Retirement Plan Sponsors Remain Cautious on Impact Investing and ESG

Wednesday, January 4, 2017

2016 was an effective year for providers and recordkeepers searching to incorporate socially and environmentally conscious investment themes; yet fear of fiduciary risk and industry jargon are slowing progress among defined contribution (DC) plans.

Within impact investing comes Environmental, Social and Governance (ESG) investing; Socially Responsible Investing (SRI); and Economically Targeted Investing (ETI); several terms that can cause enough confusion for sponsors to turn their heads.

Sri Reddy, senior vice president and head of full service investments at Prudential Retirement, explains that each word offers a different foundational way for people to think about the broad category of impact investing.

Source: PLANSPONSOR (link opens in a new window)

Impact Assessment, Investing
ESG, impact investing