Chief Investment Officer is reporting that Jason Perez, the newly-elected board member of the California Public Employees’ Retirement System, is skeptical of CalPERS’ ESG strategies, including engagement. He reportedly said, “We should not be extorting companies.” Shareholder engagement has become a preferred method of addressing ESG risks, though it has garnered the interest (and concern) of both the SEC and DOL, as well.
George Michael Gerstein advises financial institutions on the fiduciary and prohibited transaction provisions of ERISA. As co-chair of the fiduciary governance group, he assists clients with tracking, and understanding, the numerous fiduciary developments at the federal and state levels, including the rules and regulations of governmental plans. He also advises clients with respect to the fiduciary duty implications of ESG investing.