with a very different take (after announcing it wouldn’t enforce the final rule from the Trump Administration) – this week we’d like to know how you – and your plan sponsor clients – are feeling about the issue.

Yes, even as we wait for the Biden Administration’s final proposal, the tides, both for – and against that emphasis seem to be strengthening – leading some states to specifically preclude ESG as a consideration in their investment pools (though others have long embraced it), while legislation has been introduced in the United States Congress to curb those investments in retirement plans.

In July 2020, we asked NAPA-Net readers to weigh in on the subject – and a year later we asked again. It’s fair to say there’s been some shift in sentiment(s) as the subject garners more discussion and focus. But that, as they say, was then. This week we thought we’d check in again to see not only how you’re feeling about the topic, but how your plan sponsor clients and prospects are feeling about things now – and how, or if, that’s changed.

Question Title

* 1. What's your current take on the suitability of ESG options on a defined contribution/401(k) plan menu (please only pick one)?

I'm open to the idea, but not really committed.

I'm completely on board!

I've got my doubts.

I think it makes sense as a consideration, but not a controlling consideration.

Question Title

* 2. Are you actively recommending ESG options to your plan sponsor clients/prospects?

Yes

Not yet

Only when asked about it.

To some, in selected circumstances.

I was, but have cooled on it.

Question Title

* 3. Has your sense of things with regard to ESG's suitability on a defined contribution/401(k) plan menu changed during the past year?

No, liked it then, and still do.

No, was skeptical then, and nothing's happened to change my mind.

Yes, was skeptical then, but I've now warmed to the idea.

Yes, liked it then, but now I'm not so sure.

comments?

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* 4. Are your plan sponsor clients/prospects proactively asking about ESG options?

No.

Some are, most aren't.

Yes.

Asking, yes. Acting is another matter.

Care to expand on that?

Question Title

* 5. Are your plan sponsor clients/prospects ACTING on implementing ESG options?

Some are, most aren't.

Many are, but not all.

Yes.

No.

Mostly they seem to be "window shopping.'

Any comments on that?

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* 6. How - if at all - generally speaking has your position on actively recommending ESG options to your plan sponsor clients/prospects changed in the past year?

No change - I'm still pushing/promoting ESG.

I've quit pushing/promoting ESG.

No change - I've never really pushed/promoted ESG.

No change - I mention it when appropriate, but don't really push/promote.

I'm now actively pushing/promoting ESG.

any comments?

Question Title

* 7. When the plan(s) you work with add an ESG option, what has, generally speaking, been the participant response?

Modest, but enthusiastic.

Tepid at best.

Very positive

Don't have ESG in any of the plan(s) with which I work.

Any others?

Question Title

* 8. Other comments about ESG, your feelings about ESG, plan sponsor perspectives on ESG, the impact of the Trump Administration's proposed (and then final) rule on ESG adoption, the Biden Administration basically moving to undo the Trump Administration's actions, the enthusiasm (or lack thereof) among participants for the option, the amount of action versus interest in the alternative, the recent pushback by some state agencies on ESG factors, or life in general?

Question Title

* 9. What is your role working with retirement plans?

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Wholesaler

Consultant

Other (please specify)

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* 10. What size plans do you PRIMARILY work with?

Under $10 million in assets

$10-$20 million

$20-$50 million

$50-100 million

$100 million - $250 million

$250 million - $500 million

Above $500 million

Other (please specify)

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* 11. Suggestions for future survey questions? Seriously - what would you like to know about/from your fellow NAPA-Net readers? Or what would you like to be asked?

Question Title

* 12. All responses are confidential, of course - but just in case you would like a response - or want me to know you responded - or just want to say hi - here's your chance to do so (don't forget your email)!