Skip to content

Goldman Investigation Tarnishes ESG Halo as Investors Bail

With Goldman becoming the latest firm hit by an ESG probe, the industry’s problems may only just be starting.

ESG Luster Dims
Photographer: Photo Illustration: Stephanie Davidson; Photos: Getty(6)
Updated on

ESG has become a punching bag for the far right, for disgruntled corporate executives and even industry insiders. But there’s one group whose growing disapproval might be the ultimate game changer.

Retail investors are slowly starting to look under the hood of the $40 trillion environmental, social and governance industry that’s increasingly steering their savings, and many aren’t liking what they see. What’s more, some of the biggest names in finance are facing probes of their ESG businesses, with Goldman Sachs Asset Management and the investment arm of Deutsche Bank AG among the most prominent.