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Goldman Sachs to Pay $4M SEC Penalty in ESG Fund Case


What You Have to Know

  • Regulators says the agency “had a number of insurance policies and procedures failures” involving ESG analysis used to choose and observe inventory holdings.

Goldman Sachs Group Inc. pays $4 million to settle U.S. regulators’ claims that its asset-management unit didn’t correctly weigh environmental, social and governance elements in a few of its funding merchandise.

The Securities and Trade Fee mentioned that the Goldman Sachs Asset Administration unit “had a number of insurance policies and procedures failures involving the ESG analysis its funding groups used to pick and monitor securities.”

The alleged misconduct occurred from April 2017 to February 2020, the SEC mentioned in an announcement on Tuesday.

The unit didn’t have any written insurance policies or procedures for ESG analysis in one of many merchandise from April 2017 to June 2018, and as soon as they had been put in place did not constantly comply with them previous to February 2020, the markets watchdog mentioned.

The SEC mentioned the financial institution’s unit didn’t correctly full ESG questionnaires on corporations it deliberate to incorporate in an funding portfolio previous to their choice.

The problems associated to Goldman Sachs ESG Rising Markets Fairness Fund, Goldman Sachs Worldwide Fairness ESG Fund and a U.S. Fairness ESG separately-managed account technique, Goldman Sachs mentioned in an announcement.

“These historic issues didn’t materially influence the investments’ satisfaction of the ESG standards contained in these insurance policies and procedures,” it mentioned. The financial institution didn’t admit or deny the regulator’s findings.

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