The Securities and Exchange Commission is investigating Goldman Sachs on ESG investment funds (funds that invest in companies that claim to work on environmental, social and governance principles).
The agency said it was investigating an ESG mutual fund overseen by the bank’s asset management department, saying the two, who spoke on anonymous terms, were not authorized to publicly comment on the issue.The Wall Street Journal Previously reported About the investigation.
The SEC declined to comment.
ESG reports have emerged as the SEC’s top priority under the chair of the SEC. Gary Gensler.. Earlier this year, the Commission proposed a change that would require more disclosure from companies to investors about the risks that climate change and its new government policies could pose to their businesses.And last year, regulatory agencies Establish a special ESG task force Focus on whether Wall Street companies and businesses are misleading investors about investment and business standards in the areas of environment, society and governance.
Goldman’s investment trust investigation seems to be related to a new enforcement initiative.Last month, the investment advisory division of Bank of New York Mellon I paid about $ 1 million To resolve the SEC’s investigation into allegations of omission or misunderstanding of investors regarding ESG criteria for assessing investments. The SEC is also investigating Deutsche Bank.
Overseas, authorities are also stepping up investigations into how companies sell ESG standards. Asoka Woehrmann, head of Deutsche Bank’s asset management business, said Resignation HSBC in May this month after the company’s Frankfurt office was attacked with allegations of exaggerating ESG claims. pause Stuart Kirk, who led responsible investment in the asset management sector, after policymakers said they exaggerated the risks of climate change.