It is increasingly common for fund managers to consider climate change and other environmental, social and governance (ESG) factors when making investment decisions on behalf of their funds. Investment advisers face an additional layer of concern, however, when dealing with an account or fund that comprises assets of an employee benefit plan subject to the Employee Retirement Income Security Act of 1974 (i.e., pension plans). The U.S. Department of Labor (DOL) recently proposed amendments to its regulations (Proposed Rule) that enhance the ability of employee benefit plan fiduciaries to consider climate change and other ESG factors when investing plan assets and proxy voting the plan shares. The Proposed Rule, the latest in a series of DOL pronouncements, would replace final regulations implemented by the DOL in 2020. In a guest article, Kramer Levin special counsel Avram J. Cahn details DOL pronouncements over the years, key tenets of the Proposed Rules and relevant takeaways for fund managers. For more on employee benefit plans, see “What Should Fund Managers Expect When ERISA Plans Conduct Due Diligence On and Negotiate For Investments in Their Funds?” (Jun. 20, 2013).