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

    Les ventes de porcs de Shennong Agricultural reculent de 8 % en juin

    Commodities

    Iron ore climbs as Trump leaves door open for more tariff talks

    Commodities

    Vosges. Que prévoit vraiment le projet industriel à 1,4 milliard d’euros porté par Verso Energy à Chavelot ?

    Commodities

    du hard rock alsacien à croquer par les oreilles

    Commodities

    Éoliennes dans les Pyrénées-Orientales : le préfet retoque un projet au-dessus du barrage de Caramany

    Commodities

    Kiosqnrock 2025 : le rendez-vous national du Air Guitar passe à la vitesse métal cet été

    Commodities
    Leave A Reply Cancel Reply

    Top Picks
    Precious Metal

    Le pro du jour – Christophe Mirandel : “Gold Peji est en forme”

    Precious Metal

    Silver Range Resources Ltd. définit une cible de forage d’exploration à East Goldfield

    Commodities

    Crude oil futures gain despite US-China trade war uncertainty

    Editors Picks

    Vivatech : pour une fintech résolument plus inclusive – par Isabelle Le Bot et Aurélie Jean

    June 13, 2025

    Big Michigan utilities just won rate increases. They’ll soon be ‘back asking for more’

    April 4, 2025

    Wall Street’s Most Accurate Analysts Give Their Take On 3 Tech Stocks Delivering High-Dividend Yields – JinkoSolar Holding Co (NYSE:JKS), HP (NYSE:HPQ)

    June 23, 2025

    How the BVNK-Circle Partnership Will Expand USDC Utility

    October 20, 2024
    What's Hot

    New-build investments can save the EPC upgrade headache

    August 18, 2024

    Bitcoin Expected to Rally Between $90K-$92K, Will it Happen?

    April 22, 2025

    US farm sentiment at four-year high as Trump seeks trade deals

    June 3, 2025
    Our Picks

    Le Real Madrid lâche une annonce sur le mercato

    January 15, 2025

    China Acknowledges Digital Currency In Historic AML Law Overhaul

    August 20, 2024

    Majority of Germans find defense industry investments justifiable

    June 22, 2025
    Weekly Top

    Cryptocurrency News Live: Bitcoin, Ethereum, Solana, other coins price updates; check trading, m-cap

    July 7, 2025

    Vosges. Que prévoit vraiment le projet industriel à 1,4 milliard d’euros porté par Verso Energy à Chavelot ?

    July 7, 2025

    du hard rock alsacien à croquer par les oreilles

    July 7, 2025
    Editor's Pick

    Egypt aims to boost agricultural exports by 20% in 2025

    January 28, 2025

    Cboe Canada accueille sept nouveaux FNB d’actions de rendement de Purpose Investments

    February 20, 2025

    Investing $50,000 in This Ultra-High-Yield Dividend Stock Could Generate $2,865 in Annual Passive Income

    June 6, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

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