The Goldman Sachs Group, Inc.

RATING

SECTOR

Financial Services

WEBSITE

CONTACT

200 West Street,
New York,
NY 10282
U.S.

STOCK EXCHANGE

LISTING

  • Supplier Engagement Leader list (A score) 
  • Climate Change Leader list (A- score)
  • Ranked #93 out of 300 America’s Most Responsible Companies in News Week and Statista’s rankings 
  • EPA Green Power Partnership – Ranked #43 in the National Top 100 and Included on the 100% Green Power Users list
  • JUST Capital Ranked #111 out of 922 America’s Most Just Companies Ranked #4 out of 33 Capital Markets Companies according to JUST Capital 

EMPLOYEES

38,300

CHIEF SUSTAINABILITY OFFICER

Kara Mangone

AWARDS

  • Ranked #6 in US Transparency Awards.
  • Euromoney Awards for Excellence by America’s Best Bank for Sustainable Finance

CONTENT SOURCE

FURTHER READING

Report created by Aravind Samala

The Goldman Sachs Group, Inc.

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

The Goldman Sachs Group, Inc., is an American multinational investment bank and financial services company headquartered in New York City. It offers services in investment management, securities, asset management, prime brokerage, and securities underwriting.

Goldman Sachs Group, Inc. engages in global investment banking, securities, and investment management, which provides financial services. It operates through the following business segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management.

  • The Investment Banking segment serves public and private sector clients around the world and provides financial advisory services, help companies raise capital to strengthen and grow their businesses and provide financing to corporate clients.
  • The Global Markets segment serves its clients who buy and sell financial products, funding and managing risk.
  • The Asset Management segment provides investment services to help clients preserve and grow their financial assets.
  • The Consumer & Wealth Management segment helps clients to achieve their individual financial goals by providing a wealth advisory and banking service.

Company Sustainability Activity

Goldman Sachs seeks “to manage Goldman Sachs for the long term, by supporting [their] people and increasing diversity and inclusion in our ranks, effectively managing risk, and seeking to limit [their] operational impacts around the world. Using [their] commercial expertise to catalyze innovative market-driven solutions for mitigating climate risk and capturing growth opportunities in clean energy, sustainable transport, food and agriculture, waste and materials, and ecosystem services.”

Highlights

  • Zero net carbon emissions across their global operations and business travel since 2015
  • In 2019 they recycled 100% of their eWaste, 90% of construction waste and diverted 99% of their business waste from landfill. Over 86% of paper was procured from post-consumer recycled or certified new fiber sources and they reduced paper use per-capita by 40%, far surpassing their 2020 goal of a 20% reduction.
  • Zero percent business waste to landfill

Targets

Greenhouse Gas Emissions/Energy/Travel

  • Reduce energy intensity by 20% from a 2017 baseline for offices under operational control
  • Extend Scope 3 carbon neutrality commitment for business travel to include hotel night stays
  • Ensure that 80% of renewable energy procurement is from long-term, impactful agreements, such as power purchase agreements or on-site generation
  • Become a signatory to The Climate Group’s EP100 initiative (Energy Productivity)
  • Become a signatory to The Climate Group’s EV100 initiative (Electric Vehicle)
  • Establish a green traveller program for Goldman Sachs employees to minimize the environmental impact of business travel

Water

  • Achieve 20% reduction in water use from a baseline for all new construction and major renovation projects
  • Reduce water intensity by 15% from a 2017 baseline for offices under operational control

Plastics

  • Remove 100% of plastic beverage bottles and disposables from on-site cafeterias, micro-markets and vending machines globally
  • Reduce the amount of firm-provided office supplies that contain plastic

Business Waste

  • Reduce internal paper use per-capita by 30% from a 2017 baseline

Events/Hospitality

  • Extend commitment to ISO 20121 certified Sustainable Event Management to include off-site events
  • Procure 100% green cleaning products for on-site cafeterias globally
  • Procure 50% sustainably sourced food for on-site cafeterias globally

Supply Chain

  • Assess 100% of global vendors for ESG risks
  • Increase spend with diverse vendors by 50% from a 2020 baseline

Progress

  • Achieved carbon neutrality in their operations in 2015 and continued to maintain the status since then.
  • Goldman Sachs acquired Imprint Capital, a leading institutional impact investing firm and innovator in developing investment solutions that generate measurable ESG impact alongside a financial return. Since their acquisition, Goldman Sach’s dedicated ESG and impact assets have grown to $74 billion.
  • Goldman Sachs committed $750 billion in financing, investing and advisory across nine sustainable growth themes to support global climate transition and inclusive growth strategies that accelerate positive change.
  • Oct 2020: Goldman Sachs launched the green division as part of their $750 billion sustainable finance effort.

Social and Environmental – case studies from some of Goldman Sachs projects: 

    • Goldman Sachs’ sustainable finance solutions have enabled Oncoclinicas to build large-scale projects and continue investing in the most advanced technologies in cancer treatment. As an investor since 2015, their capital has helped to support growth and expansion into 25 cities in Brazil and in 2018 they became the organization’s largest shareholder.
    • Climb Credit received $50 million in lending capital from Goldman Sachs to provide financing for people to affordably learn valuable career skills with life-changing impact. The capital allows Climb Credit to expand access to career-transforming education and skills training for people with various financial backgrounds, and promote economic mobility for their users.
    • Since 2014, their loans have funded the education of over 15,000 learners and they’ve partnered with nearly 200 schools that provide training for career paths with strong earning potential in today’s economy.
    • Funds managed by Goldman Sachs have been long-time supporters of Renew Power India, beginning from the fund’s early stage investments in ReNew Power to Investment Banking Division working on three green bonds totaling to ~$1.3 billion. On the path to helping ReNew Power become India’s largest independent renewable energy company, ReNew’s business growth has also contributed 4,000+ new jobs to the Indian economy across more than 95 villages.

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

SDG7

  • Their ongoing partnership is focused on providing access to off-grid energy in rural India. The Business Case for Off-Grid Energy in India, which identified access to debt capital as one of the primary unmet needs for renewable energy businesses to scale up. Informed by this research, Goldman is working with The Climate Group and other local partners to design potential financing vehicles which may enable access to lower cost debt.

SDG 14

  • Goldman Sachs has worked closely with the World Resources Institute (WRI) and GE as a founding member of the WRI Aqueduct Alliance, a partnership that brings together leading companies to address water risk through a global water risk mapping tool. In 2016, WRI released a series of reports which analyzed and assessed baseline water risks for corporations and governments using the web-based interactive mapping platform.

SDG 15

  • The Closed Loop Fund is an innovative investment vehicle that seeks to increase recycling rates across the U.S. The partnership seeks to demonstrate that with added recycling infrastructure, increased awareness and communications and community incentive programs, there can be a measurable increase in recycling rates and job creation opportunities.

SDG 17

  • Given the increasing focus on resiliency measures by policymakers and the need for greater investment in this field, Goldman partnered with other private-sector leaders on an initiative called the RE.bound Program. The initiative seeks to design a new catastrophe bond-like product that would realize the potential benefits from infrastructure improvements that have greater resiliency measures and monetize the associated physical and financial risk reductions. In addition to traditional grey infrastructure solutions, improved resiliency measures can include seawalls and green stormwater infrastructure. By identifying the financial value from enhanced resiliency, the partnership seeks to promote greater investment.

Evaluation

Goldman Sachs has made efforts to incorporate sustainability throughout their business model. In addition to having zero net carbon emissions across their global operations and business travel, the company has made targets to reduce their greenhouse gas emissions, water usage and plastic usage

The company has received numerous listings, awards and certificates. Goldman Sachs does comply with four of the seventeen UN Sustainable Development Goals. 

Despite their efforts, Goldman Sachs is still financing fossil fuels operations. They have been rated a C.

Analyst Outlook: Neutral

Although Goldman Sachs’ latest announcements and progress seem promising, it still supports the operation of fossil fuels, providing $59.257 billion for fossil fuel projects in 2016 and 2018. These activities are counterproductive to their sustainable policies.

Key Points

  •  Goldman Sachs recent announcements about their Sustainable Finance
  •  Goldman Sachs continuing contribution to fossil fuel financing – $59.257 B (2016–2018)
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