The US Securities and Exchange Commission is looking into Goldman Sachs Group Inc’s asset-management division over its funds that look to invest based on environmental, social and governance (ESG) standards, the Wall Street Journal reported.
The investigation is focused on Goldman Sachs’ mutual-funds division, the report said https://www.wsj.com/articles/sec-is-investigating-goldman-sachs-over-esg-funds-sources-say-11654895917? mod=latest_headlines on Friday, citing people familiar with the matter. The firm manages at least four funds that have clean-energy or ESG in their names.
Goldman Sachs did not immediately respond to a Reuters request for comment.
The SEC earlier this year proposed https://www.reuters.com/markets/us/us-sec-unveil-rule-crackdown-funds-greenwashing-2022-05-25 a pair of rule changes aimed at stamping out unfounded claims by funds on their ESG credentials, and enforcing more standardization of such disclosures. (Reporting by Praveen Paramasivam in Bengaluru; Editing by Maju Samuel)