- 75% of 401(k) participants express interest in sustainable investing, but only 36% are aware of relevant plan options.
- Conflicting corporate perceptions and regulatory ambiguity are limiting adoption despite renewed fund performance.
- The Department of Labor’s evolving fiduciary guidelines may increase litigation risk, affecting ESG integration in retirement plans.
A new report by Morgan Stanley’s Institute for Sustainable Investing reveals that a majority of Americans with 401(k) or similar retirement plans are open to sustainable investing—yet only a fraction follow through due to low awareness, fiduciary uncertainty, and past performance concerns.
According to the study,
