April 01, 2021 Articles

Conflicting ESG Considerations: New NASDAQ Diversity Listing Requirements and DOL Rule Curbing Socially Conscious ERISA Proxy Votes

Making sense of inconsistent guidance from Nasdaq and the Department of Labor.

By Danielle S. Myers

A new year always brings new rules, requirements, and regulations. And while diversity and environmental, social, and corporate governance (ESG) considerations seem to be on many investors’ minds, Nasdaq and the Department of Labor (DOL) are taking different approaches to how much—if at all—these considerations can be part of an investment decision.

Further complicating matters, the Biden administration could break from the Trump administration as to whether the proposed Nasdaq listing requirements will be adopted and whether the new DOL rule will be abandoned or modified.

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