DCIIA Publishes “Sustainable Investing in DC Plans: A Guide for Plan Sponsors"
Monday, May 13, 2019
Posted by: Karen Witham
DCIIA announced today the publication of a new white paper, “Sustainable Investing in Defined Contribution Plans: A Guide for Plan Sponsors.” The paper is the first piece of thought leadership originated by DCIIA’s member-led ESG Subcommittee, which reports into the Investment Policy & Design committee.
Contributors to the paper include: Michael Andeberhan, MSCI; Bridget Bearden, DCIIA; Allison Lessne, BlackRock; Mikaylee O’Connor, RVK; Stacey Tovrov, BlackRock; and Anna West, Callan
“We are pleased to publish this resource for plan sponsors and the broader retirement community,” said Lew Minsky, DCIIA’s CEO and president. “By providing clarifications and best practices around the ESG investment case, fiduciary responsibility, and implementation, we hope to prompt important discussions.”
The paper notes that the case for integrating environmental, social, and governance (ESG) factors into the investment decision-making process is supported by both academic and industry research and also that DC plan participants are interested in seeing their investments aligned with their perceptions of long-term risk and value. It explores the two primary ways for plan sponsors to implement sustainable investing in DC plans: 1) adding ESG-themed fund options into the fund lineup or self-directed brokerage window, and 2) considering ESG factor integration in investment processes during manager evaluation.
DCIIA’s Resource Library on Investment Options and Best Practices offers additional sustainable and ESG-related thought leadership publications – from DCIIA and its member firms -- for further reference.
The Defined Contribution Institutional Investment Association (DCIIA) is a non-profit association dedicated to enhancing the retirement security of America’s workers. To do this, DCIIA fosters a dialogue among the leaders of the defined contribution community who are passionate about improving defined contribution outcomes. DCIIA’s diverse group of members include investment managers, consultants and advisors, law firms, record keepers, insurance companies, plan sponsors and other thought leaders who are collectively committed to the best interests of plan participants. For more information, visit: www.dciia.org.
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