The SEC accuses Goldman Sachs Asset Management of violating its policies for ESG investments.

The U.S. Securities and Exchange Commission fined Goldman Sachs Asset Management $4 million on Tuesday after accusing the firm of breaking its rules regarding investments in the environment, the social sector, and other areas.

The regulatory body said in a statement that the charges were specifically related to “policies and procedures failures involving two mutual funds and one separately managed account strategy marketed as Environmental, Social, and Governance (ESG) investments.”

The SEC said, “Goldman Sachs Asset Management agreed to pay the $4 million penalty without acknowledging or contesting the regulator’s conclusions.”

Since they began paying greater attention to concerns like climate change or workforce diversity, international investors have poured money into ESG-focused funds. However, the funds have seen net withdrawals of investor money thus far this year.

Regulators in the United States and Europe are just beginning to formalize guidelines for ESG claims and disclosures.

“Goldman Sachs Asset Management, L.P. is pleased to have resolved this matter, which addressed historical policies and procedures related to three of the Goldman Sachs Asset Management Fundamental Equity group’s investment portfolios,” the company said in a separate statement.

The corporation had multiple policy and procedure violations affecting the ESG research its investment teams utilized to choose and monitor stocks from April 2017 through February 2020, the SEC concluded.

“From April 2017 until June 2018, the company failed to have any written policies and procedures for ESG research in one product, and once policies and procedures were established, it failed to follow them consistently prior to February 2020,” the SEC said.