Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• continued investments in alternative energy projects of over $2 billion to date
• increased commitment to integrating environmental, social and governance factors into our global investment research through the launch of the GS SUSTAIN focus list
• expansion of our carbon emissions product offerings and trading services
• introduction of new financial products associated with environmental risks faced by our clients
• enhancement of due diligence guidelines on environmental and social issues and implementation of additional employee training
• development of an overall strategy for reducing our direct environmental impact
• integration of green building standards and environmentally responsible programs into our facilities and operations worldwide
• dissemination of research and furtherance of outreach on market-based solutions to environmental issues through our Center for Environmental Markets

Social Achievements

• Community TeamWorks
• Public Service Program
• involvement in the International Finance Facility for Immunization

Governance Achievements

• Amended and Restated By-laws to provide that, absent a significant reason to the contrary, the Board should accept the resignation of any incumbent director that does not receive a majority vote in an uncontested election
• adopted a Related Person Transaction Policy

Climate Goals & Targets

Environmental Challenges

• Shareholder concerns about executive compensation and its alignment with shareholder value creation
• Shareholder proposal requesting a sustainability report citing inconsistencies between Goldman's actions and environmental policy (Tierra del Fuego land transaction)

Mitigation Strategies

• Comprehensive analysis of executive compensation objectives and practices, including the decision-making process of the independent Compensation Committee, and detailed disclosure of each element of compensation awarded to NEOs.
• Providing information about corporate initiatives and sustainability efforts on the public website and in a 2007 environmental report.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Clean Energy
• Environmental Risk Management
• Sustainable Investments
• Operational Efficiency
• Stakeholder Engagement
• Conservation

Environmental Achievements

• Reduced emissions per full-time occupant in the workplace (excluding data centers) by 33% since 2005.
• Invested approximately $3 billion in clean energy since 2006.
• Reduced global carbon emissions intensity.
• Completed first run-of-river hydroelectric generating plant with 23 megawatt capacity.
• Developed 120 megawatts of solar energy projects (advanced stage of development as of mid-2010).
• Executed the largest clean tech IPO of 2009 for A123 Systems.
• Announced a $12 million carbon offset transaction.
• Placed eight catastrophe-linked securities transactions totaling $1.4 billion.

Social Achievements

• Awarded over $300 million in contracts to minority and women-owned businesses in the development of 200 West Street.
• Invested more than $5 million through the Center for Environmental Markets in partnerships with corporations, NGOs, and academic institutions.
• Expanded partnerships to include General Electric, World Resources Institute, and Duke University.
• Established employee-led environmental networks in cities worldwide.
• Reduced single-use water bottle consumption by 22%.

Governance Achievements

• Board of Directors reviews the Environmental Policy Framework annually.
• Environmental Markets Group (EMG) coordinates and oversees the Framework.
• ESG reviews conducted for opportunities before committing to business.

Climate Goals & Targets

Environmental Challenges

• Increased overall emissions due to growth in data processing requirements.
• Balancing economic growth with environmental impact in environmentally sensitive sectors.
• Managing the environmental impact of technology systems.

Mitigation Strategies

• Implementing Carbon Emissions Reduction Framework.
• Consolidating operations into energy-efficient real estate.
• Improving space utilization.
• Consolidating data centers.
• Implementing demand management and energy conservation measures.
• Purchasing renewable energy.
• Investing in energy-efficient technology.
• Influencing vendors to provide energy-efficient products.
• Driving internal behavior to incorporate sustainability.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Environmental performance criteria integrated into vendor contracts.
• Sustainable products and services considered in vendor selection.

Climate-Related Risks & Opportunities

Physical Risks

• Natural catastrophes

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investments in clean energy technologies.
• Development of market-based solutions.

Reporting Standards

Frameworks Used: EPA Climate Leaders Greenhouse Gas Inventory Protocol, Greenhouse Gas Protocol

Certifications: LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• General Electric's Ecomagination Leadership Award (Cogentrix plant in Battleboro, NC)
• Tier 1 Ranking in the Chicago Green Office Challenge (Chicago facility)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Community Development
• Corporate Governance
• Responsible Investing
• Business Standards

Environmental Achievements

• Deployed nearly $27 billion in capital toward a 10-year $40 billion clean energy goal since 2012
• Expanded GS SUSTAIN’s research platform to cover approximately 3,300 companies on governance factors and 2,200 companies on stakeholder factors (including environmental and social)
• Seventeenth office was certified LEED Gold, making over 50 percent of our global corporate real estate portfolio LEED-certified
• Listed on Carbon Disclosure Project (CDP) leadership indexes for climate change disclosure for four consecutive years

Social Achievements

• Goldman Sachs 10,000 Small Businesses program invested $500 million to help entrepreneurs create jobs
• 10,000 Women initiative reached more than 10,000 women across 43 countries
• More than 25,000 Goldman Sachs’ people, family and friends contributed more than 125,000 hours to community service
• Community TeamWorks engaged 52 Goldman Sachs offices with nearly 900 nonprofit organizations on more than 1,580 projects worldwide

Governance Achievements

• Active and diverse Board of Directors with independent leadership
• Implementation of all 39 recommendations from the Business Standards Committee report
• Establishment of the Chairman’s Forum for managing directors and vice presidents to focus on client service and reputation

Climate Goals & Targets

Environmental Challenges

• Minimizing the firm's own environmental impact
• Managing environmental risks associated with physical commodity business activities
• Balancing environmental sustainability with economic growth

Mitigation Strategies

• Carbon Reduction Framework to maximize efficiency and innovate in facility design and operation
• Environmental Markets Group (EMG) reviews transactions to ensure environmental impacts are considered
• Physical Commodities Review Committee evaluates and manages environmental, health and safety risks
• Partnerships with NGOs to research and develop market solutions to environmental challenges

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Not disclosed

Opportunities

• Clean energy investments

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: LEED Gold (multiple offices), ISO 14001 (30 Hudson Street and 200 West Street)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards and rankings (see report for details)

Environmental Metrics

ESG Focus Areas

• Clean Energy
• Technology
• Women Entrepreneurship
• ESG and Impact Investing
• Community Development
• Climate Change

Environmental Achievements

• Deployed more than $65 billion in clean energy financing and investment (with a target of $150 billion by 2025)
• Updated Environmental Policy Framework
• Maintained zero net carbon emissions from 2015 onward for global real estate portfolio and business travel
• Targeted 100% renewable electricity for global needs
• Sent zero business waste to landfill
• Dedicated $2 billion in green operational investments

Social Achievements

• Launched 10,000 Women initiative, expanding to a $600 million credit facility for 100,000 women-owned businesses
• Invested almost $5 billion in initiatives driving social and economic development in underserved communities through the Urban Investment Group (UIG)
• Various diversity and inclusion initiatives and programs

Governance Achievements

• Established the Firmwide Client and Business Standards Committee (CBSC) to enhance reputational risk management and client focus
• Robust and independent risk management structure with oversight from the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Managing environmental and social risks associated with clients and transactions
• Lack of capital access for women-owned businesses in developing countries

Mitigation Strategies

• Environmental Markets Group reviews transactions for environmental and social risks
• Partnership with IFC to create a $600 million credit facility for women-owned businesses
• Robust risk management framework and processes

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Newsweek Green Rankings (#51 globally, #31 in US)
• FTSE4Good Index Listed
• Euromoney Awards for Excellence
• Financial News Awards for Excellence in Investment Banking
• Dow Jones Sustainability North America Index Listed
• CDP Climate Disclosure Leadership Index (Disclosure Score 100, Performance Band A-)
• IFR Annual Awards
• Risk Awards
• CR Magazine: 100 Best Corporate Citizens
• Universum: World’s Most Attractive Employers
• Barron’s: The World’s Most Respected Companies
• Vault: Top 50 Banking Employers
• Fortune: World’s Most Admired Companies
• FORTUNE: 100 Best Companies to Work For
• US Business Leadership Network and American Association of People with Disabilities: Disability Equality Index
• Asia Society: Corporate Awards
• Working Mother: 100 Best Companies
• Hispanic Association on Corporate Responsibility: Corporate Inclusion Index
• Human Rights Campaign’s Corporate Equality Index (100% rating)

Environmental Metrics

ESG Focus Areas

• Climate Transition
• Inclusive Growth

Environmental Achievements

• Achieved carbon neutrality in operations.
• Reduced single-use plastics in operations by 85%.

Social Achievements

• Increased parental leave to 20 weeks for all employees.
• Launched Launch With GS, a $500 million investment strategy to increase access to capital for diverse entrepreneurs.

Governance Achievements

• Established the Sustainable Finance Group.
• Announced a $750 billion sustainable finance commitment by 2030.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (extreme weather events, transition risks).
• Lack of diversity in venture capital and private equity.

Mitigation Strategies

• Developed catastrophe bonds and resiliency bonds.
• Launched Launch With GS to address diversity gap.
• Integrated climate risk into risk management and business selection processes.

Supply Chain Management

Supplier Audits: 80 vendor ESG self-assessment survey piloted.

Responsible Procurement

• Vendor Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Heat stress
• Water stress

Transition Risks

• Policy changes
• Technology shifts
• Consumer preferences

Opportunities

• Clean energy financing and investments
• Sustainable finance solutions

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: LEED, ISO 14001

Sustainable Products & Innovation

• ESG investment strategies
• Sustainability-linked bonds

Awards & Recognition

• CDP Supplier Engagement Leader list (A score)
• CDP Climate Change Leader list (A- score)
• EPA Green Power Partnership Top 100
• Newsweek and Statista America’s Most Responsible Companies
• JUST Capital America’s Most Just Companies
• US Transparency Awards
• Dow Jones Sustainability Index

Environmental Metrics

ESG Focus Areas

• Climate Transition
• Inclusive Growth

Environmental Achievements

• Reduced energy intensity by 36% from a 2017 baseline for offices under operational control
• Reduced water intensity by 47% from a 2017 baseline for offices under operational control
• Achieved net zero emissions in our operations and supply chain by 2030
• Sourced renewable electricity equivalent to 100% of global electricity consumption

Social Achievements

• Launched One Million Black Women initiative, committing $10 billion in investment capital and $100 million in philanthropic capital over the next decade to address opportunity gaps for at least one million Black women.
• Deployed over $3 billion through our Urban Investment Group in 2021
• Facilitated more than 50 diverse board placements at client organizations
• Updated US proxy voting policy to consider director race, ethnicity, and sexual orientation, as well as gender

Governance Achievements

• Issued $800 million inaugural Goldman Sachs Sustainability Bond
• Established dedicated Sustainability Councils within each of our business segments and regionally focused Sustainability Councils

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Geopolitical tensions
• Inflation
• Need for significant capital to transition to more carbon-efficient sources
• Limited availability of carbon offsets from certain projects
• Demand for carbon offsets has increased significantly, but supply remains fragmented

Mitigation Strategies

• Developed alternative sourcing strategies
• Developed innovative structures, including sustainability-linked bonds (SLBs)
• Issued requests for removal project proposals to address client interest in the market and meet the firm’s own net zero objectives
• Engaging with vendors representing a majority of our supply chain emissions to gain a better understanding of their GHG emissions and climate actions
• Integrated standard climate-related RFP and vendor assessment questions in our sourcing and vendor review processes

Supply Chain Management

Supplier Audits: 60% of global vendors assessed for ESG risks in 2021

Responsible Procurement

• ESG requirements and controls within sourcing and ongoing vendor management processes
• ESG standards for all vendors
• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Longer-term shifts in the climate

Transition Risks

• Climate-related policy, legal, technology, and market changes

Opportunities

• Development of energy-efficient products and services
• Investment opportunities in clean energy and technology

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: LEED, ISO 14001, ISO 20121

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ESG-linked Transaction Banking account
• Clean energy-themed ETF
• Carbon Portfolio Analytics offering
• ESG diagnostic to help clients identify and work toward their long-term sustainability goals

Awards & Recognition

• Bloomberg Gender-Equality Index
• Disability:IN Disability Equality Index
• CDP Climate Change A-List
• Environmental Finance Bond Awards - Green Project Bond of the Year
• J.D. Power US Credit Card Satisfaction Study - Apple Card and Goldman Sachs ranked No. 1 in Customer Satisfaction among Midsize Credit Card Segment

Environmental Metrics

ESG Focus Areas

• Climate Transition
• Inclusive Growth

Environmental Achievements

• Maintained LEED Gold certification or equivalent across 71% of global square footage
• Sourced renewable electricity equivalent to 100% of global consumption
• Reduced energy use intensity for offices by 34% from 2017 baseline
• Reduced water intensity for offices by 33% from 2017 baseline
• Reduced internal paper use per capita by 77% from 2017 baseline

Social Achievements

• 10,000 Women program reached over 200,000 women across 150+ countries
• 10,000 Small Businesses program reached over 13,600 entrepreneurs in the US
• One Million Black Women initiative deployed ~$2B in investment capital and over $23M in grant capital
• Facilitated 75 diverse board placements at client organizations

Governance Achievements

• Integrated climate and sustainability risk oversight into centralized governance structures
• Established a Corporate Board Engagement team to facilitate diverse board placements
• Updated and reissued Vendor Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global energy prices and geopolitical events
• Finding decision-useful data to measure sustainability progress
• Balancing short-term energy demands with long-term sustainability goals

Mitigation Strategies

• Partnered with renewable energy developers to navigate supply chain issues
• Developed open-source platform for climate data and analytical tools
• Developed Carbon Portfolio Analytics tool to measure and manage carbon emissions exposure
• Pragmatic approach to climate transition, engaging with clients in hard-to-abate sectors

Supply Chain Management

Supplier Audits: 97% of vendors with inherently higher ESG risk assessed

Responsible Procurement

• Vendor Code of Conduct
• ESG questionnaires for high-risk vendors
• Training on greenhouse gas inventory management

Climate-Related Risks & Opportunities

Physical Risks

• Tropical cyclones
• Temperature changes
• Rising sea levels
• Severe weather conditions

Transition Risks

• Regulatory changes
• Market shifts
• Stranded assets

Opportunities

• Investment in renewable energy
• Development of energy-efficient products
• Growth of sustainable finance market

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: LEED, ISO 14001, ISO 20121

Third-party Assurance: PricewaterhouseCoopers LLP (for Sustainability Issuance Report)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through investments in renewable energy, energy efficiency, and climate mitigation projects

Sustainable Products & Innovation

• Carbon Portfolio Analytics tool
• GS Climate Transition tool
• ESG Portfolio Diagnostic tool

Awards & Recognition

• Disability:IN Disability Equality Index (100% score)
• Environmental Finance Bond Awards
• Environmental Finance Sustainable Investment Awards
• EPA Green Power Partnership National Top 100
• Human Rights Campaign Foundation Corporate Equality Index (100% rating)
• JUST Capital America’s Most Just Companies
• JUST Capital Top 100 U.S. Companies Supporting Healthy Families and Communities
• Latin Finance Project & Infrastructure Awards
• Private Equity International Impact 30
• WEConnect International Top Global Champions for Supplier Diversity and Inclusion

Environmental Metrics

ESG Focus Areas

• Climate Transition
• Inclusive Growth

Environmental Achievements

• Achieved approximately $302 billion in Climate Transition commercial activity since 2019.
• Reduced energy use intensity for offices by 42% from the 2017 baseline.
• Reduced global water withdrawal by 11% from the 2017 baseline.
• Reduced global business waste by 40% from the 2017 baseline.
• Sourced renewable electricity equivalent to 100% of global electricity consumption.

Social Achievements

• Achieved approximately $74 billion in Inclusive Growth commercial activity since 2019.
• Launched 10,000 Small Businesses Investment in Rural Communities, a $100 million commitment to expand business education and capital access programs to 20 rural US states over the next five years.
• Expanded One Million Black Women: Black in Business program, an education initiative to help Black women solopreneurs grow their businesses.
• Deployed over $19 billion in community loans and investments since 2001.
• Provided $454 million JV equity to preserve affordability in over 10,000 units of affordable housing.

Governance Achievements

• Established the Sustainable Finance Group (SFG) in 2019 to formalize and drive the firm’s sustainability strategy.
• Implemented a three lines of defense framework for managing climate and other environmental and social-related risks.
• Developed a centralized sustainability data hub (ESG Beacon) to improve decision-making and manage risk and regulatory change.

Climate Goals & Targets

Environmental Challenges

• High dependence on fossil fuels for global energy needs (over 80%).
• Rising energy demand and geopolitical conflicts impacting energy security and affordability.
• High inflation increasing input costs and complicating supply chains.
• Potential doubling of electricity consumption from data centers, generative AI, and cryptocurrencies by 2026.
• Scrutiny of sustainability commitments and divergence in client preferences and regulatory approaches.

Mitigation Strategies

• Continued financing and advising of clients in the energy sector while investing in innovative decarbonization technologies.
• Developing solutions for clients to meet their decarbonization goals.
• Investing in data management, measurement, and reporting capabilities to prepare for the EU Corporate Sustainability Reporting Directive (CSRD).
• Leveraging public-private partnerships to address market gaps (e.g., Climate Innovation and Development Fund).
• Exploring the use of Generative AI to advance data sourcing, verification, and analytics for sustainability reporting.

Supply Chain Management

Supplier Audits: 98% of vendors with inherently higher ESG risk assessed in 2023.

Responsible Procurement

• Vendor Code of Conduct, ESG questionnaires, focus on small and diverse vendors.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, chronic changes in temperatures

Transition Risks

• Regulatory changes, market shifts, energy price volatility

Opportunities

• Investing in renewable energy, decarbonization technologies, and sustainable transportation.

Reporting Standards

Frameworks Used: SASB, TCFD, EU CSRD (preparing for 2025 reporting)

Certifications: LEED, ISO 14001, ISO 20121

Third-party Assurance: PricewaterhouseCoopers LLP (for Sustainability Issuance Report)

Sustainable Products & Innovation

• Sustainability Bonds, various sustainable finance solutions for clients.

Awards & Recognition

• WEConnect International Gold award for Top Global Champions for Supplier Diversity and Inclusion.