Wednesday 23 November 2022 03:14 AM Biden to allow employers to consider green investments in 401ks trends now

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The Biden administration will allow employers to invest pension money in green industries that could provide lower returns for Americans.

The move which was announced on Tuesday reverses a rule imposed by Trump in 2020 that forced employers to prioritize profit when making 401(k) investments. 

The new rule introduced by US Department of Labor will allow retirement plan investors to focus on ESG investing - which considers the environmental and social impacts of investments.

The change comes as the average 401(k) in the US is down around 25 percent this year, around $34,000, caused largely by inflation.

Republicans have been opposed to the growing popularity of ESG investing - many argue the concept goes against the main purpose of investing, which is to maximize returns.

Advocates of the change suggest that companies can be more profitable than their competitors when they treat their workers fairly and think about environmental impact.