Goldman Sachs comes under SEC civil probe over ESG funds - WSJ
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Goldman Sachs' (NYSE:GS) asset management division is being investigated by The securities and Exchange Commission over its funds that are dedicated to environmental, social and governance ("ESG") investing, people with knowledge on the matter said, as reported by the Wall Street Journal on Friday. 
Specifically, the SEC's civil probe is focused on the megabanks' mutual-fund unit, the people told the WSJ, adding that the investigation could finish without formal enforcement action. 
ESG-based investing, which has increasingly been faced with regulatory scrutiny in recent years, involves picking stocks or bonds based on environmental, social and governance standards. Towards the end of May, the securities agency proposed rules to crack down on unsubstantiated claims by funds about their ESG performance. 
"Regulators have sometimes expressed concerns that ESGâwhich doesnât have a defined regulatory meaningâcan be a superficial way to market financial products to shareholdersâ desire to address subjects such as climate change or diversity in the workplace," the WSJ noted. 
In June 2020, Goldman (GS) had decided to rename its Blue Chip Fund as the Equity ESG Fund, with some of its top holdings in Microsoft (MSFT), Apple (AAPL) Alphabet (GOOG) (GOOGL), Bristol-Myers Squibb (BMY) and Eli Lilly (LLY), the WSJ reported, citing regulatory filings. 
Take a look at whether U.S. regulators will develop and enforce ESG standards this year.