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The Securities and Exchange Commission is investigating Goldman Sachs on ESG mutual funds — funds that invest in companies that, according to two people familiar with the matter, say they are committed to environmental, social and governance principles.

The agency is examining ESG mutual funds, which are overseen by the bank’s wealth management unit, said two people who spoke on condition of anonymity as they were not authorized to comment publicly on the matter. Wall Street Journal previously reported about the investigation.

The SEC declined to comment.

Regulators have intensified their scrutiny of increasingly popular sustainable investment vehicles. Criticized for lack of accountabilitylegislators and investors themselves tucked inside.

ESG reporting has emerged as a top priority for the SEC, which is chaired by the agency. Gary Gensler. Earlier this year, the commission recommended changes from companies to investors that would require more disclosure about climate change and the risk that new government policies might pose to their operations. And last year, the editor establishing a dedicated ESG task force Focusing on whether Wall Street firms and companies mislead investors about their investment and business criteria in environmental, social and governance.

The investigation into Goldman’s mutual funds appears to be related to the new enforcement initiative. Last month, the investment advisory arm of the Bank of New York Mellon paid about $1 million To adjudicate an investigation by the SEC into allegations that it has neglected or misled investors about the ESG criteria for evaluating investments. The SEC is also investigating Deutsche Bank.

Abroad, authorities are also accelerating their investigations into how firms market their ESG benchmarks. Asoka Woehrmann, head of Deutsche Bank’s wealth management division, resignation In May this month, after the company’s Frankfurt office was raided over allegations that it exaggerated the claims regarding the ESG, HSBC suspended Stuart Kirk, who led responsible investment in the asset management unit after he said policymakers were exaggerating the risks from climate change.