Public relations initiatives that prioritize Environmental, Social and Governance issues have become a key to success for not only brand reputation and marketability, but for the planet as well.
The Labor Department issued a final rule on Tuesday rolling back a Trump administration policy that limited the ability of fiduciaries to consider environmental, social and governance (ESG) factors in making investment decisions.
The rule change makes clear that 401k plans and other investment vehicles can take into account the potential financial benefits of investing in companies committed to promoting ESG.
Though the previous Trump edict policy didn’t explicitly make ESG investing against the rules, industry groups argued that it had created a chilling effect with high-net-worth individuals, millennials, and women who have expressed interest or already invested in sustainable assets.
Make America Great Again Trump Republicans likely won’t be happy with the Biden administration’s move. They’ve been pushing back against ESG investing at the state level including ours, with some going as far as to stop doing business with investment firms like BlackRock Inc., and are poised, led by our Gov., to expand those efforts.
As communicators, it is up to us to roll out ESG-friendly initiatives that go beyond philanthropy and tell sustainable stories to those who matter most: the targeted audience.