Goldman Sachs Facing SEC Probe of ESG Funds in Asset Management

Goldman Sachs Group Inc. is facing a US investigation into its funds offering investments using environmental, social and governance criteria.

The probe by the Securities and Exchange Commission focuses on Goldman’s mutual-funds business in its asset-management arm, people familiar with the matter said. The agency is looking into whether some investments for the funds are in breach of ESG metrics promised in marketing materials, one of the people said. The inquiry is tied to two funds in that business.

Spokespeople for Goldman Sachs and the SEC declined to comment.

Authorities in the US and Europe are digging into how firms ...