SEC Investigates Goldman Sachs' ESG Funds for Potential 'Greenwashing'

“Surprise is the greatest gift which life can grant us,” penned Boris Pasternack. And, while maybe it shouldn’t be so, it’s been a grand surprise for many that the U.S. Securities and Exchange Commission (SEC) has actually gone ahead this week and triggered an investigation into Goldman Sachs for potential #greenwashing in relation to its #environmental #social #governance (ESG) funds.

Regulators across the globe have been setting out their stall to more closely assess the validity of #financialservices’ firms claims that their funds are #sustainable. The SEC, itself, last year launched a special taskforce to evaluate #ESG fund robustness (evaluating for greenwashing).

Nonetheless, this particular probe by the SEC, into leading global #banking, #securities and investment management firm Goldman Sachs, is noteworthy. The jury is out, and the firm will (and should) have the opportunity to challenge the SEC and explain why the #investment funds pass master as ESG-centric. However, the fact that the SEC is not shying away from challenges from the well-respected, global powerhouse is meaningful.

Assuredly, it's early days, but this does seem to mark a change, with a very bright red flag for those #business #leaders who aren’t ‘walking the talk’ to shift their approach and to deliver on #sustainability promises.
 
#management #leadership #finance #investing