The U.S. Department of Labor has proposed a rule that would limit the use of investments that consider environmental, social, and corporate governance factors in worker retirement plans subject to ERISA, including 401(k) plans.

Read also US. DOL Issues New Rules On Retirement Plan Income Disclosures

The proposed rule questions the financial materiality of ESG issues and assumes that ESG-focused investment strategies and funds are primarily focused on providing “nonpecuniary” benefits, often at the expense of “pecuniary” benefits, otherwise known as risk-adjusted returns. As a result, the proposal lays out burdensome new rules for the conditions under which plan fiduciaries can include ESG investments and out-and-out bans them from being designated as qualified default investment alternatives in 401(k) plans.

Read also Campaign launched to nurture interest in ESG investing

As you might guess, I am opposed to the rule and detailed my views on it in a recent column. My colleague John Rekenthaler also covered the topic. But, curious about what others thought about it, I gathered a group of interested colleagues to download and read the public comments submitted during the 30-day comment period that ended July 30, 2020. All 8,737 of them.

Read also US. Pension Debt Expected to Surge Due to COVID-19 Volatility

When a federal agency proposes a rule like this one, it must allow for public comment over a period that is typically 60 to 90 days. In this case, the DOL provided for only a 30-day comment period on a matter of significant and growing interest to investors and retirement-plan participants and beneficiaries. Despite this unusually short comment period, the Notice of Proposed Rulemaking drew 8,737 comments, including several petition letters signed by thousands of individuals.

Read more @Morningstar