As I alluded to in my opening remarks, the legal frameworks for federal pensions all rely heavily on the concept of fiduciary duty, that duty with respect to the plan beneficiaries. As fiduciaries, plan administrators are required to account for any factor that could materially affect the financial performance of the pension fund, including ESG. Those are environmental, social and governance factors, so you would imagine that issues with human rights would fall within the social aspect.
Plan administrators may consider that it is consistent with that fiduciary duty to consider all these factors as another lens, as they would consider any risks to pension funds and to their investments.
