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Goldman Sachs Facing SEC Probe of ESG Funds in Asset Management

  • Probe focuses on Wall Street giant’s mutual-funds business
  • Agency has warned firms not to mislead investors on ESG
Goldman Sachs Group headquarters in New York.

Goldman Sachs Group headquarters in New York.

Photographer: Michael Nagle/Bloomberg

Goldman Sachs Group Inc. is facing a US investigation into its funds offering investments using environmental, social and governance criteria.

The probe by the Securities and Exchange Commission focuses on Goldman’s mutual-funds business in its asset-management arm, people familiar with the matter said. The agency is looking into whether some investments for the funds are in breach of ESG metrics promised in marketing materials, one of the people said. The inquiry is tied to two funds in that business.