ESG-Related Investments and ERISA: Key Issues for ERISA Counsel, Plan Sponsors, Administrators
Spence v. American Airlines and Other Recent Cases, DOL Developments, ESG Considerations, and Investment Risks
About the Course
Introduction
This CLE course will provide employee benefits counsel, plan sponsors, and asset managers guidance on ERISA fiduciary standards for ESG-related investments. The panel will discuss the current regulatory framework and recent developments, fiduciary issues, permissibility of ESG factors in investments, and transaction risks associated with ERISA plan investments. The panel will also discuss ERISA compliance and rules for plan investments, exposure to fiduciaries, transaction and security risks, and best practices for ERISA counsel, fund managers, and advisers.
Description
The rules relating to ESG investments for retirement plans may undergo a shift away from considering ESG factors for investments under the current administration. Employee benefits counsel, plan sponsors, and asset managers must review their plan investments, QDIA options, and investment policy statements to determine whether changes to the plans' investment options or strategies are appropriate.
Generally, ESG investing may run afoul of ERISA duties of loyalty and prudence imposed on plan sponsors and investment fiduciaries in selecting investments on behalf of a retirement plan. This is mainly due to the impact of such investments on financial returns and risks to plan participants with prior DOL regulations prohibiting the inclusion of an investment fund or portfolio in a plan's QDIA, with a focus on factors relating to ESG investments.
Recently, in Spence v. American Airlines, the plaintiff claimed breaches of fiduciary duties under ERISA, alleging that the defendant allowed the investment manager to promote an ESG agenda, resulting in investments being made subject to ESG factors. The court ruled that American Airlines breached its fiduciary duty, but denied the plaintiff's request for monetary damages and imposed restrictions on American Airlines' plan management.
Listen as our panel discusses critical factors for plan fiduciaries in selecting plan investments, current developments for ESG-related investments and recent cases, and best practices for plan sponsors and asset managers in pursuing ESG investments.
Presented By
Ms. Amert is a partner in the Litigation Department and Chair of the ERISA Litigation Group, based in the firm’s Chicago office. She focuses her practice on ERISA litigation and has a wide variety of business litigation, appellate and arbitration experience. Businesses rely on her for help with ERISA litigation and counseling, contract disputes and financial services litigation. Ms. Amert has represented employers in federal courts around the country at the trial and appellate levels, in both individual and class-action lawsuits, and in disputes with the U.S. Department of Labor.
Ms. Brandon advises in-house counsel, management, human resources professionals and Boards of Trustees on their responsibilities in sponsoring, administering and acting as trustee of all types of employee benefit and executive compensation plans. She has practiced exclusively in the area of employee benefits law for more than 15 years. Ms. Brandon has particular experience in the manufacturing, transportation, software, national retail and banking industries, and works with unionized, governmental and non-profit employers as well. She has also provided advice on employee benefit matters in the context of mergers and acquisitions, and in bankruptcy. In addition, her practice has included representation of employers during the audit of their benefit plans before the IRS, DOL and PBGC.
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
-
Date + Time
- event
Thursday, June 4, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. Overview of current rules for ESG investing
II. ESG considerations and vetting investment risks
III. Considerations for drafting or modifying investment policy statements
IV. Recent cases and developments impacting ESG-related investments
V. Best practices for plan sponsors and asset managers
The panel will review these and other critical issues:
- Current rules for ESG investments by retirement plans
- Permissible ESG factors in investments in light of a shift from current rules
- ERISA regulations and requirements that must be followed by plan investment committees
- ESG considerations and vetting plan investments
- Minimizing fiduciary breach of duty claims stemming from ESG investment decisions
- Techniques and best practices for plan sponsors and asset managers for ESG investments
Related Courses
ESG-Related Investments and ERISA: Key Issues for ERISA Counsel, Plan Sponsors, Administrators
Thursday, June 4, 2026
1:00 PM ET/10:00 AM PT
