U.S. SEC investigating Goldman Sachs over ESG funds – WSJ

(Reuters) – The U.S. Securities and Trade Fee is trying into Goldman Sachs Group Inc’s asset-management division over its funds that look to take a position primarily based on environmental, social and governance (ESG) requirements, the Wall Road Journal reported.

The investigation is concentrated on Goldman Sachs’ mutual-funds division, the report stated on Friday, citing folks aware of the matter. The agency manages not less than 4 funds which have clean-energy or ESG of their names.

Goldman Sachs didn’t instantly reply to a Reuters request for remark.

The SEC earlier this 12 months proposed a pair of rule modifications aimed toward stamping out unfounded claims by funds on their ESG credentials, and implementing extra standardization of such disclosures.

(Reporting by Praveen Paramasivam in Bengaluru; Modifying by Maju Samuel)