Goldman Sachs unit fined $4M for ESG investment lapses

Goldman Sachs Tower

The asset management arm of Goldman Sachs agreed to pay $4 million to settle charges it failed to follow its own policies and procedures regarding a trio of investment products marketed for their environmental, social, and governance (ESG) considerations.

Goldman Sachs Asset Management (GSAM) reached an agreement with the Securities and Exchange Commission (SEC) announced Tuesday that continues the agency’s crackdown on whether investment advisers are backing up their ESG claims. Earlier this year, the SEC fined a BNY Mellon subsidiary $1.5 million for failing to meet its ESG representations regarding certain of its mutual funds.

The SEC in the spring proposed a rule that would require registered investment advisers, investment companies, and business development companies to submit enhanced disclosures about funds that claim ESG strategies drive their investment choices. The proposal has been met with pushback from the industry.

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