; (E) environmental risks to the assets and properties of entities invested in by the plan and related disclosures, including— (i) climate risks and contributions; (ii) environmental risks that may not be related to climate, such as industrial pollution, habitat destruction, and other forms of environmental degradation; (iii) impact to species endangerment and extinction; and (iv) pollution of land, air, and water related to the operation of the entities invested in by the plan; (F) due diligence and practices regarding supply chain management, including environmental, human rights, and worker compensation considerations; and (G) tax practices of entities in which the plan invests, including international tax avoidance strategies and tax payment disclosure. (2) A plan subject to the requirements of section 402(d)(1) shall conduct a review of the sustainable investment policy under subsection (b)(5) on an annual basis. (3) Section 404(a) shall not be construed to prohibit a plan fiduciary from doing the following: (A) In choosing among investments with commensurate degrees of risk and rates of return, to select one or more such investments based on environmental, social, and governance considerations. (B) To monitor or dispose of a plan investment alternative based on considerations that include environmental, social, and governance considerations. (C) Vote proxies in accordance with the plan’s proxy voting guidelines. . (c) Qualified investment alternatives Section 404(c)(5) of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1104(c)(5) ) is amended by adding at the end the following: (5) A qualified default investment alternative (as defined in section 2550.404c–5(e) of title 29, Code of Federal Regulations, or a successor regulation) may include an investment alternative— (A) with an environmental, social, and governance investment mandate; or (B) that was selected, in part, on the basis of an environmental, social, and governance consideration. .