United States: The SEC War on Greenwashing Has Begun

There’s now little doubt that the US Securities and Exchange Commission actually means business in its bid to crackdown on misleading claims by managers of ESG funds.

Last month, the regulator fined a Bank of New York Mellon Corp. investment unit on allegations it falsely implied some of the firm’s mutual funds had undergone so-called ESG quality reviews. And now, the agency has taken on much bigger game, looking into whether some of Goldman Sachs Group Inc.’s mutual funds don’t meet the environmental, social and governance metrics proclaimed by the Wall Street giant’s marketing materials.

“These are the first ripples of a wave of regulatory interventions that we are likely to see in the coming months,” said Sonali Siriwardena, partner and global head of ESG at law firm Simmons & Simmons.

Read more on bloomberg.com

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