Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Commodities»Goldman Sachs Analysis Sheds Light on Rise of Commodities in ESG
    Commodities

    Goldman Sachs Analysis Sheds Light on Rise of Commodities in ESG

    August 27, 20243 Mins Read


    (Bloomberg) — The days of equating ESG with the blacklisting of commodities are over, it seems.

    In a fresh study, analysts at Goldman Sachs Group Inc. have found that fund managers are increasingly including oil, gas and mining stocks in portfolios that are registered as ESG. 

    The development coincides with a regulatory rethink of how to frame environmental, social and governance strategies, opening the door for ESG investors to hold assets that might be green one day, even if they aren’t yet. It also follows protracted attacks by the US Republican Party, which has repeatedly accused the ESG industry of blacklisting fossil fuels. 

    Goldman’s research looked at funds registered under the European Union’s Sustainable Finance Disclosure Regulation, which is the world’s biggest ESG investing rulebook. SFDR has two sustainable fund categories: Article 8 (the broadest) and Article 9 (the strictest). The analysis found that fund managers are generally more exposed to oil, gas and mining stocks now than they were 12 months ago.

    Among Article 8 funds, a category that Bloomberg Intelligence estimates covers more than $7 trillion of assets, 51% now hold at least one oil and gas company, up from 47% a year ago, Goldman’s analysis found. When it comes to metals and mining, 46% of Article 8 funds hold at least one company in the industry, while the equivalent figure for Article 9 managers is 32%, the analysis shows. That’s up about 5% to 6% from a year ago, Goldman found.

    Though ESG funds continue to be overall underweight commodities, “we see more willingness to own metals and mining companies,” Goldman analysts including Evan Tylenda and Grace Chen wrote in the report, which was published this week. And there’s evidence that ESG fund ownership of oil and gas stocks has “increased slightly,” they said.

    SFDR is currently in the middle of a major overhaul following a lengthy consultation period. The revamped version is expected to make greater allowance for transition investing, meaning fund managers will be able to hold formerly controversial assets provided they can show their ownership is helping improve a holding’s ESG profile. 

    Changes in the ESG regulatory backdrop in Europe “will spark the advent of improved mainstreaming of transition/improver funds as credible sustainability strategies, which could drive flows towards companies traditionally excluded,” the Goldman analysts said.

    The findings follow signs of a wider retreat from ESG in recent years, amid lackluster returns and mixed evidence of any positive environmental or social impact.

    In the first half of 2024, Article 8 and 9 funds had a combined $17 billion of outflows, compared with $68 billion of inflows for non-sustainable equity funds (a category known as Article 6 within SFDR), the Goldman analysis found. The picture is different in the bond market, however, with sustainable fixed-income funds generating $115 billion of inflows, compared with $75 billion for non-sustainable funds, the analysts said.

    What’s more, there are signs of improvement in recent months, with Article 8 and 9 funds seeing “modest net inflows” in both May and June, they said.

    And despite net outflows during 2024, assets under management in Article 8 and 9 funds are close to “all-time highs,” the analysts said.

    More stories like this are available on bloomberg.com

    Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

    MoreLess

    HomeNewsIndiaGoldman Sachs Analysis Sheds Light on Rise of Commodities in ESG



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Le projet d’usine de GNL de Marinvest Energy serait-il cohérent avec les cibles climatiques du gouvernement du Québec?

    Commodities

    les géants français du metal en tournée dans toute la France… et des places encore disponibles !

    Commodities

    VAALCO mise sur Baobab, malgré sa production marginale

    Commodities

    Haiti – Agriculture : Colombia and Haiti progress in their agricultural cooperation

    Commodities

    le premier parc éolien en Nord-Vienne inauguré

    Commodities

    China’s market regulator promotes agricultural standardization in Zambia to deepen Sino-African ties

    Commodities
    Leave A Reply Cancel Reply

    Top Picks
    Cryptocurrency

    Should African central banks pursue digital currencies?

    Precious Metal

    Gold price tops $2,400 again on signs of cooling inflation

    Property

    Poly Property annonce une valeur des ventes contractuelles de 3,5 milliards de RMB pour le mois d’avril

    Editors Picks

    Au Ghana, le GoldBod concentre pouvoirs et critiques dans le négoce de l’or

    May 4, 2025

    Cryptocurrency Traders Make Millions Using CESUR Mining

    March 24, 2025

    TriSummit Utilities Inc. Closes $150 Million Medium-Term Note Offering

    April 24, 2025

    Dogecoin (DOGE) and Pepe coin (PEPE) Fell Behind as a New Hot Cryptocurrency Took over the Market in February.

    March 3, 2025
    What's Hot

    En Afrique du Sud, les mineurs d’or poursuivent leur expansion loin de chez eux

    March 5, 2025

    What R10 million gets you in South Africa vs the UK – BusinessTech

    July 13, 2024

    Palladium Price Prediction For 2025

    October 29, 2024
    Our Picks

    Greater Manchester property hotspot named one one the best market towns in England

    February 20, 2025

    Is The Crypto Crash Over? Bitcoin, Ether And Other Tokens Bounce Back After Devastating Dip.

    August 6, 2024

    Électricité et IA : les clés du pouvoir

    July 2, 2025
    Weekly Top

    This 6.1% Monthly Dividend Stock is a Cash Flow Machine

    July 9, 2025

    Pakistan plans digital currency pilot

    July 9, 2025

    RBA pushes ahead with stablecoin and digital currency trials — Capital Brief

    July 9, 2025
    Editor's Pick

    Western Nebraska leads in property tax frugality

    July 23, 2024

    Graspop Metal Meeting 2025 : Iron Maiden en grande forme, vampires, monstre et grand soleil

    June 20, 2025

    India’s silver imports to double on rising demand for solar, investment | Commodities

    August 23, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.