Goldman Sachs has found that fund managers are increasing their allocation of oil, gas and mining stocks to ESG funds.

New research from Goldman Sachs looked at funds registered under the EU’s Sustainable Finance Disclosure Regulation and categorized as Article 8 and Article 9. They found that fund managers have increased their allocation to oil, gas and mining stocks over the past year.

51% of Article 8 funds now include at least one oil and gas company, up from 47% a year ago and 46% of Article 8 funds hold at least one metals and mining company in the industry, up almost 5% from a year ago.

Goldman also found that 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 ESG equity funds. Sustainable fixed-income funds generated $115 billion of inflows, compared with $75 billion for non-sustainable funds.

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