Goldman Sachs cuts ESG exposure to Adani cos

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The investment division of Goldman Sachs Group Inc drastically decreased its exposure to the Adani Group in its ESG portfolios in the weeks following allegations of fraud made against the company by short-seller Hindenburg Research, reported Bloomberg.

According to data collated by Bloomberg, Goldman funds designated by the European Union as pursuing environmental, social, and governance goals sold 11.7 million shares in Adani firms in February. According to the statistics, Goldman Sachs Asset Management’s actively managed ESG fund exposure to Adani was only ever a stake in Ambuja Cements Ltd totalling about 400,000 shares after the retreat.

Goldman Sachs is not the only fund to cut investment into Adani. Others who have done the same include Northern Trust Corporation and Storeband ASA. In all 13 ESG funds have reduced exposure to the Adani companies.

The sale is the fallout of the Hindenburg Research report released in January, which raised several governance issues at the group firms. Following the report, the Adani group shares were routed in in the market leading to almost $150 b being wiped out in market capitalisation.

The report also led to the Supreme Court ordering the markets regulator Sebi to conduct a probe into the affairs of Adani group. Sebi was supposed to submit the report by May 5 but it asked for additional six months to complete the probe. The SC on Wednesday May 17, 2023, declined the request and asked Sebi to submit its report by August 14.