In the U.S. another financial institution faces scrutiny, as authorities on both sides of the pond intensify their anti-greenwashing crackdown.
The U.S. Security Exchange Commission (SEC) is probing Goldman Sachs asset management about claims of its funds focussed on environmental, social, and governance (ESG) issues, «The New York Times» reports, citing two people familiar. The outlet also said the SEC was conducting a similar procedure at Deutsche Bank.
The investigation comes as U.S. authorities increase their scrutiny of products that market themselves as sustainable.
After setting up a special ESG task force to focus on whether Wall Street firms and companies were misleading investors about their ESG investments last year, this year the SEC is proposing changes requiring public companies to make more disclosures on the risk of climate change to their operations.
Million Dollar Settlement
This year Bank of New York Mellon paid a $1 million settlement following allegations that it had misled investors about its ESG approach when assessing investments. Pressure on European «greenwashers» increased last month when Deutsche Bank's subsidiary DWS was raided by police on allegations of lying to investors about the greenness of its funds.
