SUSTAINABLE FINANCE

THE IMPERATIVE AND THE OPPORTUNITY

Goldman Sachs 2019 Sustainability Report
Goldman Sachs 2019 Sustainability Report

CONTENTS
03 INTRODUCTORY LETTER
05 RAISING OUR COMMITMENT, EXECUTING OUR PLAN

10 21 33
ACCELERATING THE DRIVING INCLUSIVE MANAGING
CLIMATE TRANSITION GROWTH OUR FIRM

Innovative Approach to Financing

11  22 Driving Financial Inclusion Expanding Diversity and Inclusion,
34 
Climate Transition Supporting Our People
24 Advancing Diversity and Inclusion —
14 Deploying Capital to Advance the A Commercial Imperative 37 Enabling Our People to Do Their Best Work
Circular Economy
26 Investing in Communities 38 Engaging Our People to Drive Impact
15 Investing to Scale Clean Technologies
27 Innovative Financing Approaches 39 Reducing Our Operational Impacts
16 Sustainable Food and Agriculture
28 Investing in Philanthropy to Drive 43 Managing Risks
17 Differentiated ESG Investing Strategies Global Growth

20 Advancing the Ecosystem

46 METRICS
49 RECOGNITION
51 SASB INDEX
56 TCFD APPENDIX

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Goldman Sachs 2019 Sustainability Report
Introductory Letter

(from left to right)

John E. Waldron
President and Chief Operating Officer
David M. Solomon
Chairman and Chief Executive Officer
Stephen M. Scherr
Chief Financial Officer

FELLOW SHAREHOLDERS,
This report arrives in the midst of crisis. The coronavirus pandemic has already
had a devastating impact on societies around the world. We have seen historic
levels of jobless claims, record volatility in the markets, and unprecedented
disruption to all aspects of our day-to-day lives. While so much remains
uncertain about the course of the virus, what is clear is that we will be dealing
with its effects for many months, and likely much longer.
Crisis periods like these are painful to experience but underscore the importance for all firms of managing across a broad
variety of risk factors while advancing long-term opportunities. This understanding is core to our approach to sustainable
finance, which is grounded in two key pillars — inclusive growth and climate transition — that we apply to our work with
clients and our business.

At the same time that the business case for sustainable growth has crystallized, the consequences of inaction have also
become more apparent. This is a rare moment where the pull of opportunity, and the push of risk, are driving market
participants in the same direction, toward sustainable growth.

While we have been engaged in sustainable finance for the better part of two decades, 2019 represents a notable surge
in momentum. During the year, we announced the formation of the Sustainable Finance Group to drive our efforts across
our businesses. Our ambitions in this area are sizable. We have set a target of $750 billion in financing, advisory and
investing activity over the next 10 years across these themes of climate transition and inclusive growth. As significantly,
we are weaving these capabilities across the firm, encompassing both how our divisions serve our clients and how we
manage ourselves as an organization.

Sustainable finance was front and center across our client interactions in 2019. We will go deeper into several examples
in the pages that follow, but a few examples are worth highlighting here. We worked with Enel to issue the first-ever general
corporate purpose bond that links the payment of its coupon to the company’s goal of generating at least 55 percent of its
power from renewables by the end of 2021. We created a new corporate cash management solution that prioritizes business
with diverse broker-dealers. And we established a new policy to only take public those companies in the US and Europe with
at least one diverse board director (starting next year, we will increase our target to two). We also continued to deepen the
integration of sustainable finance within our core work, from how we make and manage private equity investments, to how
we steward assets as an active shareholder. Sustainable finance has been a powerful application of our One Goldman Sachs
approach — mobilizing our best thinking across the firm on central questions for some of our largest clients.

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Goldman Sachs 2019 Sustainability Report
Introductory Letter

Our views on climate and inclusive economic growth also manifest in how we manage our own firm. That starts with
our support of our people and extends to fostering an inclusive environment where all of our colleagues can achieve
their goals. In 2019, we adopted new policies to drive diverse hiring at all seniority levels and to support working parents,
including by increasing parental leave to 20 weeks for all employees. Through these initiatives, we are reaffirming our
belief that diversity and inclusion are critical to the long-term success of Goldman Sachs.

Managing the firm sustainably also means a continued focus on the efficiency of our operations, taking care to reduce
our environmental impact over time. In the past year, we opened new talent hubs in London and Bengaluru that include
best-in-class sustainability features, and we are well on our way to our 2020 goal of achieving green-building certifications
for 70 percent of our global real estate portfolio.

Going forward, we will continue to pursue innovation and progress on issues related to sustainable growth. With all that
is happening around us, we recognize that the path forward may not be linear, but we are committed to this work for the
long-term benefit of our clients, our stakeholders and broader society.

David M. Solomon John E. Waldron Stephen M. Scherr

Chairman and President and Chief Financial Officer
Chief Executive Officer Chief O
 perating Officer

R E S P O N D I N G T O I M PA C T S O F T H E G LO B A L PA N D E M I C

The global COVID-19 pandemic is putting extraordinary pressure on all of society, and we believe we have
a responsibility to help. Here’s what we’ve done so far:

For business clients, we have suspended our share buybacks prior epidemics like SARS, as part of our operational risk
to ensure that we have more liquidity to meet their needs. management efforts.

For consumers, we are working through Marcus and For hard hit communities, we’ve launched the Goldman
Apple Card to help customers during this time of economic Sachs COVID-19 Relief Fund, a $30 million commitment under
hardship — for example, by allowing customers to postpone Goldman Sachs Gives — including a Special Employee Matching
a monthly loan or card payment without accruing interest Gift Program — to help healthcare workers, families and the
and providing early access to funds in CDs with no early most vulnerable populations. In addition, through Community
withdrawal penalties. TeamWorks, our people are able to lend a hand from home,
whether helping the elderly and underserved students, or helping
For small businesses, we developed a $525 million Small
nonprofit managers develop continuity strategies.
Business Stimulus Package that includes $500 million to
provide emergency loans to small businesses across the US, For our people, we are offering 10 days of COVID-19 family
and $25 million in grants to Community Development Financial leave to allow time to care for family members due to
Institutions (CDFIs) and other mission-driven lenders. COVID-19 related illness or childcare needs, including
homeschooling. We also curated digital learning resources
For frontline medical teams, we have donated across the US
and insights on resiliency and wellness to support our people,
and Europe over 2.5 million surgical masks and 700,000 N-95
as well as digital meditation and fitness classes.
masks — which we acquired over a number of years following

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Goldman Sachs 2019 Sustainability Report

INTRODUCTION

RAISING OUR COMMITMENT

EXECUTING OUR PLAN
In this report, we detail our progress in putting our views into action,
including our commitment to deploy $750 billion in sustainable financing,
investment and advisory activity by 2030; how we are leveraging the
breadth of our expertise to broaden our sustainable finance capabilities
across our businesses; as well as our continued commitment to prioritizing
sustainability in how we manage our firm.

O U R S U S TA I N A B I L I T Y J O U R N E Y

2019
2018
2015
2014
2012
2009
2007
2005
Announce
Acquire Imprint Commitment to
Green Bond $750 Billion
Inaugural Clean Capital, a Dedicated 50% Global Talent
Global Investment Committing Market Sustainable Finance
Inaugural Energy Financing ESG and Impact Represented
Research Creates to Carbon Expansion Commitment
Environmental & Investment Investing Firm by Women
GS SUSTAIN Neutrality
Policy Target
Framework We committed
We acquired In 2019, we
We led several $750 billion in
During a time Imprint Capital, a announced
We launched GS We established innovative financing, investing
Our Environmental when the clean leading institutional additional
SUSTAIN at the a commitment to transactions to and advisory
Policy Framework energy markets impact investing commitments
UN Global Compact achieve carbon expand the green across nine
(EPF) articulates were volatile, we firm and innovator to increase the
Leaders Summit. neutrality in our bond market — sustainable growth
our commitment to established a in developing representation
GS SUSTAIN operations by from the first century themes to support
leveraging market target to deploy investment solutions of women, black
incorporates ESG 2020, which we green bond and the global climate
solutions to address $40 billion of capital that generate and Hispanic/Latinx
criteria into the achieved in 2015, first green energy transition and
critical environmental to advance the measurable ESG professionals
fundamental and have been market securitization inclusive growth
challenges. We clean energy sector, impact alongside within our analyst
analysis of carbon neutral to the first Latin strategies that
have continued which we later a financial return. and entry-level
companies to every year America renewable accelerate positive
to increase our expanded to Since our acquisition, associate
identify long-term since project green bond. change
ambitions by $150 billion by our dedicated hiring
outperformers 2025, and is now We have continued
updating our EPF ESG and impact
encompassed to build upon this
over time, including assets have grown
in our broader leadership position
most recently to $74 billion
$750 billion over time
in 2019
commitment

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Goldman Sachs 2019 Sustainability Report
Introduction

S U S TA I N A B L E F I N A N C E S T R AT E G Y: F O C U S O N O P P O R T U N I T Y

O U R P L AT F O R M F O R S U S TA I N A B L E F I N A N C E
Sustainability is a firmwide mandate focused on commercial solutions that address climate transition and inclusive growth.
We are making our point of view actionable by targeting $750 billion in sustainable finance activity by 2030, and continuing our
commitment to those interconnected themes in how we manage our people, our operations and risk.

A C C E L E R AT I N G DRIVING
T H E C L I M AT E INCLUSIVE
TRANSITION GROWTH
Using our commercial expertise to catalyze innovative Drawing on innovation and partnerships to
market-driven solutions for mitigating climate risk drive inclusion in underserved populations
and capturing growth opportunities in clean energy, worldwide, whether to improve healthcare access,
sustainable transport, food and agriculture, waste and affordability of education, financial inclusion
materials, and ecosystem services. or community investment.

MANAGING OUR FIRM

Seeking to manage Goldman Sachs for the long term, by supporting our people and
increasing diversity and inclusion in our ranks, effectively managing risk, and seeking
to limit our operational impacts around the world.

”There is not only an urgent need to act, but also a powerful

business and investing case to do so.”
David M. Solomon, Chairman and Chief Executive Officer

For more information on our nine sustainable growth themes, visit:

gs.com/sustainablefinance

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Goldman Sachs 2019 Sustainability Report
Introduction

(continued)

Climate transition and inclusive growth, which represent both an opportunity and an imperative, drive our
commitment to sustainable finance. You will see in this report how they break down into nine areas of
focus where we see the most potential for impact by doing what we do best — raising capital, advising
clients, making investments, managing risks and structuring innovative market solutions to some of
the world’s most complex challenges. You will also see how our deep experience and position in capital
markets gives us perspective on how and where to leverage our philanthropic efforts in cases where
commercial solutions may not be as effective.

O U R N I N E S U S TA I N A B L E G R O W T H T H E M E S

C L I M AT E T R A N S I T I O N INCLUSIVE GROWTH

Clean Sustainable Food Ecosystem Financial

Communities
Energy & Agriculture Services Inclusion

Accessible Accessible
Sustainable Waste
& Innovative & Affordable
Transport & Materials
Healthcare Education

Supporting efforts to Enabling improved Monetizing the value Advancing the growth Community investment
reduce emissions and sustainability of the food of forests, water, and of financial technology, and supporting clients
environmental impact and agriculture value chain biodiversity and contributing insurance products and to enable infrastructure
by enabling renewable by starting with agricultural to the sustainable alternative credit to development, affordable
energy generation, energy production and moving management of natural help support financial housing and livelihood
efficiency and grid services. through storage, processing resources for our clients. inclusion for underserved advancement.
and distribution to green populations.
consumer products.

Enabling clients to reduce Supporting clients that Advancing accessible and Working with our clients
their environmental impact manage waste responsibly innovative health care to enable to enable greater access to
by shifting the mode of and promote sustainable the use of digital technology, education, improve learning
transit or increasing per-trip production and consumption coordination and infrastructure outcomes and help close
efficiency through electric through their operations. advancements for our clients, opportunity gaps for learners
vehicles, connected services, as well as to support advanced of all ages.
autonomous driving and public devices and diagnostics toward
transportation development. better health care outcomes.

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Goldman Sachs 2019 Sustainability Report
Introduction

S U S TA I N A B I L I T Y A C R O S S O U R F R A N C H I S E

We work with clients on sustainable finance across each of our businesses.

Below are select examples of our sustainability-related commercial efforts, where
we are putting our views and expertise into practice.

INVESTMENT BANKING G LO B A L M A R K E T S

• Financings: Including green, social, sustainability • ESG Structured Products: Developing investment
and SDG-linked bonds and new ESG-linked solutions linked to sustainable companies or outcomes
product innovation • Risk Management Solutions: Risk management
• Client Advisory: Advising corporate clients as solutions for sustainability-focused companies,
they seek to integrate ESG into their corporate including renewable power hedging, electric battery
strategy to enhance value metals supply/offtake agreements and carbon credit
• M&A Opportunities: Helping clients identify client solutions
potential sustainability-related M&A • Global Investment Research: Thematic research
opportunities reports, including Carbonomics and Womenomics, as
well as GS SUSTAIN, which incorporates ESG into
the fundamental analysis of companies

CONSUMER &
ASSET MANAGEMENT
W E A LT H M A N A G E M E N T

• Investing: For clients globally, building portfolios across asset • Customized Client Portfolio Solutions: Dedicated
clases, implemented with a deep roster of internally managed proprietary and external investment solutions for
and open architecture strategies. ESG and impact AUS of $74 billion clients focused on ESG and impact investing across
as of year-end 2019 asset classes
• Alternatives: Various ESG and impact considerations are integrated • Financial Health Tools & Resources: Marcus offers
into our investment strategies, including within our merchant free online tools and resources to help customers
bank — across private equity, private credit and infrastructure in understand their overall financial health and improve
climate transition and inclusive growth themes — and in the financial literacy
Renewable Power Group, which invests on behalf of clients and is
one of the largest owners of distributed solar generation in the US
• ESG Cash Management Solutions: Investment products that
integrate ESG considerations into liquidity solutions offerings,
such as money market funds and SMAs
• Stewardship: Proactive stewardship effort to engage companies
across themes related to sustainability and financial performance,
which is integrated into the investment process

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Goldman Sachs 2019 Sustainability Report
Introduction

(continued)

Through the individual examples of our work with companies and institutional investors, the future
of sustainable finance is visible. It includes an emphasis on scaling proven approaches to advancing
climate transition and inclusive growth, while creating new and innovative tools to further advance the
market. It involves taking an important issue like diversity and inclusion and exploring its application
across your commercial business and through your organization. And, it underscores the importance
of driving efforts where you are uniquely positioned to lead, while realizing the incremental value of
collaboration and partnership.

In Accelerating the Climate Transition, we show how we’re helping our clients move toward a
low-carbon future and promote more sustainable business practices, whether we are raising capital
for innovative sustainability solutions, developing low-carbon investing approaches or leveraging our
expertise to support clients across all sectors in addressing risks associated with climate change.

In Driving Inclusive Growth,we highlight our commercial efforts to increase affordability, quality
and accessibility, whether in health care, education or financial services. We’ll also show how
we’re applying expertise and capital, as well as the efforts of our people, to invest in underserved
communities.

Finally, in Managing Our Firm, we highlight how the same core views on Climate Transition and
Inclusive Growth that are central to our commercial activities also drive how we manage our firm.
This includes striving to support and develop an inclusive workforce — one defined by cultural values
of partnership, service, integrity and excellence — and achieving sustainability in our facilities and
supply chains, as well as managing risks.

M I L E STO N E S

88B
in clean energy financings
59B
in green, social and sustainability
8.5B
invested in underserved American
74B
AUS in dedicated ESG and
and investments since 2012 bonds underwritten since 2014 communities since 2001 impact as of year-end 2019

230M
invested in women-led
9,700
10,000 Small Businesses
ZERO
net carbon emissions
85
reduction of single-use plastics in
businesses since 2018 1 program graduates to date across our global operations and operations as of year-end 2019 2
business travel since 2015

1
As of January 2020. 2 Reduction from 2018 baseline.

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 Advancing the Ecosystem

Differentiated ESG
Investing Strategies
Innovative Approach
to Financing Climate
Transition

Sustainable Food
and Agriculture
Deploying Capital to
Advance the Circular
Economy

Investing to Scale Clean

Technologies

ACCELERATING
THE CLIMATE TRANSITION

Climate change poses a significant challenge for the global economy, and as a leading institution in the capital
markets, we see tremendous opportunity to be part of the solution. By leveraging our commercial expertise to
catalyze market-driven solutions, Goldman Sachs is committed to helping our clients and stakeholders accelerate
the transition to a low-carbon economy in an inclusive and orderly way.

Our approach to climate change encompasses a holistic view of commercial solutions to mitigate climate risk
and capture opportunities that promote environmental progress across growth areas in clean energy, sustainable
transport, food and agriculture, waste and materials, and ecosystem services. Through innovative approaches to
climate, combined with our deep market expertise across these themes, we are at the forefront of advising clients
on their climate transition strategies, thereby helping markets and economies capture sustainable growth.
Goldman Sachs 2019 Sustainability Report
Accelerating the Climate Transition

INNOVATIVE APPROACH
TO FINANCING CLIMATE TRANSITION
Goldman Sachs has been a leader in the development of innovative financing approaches that drive capital
toward green and social projects. The past year’s activity had a number of notable firsts, including those that
provide new solutions that can be scaled across the market.

THE FIRST SDG -LINKED BOND

Working with Enel, an Italian-headquartered energy company, Goldman
Sachs structured the first sustainability performance bond linked to the United
Nations’ Sustainable Development Goals (SDGs). Rather than restrict the use
of proceeds to specific green projects, the bond ties Enel’s cost of capital to
its strategic commitment to make installed capacity 55% renewable by the end
of 2021 — core to the company’s broader decarbonization strategy, including
its long-term goal of net-zero emissions. Under the bond’s performance-based
covenant, investors receive a step up in interest rates if the target is not met.

Issued in September 2019, Enel’s $1.5 billion inaugural SDG-linked bond was
preceded by robust discussions with investors on the innovative structure,
and followed in October by a €2.5 billion similar offering. Enel has operations
in 33 countries on five continents. It manages 46 gigawatts of capacity from
renewable sources and supplies 70 million customers worldwide.

it was a natural step to the development

FIRST BOND BASED ON of the first resiliency bond, a new category
of green bond based on a set of climate
CLIMATE RESILIENCE resilience principles established by the
Climate Bonds Initiative, an international
Despite advancing efforts on many organization that is mobilizing the bond
fronts to cut greenhouse gas emissions, market to support a low-carbon and climate-
climate impacts will be unavoidable. resilient economy.
As a result, an equal emphasis needs to be
The offering is an outgrowth of a 2018
placed on climate resiliency and adaptation,
Climate Bonds Initiative meeting that
which is the focus of a $700 million
brought together experts in resilience and
bond issuance by the European Bank for
climate adaptation. As a result, principles
Reconstruction and Development (EBRD).
around these issues were added to existing
Goldman Sachs has been at the forefront standards and certification criteria, which
in developing catastrophe bonds, which are the Initiative had been applying to green
debt instruments designed to raise money bonds since 2015. Goldman Sachs served
in the event of natural disasters, including on the advisory board and helped develop
from extreme weather events. From there, the principles.

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Goldman Sachs 2019 Sustainability Report
Accelerating the Climate Transition

Innovative Approach to Financing Climate Transition (continued)

INAUGURAL ISSUERS
THAT SCALE THE MARKET
Goldman Sachs facilitated climate-focused green Sysco, the international food distributor, became
and sustainability bond issuances for two of the largest the second US company to issue a sustainability
companies in the world — PepsiCo and Sysco. bond, which allocates proceeds to both green and
PepsiCo’s first-ever green bond aims to support social projects. In February 2020, we structured
decarbonizing the company’s global operations and supply a $1 billion issuance for Sysco, which included
chain and investing in advanced packaging and water $500 million in sustainability bonds. The sustainability
sustainability. The $1 billion issuance that we helped bond portion will support a wide range of initiatives,
underwrite in 2019 drew strong market support, with including procurement of sustainably harvested
growing investor interest in ESG-linked securities. PepsiCo food, investments in more sustainable water
intends to use the proceeds to pursue a wide range management, and sourcing clean energy, as the
of initiatives, including greater use of renewable energy, company seeks to use renewable sources through
water replenishment in high-water-risk regions, and long-term power purchase agreements for a portion
investments in sustainable product packaging. of its energy needs.

FIRST GREEN The mission of The Conservation Fund is to accelerate land conservation in ways that make
both environmental and economic sense. The Conservation Fund was formed in 1985 to help

BOND FOR US public agencies and local communities in the United States achieve permanent protection of land
and water resources with interim capital and technical expertise.
CONSERVATION In 2019, Goldman Sachs helped issue a $150 million green bond for The Conservation Fund — the
first such nonprofit to issue a green bond to solely fund permanent land conservation. The proceeds
will be dedicated to scaling efforts to protect some 5 million acres of the nation’s working forests,
mitigating climate change, protecting ecosystems and strengthening rural communities.

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Goldman Sachs 2019 Sustainability Report
Accelerating the Climate Transition

Innovative Approach to Financing Climate Transition (continued)

FIRST HYBRID GREEN

NOTE BY LATIN AMERICAN
COMPANY

In October 2019, AES Gener, an electricity

generator in Chile, Argentina and Colombia, issued
a $450 million green bond with Goldman Sachs’
help — the first green hybrid security in Latin America. FIRST GREEN
AES Gener will use the proceeds to continue the
transition to a more sustainable energy matrix by
EUROPEAN CMBS
In 2019, we created the first Green European
increasing its base of renewable power projects.
Commercial Mortgage-Backed Security —
AES Gener is making this transition according to River Green Finance 2020 — a green bond
its Greentegra strategy, with the goal of becoming that enables companies to tap capital markets
South America’s energy supplier of choice by based on the sustainable aspects of their
decarbonizing its customers’ electric supply through collateral. In this case, the asset is River
Ouest, a 690,000-square-foot office building
long-term renewable power purchasing agreements
in the western suburbs of Paris with a “very
and reducing the carbon intensity of its portfolio.
good” rating from BREEAM, a sustainability
This includes aggressive development of a wide assessment method for rating buildings,
range of renewable energy projects, including infrastructure and master planning projects. The
hydro, wind, solar and advanced battery energy €186 million mortgage-backed issuance gives
storage technology. asset managers the opportunity to invest in
a securitized product with green collateral.

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Goldman Sachs 2019 Sustainability Report
Accelerating the Climate Transition

DEPLOYING CAPITAL
TO ADVANCE THE CIRCULAR ECONOMY
Expansion of recycling and reuse is among the most important ways to fight climate change by limiting
dependence on new materials and reducing waste. Whether through capital raising or direct investment, we
have helped drive the circular economy by enabling companies involved to innovate and scale operations.

Brightmark is a San Francisco–based global waste Big River Steel, an advanced recycler and steelmaker
solutions provider whose projects include turning in northeast Arkansas, and the first steel producer in
plastic waste into transport fuels and other useful the US that is LEED-certified, will use a $487 million
products. Through a $185 million financing Goldman Sachs industrial bond offering structured by Goldman Sachs to
facilitated, Brightmark is building and plans to operate a expand scrap metal recycling and production of flat-rolled
new Plastics Renewal plant in Ashley, Indiana, that will turn steel. This will set the stage for downstream investment,
100,000 tons of scrap plastic into 18 million gallons of including the production of higher-grade electrical steel,
ultra-low-sulfur diesel fuel, naphtha blend stocks and nearly demand for which is expected to grow as electric-vehicle
6 million gallons of commercial-grade wax. The company production ramps up. Big River Steel’s Flex Mill technology,
will employ the process of pyrolysis, or plastics renewal, along with its focus on machine learning and data analytics,
which uses heating to decompose post-use plastic in allows it to produce some of the most demanding steel
an environment with limited oxygen. This process is seen grades at a competitive cost.
as a key solution to both reducing petrochemical production
and plastic waste in markets around the world.

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Goldman Sachs 2019 Sustainability Report
Accelerating the Climate Transition

INVESTING TO SCALE
CLEAN TECHNOLOGIES
FUELING GROWTH IN
DISTRIBUTED POWER
We saw an under-addressed distributed renewable generation assets in the United
market opportunity in small and mid- States with over 1 gigawatt of operating capacity. The
sized commercial and industrial solar — Group currently manages equity capital of approximately
helping companies, cities, schools and hospitals $1.9 billion, and expects to deploy approximately
install solar on their rooftops. Based on our $4 billion of total capital, including $500 million from
assessment, the opportunity was a good fit for a green bond offering in December 2019.
our firm’s network of relationships, expertise in
The GSAM Renewable Power Group partnered with
risk management in energy markets, and strength
one of the largest solar developers, SunPower, to build
in evaluating and managing credit risk. From that
New York City’s largest solar project at JFK Airport.
foundation, we formed the GSAM Renewable
Once completed, the project will allow surrounding
Power Group, a team of roughly 35 experienced
communities to access solar energy at reduced rates.
professionals that invests in renewable energy
Besides reducing JFK’s greenhouse gas emissions
assets. This model allows us to partner with clients
by approximately 7,000 tons annually (equivalent
to own and manage projects across the United
to taking about 1,400 cars off the road), the project is
States that deliver clean energy, and in turn, to
expected to lower the Port Authority’s greenhouse gas
sell the power produced by these assets under
emissions at the airport by around 10 percent The
long-term agreements to energy users.
GSAM Renewable Power Group will hold the power
Currently, the GSAM Renewable Power Group purchase agreement for the project, while SunPower
is among the largest owners and operators of will develop and construct the infrastructure at JFK.

POWERING A REVOLUTION IN BATTERY TECH

In 2019, a fund managed by our Merchant Bank, alongside Volkswagen Group and BMW,
led a $1 billion equity capital raise for Northvolt, a Swedish supplier of sustainable, high-quality
lithium-ion battery cells and systems manufactured for the automotive, industrial and energy
storage sectors. The capital raise underpinned the financing of the first 16 GWh of Northvolt’s first
gigafactory, which will be powered by 100% renewable electricity with plans for a co-located battery
recycling facility, which will deliver the world’s greenest lithium-ion battery with a minimal CO2 footprint.
Further supporting the equity financing and subsequent debt financing process, Northvolt
signed a number of supply agreements with a combined order value over $13 billion through
2030. In addition to the Swedish primary facility, Northvolt also formed a joint venture with
the Volkswagen Group to establish a 16 GWh battery cell gigafactory in Germany, which
will bring Volkswagen’s total investment in Northvolt to around $1 billion.

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Goldman Sachs 2019 Sustainability Report
Accelerating the Climate Transition

SUSTAINABLE FOOD AND AGRICULTURE

FEEDING THE PLANET
SUSTAINABLY
Amid a growing focus on human health, climate change, resource
conservation and animal welfare, Goldman Sachs led the $277 million IPO
of Beyond Meat. Beyond Meat is one of the fastest growing food companies in
the United States offering a portfolio of revolutionary plant-based meats. Founded
in 2009, Beyond Meat has a mission of building meat directly from plants, an
innovation that enables consumers to experience the taste, texture and other
sensory attributes of popular animal-based meat products while enjoying
the nutritional and environmental benefits of eating its plant-based meat
products. As of December 31, 2019, Beyond Meat’s portfolio of fresh and
frozen plant-based proteins was sold at approximately 77,000 retail, restaurant
and foodservice outlets in more than 65 countries worldwide.

DRIVING FOOD SECURITY

Twiga Foods is a Kenyan end-to-end distributor of fresh and processed food. Through Goldman
Sachs’ investment in the company, Twiga Foods is developing proprietary technology and logistical assets
to support its distribution system, which enables improved sustainability of the food and agriculture value
chain and allows farmers to be paid within 48 hours via mobile platforms. The investment is laying the
groundwork for expansion to cities across Africa, helping to drive sustainable access to lower-cost,
higher-quality food and improved economic security for farmers.

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Goldman Sachs 2019 Sustainability Report
Accelerating the Climate Transition

DIFFERENTIATED ESG
INVESTING STRATEGIES
Expanding the Opportunities ESG and impact investments continue to gain momentum driven by rapidly
rising demand from institutional and individual investors. We continue to develop our capabilities in delivering
innovative and differentiated investment strategies, including those focused on renewable energy and
decarbonization. At GSAM, ESG assets under supervision increased from $17 billion in December 2018 to
$74 billion in December 2019.

Key Potential Value Drivers

Implementation options across asset classes
PROBABILITY DENSITY

L E F T TA I L “Drive Efficiency R I G H T TA I L
“Manage Risk” and Resiliency” “Seek Growth”

RETURNS

• Low-carbon passive equity portfolio • Stewardship / Engagement • Climate-focused private market investments
• Climate risk framework • Operational Efficiency • Thematic public equity investments

For illustrative purposes only and should not be construed as research, investment advice or a recommendation. Certain markets or sectors that an ESG strategy targets may not develop as expected or may
develop more slowly than anticipated. The return distribution above does not represent a guarantee that any amount of future realized returns can be achieved. The above is an illustration only.

FUNDAMENTAL
In 2019, GSAM raised assets for an equity strategy that invests in companies focused on environmental
impact, with themes that range from renewable energy — including solar, wind, bioenergy and smart grid

EQUITY
services — to electric and autonomous vehicles and sustainable food production.
The strategy assumes that, in fighting climate change, government-led approaches will undershoot key targets —

STRATEGY and that private sector innovation will be critical to meeting the climate challenge. It also assumes that companies
that successfully provide new solutions have significant upside, and that institutional and individual investors
seek the opportunity to take part in that potential.
The strategy leverages our deep experience in ESG investment and our proprietary approach to weighing ESG
factors, risks and opportunities.

Recognizing that environmental factors can affect investment

performance and represent potential investment risk, GSAM has prioritized
engagement on climate change-related issues, including environmental
CLIMATE CHANGE
disclosure, climate risk and carbon reduction commitments. For example,
in 2019, the GSAM Global Stewardship Team had ongoing engagement
ENGAGEMENT
with a Japanese railway company, which resulted in enhanced internal
ESG oversight and improved disclosure.

17
Goldman Sachs 2019 Sustainability Report
Accelerating the Climate Transition

Differentiated ESG Investing Strategies (continued)

DECARBONIZING
THE PORTFOLIO
A PARTNERSHIP
FOR SUSTAINABLE
WATER
GSAM was an anchor investor
The New York State Common Retirement Fund is the
and partner in the Renewable
third-largest public pension fund in the United States,
Resources Group’s Sustainable
with assets of more than $200 billion.1 Together with
Water Impact Fund (SWIF). Through
the Fund, over the years, we’ve developed an equity
client commitments, GSAM was
strategy aimed at reducing portfolio carbon emissions
able to provide over $300 million of
by 70 percent by tilting toward companies that are at
the SWIF’s $900+ million fundraise.
the forefront of carbon efficiency. Benchmarked to the
Renewable Resources Group
Russell 1000 index, the strategy relies on a carbon
launched SWIF in partnership with
emissions metric, developed jointly with the Fund, that
The Nature Conservancy to invest in
takes into account Scope 1 and Scope 2 emissions —
portfolio companies that will improve
those produced directly by the burning of fossil fuels
the management of surface water,
and indirectly by consuming electrical power.
groundwater and farms to more
sustainably meet the water supply The San Francisco Employees’ Retirement System
needs of people, the environment and (SFERS) sought to reduce its carbon footprint as
the agricultural economy. The Nature part of a broad strategy to address climate risk and
Conservancy is a technical advisor to opportunities. GSAM enabled SFERS to develop a
the Fund, helping to further enhance framework for a multifaceted approach grounded in
sustainability benefits and support the view that some oil & gas companies are better
habitat and ecosystem restoration positioned than others for the transition to a low-carbon
across the Fund’s properties. economy. The framework enables identification of high-
Renewable Resources Group seeks risk fossil fuel assets, establishes a plan for engagement
to invest in and operate assets that can where possible, and outlines options for targeted and
set new standards for environmental phased disinvestment of assets where there may be a
leadership and social responsibility. high unmitigated risk.
1
As of March 2019.

18
Goldman Sachs 2019 Sustainability Report
Accelerating the Climate Transition

Differentiated ESG Investing Strategies (continued)

Carbon Pricing:
A Market-Oriented Emissions
Reduction Strategy

As a firm, we have underscored the need for governments to provide transparency around the costs of greenhouse
gas (GHG) emissions and create long-term value for GHG emissions reductions. In February 2020, Goldman Sachs
joined as a founding member of the Climate Leadership Council (CLC), a policy organization representing the broadest
coalition on climate in the US supporting a revenue-neutral carbon fee and dividend plan as a pragmatic and efficient
solution for reducing GHG emissions and addressing climate change. In December 2019, our CEO David Solomon also
published an editorial that underscored the urgency and business case for climate transition and sustainable growth
and called for governments to put a price on the cost of carbon.

Carbonomics, a report issued in December by Goldman Sachs Global EQUITY RESEARCH | December 11, 2019 | 9:21PM GMT

Investment Research, analyzes the cost curve of decarbonization through

almost 100 different technologies. The report identifies an abundance
of large, low-cost investment opportunities in power generation, industry,
transport, buildings and nature-based solutions that can support Carbonomics
The Future of Energy in the Age of Climate Change
$1–2 trillion dollars of decarbonization investments annually, creating Climate change is re-shaping the energy industry through
technological innovation and capital markets pressure. Our cost curve
of de-carbonization shows an abundance of large, low-cost investment

new jobs, higher energy security and lower pollution. Reducing net
opportunities in power generation, industry, mobility, buildings and
nature-based solutions. However, these will not be sufficient to
mitigate the worst effects of climate change. Reducing net carbon
emissions on this scale requires carbon pricing, technological

carbon emissions quickly and effectively will demand a combination of

innovation and a growing role for CO2 sequestration. Capital markets
are taking a leading role in financing the energy transition, while
tightening financing for hydrocarbon assets. This is likely to drive the
energy transition through higher energy prices, lowering the systemic

carbon pricing, technology and CO2 sequestration. The report describes

risk of stranded assets. A new Age of Restraint on new hydrocarbon
developments is leading to consolidation and higher barriers to entry
in the oil & gas industry, with Big Oils transitioning to Big Energy and
non-OPEC oil supply growth terminating by 2021.

how capital markets already play a leading role by financing the energy
transition while reducing investments in hydrocarbon development,
Michele Della Vigna, CFA Zoe Stavrinou Nikhil Bhandari Neil Mehta Brian Singer, CFA
+44(20)7552-9383 +44(20)7051-2816 +65-6889-2867 +1(212)357-4042 +1(212)902-8259
[email protected] [email protected] [email protected] [email protected] [email protected]
Goldman Sachs International Goldman Sachs International Goldman Sachs (Singapore) Pte Goldman Sachs & Co. LLC Goldman Sachs & Co. LLC

fostering consolidation in a “new age of restraint” for the hydrocarbon Goldman Sachs does and seeks to do business with companies covered in its research reports. As a
result, investors should be aware that the firm may have a conflict of interest that could affect the
objectivity of this report. Investors should consider this report as only a single factor in making their

industry, and the evolution of large companies from Big Oil to Big Energy investment decision. For Reg AC certification and other important disclosures, see the Disclosure
Appendix, or go to www.gs.com/research/hedge.html. Analysts employed by non-US affiliates are not
registered/qualified as research analysts with FINRA in the U.S.
The Goldman Sachs Group, Inc.

as they become broader, cleaner energy providers. For the full list of authors, see inside.

19
Goldman Sachs 2019 Sustainability Report
Accelerating the Climate Transition

ADVANCING THE ECOSYSTEM

In addition to our work with clients, we continue to inform broader market approaches by leveraging
our insights through thought leadership and partnerships.

QUANTIFYING IMPACT
AND PERFORMANCE
Underpinning the potential for broader scale and impact across inclusive growth and climate
transition themes is a need for good data. The Sustainability Accounting Standards Board (SASB) is
partnering with corporates and investors alike to drive the adoption of financially material, market-informed
data that is industry specific. Goldman Sachs was the first major US financial institution and the first global
investment bank to report under SASB standards in 2019 and GSAM is a long-standing member of the
SASB Alliance and SASB’s Investor Advisory Group.

PARTNERING WITH
ASSET OWNERS

SCALING
CLIMATE
FINANCE
In 2019, GSAM teamed up with a select group of
other leading asset managers to advance climate-
related investment among national sovereign wealth
funds (SWFs). Known as the One Planet Asset
Managers Initiative, this collaboration supports
the efforts of the One Planet SWF Working Group, In January 2019, Goldman Sachs joined the CEO-led Climate Finance
composed of leading SWFs, to drive a deeper Leadership Initiative (CFLI) as one of seven founding members alongside Allianz,
consideration of the impact of climate change on AXA, ENEL, GPIF, HSBC and Macquarie. CFLI was established by Michael R.
investment portfolios. We believe that, while more Bloomberg, in his capacity as the UN Secretary-General’s Special Envoy for Climate
SWFs are incorporating sustainability into their Action, to support greater mobilization of climate finance flows around the world. In
portfolios, broadening sets of investment options and September 2019, CFLI delivered the Financing the Low-Carbon Future report to the
approaches can accelerate the trend, further bridging UN, outlining ways to further mobilize private climate finance at the scale and speed
the gap between policy and portfolio objectives. needed to support a rapid and orderly transition to a low-carbon global economy.

20
 DRIVING INCLUSIVE GROWTH

It is imperative that the global economy generate growth that is more inclusive — that enables
people to contribute to society, expands the middle class, and helps businesses and communities grow.
Our firm is focused on driving a range of inclusive growth opportunities, spanning innovative financial
products and services that reach more people, expanded access to education and healthcare, as well as
greater investment in housing and infrastructure development in underserved communities.

At its core, our approach to inclusive growth draws upon innovative ideas that mitigate unequal access,
increase affordability and improve quality. Leaning on the principles of inclusivity and disruptive thinking,
paired with our core capabilities as an advisor, financier and provider of capital, we support concrete
solutions that make inclusive growth possible.

Increasing
Financial
Empowerment
Using Marcus pro-
consumer hub to increase
financial literacy, savings
Empowering and access to credit
Women

5M
Entrepreneurs
10,000 Women lending
Supporting facility for women-owned
the Power of businesses reaches
Small Business
customers

1.76B
The 10,000 Small
Businesses network
represents a large
economic force with
$
Closing the
Investment Gap in committed capital

175K
Launch With GS
investment strategy
grounded in our belief
that diverse teams drive
strong returns total US employees

500M
Goldman Sachs 2019 Sustainability Report
Driving Inclusive Growth

DRIVING FINANCIAL INCLUSION

CLOSING THE
CREDIT GAP
We’re working with clients worldwide to
advance technology and ideas that improve
access to quality, affordable financial
services — whether to finance unexpected
costs or grow and scale a business that
strengthens the local community.

Credijusto is a small business lender in Mexico

that serves companies with few traditional
banking options. Through financing we provided, Credijusto can continue to serve its clients ranging from local small enterprises
to companies with up to $10 million in revenues, which are often overlooked by banks.

Small business lending is critical to Mexico’s economy. According to Credijusto, small and medium enterprises (SMEs) make up
99 percent of businesses and account for 74 percent of the country’s total employment. Despite this, SMEs receive only 15 percent
of outstanding credit, with banks rejecting over 80 percent of loan applications from such businesses. In addition, even when credit
is available, the lending process is lengthy, with waits of up to six months for loans that often have high interest rates.

Goldman Sachs also led a funding round for ZestMoney, an Indian fintech startup that lends to millions who lack traditional credit.
ZestMoney enables consumers to secure loans and make online purchases while building a credit history that opens doors
to traditional credit markets. ZestMoney uses mobile technology, digital banking and artificial intelligence to extend credit amounts
of $140 to $3,000 and enable users to pay back in manageable installments. To date, ZestMoney is accepted by more than 3,000
merchants, including Flipkart, Amazon and Paytm. The platform has more than 6 million users, and future plans call for entering
brick-and-mortar retail as well.

Climb Credit makes accessible loans to people learner-friendly payback terms. Goldman Sachs’ Urban
striving to improve their lives through career training. Investment Group (UIG), an investor in community
Climb works with career-training and professional schools and economic development, provided a $50 million loan
with proven track records, as measured by post-graduate facility to Climb.
job placement and starting salary. The company provides
In addition, UIG made a commitment of up to
funds for hundreds of courses at schools across the
$10 million to On the Road Lending, a Community
United States, all evaluated for their ability to deliver the
Development Financial Institution loan fund that provides
knowledge and skills necessary for jobs offering solid
low-interest loans for purchasing reliable fuel-efficient
earnings and room for personal and financial growth.

SUPPORTING Climb-supported courses of study range from coding

cars. The company focuses on underserved markets
throughout the Southeast, where mass transit is largely

JOB GROWTH
programs to truck driving and heavy equipment unavailable, car transport is essential, and low-income
operation, nursing, dental assistance, teaching, individuals are vulnerable to predatory lending practices.
cosmetology, and many other trades and professions. This service helps reduce poverty in these areas by
The company enables learners to borrow up to the increasing access to quality jobs, affordable health care
full cost of tuition and offers quick loan decisions and and fresh food.

22
Goldman Sachs 2019 Sustainability Report
Driving Inclusive Growth

Driving Financial Inclusion (continued)

CREATING A CONSUMER HUB FOR FINANCIAL

EMPOWERMENT AND LITERACY
Marcus, Goldman Sachs’ Consumer business, was created to help consumers achieve financial well-
being. Core to this philosophy is a commitment to value, transparency and simplicity, which includes providing
no-fee personal loans, valuable savings products, and an intuitive digital experience, alongside access to tools and
resources that can help increase financial empowerment and literacy. These include savings and loan calculators
and educational content focused on savings, budgeting, smart use of credit and long-term financial planning. This
content covers a wide range of financial topics, from building and maintaining an emergency fund, to understanding
how 529 education plans work, to strategizing for empty-nesters.

In addition, in 2019 we partnered with Apple to launch a no-fee credit card that incorporates new levels of privacy,
security and transparency, and provides tools that make it easy to analyze spending patterns over time and show
customers how to save on interest.

Since its launch in 2016, the Consumer business platform has attracted 5 million customers, with $7 billion in
loans and credit card balances and $60 billion in total deposits. In 2019, the Marcus loan program scored highest
in J.D. Power’s Personal Loan Customer Satisfaction Study, which gauged consumer satisfaction across four key
metrics: application and approval process, billing and payments, customer interaction, and loans and terms.

COVID-19 Support
Marcus has helped provide relief to consumers facing unexpected hardship through its customer assistance
program. During recent natural disasters — including hurricanes and last year’s California wildfires — this program
supported consumers as they recovered, allowing them to postpone loan payments without being charged interest.
In 2020, as the COVID-19 pandemic continues to pose challenges, we are focused on helping consumers through
Marcus and Apple Card — allowing customers to postpone two monthly payments without accruing interest, and
have early access to funds in CDs with no early withdrawal penalties.

23
Goldman Sachs 2019 Sustainability Report
Driving Inclusive Growth

ADVANCING DIVERSITY AND INCLUSION —

A COMMERCIAL IMPERATIVE
We believe that diversity, in addition to being a social imperative, is also just good business. Increased diversity of
experience, gender identity, race, ethnicity and sexual orientation reduces the risk of groupthink and unlocks creative
and impactful solutions. This is why we are committed to driving diversity in our work with clients and have prioritized
having a diverse and inclusive workforce — including ambitious diversity goals for recruitment and hiring.

LEVERAGING THE
STRENGTHS OF DIVERSE
ENTREPRENEURSHIP
Research shows that companies that have a top
quartile ranking as it relates to ethnic diversity
of their management team are 33 percent more
likely to have industry-leading profitability — and
that companies ranked in the top quartile for gender
diversity of their management team are 21 percent
more likely to outperform peers.1

Yet, despite this evidence, just 3 percent of US

venture capital goes to women-led teams, while a
mere 1 percent goes to black and Latinx founders. Mirroring this imbalance, lack of diversity is pronounced among venture
capital and private equity firms. Although diverse-owned firms are overrepresented in the top quartile of private equity groups,
diverse asset managers have less than 1.3 percent of the $69 trillion of global assets under management.2

This imbalance is the impetus behind Launch With GS, a $500 million investment strategy grounded in our belief that diverse
teams drive strong returns. Launch With GS seeks to increase access to capital for women, black, Latinx, and other diverse
entrepreneurs and investors. Since its inception, Goldman Sachs has deployed more than $230 million to businesses with
diverse management teams globally — from a software provider in Atlanta, to a fintech company in Bengaluru and a pediatric
clinic in China.

In early 2020, Launch With GS announced Goldman Sachs’ first Black and Latinx Entrepreneur Cohort, which will be comprised
of a group of high-growth startups from across the United States. Beyond access to capital, these businesses will participate
in an eight-week virtual, customized experience that will include one-on-one and sector-specific workshops with our research,
banking and investment teams and interaction with startup experts across key areas including legal services, capitalization,
marketing and branding. Members of the Cohort will engage with the Goldman Sachs network, as well as the Launch With
GS Advisory Council, composed of leading entrepreneurs, investors and executives. The program will culminate in an Investor
Showcase, where entrepreneurs will introduce their companies to an invitation-only investor audience.

1
McKinsey, 2018. 2 Knight Foundation, 2019.

24
Goldman Sachs 2019 Sustainability Report
Driving Inclusive Growth

Advancing Diversity and Inclusion — A Commercial Imperative (continued)

INCREASED FOCUS ON
BOARD DIVERSITY
Underscoring our conviction that diverse perspectives can have
a strong impact on company performance, we have prioritized board
diversity in our stewardship efforts. During the 2019 proxy season,
GSAM voted against 312 directors at 214 companies for lacking at
least one woman on the board. In November 2019, GSAM contacted
approximately 50 companies in situations where votes were cast
against board members for lack of female representation. Through these
engagements, we sought information on each company’s approach to
recruiting diverse talent and the potential barriers to such recruitment.

As an additional example of these efforts, GSAM made engagement

BOOSTING ACCESS TO on board diversity a key feature in repositioning an $11 billion European

DIVERSE BROKER-DEALERS money market fund under its management. The fund, which also employs
an ESG alignment approach across various factors, has a dedicated
engagement focus with respect to board diversity. To encourage diversity,
In 2018, when GSAM repositioned the GSAM Stewardship Team assesses, engages and tracks progress in
a money market fund focused on the portfolio companies with an underrepresentation of women on the board.

purchase of US government securities,

including treasuries and agencies,
the purpose was to drive diversity by
DRIVING BOARD DIVERSITY
directing the fund’s trades, subject to AT THE STARTING GATE
best execution, to diverse broker-dealers. Further underscoring our commitment to advancing diversity, we
announced that, effective July 2020, we will only underwrite IPOs
On average, during 2019, the fund used of companies domiciled in the US and Western Europe that have at
diverse broker-dealers to buy approximately least one diverse board member. We will raise this target to two during
half of its assets, simultaneously helping 2021. We strongly believe in the business case for diversity and that
having diverse perspectives on boards leads to better governance and
these dealers to grow and enabling clients stronger company performance for our corporate clients.
to add a diversity-focused investment
While we define diversity across multiple dimensions, one example
solution to their portfolios. our CEO David Solomon cited as part of the announcement is that
the performance of public offerings of US companies with at least one
In 2019, the fund reached $1.5 billion female director has significantly outperformed companies with no
in assets, drawing high-profile investors, female directors over the past four years.

including one of America’s most prominent It is our responsibility as an advisor supporting our IPO clients to ensure
that their governance structure is setting them up for long-term success,
companies: JetBlue. JetBlue was among
particularly as they transition to the public markets for the first time.
the first clients to join the repurposed We are actively working with our clients to help them achieve and
fund, leveraging it as a vehicle to expand surpass these diversity targets by facilitating access to our extensive
network of diverse board candidates, which encompasses individuals
opportunities for underrepresented firms.
representing a broad definition of diversity, such as race, gender,
ethnicity and sexual orientation.

25
Goldman Sachs 2019 Sustainability Report
Driving Inclusive Growth

INVESTING IN COMMUNITIES
Our Urban Investment Group (UIG) has deployed over $1 billion annually in community
and economic development.

ADVANCING
NEIGHBORHOOD
HEALTH
AND ECONOMIC
DEVELOPMENT
Access to health care is a
challenge in many underserved urban
neighborhoods. Odyssey House Louisiana
(OHL) is a multiparty development that is
turning a former automotive factory into a state-
of-the-art healthcare facility in New Orleans.

SUPPORTING HOUSING DEVELOPMENT

As one of the most expensive housing markets in the country, New York City has strong
demand for affordable units at a time when 44 percent of all households are “rent-burdened”
(defined as spending more than 30 percent of income on rent), and more than half of those are
severely rent-burdened — spending more than 50 percent. In 2019, we provided $88 million
in financing for South Point at Hunters Point South in Long Island City, NY, which is part of the
broader Hunters Point South, the largest affordable housing development created in New York
We invested $5 million to support the
City since the 1970s. South Point consists of 1,132 units of mixed-income housing across two
renovation, which will yield 37,000 square feet
buildings with 849 permanently affordable housing units for families earning between $32,000 for the healthcare facility and another 4,000
and $128,000 a year. square feet of new retail space. The development
will increase OHL’s ability to provide behavioral
In addition, the project will be Enterprise Green Community–certified, using low-emissivity glass,
health and substance abuse treatment critical
exhaust heat recovery systems, low-flow plumbing fixtures, and a water-sourced heat pump to to fighting the current battle against opioid
achieve 15 percent greater energy efficiency than required by the city code. addiction. In addition, it will boost economic
development in the area, bringing 45 jobs to
In the Pacific Northwest, we made a private investment in and are providing a debt facility
a neighborhood with a 52 percent poverty rate
to Sustainable Living Partners (SLP), a real estate technology venture aimed at sustainable, and a 37 percent unemployment rate at the
affordable multifamily housing using a prefabricated building technology with a distinctly time of investment closing. OHL has remained
green profile. SLP is the result of a joint venture between Sustainable Living Innovations open throughout the entire COVID-19 crisis
(SLI) of Seattle and Renova Capital Partners, a private equity firm specializing in sustainable and has even expanded its services, offering
infrastructure. SLI’s innovative construction process creates mid- and high-rise multifamily telehealth in its Community Health Center and
opening a drive-through COVID-19 testing site
buildings while incorporating features such as recycled steel trusses and energy-efficient, low-
open to drivers and bicyclists. OHL is the
emission, reduced-water building systems. Furthermore, because building components arrive at
only testing site in New Orleans to accept
building sites preassembled, construction takes up less room, requires less energy and creates individuals on bikes — key for its client
less disruption in local communities. SLP’s first mid-rise multifamily building is underway population, which typically does not have
in downtown Seattle and is expected to be certified as a net-zero energy building. access to a private vehicle.

26
Goldman Sachs 2019 Sustainability Report
Driving Inclusive Growth

INNOVATIVE FINANCING APPROACHES

SOCIAL BONDS TO BATTLE COVID - 19
To help alleviate the economic and social impact of the COVID-19
pandemic, this year we have led over $15 billion of COVID-related bonds
globally. For example, we worked with the African Development Bank to
issue a $3 billion Fight COVID-19 Social Bond. The bond provides support
and financing to countries and businesses fighting against COVID-19
and helps investors support African communities to curb the spread
of the virus and overcome the many challenges caused by the outbreak.
We also underwrote the Inter-American Development Bank $2 billion
Sustainable Development Bond as part of their $12 billion COVID-19
response package, the Republic of Austria €7.5 billion issuance —
part of whose proceeds will support a €4 billion COVID-19 emergency
fund — and the French Development Agency €1.5 billion issuance.

IN ECUADOR, SUPPORTING
FIRST - TIME HOME BUYERS
Goldman Sachs worked with Ecuador to issue a $400 million
social bond — the first social bond issuance by a sovereign —
to support Casa Para Todos, an Ecuadorian government program
designed to build affordable housing. The issuance is expected to aid
in the purchase of more than 24,000 homes for first-time buyers from
low- and middle-income families and includes a mandate to accelerate
mortgage lending for women-led households. The social bond includes
a $300 million credit guarantee from the Inter-American Development
Bank, which lowered the cost for the Republic of Ecuador.

The Casa Para Todos program represents the third subsidized social
housing program implemented in recent years by Ecuador. It is aligned
with a number of United Nations Sustainable Development Goals,
including reducing poverty, increasing access to water and sanitation,
reducing inequality within and among countries, and making more cities
and human settlements inclusive, safe, resilient and sustainable.

27
Goldman Sachs 2019 Sustainability Report
Driving Inclusive Growth

INVESTING IN PHILANTHROPY
TO DRIVE GLOBAL GROWTH
For areas related to inclusive growth where there is not an immediate market opportunity, we strive to develop
philanthropic initiatives that level the playing field and spark economic growth in communities around the world.
As a firm, we approach this work with the same rigor and innovation we commit to our everyday business.
Across our philanthropic programs, the firm has invested more than $2.5 billion to date.

ASSESSING THE
CONTINUED IMPACT
OF 10,000 SMALL
BUSINESSES IN THE
US AND THE UK
10,000 Small Businesses US
Our 10,000 Small Businesses (10KSB) initiative is a $500 million investment to help entrepreneurs create jobs
and economic opportunity by providing access to education, capital and support services to growth-oriented
small businesses. The program partners with community colleges and universities across the country to deliver an
intensive 10-week program to small business owners in both urban and rural areas. It also provides access to
capital through partnerships with Community Development Financial Institutions and other mission-driven lenders.

In 2019, 10KSB launched a statewide program in Ohio, in partnership with four community colleges, committing
an additional $15 million to local small businesses and bringing the total commitment in Ohio to $30 million.
The program also sponsored the Presidential Forum Series in Iowa and New Hampshire. The Series invited
2020 presidential candidates to discuss economic and social issues with the local community, including small
business priorities.

By the end of 2019, more than 9,100 small business owners had graduated from the program across all 50 states,
Washington, D.C., and Puerto Rico. Graduates of 10KSB routinely outpace the national average of revenue growth
and job creation of small businesses: 67 percent increase revenues within six months of graduation — compared
to the 53 percent national average over the same period. Further, 47 percent create new jobs just six months after
graduation, compared to the 30 percent national average over the same period.

28
Goldman Sachs 2019 Sustainability Report
Driving Inclusive Growth

Investing in Philanthropy to Drive Global Growth (continued)

10,000 Small Businesses UK

Since launching in the United Kingdom in 2010, more than 1,700 small business leaders from all sectors have participated
in the 10KSB program, reflecting a commitment of $43 million. These businesses come from across the country and
are key not only to the national economy but also to their local communities; collectively they account for more than
£2.8 billion of annual revenue and over 40,000 jobs in the UK.

Their collective impact was captured in the Business 2030 report, which profiled future trends and showed how the
10KSB UK community is creating positive social change as it drives revenue growth and job creation. Among the findings:
93 percent of graduates feel their business has an obligation to do good in their community and 92 percent have already
implemented new strategies and processes to reduce the environmental footprint of their business.

SUPPORTING 10,000 Women Measures Impacts in China

In Beijing, 10,000 Women held a 10-year

WOMEN-OWNED
alumni summit at Tsinghua University School
of Economics and Management. The summit
showcased the impact of the program on

ENTERPRISES more than 1,940 participants over the past

decade. Among the findings of the progress
report: Participants created approximately
26,000 new jobs and added $490 million in
revenues within 30 months of graduation.

10,000 Women China: Advancing

Women Entrepreneurs

Within six months of graduation:

2019 saw continued innovations from 10,000 Women (10KW), our signature
program that empowers women entrepreneurs in communities worldwide.
improved product
57% quality
The 10KW Online course enables women entrepreneurs in more regions to access
the program’s business curriculum. The online program, which closely follows the
launched new products
in-person 10KW experience, includes 10 modules covering a range of business topics, 44% or services
from identifying opportunities for growth to financial planning, management techniques,
marketing and leadership. By the end of the year, the 10KW Online program had opened new
reached women from 170 countries.
21% locations

In the fall of 2019, Goldman Sachs convened a select group of 10KW Online graduates
at our headquarters for business coaching and training designed to take business Other notable report findings include:
growth to the next level. These entrepreneurs received customized learning that
complemented the online course.
90% mentored other women
In India, 10KW relaunched its in-classroom collaboration with the Indian Institute of
Management Bangalore (IIMB). The program graduated three cohorts, each consisting generated more than a
of 180 women entrepreneurs, expanded to Mumbai in November, and plans to expand
56% quarter of income online
to Delhi in 2020. During the in-classroom experience, entrepreneurs receive 15 days of
launched initiatives to
instruction over the course of several months, in subjects that include business finance, 43% alleviate poverty
marketing, operations and workforce development. Program alumni can also join the
10KW Ambassadors Program, an advanced course launched in 2019 that enables the
entrepreneurs to further scale their businesses.

29
Goldman Sachs 2019 Sustainability Report
Driving Inclusive Growth

Investing in Philanthropy to Drive Global Growth (continued)

NARROWING THE GENDER CREDIT GAP IN EMERGING MARKETS

In 2014, 10,000 Women launched the first-ever lending facility for women-owned business, in partnership with the World
Bank’s International Finance Corporation (IFC). Called the Women Entrepreneurs Opportunity Facility (WEOF), the program
aims to address unmet financing needs of women-owned businesses in developing countries, recognizing the significant
obstacles that women entrepreneurs face in accessing the capital needed to grow their businesses.

The first WEOF progress report, published in October 2019, shared key findings from the past five years. To date, the facility
has mobilized $1.76 billion in capital — almost three times the initial target of $600 million — across 57 emerging market
financial institutions in 36 countries, enabling credit for over 72,000 women-owned businesses.

At the 2019 World Trade Organization’s Aid for Trade Global Review in Geneva, WEOF launched an innovative and first-of-its-
kind gender-focused trade finance program. This program is aimed at encouraging IFC’s portfolio of banks to increase trade
financing for women importers and exporters.

CATALYZING GIVING
TO IMPACTFUL
ORGANIZATIONS
Goldman Sachs Gives is a donor-advised fund that is
committed to fostering innovative ideas solving social and
economic challenges, and enabling progress in underserved
communities globally. The firm’s senior leaders work together
to recommend grants to qualifying nonprofit organizations to
help them achieve their goals. To date, the effort has distributed
more than $1.6 billion in grants and partnered with 7,000
nonprofits in over 100 countries to support underserved
communities around the world.

Goldman Sachs Gives is responsive to emerging needs. In the past year, grant-making to environmental
organizations increased by 28 percent, in causes ranging from cleaning oceans to advancing
sustainability in urban communities.

Giving also extends to Goldman Sachs analysts. Through the Analyst Impact Fund competition, analysts
collaborate with peers across the firm to pitch innovative nonprofits to senior leaders for grants from
Goldman Sachs Gives.

In 2019, participation grew by 306 percent, as 975 analysts in 29 global offices submitted applications to
advocate on behalf of nonprofits of their choice. The year’s first-place prize — a $250,000 grant — was
awarded to a London-based analyst team representing Days for Girls, which aims to increase access to
menstrual care and education for girls in developing countries.

30
Goldman Sachs 2019 Sustainability Report
Driving Inclusive Growth

Investing in Philanthropy to Drive Global Growth (continued)

SUPPORTING COMMUNITIES AND

SMALL BUSINESS — THE UNIQUE
COVID - 19 CHALLENGE

commitment to support
communities and
small businesses

During this period of great uncertainty, we have a responsibility to support our people, clients and our
communities in need. We are engaging in dialogue with hundreds of community partners, from small business
owners to community colleges and nonprofit leaders, to assess how we can best support communities that are
deeply impacted by the outbreak. We are undertaking initiatives to support small businesses, provide philanthropic
capital to organizations on the front lines, and mobilize our people through volunteering and giving to support
COVID-19 relief efforts globally.

Small Business Stimulus Package

Building on our decade of supporting small businesses through 10,000 Women and 10,000 Small Businesses,
the Small Business Stimulus Package will provide emergency loans to small businesses, which employ nearly
half of the American workforce and serve a critical role in the economy.

A recent 10,000 Small Businesses survey of over 1,500 program participants found small businesses face
tremendous uncertainty and require immediate support:

96% said they have been impacted by COVID-19

70 % said loans at reduced interest rates would help their business, and

51% said their businesses will only be able to continue to operate

for 0–3 months

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Goldman Sachs 2019 Sustainability Report
Driving Inclusive Growth

Investing in Philanthropy to Drive Global Growth (continued)

(continued from previous page)

Goldman Sachs has committed $500 million in capital to fund low-interest loans to ensure these small businesses
have the resources they need to fund their operations, weather the current crisis, and meet their commitments to
their landlords, suppliers and employees.

The Small Business Stimulus Package has already allocated funds in conjunction with two public-private partnerships
with the cities of New York and Chicago, together with several corporate and nonprofit partners.

The firm is supporting its small business community globally through a rapid rollout of educational resources and
business coaching to reach small business owners in the US and UK, as well as female entrepreneurs in emerging
markets across the world, to help them navigate these challenging times.

In addition, the Goldman Sachs Foundation will provide $25 million in grants to Community Development Financial
Institution (CDFI) partners and other mission-driven lenders to increase their capacity, hire additional staff and expand
critical infrastructure. CDFIs, which have a proven history of lending to underserved businesses, need additional
resources to meet the urgent capital needs of small businesses. This effort extends our decade-long support of
CDFIs and their critical mission.

The Goldman Sachs COVID-19 Relief Fund

A $30 million commitment funded by Goldman Sachs Gives — including a special matching program — launched to
support communities hardest hit by COVID-19. The Fund follows the $1 million donated to the CDC Foundation, the
Chinese Red Cross and the International Medical Corps, and will distribute grants across five specific priorities:

• Assisting health providers on the front lines

• Providing assistance to the most vulnerable populations
• Providing economic relief for reduced and lost work
• Supporting children and families in the wake of school closures
• Supporting medical research

Under the Special Employee Matching Gift Program, all non-partner employees who make a donation to COVID-19
relief efforts will have their donation matched dollar-for-dollar, up to $5 million in total. For donations that are $25 or
less, we will match 3-to-1.

Virtual Community TeamWorks

Community TeamWorks, Goldman Sachs’ signature volunteering initiative, enables our people to maximize
their effectiveness through high-impact, team-based volunteer opportunities, including projects coordinated
with hundreds of nonprofit partner organizations worldwide. To engage our people in the response to COVID-19,
the firm is offering a series of opportunities to support vulnerable populations remotely — including small business
owners, students and the elderly. Virtual volunteer opportunities include: serving as an emergency coach for our
10,000 Women and 10,000 Small Businesses entrepreneurs around the world, mentoring students who need
support during school closures, and corresponding with isolated seniors in nursing homes.

32
 MANAGING OUR FIRM

E NT
GS EM
NS

AK
IO

I NS
MRA
PLE

RAT

ISNKG
OUR PEO

OUR OPE

O UA RN ARGI
M

At Goldman Sachs, our commitment to inclusive growth and climate transition also informs the way we manage
our people and operations. We invest heavily in developing and supporting our people throughout their careers and
have outlined a comprehensive action plan to improve diversity and inclusion at all levels. We have set ambitious
operational targets and seek to proactively manage climate and other sustainability-related risks to our business.
Goldman Sachs 2019 Sustainability Report
Managing Our Firm

OUR PEOPLE

EXPANDING DIVERSITY AND

INCLUSION, SUPPORTING OUR PEOPLE
We believe that a diverse and motivated workforce is essential to our sustainability as a firm and is a clear
competitive advantage in working with clients around the world. For this reason, we’ve set aspirational
diversity hiring goals, and are focused on fostering an inclusive and highly rewarding work environment for
all of our colleagues.
We believe in a work environment that encourages our employees to reach their full potential, with ongoing
opportunities for learning and career development, a strong framework for advancement, and health and
wellness support that makes it possible for our people to achieve their personal and professional goals.

DIVERSE WORKFORCE, INCLUSIVE WORKPLACE

The strength of our culture, our ability to execute our strategy, and our relevance to clients all depend on a diverse workforce
and an inclusive environment that encourages a wide range of perspectives. We believe it is critical to increase diversity at all
levels of our businesses, from analysts and entry-level associates to managing directors and partners.

Casting a Wide Net: Goldman Sachs’ management team works closely with the firm’s Global Inclusion and Diversity Committee
to increase diversity of our global workforce at all levels of seniority. This includes a comprehensive action plan with aspirational
hiring goals for analysts and associates hired on campus or laterally, a group that accounts for more than 70 percent of the firm’s
annual hiring.

In addition, as a signatory of the UK Women in Finance Charter, we are committed to ensuring women represent at least
30 percent of UK senior talent (VP and above), and we will continue to be transparent on our progress. We are confident that, based
on our persistent focus on the recruitment of and investment in diverse talent, we will meet our Charter goal by the 2023 deadline.

Attracting Diverse Talent: Through targeted engagement

initiatives, the firm continues to increase its ability to recruit talent Aspirational Goals for Analysts / Entry-Level Associates
from a variety of backgrounds and life experiences — including
those with neurological differences. An example of this in 2019
Hispanic/Latinx
was the launch of our Neurodiversity Hiring Initiative, an eight- 50% women globally 14% in the Americas
week paid internship that includes training for neurodivergent
candidates, as well as on-the-desk experience and coaching and
black professionals black professionals
mentoring that position candidates for success at the firm. 11% in the Americas 9% in the UK
Other key initiatives that enhance our diversity of
perspectives include:

• Returnship Initiative, which helps professionals restart their

careers after an extended absence from the workforce

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Goldman Sachs 2019 Sustainability Report
Managing Our Firm

Expanding Diversity and Inclusion, Supporting Our People (continued)

(continued from previous page)

2019 Campus Analyst Class — • Veterans Integration Program, which gives candidates leaving
The Firm’s Most Diverse to Date the military an introduction to a financial services career

• Exploratory Programs, providing LGBT+, women, ethnically

Hispanic/Latinx diverse and social mobility candidates with the opportunity to
49% women globally 16% in the Americas meet our people, learn more about roles at the firm, and develop
job-seeking skills, including networking and interviewing
black professionals black professionals
10% in the Americas 14% in the UK • Africa Recruiting Initiative, which identifies engineering talent
across the continent with the goal of filling summer and full-time
analyst positions

BUILDING DIVERSITY AND INCLUSION INTO THE MANAGEMENT PIPELINE

Increasing diversity of the firm’s leadership is crucial to
the firm’s long-term success, and the firm has ramped up 2019 Managing Director Class —
outreach and career advancement programs for rising executive The Firm’s Most Diverse to Date
talent. A prime example is our Managing Director Retention
Initiative, which includes sponsorship and the creation of This past year’s global managing director class was the
career development plans for newly promoted Asian, black, most diverse in the firm’s history, with new managing directors
Hispanic/Latinx and LGBT+ managing directors. Across the representing 36 offices around the world.
globe, we are also focused on providing diverse vice presidents
the necessary coaching, sponsorship and advocacy to further Hispanic/
support their career trajectories and strengthen their leadership 465 promoted 26% Asian 2% Latinx
platforms. Many other career development initiatives are
aimed at grooming diverse talent at the analyst and associate
level, with an eye toward advancement. Programs include the 29% women 4% black 2% LGBT+
Black Analyst and Associate Initiative, providing coaching from
senior leaders for black analysts and associates in the Americas
and EMEA, the Hispanic/Latinx Analysts Initiative in the
Americas, following a similar coaching and engagement model,
62% millennials

and the Women’s Career Strategies Initiative, a five-month

global program that provides development and networking
opportunities for nominated women.

P R O N O U N I N I T I AT I V E : T H E F R E E D O M T O S E L F - I D E N T I F Y

In 2019, Goldman Sachs launched a global initiative focused on increasing awareness of the variety of pronouns people use to express their
identity. The firm sees pronoun use as an important way of enabling employees to bring their authentic selves to work, and the initiative represents
a firmwide effort to educate colleagues on gender identity and the importance of using pronouns in building an inclusive environment.
The firm launched a web page providing education on gender identity, different types of pronouns and practical guidance on using them.
This includes tips for being an inclusive ally, such as not assuming pronouns for colleagues based on name or physical appearance, dealing
with mistakes, and proactive sharing of pronouns to foster an environment of awareness and respect. Furthermore, a variety of avenues
are provided to share pronouns, including via email signatures.

35
Goldman Sachs 2019 Sustainability Report
Managing Our Firm

Expanding Diversity and Inclusion, Supporting Our People (continued)

ENGAGING INCLUSION CHAMPIONS

Globally, we have over 19,000 employees who participate in employee networks. From driving
new initiatives, to moments of celebration and perspective sharing, the networks lead by example and
work to strengthen truly inclusive collaboration.
In 2019, the firm’s global Disability Interest Forum (DIF) appointed more than 50 colleagues from around the firm to
serve as Disability Champions and regularly share best practices on disability inclusion, including tips for how our
people can best support colleagues with disabilities. While external studies show that approximately 30 percent of
employees have a disability, on average only 3 percent self-identify as such to their employer.1 The DIF’s Champions
Initiative represents a commitment from the firm and senior leadership to ensure colleagues with disabilities
feel appreciated for their diversity of thought and abilities by encouraging them to bring their whole, authentic
selves to work. As part of the launch of the Champions Initiative, the DIF hosted several events in London,
New York, Singapore and Bengaluru featuring senior leaders and experts on disabilities. The group also created
a list of practices on inclusion, including how to best support colleagues with disabilities in the workplace.

Most recently, we piloted the Bridge Initiative, a platform for leaders to engage in dialogue on experiences related
to race, ethnicity and personal identity — focused on reverse mentoring. Non-ethnically diverse senior leaders are
paired with black colleagues to exchange experiences and engage in learning and conversations about inclusion.

1
Center for Talent Innovation, 2017.

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Goldman Sachs 2019 Sustainability Report
Managing Our Firm

ENABLING OUR PEOPLE

TO DO THEIR BEST WORK
At Goldman Sachs, we recognize that for our people to be successful in the workplace, they need support in their personal as
well as their professional lives. For this reason, we have created a strong support framework for wellness, enabling them to
better balance their roles at work and their responsibilities at home. The past year saw significant additions to that framework,
including increased support for expectant and new parents. We also continue to advance our resilience programs, offering our
people a range of counseling, coaching, medical advisory and personal wellness services. As we grapple with the impacts of
the COVID-19 pandemic, these resources remain available and we’ve continued to evolve and strengthen virtual offerings with
the aim of maintaining physical and mental well-being, effectiveness and cohesiveness of our global community. We rolled out
new telemedicine services that provide our employees and their families with access to physicians (24/7) through live video
or telephone. In addition, for the rest of 2020, the firm is waiving the costs of urgent care medical visits, including COVID-19
consultations. We also introduced a COVID-19 10-day family leave policy, available to our people globally to care for family
members due to COVID-19 related illness or meet childcare needs, including homeschooling.

ENHANCING OUR HELPING MANAGERS

SUPPORT FOR STRENGTHEN A CULTURE OF
EXPECTANT PARENTS INCLUSION AND SUPPORT
In 2019, the firm made substantial enhancements to our Managers play an important role in fostering a culture of inclusion —
parental leave policy. This includes equal parenting leave and training managers to build inclusivity is a continued focus. For
time for all new parents, whether they become parents example, an online learning module for all new managers is Building an
Inclusive Environment, in which managers learn to identify and address
through birth, surrogacy or adoption, and regardless of the
common diversity and inclusion considerations within their teams, and to build
parent’s gender or caregiver status. In addition, the firm’s
a work environment that maximizes the potential of all team members. In the
new global parenting policy allows for 20 weeks of leave, an program Identity Matters: Race and Ethnicity in the Workplace, participants
increase from 16 weeks in the United States, Asia Pacific learn about how race, ethnicity and social identity can shape an individual’s
and other regions around the world. workplace experience, and how dialogue about race and identity can create
trust-based relationships.
The firm also introduced four weeks of paid family care
Support also extends to helping leaders manage family leaves and expectant
leave globally. This enables colleagues to care for family
parents. In 2019, our Global Diversity Committee and Human Capital
members, as needed, due to serious health conditions,
Management Division introduced Great Expectations: Managing Parenting-
foster placement or military deployment. Additionally, we Related Leaves, an eLearning program that delivers information and best
launched Pathways to Parenthood, which increases existing practices for preparing for colleagues’ time off and facilitating a successful
stipends for adoption and surrogacy, and provides stipends return to work.
for egg retrieval and egg donation where permitted by law. Tips gained through this training include how to encourage new parents to
take the leave of absence, understanding how expecting a baby can generate
Aside from leave, the firm supports expecting parents with
anxiety at home and work, and how to keep lines of communication open
a wide range of programs and services. These include a during leaves so that colleagues remain up to speed on new developments
dedicated expectant-parent coordinator who can provide and emerging team opportunities.
guidance on the firm’s benefits, facilities and mentoring We believe managers play a critical role in ensuring that working parents
opportunities, and healthcare plan provisions that include a have the support and resources they need to thrive in the workplace — and
healthy-pregnancy program, with a focus on prenatal care, that they understand that the firm, and its managers, are there to support
labor and delivery, and newborn care. them throughout the process.

37
Goldman Sachs 2019 Sustainability Report
Managing Our Firm

ENGAGING OUR PEOPLE

TO DRIVE IMPACT
ACCELERATING
INNOVATION
AND COLLABORATION
Entrepreneurship and innovation have always been a core
part of the Goldman Sachs culture. We believe in cultivating an
environment where our people can work together, think big and
shape the future with their ideas.
RECOGNIZING OUR 150TH
ANNIVERSARY WITH 150,000
HOURS OF SERVICE
Through Community TeamWorks, the people of Goldman
Sachs contribute their ideas, time and expertise to drive
tangible progress in communities where we work and live.
Launched in 1997, this signature volunteering initiative enables
our people to work in partnership with nonprofit organizations
around the world to make a meaningful difference.

In 2019, to mark our 150th Anniversary, we set a bold challenge

for ourselves: Provide 150,000 hours of volunteer service
GS Accelerate is an initiative to foster innovation and collaboration through our global Community TeamWorks initiative. We not
at the firm. The program provides our people with capital, only met but exceeded this goal, thanks to the collaboration
resources and support to build new businesses and products, of our nonprofit partners worldwide, and the dedication of our
with a focus on future growth. Past submissions have focused on people to serving the communities in which we live and work.
digitizing workflows, entering new or underpenetrated markets
and creating new strategies to better serve our clients. Community TeamWorks 2019 Impact
In 2020, we are inviting pitches to six key business opportunities.

150,000 26,000
“Creating a More Sustainable Future” is highlighted as one of
these where we are looking for innovative ways to advance
sustainable economic growth and combat climate change.
hours of service volunteers
Now in its third year, GS Accelerate has provided resources for provided globally
13 projects, including new ideas about digital assets, alternatives
and communication across the firm. GS Accelerate continues to
help the people of Goldman Sachs express their entrepreneurial
talents and address business-critical opportunities for our clients
and the markets we serve.
1,800
community
900
nonprofit
60
participating
projects partners offices

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Goldman Sachs 2019 Sustainability Report
Managing Our Firm

O U R O P E R AT I O N S

REDUCING OUR
OPERATIONAL IMPACTS
ACHIEVED MILESTONES, NEW COMMITMENTS
In 2019, we moved forward on multiple fronts to minimize operational impacts. By the end of
the year, we had nearly reached our 2020 goals of sourcing 100 percent of our electricity from renewable
sources, eliminating 85 percent of disposable plastics from our global operations, making $2 billion in
green operational investments to drive energy efficiency and certifying 70 percent of our offices to a
green-building standard.
We also set a host of new targets for 2025, covering energy use, waste reduction and supply chain
management. As we close in on our goals of procuring 100 percent of our electricity from renewable
sources, we are now committed to procuring 80 percent of all our electricity from long-term sources.
We are also committed to lowering energy intensity per square feet (a measure of energy inefficiency)
by 20 percent and water intensity by 15 percent, while extending carbon neutrality to include business
hotel night stays. In addition, we are committed to ensuring that all new construction is LEED Gold-
certified or equivalent, and extend the certification of ISO 20121 standards to off-site events.

2025 Operational Goals

20 100 100 100

Business Waste Green
Continue to divert 100% Buildings
of waste from landfill
Certify 100% of
Energy Plastic new builds and
major renovations
Efficiency

30
Reducing energy Paper
intensity across our Reducing our
operationally controlled paper consumption Remove 100% of plastic
facilities by 20% per capita by 30% bottles and disposables

100
Certified

80 15
Renewable Energy Water Management
Sourcing 80% renewable Reduce water
intensity by 15%
Systems
energy from long-term PPAs
and on-site projects Maintain 100% and extend to off-site events

39
Goldman Sachs 2019 Sustainability Report
Managing Our Firm

Reducing Our Operational Impacts (continued)

A THREE -WAY PATH TO

ENERGY TRANSFORMATION
Goldman Sachs became the first US corporate signatory to The Climate Group’s
RE100, EV100 and EP100 programs, a set of commitments aimed at moving
governments and businesses to swift, decisive climate action. The programs
focus on three key climate-related imperatives: moving to 100 percent procurement
of electricity from renewable sources, incorporating electric-vehicle (EV) charging
infrastructure and driving energy efficiency of offices.

RE100 (Renewable Energy): Goldman Sachs has pledged to meet 100 percent of its electricity
needs through renewable sources by 2020, and by the end of 2019 we were already 98 percent
toward that target. Last year, we completed our first power purchase agreement for on-site power
generation — through solar carports at the new headquarters of our Ayco subsidiary in upstate
New York, meeting 60 percent of the building’s electrical needs.

EV100 (Electric Vehicle): Goldman Sachs has also begun a firmwide push to support electric
transport, installing 119 EV chargers at our Bengaluru campus for EV-driving employees and ground
transportation vendors. Our Ayco headquarters also installed EV chargers, and we’re committed to
installing EV infrastructure in all firm-owned offices that provide parking, and encouraging landlords
to do the same in the offices we lease.

EP100 (Energy Productivity): Goldman Sachs recognizes that reducing our energy consumption
and operating efficient offices is a critical component of transitioning to a low-carbon economy. The
firm’s commitment to EP100 is aligned with the “Net Zero Carbon Building” compliance pathway,
which will focus on reducing the impacts of our global real estate portfolio, by consolidating into
more efficient real estate, retrofitting existing spaces to LEED Gold or equivalent standards, or
creating green campuses. Our new BREEAM “Excellent” certified London office has achieved a
50 percent reduction in utility consumption compared to our previous campus due to 100 percent
LED lighting. Additionally, we have retrofitted lighting at our New York and New Jersey offices
with LEDs, saving approximately 6 million kWh of electricity use per year.

40
Goldman Sachs 2019 Sustainability Report
Managing Our Firm

Reducing Our Operational Impacts (continued)

SUSTAINABLE MORE SUSTAINABLE AND

SOLUTIONS TO GLOBAL DIVERSE SUPPLY CHAIN
BUSINESS WASTE In 2019, we further advanced our strategy to
build a sustainable supply chain. We piloted an
We are committed to diverting 100 percent of business waste
ESG self-assessment survey with 80 vendors in
from landfill by the end of 2020. Our responsible waste management
practices prioritize reducing the amount of waste we generate, industries perceived to have the highest ESG risk
maximizing recycling and composting, and utilizing waste-to-energy exposure to better understand the controls
facilities where available. In 2019, the firm made significant efforts
toward these commitments. in place to manage environmental, labor and
human rights requirements detailed in our
Paper: We launched #goDigital, a campaign to eliminate 10 million print
pages of output annually from our operations. Opportunities to reduce Vendor Code of Conduct. And we are leveraging
consumption range from eliminating paper-based client communications these findings to further enhance our responsible
to fully leveraging digital media for internal communications and reducing
reliance on printed promotional material. In addition, we eliminated paper supply chain practices. Our goals for the coming
cups in our offices and shifted to reusable mugs, eliminating more than year also include a deeper assessment of
200 tons of waste annually.
vendors in industries exposed to high risk of
Plastics: We met our commitment to remove 85 percent of single-use slavery and human trafficking.
plastics from our global operations, including plastic bottles and straws,
and plastic film presentation covers and binders. A key priority for our firm is fostering opportunities
Food: We are also working to reduce food waste in our cafeterias and with small, as well as women- and minority-
micro-market cafes. In January 2019, we began to partner with Rethink
owned, businesses, with the aim of achieving
Food in New York to ensure that excess, unused food is donated and
transitioned into ready-to-eat, nutrition-dense meals. Through this a supply chain that reflects the diversity of our
partnership, and collaboration with the Conrad Hotel, we were able people and our clients. In 2019, we focused on
to transform more than 32,000 pounds of food into the equivalent of
45,000 meals for New York City families in need. increasing the firm’s network and access to
Furniture: We responsibly managed the disposal of 30,000 pieces
diverse businesses, expanding our memberships
of existing furniture when moving from our legacy campus in London with certifying agencies. In 2020, we will enhance
to Plumtree Court — ensuring nothing was our reporting capabilities and we will
sent to landfill. By partnering with Waste
Match, we are donating more than remain focused on our 2025 goals.
9,000 pieces of furniture to local charities,
schools and medical establishments,
while responsibly recycling an additional 2025 targets include:
500 tons of metal.
• Assessment of all vendors
E-Waste: We partnered with eWorks,
globally for ESG risk
a certified electronics recycling and
refurbishment services company that • Increase 2020 baseline
creates employment opportunities spend with diverse
for those with disabilities. Since vendors by 50 percent
August 2019, the firm donated more
than 11,000 pieces of technology
equipment, of which over
60 percent was refurbished
for resale or reuse.

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Goldman Sachs 2019 Sustainability Report
Managing Our Firm

Progress Toward 2020 Goals for Our Operations

Many of the environmental commitments set in our updated 2015 Environmental Policy Framework have been achieved, thus, we expanded
those commitments to a set of new goals for 2025. In 2019, we exceeded and met a number of our 2020 goals while increasing our total
operational square feet by bringing online our new London and Bengaluru buildings. We exceeded our goals to reduce energy and paper
consumption, and also met our goals to certify 100 percent of our management systems and reduced utilization of single-use plastics by 2020.

Category 2019 Status 2020 Goal1

Renewable Energy
Meeting our global electricity needs using renewable energy 98% 100%

Energy Efficiency
Reducing absolute energy use across our operationally controlled facilities -12% -10%

Green Buildings
Achieving LEED Gold or equivalent green-building certifications 63% 70%

Business Waste
Diverting business waste from landfill 99% 100%

Paper
Reducing our paper consumption per capita -40% -20%

Water
Reducing our consumption in operationally controlled facilities 3% -5%

Certified Management Systems

Environmental Management Systems across our operationally controlled facilities 100% 100%

Green Operational Investments

Dedicated budget for investing in green buildings and innovative green technologies $1.7B $2B

Plastic
Reducing our use of single-use plastics -85% -85%

1
2020 goals are from a 2013 baseline except for our green operational investments, which includes capital invested since 2015, and our plastics reduction goal, which is from a 2018 baseline.

Met or surpassed goal

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Goldman Sachs 2019 Sustainability Report
Managing Our Firm

OUR RISK MANAGEMENT

MANAGING RISKS
ENVIRONMENTAL AND SOCIAL RISK MANAGEMENT
Our Environmental Policy Framework (EPF) guides our overall we proactively monitor developments — from emerging ESG issues
approach to sustainability issues, including the management of to evolving best practices — and periodically review and update our
environmental and social risk. This Framework, as well as our other guidelines to reflect these developments.
sustainability-related policies, was developed with the consultation
Goldman Sachs was one of the first financial institutions to underscore
of stakeholders, including investors, NGOs and regulators. Our
the urgency of addressing climate change through our EPF. We
Framework includes a number of basic tenets:
continue to enhance environmental and social risk management
• We manage environmental and social risks with the same care guidelines for carbon-intense sectors. This includes no direct financing
and discipline as we do other business risks of new coal-fired power plant development globally without carbon
capture-and-storage technology, no direct financing of new thermal coal
• We weigh environmental and social impacts in all relevant mine development, and no new financing that directly supports new
business selection decisions upstream Arctic oil exploration or development. We work with clients
• We engage with clients to identify significant ESG issues, and across all industries on climate transition, including with power sector
help them adopt appropriate safeguards and sustainable practices clients to help them diversify and reduce GHG emissions to transition
where feasible in-line with the Paris Agreement.

• We decline assignments when client engagement is not possible, Because risk management is so critical to responsibly running our firm,
when potential impacts cannot be mitigated, and when unacceptable we focus on training our people in risk management globally, including
risks conflict with our environmental and social policy guidelines training with respect to environmental and social risk. As our first line
of defense, our people undergo specialized training by sector and
Our Framework also helps us work with clients to develop industry, particularly in sectors we believe have higher potential for
environmental and social risk disclosures as appropriate. In addition, environmental and social risk.

Potential Transactions Reviewed

For Environmental and Social Risks
Sector (2019)

Oil & Gas 617

Power Generation 341

1,612
Metals & Mining 255
Chemicals 195
Transportation 88
Other1 41
Water 30
Infrastructure 20
Forestry 18
Deals Reviewed (2019)
Biofuels 7

”Other” includes agriculture, biotech, housing, palm oil and transactions for financial sponsors related to loan portfolios across various sectors.
1

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Goldman Sachs 2019 Sustainability Report
Managing Our Firm

Managing Risks (continued)

(continued from previous page)

Risk management is integrated throughout the firm. In our advisory, forwent the transaction if risks were high and could not be mitigated. For
financing and investing activity, we focus on transaction risk and conduct example, when the firm was completing the due diligence on a multi-
enhanced review when transactions involve companies with the potential family property acquisition, our expanded due diligence scope identified
for negative ESG impacts or vulnerabilities. At the highest level, we that the on-site water supply well was being inadequately treated. After
broadly examine legal, regulatory, environmental, social and governance additional diligence into the causes and impacts of this water quality
risks, and review potential transactions through a risk management lens. concern, we decided not to participate in the transaction.

At an operational level, in-house teams with strong technical expertise In another case, when considering the acquisition of an industrial
guide environmental, health and safety (EHS) standards for our investing portfolio with a dozen facilities in Europe, we identified a number of
activities. The teams also perform EHS due diligence on proposed significant deficiencies in EHS governance. Working with the Operational
investment transactions, helping business teams identify and mitigate Risk Management & Analysis Environmental Specialist Team, we required
potential risk factors. In these direct investments, we closely and detailed EHS audits as a condition for the approval of the transaction.
continually examine potential risks in our portfolio. This includes As a result, detailed corrective action plans were developed for each
monitoring portfolio companies and engaging with their managers facility to address the deficiencies, including additional staffing and
as appropriate. enhanced authority of corporate EHS leadership, as well as development
of a firmwide EHS governance process and improvements to localized
In 2019, Goldman Sachs identified and managed EHS risks in a number
EHS procedures.
of potential transactions and portfolio companies, and in some cases,

A G LO B A L F R A M E W O R K F O R C L I M AT E R I S K D I S C LO S U R E

Goldman Sachs supports the work of the Task Force on Climate-related Financial Disclosures (TCFD), a market-driven initiative aimed at
creating a voluntary, consistent global framework for providing information on climate-related financial risks to investors, lenders, insurers
and other stakeholders.
Launched after the Paris Agreement by the Financial Stability Board, an international body that monitors and makes recommendations about
the global financial system, TCFD reporting provides decision-useful information that improves the understanding and analysis of material
climate-related risks and opportunities. In this spirit, Goldman Sachs has published an inaugural report (see page 56) that details our approach
to managing climate-related risks and opportunities across our businesses and operations, including the initial steps we have taken on
transition and physical climate-risk scenario analysis.
Our approach is multifaceted across both opportunities and risks and continues to advance as both the market and our clients’ needs evolve
and as data, technology and tools improve over time. Since our initial 2005 Environmental Policy Framework (EPF), we have continued to
integrate climate change risk mitigation and opportunities across our firm. The report covers a range of topics.

Among the highlights:

Governance Strategy Risk Management Metrics and Targets

How the management and How we’ve built on the roadmap laid out How climate risk is integrated into our existing Going forward, we will monitor
oversight of climate change is in our EPF, by establishing the Sustainable risk management as well as the initiatives we and report capital deployed in
integrated across our existing Finance Group in 2019 and a cross-divisional are undertaking to further integrate climate- clean energy as one of the nine
governance structure, including Steering Group to deepen our expertise related factors and scenarios into our risk growth themes underlying our
at the management and Board and deliver that expertise to our clients. management and business selection processes, $750 billion sustainable finance
level. Our approach ensures that Also, how in 2019, we announced a new including initial scenario analysis of (1) transition goal, and the progress we make
climate change is strategically sustainable finance target of $750 billion of risk for our balance sheet-related equity and against new operational targets
managed and the expertise financing, investing and advisory activity by credit assets and (2) physical risk for our global we have set for 2025, with a
of the firm is both integrated 2030 and will continue to work with clients properties. Over time, our goal is to both refine focus on strategic, collaborative
and leveraged across relevant across sectors globally to accelerate climate the methodology and assumptions and expand partnerships that drive market
committees and functions. transition in an orderly and inclusive way. the scope of analysis. transformation.

44
Goldman Sachs 2019 Sustainability Report
Managing Our Firm

Managing Risks (continued)

RISK - CENTERED
GOVERNANCE
Appropriate oversight by our management and Board of
Directors, as well as strong policies and practices, are key
contributors to our ability to effectively manage a broad
spectrum of financial and nonfinancial risks across our
businesses, including with respect to ESG considerations.

Our Board and its committees are responsible for overseeing the
management of the firm’s most significant risks, placing significant
focus on reputational risk and management’s operation of the firm
responsibly for the long term. The Board’s Public Responsibilities
Committee (PRC) has primary oversight of our firmwide approach to
sustainability and related risks, including through the review of key
ESG policies. Our ESG policies and procedures provide transparency
into our practices and are generally developed with the consultation
of stakeholders, including regulators and investors. Significantly, ESG and sustainability oversight is not limited to just the PRC,
but also informs discussions with other committees and the full Board on topics ranging from climate risk to human capital
management to the firm’s broader sustainable finance initiatives.

Oversight of the firm’s culture is an important element of how the Board engages on the firm’s reputation, particularly
because our people are our greatest asset. Our Board holds senior management accountable for embodying, maintaining and
communicating the firm’s culture throughout the firm. Core to our success is that our focus on risk and reputation extends
throughout every level of Goldman Sachs.

To this end, our people are trained in our Business Standards and Principles, which were recently distilled into our Core Values,
and underscore the responsibility of every employee to uphold our culture of teamwork, excellence, personal initiative and
accountability. At the management level, our firm’s committee structure serves to emphasize these points. Our committees are
generally composed of senior managers from our first and second lines of defense. These committees have specific oversight
or decision-making responsibilities for various risk management activities. For example, while our Enterprise Risk Committee
is globally responsible for overseeing all of the firm’s risks, both financial and nonfinancial, our Firmwide Reputational Risk
Committee is responsible for vetting transactions that have the potential for heightened reputational risk.

T H E I M P O R TA N C E O F O U R C U LT U R E

Our culture has been a cornerstone of our business and performance throughout our 150-year history. Our 14 Business Principles, which
were codified in 1979, outline our commitment to our clients and our cultural expectations, including how teamwork, excellence, personal
initiative and accountability are integral to our long-term success. These principles continue to guide us and were recently distilled into our
Core Values, which inform everything that we do.
Our Code of Business Conduct and Ethics outlines our shared responsibility to our clients, our colleagues and our communities. Goldman
Sachs is committed to ensuring our culture of integrity remains a core value.
We remain intensely focused on the impact that the conduct of our people can have on our firm’s reputation. To further elevate and reinforce
this focus, we have now created a Firmwide Conduct Committee, which is globally responsible for the oversight of conduct risk.
In particular, the Firmwide Conduct Committee seeks to ensure that our frameworks and policies appropriately mitigate the risk that our
people fail to act in a manner consistent with our Business Principles and Core Values, thereby falling short in fulfilling their responsibilities
to the firm, our clients, colleagues, other market participants or the broader community.

45
Goldman Sachs 2019 Sustainability Report

METRICS
KEY METRICS AND INDICATORS
Below we provide an overview of selected key metrics. For a complete list of our sustainability-related resources
and disclosures, please visit our Resource Guide.

Goldman Sachs U.S. Workforce Demographics*

Native
American Hawaiian
Black or Indian/ or Other
African Alaskan Hispanic or Two or More Pacific
White Asian American Native Latinx Races Islander Females

Exec/Sr. Officials & Managers 77.3% 14.5% 2.7% 0.1% 4.4% 1.0% 0.0% 23.4%

Officials & Managers 55.9% 33.7% 4.4% 0.1% 4.8% 1.1% 0.0% 28.6%

Professionals 53.1% 28.7% 5.8% 0.1% 9.8% 2.3% 0.2% 39.6%

All Others 57.5% 8.2% 15.9% 0.1% 15.4% 2.5% 0.4% 59.9%

Total 55.6% 25.6% 6.6% 0.1% 9.6% 2.1% 0.2% 39.8%

Source: Data anticipated to be filed in Goldman Sachs’ 2019 EEO-1 report. “All Others” is a combination of the following EEO-1 job categories: technicians, sales workers, administrative support, craft workers
(skilled), operatives (semi-skilled), laborers & helpers and service workers. Date as of 11/30/2019 (US only).
*Workforce pool excludes employees from Ayco and PFE Advisors/United Capital acquisitions.

Environmental Indicators
Trend
2018–2019 2019 2018 1 2017 1

Organization

Global Facilities Reported 271 277 270

Revenues ($M) $36,546 $36,616 $32,730

Operational Square Feet (million ft 2) 2 12.0 11.1 9.7

Employees 38,300 36,600 33,600

Certification

◊LEED-Certified Buildings (% of sq. ft.) 3 61% 57% 55%

◊ISO 14001 Certified Operations (% of sq. ft.) 100% 95% 79%

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Goldman Sachs 2019 Sustainability Report
Metrics

Trend
2018–2019 2019 2018 1 2017 1

Energy

Global Direct Energy Consumption (MWh) 45,281 41,237 41,207

Natural Gas 93% 91% 90%

Fuel Oil 7% 9% 10%

Global Intermediate Energy Consumption (MWh) 489,908 508,703 499,077

Purchased Electricity 96% 96% 97%

Purchased Steam & Chilled Water 4% 4% 3%

Global Direct and Intermediate Energy Consumption (MWh) 535,189 549,940 540,283

◊Reduction in Global Energy Consumption from Baseline (%) -12% -10% -12%

Global Renewable Energy Consumption (MWh) 460,455 463,192 453,518

◊Percent Renewable Energy 98% 95% 94%

Greenhouse Gas (GHG) Emissions

Scope 1 — Direct (metric tons CO 2 equivalent [tCO 2e]) 12,673 11,565 11,231

Natural Gas 68% 66% 67%

Fuel Oil 6% 8% 9%

HFC Refrigerants 26% 26% 24%

Scope 2 (location) — Indirect (tCO 2e) 166,249 187,418 189,599

Purchased Electricity 98% 98% 99%

Purchased Steam & Chilled Water 2% 2% 1%

Scope 2 (market) — Indirect (tCO 2e) 9,109 16,284 18,410

Purchased Electricity 64% 81% 87%

Purchased Steam & Chilled Water 36% 19% 13%

Scope 3: Category 6 — Business Travel (tCO 2e) 135,473 139,893 120,001

Commercial Air 83% 88% 88%

Other Travel 4 17% 12% 12%

Total Emissions: Scope 1 & 2 (location) (tCO 2e) 178,922 198,983 200,830

Office Scope 1 & 2 55% 53% 53%

Data Center Scope 1 & 2 45% 47% 47%

Total Emissions: Scope 1, 2 (market) (tCO 2e) 21,782 27,849 29,641

Total Emissions: Scope 1, 2 (market), and 3 Category 6 (tCO 2e) 157,255 167,742 149,642

Verified Carbon Offset Emissions Reductions (tCO 2e)1 157,255 165,051 146,950

◊Net Emissions: Scope 1, 2 (market), and 3 Category 6 (tCO 2e)1 0 0 0

Revenues (tCO 2e/$M) 5 4.9 5.4 6.1

Rentable Square Feet (KgCO 2e/sq. ft.) 5 14.9 17.9 20.7

Employee (tCO 2e/employee) 5 4.7 5.4 6.0

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Goldman Sachs 2019 Sustainability Report
Metrics

Trend
2018–2019 2019 2018 1 2017 1

Water

Global Water Withdrawal (m 3) 1,093,979 1,037,264 1,002,696

◊Reduction in Global Water Withdrawal from Baseline (%) 3% -2% -5%

Waste

Global Business Waste (metric tons) 5,990 5,920 5,979

Recycled/Composted Material 64% 61% 57%

◊Landfilled Material 1% 2% 7%

Waste to Energy 35% 37% 36%

Global e-Waste (metric tons) 243 431 265

Refurbished and Reused Material 6 14% – –

Recycled Material 86% 100% 100%

Global Construction Waste (metric tons) 3,395 6,115 4,171

Recycled/Composted Material 90% 93% 99%

Landfilled Material 10% 4% 1%

Waste to Energy 0% 3% 0%

Sustainable Procurement

Paper Consumption (million sheets) 200 236 233

New Fibers (FSC/SFI) 66% 65% 69%

Post-Consumer Recycled 19% 21% 22%

New Fibers 15% 14% 9%

Paper Consumption/Employee (sheets) 5,233 6,433 6,944

◊Reduction in Paper Consumption/Employee from Baseline (%) -40% -26% -20%

Reduction in Single-Use Plastics (metric tons)7 38 – –

◊Reduction in Single-Use Plastics from Baseline (%) 7 -85% – –

◊Vendor Code of Conduct 8 100% 100% 100%

Vendor ESG Risk Screening 8 100% – –

CDP

Climate Change Survey: Score A- A A

Climate Change Survey: Leadership Recognition9 SER A List A List A List

Notes:
Note 1: Historical energy, water and GHG emissions data has been adjusted and restated from baseline 2013 onward to account for acquisitions and divestitures.
Carbon offsets and net emissions reflect verified totals in the year of initial reporting.
Note 2: In alignment with the World Resources Institute and World Business Council for Sustainable Development Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (Scope 1 and 2),
operational square footage proportionately reflects all lease activations and expirations of occupied spaces throughout the year.
Note 3: This symbol ◊ before an indicator denotes an environmental commitment through Goldman Sachs’ 2015 EPF; reductions are from a 2013 baseline.
Note 4: This includes charter air, rail/bus, ferry, car and hotels.
Note 5: Metrics are normalized using Scope 1 & Scope 2 (location) emissions.
Note 6: The firm began tracking refurbished material as separate from recycled material in 2019.
Note 7: The firm began tracking the purchase of single-use plastics in 2019. Reductions are from a 2018 baseline.
Note 8: All newly onboarded vendors must attest to the Vendor Code of Conduct. All vendors are screened for inherent ESG risk.
Note 9: In 2019 the firm’s CDP response was recognized for leadership as part of CDP’s Supplier Engagement Rating (SER).

48
Goldman Sachs 2019 Sustainability Report

RECOGNITION
FEATURED AWARDS AND RANKINGS
Each year, Goldman Sachs receives awards across categories including sustainability, business,
employer of choice, and diversity and inclusion. Select awards are shown below.

Sustainability Awards and Rankings:

CDP EPA Green Power Partnership
January 2020 January 2020

Supplier Engagement Leader list (A score) Ranked #43 in the National Top 100
Climate Change Leader list (A- score) Included on the 100% Green Power Users list

Newsweek and Statista JUST Capital

December 2019 November 2019

Ranked #93 out of 300 America’s Most Responsible Companies Ranked #111 out of 922 America’s Most Just Companies
Ranked #4 out of 33 Capital Markets Companies

US Transparency Awards Dow Jones Sustainability Index

October 2019 September 2019

Ranked #6 out of 20 Included in the North America Index

Euromoney Awards for Excellence

July 2019

North America’s Best Bank for Sustainable Finance

Business Awards and Rankings:

IFR Awards Risk.net Risk Awards
December 2019 November 2019

Top M&A Adviser Interest Rate Derivatives House of the Year

Top Europe High-Yield Bond House
Top Latin America Bond House
Top EMEA Loan House
Top North America Equity House
Top Asia Pacific Structured Equity House

Euromoney Awards for Excellence

July 2019

World’s Best Bank for Finance

Asia, Latin America and North America’s Best Bank for Advisory

49
Goldman Sachs 2019 Sustainability Report
Recognition

Employer of Choice Awards and Rankings:

NAFE Top Companies for Executive Women Vault Banking 50
March 2020 January 2020

Listed Ranked #1 Most Prestigious Banking Firm

Ranked #3 Best Banking Firm

Working Mother 100 Best Companies Universum World’s Most Attractive Employers
September 2019 June 2019

Listed and Hall of Fame honoree for 15 years of inclusion on the list Ranked #7 among business students
Ranked #21 among engineering/IT students

Diversity and Inclusion Awards and Rankings:

Human Rights Campaign’s Corporate Equality Index Bloomberg Gender-Equality Index
January 2020 January 2020

Rating of 100% Listed

Disability:IN’s Disability Equality Index Asia Society’s Best Asian Pacific American Employer Awards
July 2019 April 2019

Scored 100% Best Employer for LGBT Asian Employees

Most Innovative Practice Citations for: Recruitment and Selection;
Retention; and Employee Growth and Advancement (honored as Best
of the Best)

50
Goldman Sachs 2019 Sustainability Report

SASB INDEX
This report is evidence of our ongoing commitment to provide disclosure under the Sustainability Accounting Standards Board (SASB) standards. We
have included the below disclosures related to the three sectors that are most closely aligned to our mix of businesses: Asset Management & Custody
Activities, Investment Banking & Brokerage, and Commercial Banks. Disclosures that appeared in more than one of these sector standards are included
in a separate section at the top. Unless otherwise noted, all data and descriptions apply to our entire firm, not just the businesses relevant to that sector.
We do not currently disclose all metrics included in the standards for these three sectors, but we will continue to evaluate them in the future. All data is
as of or for the year ended December 31, 2019 unless otherwise noted.

Topic Accounting Metric Category Code Response

Disclosures Included in Multiple Sectors’ Standards

Percentage of gender and racial/ethnic

group representation for U.S. Workforce Demographics
Diversity (1) executive management, FN-AC-330a.1
Quantitative As part of our commitment to improving diversity at
& Inclusion (2) non-executive management, FN-IB-330a.1
(3) professionals and the firm, we have also published diversity goals here.
(4) all other employees

FN-AC-510a.2 Raising Integrity Concerns

Description of whistleblower Discussion
FN-IB-510a.2
policies and procedures and Analysis Code of Business Conduct and Ethics
FN-CB-510a.2

Total amount of monetary losses as a

result of legal proceedings associated with:
• Marketing and communication of
Business Ethics financial product-related information FN-AC-270a.2
to new and returning customers; FN-AC-510a.1
During 2019, our total net provisions for all litigation
• Fraud, insider trading, anti-trust, anti- Quantitative FN-IB-510a.1
and regulatory proceedings were $1.2B.
competitive behavior, market manipulation, FN-IB-510b.3
malpractice, or other related financial FN-CB-510a.1
industry laws or regulations; and
• Professional integrity, including
duty of care

The G-SIB surcharge is updated annually based on

financial data from the prior year and is generally
applicable for the following year. The G-SIB surcharge
is calculated using two methodologies, the higher
of which is reflected in the firm’s risk-based capital
requirements. The first calculation (Method 1) is based
on the Basel Committee’s methodology, which, among
other factors, relies upon measures of the size, activity
and complexity of each G-SIB. The second calculation
(Method 2) uses similar inputs but includes a measure
Global Systemically Important Bank FN-IB-550a.1 of reliance on short-term wholesale funding. Further
Quantitative
(G-SIB) score, by category FN-CB-550a.1 information about Method 1 can be found on the Bank
for International Settlement’s website and further
Systemic Risk information about Method 2 can be found on the
Management Federal Reserve Board’s website.
We are bound by Method 2 and our applicable G-SIB
buffer is 2.5%. Please see pages 8–9, 71–72 and
172–173 of our 2019 Form 10-K for further information.
Further information about the indicators that factor
into the calculation can be found in our FR Y-15 filing,
which can be accessed here.

Description of approach to incorporation We conduct various scenario analyses including

of results of mandatory and voluntary as part of the Comprehensive Capital Analysis and
Discussion FN-IB-550a.2
stress tests into capital adequacy Review and Dodd-Frank Act Stress Tests, as well as
and Analysis FN-CB-550a.2
planning, long-term corporate strategy our resolution and recovery planning. Please see
and other business activities pages 10–13 and 69–71 of our 2019 Form 10-K.

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Goldman Sachs 2019 Sustainability Report
SASB Index

Topic Accounting Metric Category Code Response

Asset Management & Custody Activities

We believe our clients are best served by having a

clear understanding of how we work together, the
capacities in which we act and the fees we charge.
In addition to contracts for products and services,
as well as regulatory disclosures, we provide Wealth
Transparent Management clients a comprehensive brochure
Information & Description of approach to informing Discussion and outlining the services we provide and the related
FN-AC-270a.3
Fair Advice for customers about products and services Analysis fee structures, including how their advisor is
Customers compensated for each type of service and fee.
Please also refer to the Business Standards
Committee Impact Report, Code of Business Conduct
and Ethics and Risk Factors detailed on pages 23–44 of
our 2019 Form 10-K for additional firmwide information.

Amount of assets under management, by As of December 2019, we had $74B in assets

asset class, that employ (1) integration under supervision that explicitly include ESG or
of environmental, social and governance Quantitative FN-AC-410a.1 impact objectives in the investment mandate and
(ESG) issues, (2) sustainability themed an additional $101.3B subject to ESG screens.
Incorporation investing and (3) screening See our website for further information.
of ESG Factors
in Investment Description of approach to incorporation
Management and of environmental, social and governance Discussion and
FN-AC-410a.2 Statement on ESG and Impact Investing
Advisory (ESG) factors in investment and/or wealth Analysis
management processes and strategies

Description of proxy voting and investee Discussion and

FN-AC-410a.3 GSAM Stewardship Report
engagement policies and procedures Analysis

Goldman Sachs Asset Management (GSAM)

oversees liquidity risk management for the funds
and client portfolios for which it serves as fund
manager/investment advisor.
GSAM monitors liquidity risk associated with a
portfolio’s ability to meet potential cash outflows
Description of approach to incorporation related to investor redemptions/withdrawals or
of liquidity risk management programs Discussion and potential liabilities related to derivative positions and
FN-AC-550a.2
into portfolio strategy and redemption Analysis secured funding trades, as well as changes in the
risk management liquidity of positions within the portfolio.
GSAM manages the liquidity of its portfolios in line with
the investment strategy of each portfolio, applicable
regulatory requirements, potential investor redemption
Systemic Risk
requests and broader macro market conditions, at all
Management times in the context of GSAM’s obligations and its role
as a fiduciary, where applicable.

As of December 2019, we had $27.0B of credit

Total exposure to securities financing exposure from securities financing transactions.
Quantitative FN-AC-550a.3
transactions Please see page 97 of our 2019 Form 10-K for further
information.

As of December 2019, written credit derivatives

had a total gross notional amount of $522.6B and
purchased credit derivatives had a total gross notional
Net exposure to written credit derivatives Quantitative FN-AC-550a.4
amount of $581.8B, for total net notional purchased
protection of $59.2B. Please see page 130 of our
2019 Form 10-K for further information.

Registered Assets $432B

(1) Total registered and Under Supervision
n/a (2) total unregistered assets under Quantitative FN-AC-000.A
Unregistered Assets Under $1,427B
management (AUM)
Supervision

Total assets under custody and $1.9T assets under supervision. Please see page 63
n/a Quantitative FN-AC-000.B
supervision of our 2019 Form 10-K for further information.

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Goldman Sachs 2019 Sustainability Report
SASB Index

Topic Accounting Metric Category Code Response

Investment Banking & Brokerage

Incorporation
of ESG Factors Description of approach to incorporation
in Investment of environmental, social and governance Discussion and Environmental Policy Framework
FN-IB-410a.3
Banking & (ESG) factors in investment banking and Analysis (Updated in 2019)
Brokerage brokerage activities
Activities

The firm maintains a Code of Business Conduct and

Description of approach to ensuring Ethics and requires employees to annually certify they
Professional Discussion and
professional integrity, including FN-IB-510b.4 have reviewed and will comply with the code. See the
Integrity Analysis
duty of care Business Standards Committee Impact Report and our
Business Principles for further information.

MRT is a regulatory term applied in the UK, but not

a concept we apply to our global workforce. Within
our UK workforce only, 48% of total remuneration
Percentage of total remuneration that is awarded to MRTs for 2018 performance was variable.
Quantitative FN-IB-550b.1
variable for Material Risk Takers (MRTs)
Note that we apply a pay-for-performance philosophy
across our organization. Please see our Compensation
Employee Principles for further information.
Incentives and
Risk Taking All equity-based awards granted to employees are
Percentage of variable remuneration of
subject to robust forfeiture and clawback provisions.
Material Risk Takers (MRTs) to which malus Quantitative FN-IB-550b.2
Please see page 44 of our 2020 Proxy Statement for
or clawback provisions were applied
further information.

Discussion of policies around supervision,

Discussion and
control and validation of traders’ pricing of FN-IB-550b.3 Please see pages 47–48 of our 2019 Form 10-K.
Analysis
Level 3 assets and liabilities

Per Dealogic, our transaction volumes for 2019 were

Announced Mergers $1,401B

and Acquisitions
Completed Mergers $1,256B
(1) Number and (2) value of and Acquisitions
n/a (a) underwriting, (b) advisory and Quantitative FN-IB-000.A
(c) securitization transactions Equity and Equity-Related $68B
Offerings
Debt Offerings $245B

Please see page 56 of our 2019 Form 10-K for

further information.

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Goldman Sachs 2019 Sustainability Report
SASB Index

Topic Accounting Metric Category Code Response

Investment Banking & Brokerage

The table below presents the concentration of our

$46.3B of firmwide gross corporate loans by industry:

Consumer, Retail & Healthcare 15%

Diversified Industrials 17%
Financial Institutions 10%
Funds 9%
Natural Resources & Utilities 12%
Real Estate 7%
Technology, Media & 17%
(1) Number and (2) value of proprietary
n/a Quantitative FN-IB-000.B Telecommunications
investments and loans by sector
Other (incl. Special Purpose Vehicles) 13%

The table below presents the asset class breakdown

of our $22.2B of equity securities at fair value
(reported within our Asset Management segment):

Corporate 79%
Real Estate 21%

For further information about investments and loans,

please see pages 133 and 140, respectively, of our
2019 Form 10-K.

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Goldman Sachs 2019 Sustainability Report
SASB Index

Topic Accounting Metric Category Code Response

Commercial Banks

Description of approach to identifying Discussion and

Data Security FN-CB-230a.2 Client Security Statement
and addressing data security risks Analysis

As of December 2019, our Urban Investment Group

had $1.2B of debt assets outstanding from 98
transactions and $1.6B of equity assets outstanding
from 144 transactions. See our Urban Investment
(1) Number and (2) amount of loans Group’s website for further information.
Financial
outstanding qualified to programs Please also refer to our programs 10,000 Small
Inclusion & Quantitative FN-CB-240a.1
designed to promote small business Businesses, which provides entrepreneurs in the US
Capacity Building and community development and UK access to education, capital and business
support services, and 10,000 Women, a global initiative
providing women entrepreneurs with a business and
management education, mentoring and networking,
and access to capital.

Credit Exposure from Commercial Loans and Lending

Commitments by Industry:

Consumer, Retail & Healthcare 19%

Diversified Industrials 14%
Financial Institutions 8%
Funds 3%
Commercial and industrial credit
Quantitative FN-CB-410a.1 Natural Resources & Utilities 17%
Incorporation of exposure, by industry
ESG Factors in Real Estate 10%
Credit Analysis Technology, Media & 16%
Telecommunications
Other (incl. Special Purpose Vehicles) 13%

Please see page 96 of our 2019 Form 10-K for

further information.

Description of approach to incorporation

Discussion and Environmental Policy Framework
of environmental, social and governance FN-CB-410a.2
Analysis (Updated in 2019)
(ESG) factors in credit analysis

The table below presents information by loan type:

Corporate $46.3B

(1) Number and (2) value of loans by Wealth Management $27.9B

n/a segment: (a) personal, (b) small business Quantitative FN-CB-000.B Consumer $4.7B
and (c) corporate
Credit Cards $1.9B

Please see page 138 of our 2019 Form 10-K for further
information.

55
 CLIMATE - RELATED
RISKS & OPPORTUNITIES
Goldman Sachs 2019 TCFD Report
Goldman Sachs 2019 Sustainability Report
TCFD Appendix

CONTENTS

58 INTRODUCTION
59 GOVERNANCE
62 STRATEGY — ADVANCING THE OPPORTUNITY
62 LEVERAGING THE BREADTH OF OUR BUSINESSES
64 PUBLIC POLICY AND INDUSTRY ENGAGEMENT
64 OPERATIONAL BEST PRACTICES
65 RISK MANAGEMENT
66 CLIMATE-RISK SCENARIO ANALYSIS
67 COMPREHENSIVE RISK MANAGEMENT APPROACH
69 METRICS AND TARGETS
70 THE PATH FORWARD

57
Goldman Sachs 2019 Sustainability Report
TCFD Appendix

Introduction
At Goldman Sachs, we have long recognized the urgency of climate change and have worked to
harness market solutions to help address the challenge. We also believe in the importance of
providing greater transparency on our approach to managing climate-related risks and opportunities
across our business and operations.
Our inaugural Task Force on Climate-related Financial Disclosure (TCFD) Report provides an
overview of our strategy and approach to climate-related risks and opportunities, including how the
management and oversight of climate change is integrated across our global business. We also include
in this report the initial steps we have undertaken on climate risk scenario analysis to understand the
impacts of both transition risk and physical risk.
We recognize that climate change is highly complex and that it is inherently difficult to project
how related financial risks will materialize across the global economy and markets. In addition,
climate scenario analysis is relatively new and evolving rapidly, including with respect to underlying
assumptions, methodologies and data. As such, this report represents the first step in our journey
with the commitment to deepening our understanding of and advancing our approach to
climate-related risks and opportunities over time.

Climate-related opportunities and risks manifest in many different ways across our businesses. We see significant
opportunities across our financing, investing, asset management, advisory and risk management activities as we work with
our clients to help address the climate challenge. At the same time, extreme weather events may disrupt operations or
affect the value of our investments, negative financial impacts on clients from climate change may increase credit risk, and
involvement in certain industries associated with climate change may pose reputational risk. Given the broad-based impacts
of climate change, our cohesive strategy leverages the breadth of our global businesses and the depth of our expertise and
insights to advance climate-related opportunities and to manage climate risk.

Our strategy includes a 10-year, $750 billion strategic target to finance, invest and advise clients across nine sustainable
growth themes, which underlie climate transition and inclusive growth. In addition, given global economies for the
foreseeable future are dependent on fossil-based energy and carbon-intensive activities, we are committed to supporting
clients across all industries in their efforts to accelerate their climate transition and doing so in an orderly manner. This
enables us to not only better serve the interests of our clients but also more effectively manage our own risk exposures.

In 2019, we strengthened our firmwide efforts by establishing the Sustainable Finance Group (SFG), which reports to the
Chairman’s Office and is responsible for partnering with our global businesses to deliver leading sustainability expertise
and drive innovative solutions for our clients. This effort is supported by a cross-divisional steering group of senior business
leaders to deliver the breadth of our capabilities.

Our strategy also entails understanding and managing climate-related physical, transition and reputational risks. This is
embedded both in our comprehensive firmwide risk management approach and more specifically in our climate change risk
management framework. In addition to managing risk across our client activities and related balance sheet exposure and
reputational risk, we continue to adopt best practices to reduce our own carbon footprint and integrate resiliency into our
global operations.

Underlying our strategy is an ongoing commitment to deepening our understanding and knowledge of, and progressing our
approach to, managing climate risks and advancing market opportunities. To that end, we leverage the lessons learned from
managing our own business and serving our clients, as well as from our external stakeholder engagement, to help inform the
work we do and further best practices across the financial services industry and more broadly. We also harness our research insights
and thought leadership to help inform markets and policy, and engage in broader partnerships to further market solutions.

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Goldman Sachs 2019 Sustainability Report
TCFD Appendix

Governance
Given climate-related impacts manifest across our businesses in different ways, oversight and management of climate
change is integrated into our existing governance structure. This helps to ensure that climate change is strategically
managed and the expertise of the firm is both integrated and leveraged across relevant committees and functions.

At the most senior level, under the oversight of the Board of Directors and at the direction of senior management, we
are committed to serving our clients and delivering robust risk management, including on climate-related opportunities and
risks. Our focus on not only clients but on effective risk and controls is core to our commitment to excellence, as reflected
in our Core Values, Business Principles, and Code of Business Conduct and Ethics.

Board of Directors:
Our Board of Directors (the “Board”) and its committees are responsible for overseeing the management of the firm’s
most significant risks, placing significant focus on reputational risk and management’s operation of the firm for the
long term.

• The Board’s Public Responsibilities Committee (PRC) provides oversight of our firmwide sustainability strategy and
sustainability issues affecting the firm, including with respect to climate change. As part of its oversight, the PRC
receives updates on the firm’s Environmental Policy Framework (EPF), which serves as an ambitious roadmap for how
we seek to leverage our people, capital and ideas to address critical environmental challenges and promote sustainable
economic growth across our businesses. The EPF also includes environmental and social risk guidelines, including for
carbon-intensive sectors.

• The Risk Committee of the Board oversees the firm’s overall risk-taking tolerance and management of financial and non-
financial risks, including climate risk. In this respect, the Risk Committee provides oversight of the firm’s Risk Appetite
Statement (RAS), which conveys the firm’s view of its risk culture, risk appetite and risk management philosophies,
including those related to climate change.

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Firmwide Committees:
In addition to Board-level oversight, we have a series of firm-level committees with risk management mandates that have
oversight or decision-making responsibilities for risk management activities and environmental, social and governance
(ESG) issues, including relevant climate change considerations. At a firmwide level, the Enterprise Risk Committee
oversees all of our financial and non-financial risks, including climate-related risk.

In addition, we have firm-level risk committees that provide oversight for different businesses, activities, products, regions
and entities. For example, the Firmwide Capital Committee, which approves and oversees debt-related transactions,
including balance sheet-related commitments, integrates relevant climate-related considerations. For our own operations,
the Firmwide Resilience and Operational Risk Committee provides oversight over operational risk and resiliency,
including physical risks relating to climate change.

All of our committees have responsibility for considering the reputational impact of transactions and activities that they
review. The Firmwide Reputational Risk Committee provides oversight over transactions that may have heightened
reputational risk, which includes considerations relating to environmental and social factors, such as climate-related
reputational risk.

Below are relevant key committees.

Committee Description

Oversees global activities directly and through authority delegated to committees it has established.
Management Committee
This committee consists of our most senior leaders.

Oversees all of our financial and non-financial risks as well as the ongoing review, approval and
Firmwide Enterprise Risk Committee
monitoring of our enterprise risk management framework.

Assesses reputational risks arising from transactions that have been identified as having potential
Firmwide Reputational Risk Committee
heightened reputational risk.

Approves and oversees debt-related transactions and ensures that business, reputational and
Firmwide Capital Committee
suitability standards for underwritings and capital commitments are maintained on a global basis.

Approves and oversees underwriting and distribution activities with respect to equity and equity-related
Firmwide Commitments Committee products, and sets and maintains policies and procedures designed to ensure that legal, reputational,
regulatory and business standards are maintained on a global basis.

Reviews, approves, sets policies and oversees certain principal investments, including review of
Firmwide Investment Policy Committee
risk management and controls for these types of investments.

Firmwide Resilience and Operational

Oversees operational risk, and ensures our business and operational resilience.
Risk Committee

Maintains a consistent approach to evaluating risks associated with engaging in, investing in, or the
Physical Commodity Review Committee financing of physical commodity activities that may have an impact on the environment or human
health and safety.

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Relevant Divisions /Functions:

Climate change risks and opportunities are integrated across relevant areas of our businesses. As part of their
responsibilities, the following three divisions/functions play a specific role in managing climate-related risks and
opportunities and ensuring that we continue to advance our insights and expertise.

• Risk Division: The Risk Division has a range of climate-related functions, working with business units and control
groups on risk identification and stress-testing activities. The division also assesses financial risks of counterparties and
transactions, including credit risk. In addition, the division oversees the firm’s operational resilience framework, which
factors in potential impacts from climate-related risks on the firm’s activities.

• Executive Office (EO) — Sustainable Finance Group (SFG): The SFG, which reports to the Office of the Chairman,
is responsible for partnering with the firm’s global businesses to deliver leading sustainability expertise and capabilities
to our clients and drive innovative market solutions that advance climate transition and inclusive growth. SFG also
engages with the firm’s stakeholders to stay abreast of and, where relevant, help inform sustainable finance and climate
change-related policy. In addition, SFG works with the Business Intelligence Group, the Risk Division and the business
units on firmwide environmental and social risk management and related guidelines. By being part of the EO and
working across all of the global businesses, clients and stakeholders, SFG brings together the breadth of our knowledge
and capabilities and ensures we continue to deliver our insights and expertise.

• Services Division — Corporate Services & Real Estate (CSRE), Crisis Management Group: The Services Division
provides essential commercial advisory and management services to enable the firm’s flow of business, drive
operational efficiency, manage risk and deliver the world’s best work experience and environment. CSRE partners
with the Crisis Management Group to assess and plan for near- and long-term climate-related risks across our operations
through infrastructure and business continuity reviews of the firm’s global corporate real estate portfolio. This enables
climate-related risk to be actively monitored and threats to be minimized to ensure the firm operates continuously
through and swiftly recovers from any business disruption.

Cross-Divisional Groups:
In addition to the specific divisions/functions, we have established cross-divisional steering groups to more effectively
leverage the firm’s capabilities and activities and to ensure a holistic, firmwide approach to managing climate-related risks
and opportunities. These include:

• Sustainable Finance Steering Group: Comprised of senior leaders responsible for integrating sustainability expertise
across our divisions and bringing our capabilities together across the firm. The group convenes periodically to guide
and support firmwide sustainable finance efforts relating to key strategic initiatives and client delivery, while providing
leadership for cross-divisional work streams and new opportunities.

• Climate Change Risk Steering Group: Comprised of representatives from the Risk Division, Services Division and the
Executive Office that are responsible for evaluating climate-related scenario analysis and the broader TCFD assessment.
This group also reviews the implementation of the strategic climate risk management approach outlined in this report to
strengthen climate-related financial risk integration across our businesses and practices.

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Strategy — Advancing the Opportunity

As markets and client activity shift in response to climate change, we have a substantial opportunity to harness innovative
capital market tools and partner with our clients to help accelerate their climate transition. In addition, our ability to
leverage the breadth of our capabilities, our commitment to continuously deepening our expertise and refining our insights,
and applying these both across our own operations and in serving our clients’ needs, ensures we stay front-footed in
integrating climate change opportunities and risks.

In December 2019, we announced a new sustainable finance target of $750 billion of financing, investing and advisory
activity by 2030. This target encompasses activities across nine strategic growth themes, which are rooted in 10+ years
of market research, focused on climate transition and inclusive growth. Areas of focus in our climate transition activity
include clean energy, sustainable transport, sustainable food and agriculture, waste and material, as well as ecosystem
services — areas where we can help scale technology and solutions through greater and more efficient capital
deployment. In addition to this target, we have expanded our work with clients more broadly to help them with their
climate transition and in ensuring sustainable growth more broadly, and we are harnessing innovative market solutions
to help clients better manage and adapt to climate risks.

Leveraging the Breadth of Our Businesses

We leverage our capabilities across financing, advisory, risk management solutions, asset management and investing
to help our clients achieve their climate-related goals, facilitate the low-carbon transition, and strengthen adaptation and
resiliency. The following table provides an overview.

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Business Activity Key Examples

• Deployed more than $115 billion toward clean energy financing

and investing since 2006
Investment Banking: Our Investment Banking franchise is well-
positioned to support clients with climate transition strategies • Active underwriter of catastrophe bonds, helping raise more than
and to assist both incumbents and new companies to innovate and $20 billion to manage weather-related events since 2006
grow. Goldman Sachs is a leading global M&A advisor and is • Underwrote nearly $59 billion in green, social and sustainability
regularly recognized for our leadership in clean energy financing bonds since 2014
and innovative sustainability financing solutions.
• Advising clients on low-carbon transition and sustainable
growth strategies

• Merchant Banking has a track record of investing in renewable

energy and clean technology solutions globally
• Goldman Sachs Asset Management (GSAM) has $74 billion
Asset Management: Goldman Sachs has one of the leading
in ESG and impact investing assets under supervision (AUS)
investing and asset management franchises across the breadth of
as of December 2019
asset classes and with global scale. A key area of strategic focus
is ESG and impact investing as well as investing in climate transition • GSAM recognizes that environmental factors, including climate change,
and sustainable growth themes. can affect investment performance and considers it an engagement
priority. It has supported shareholder proposals related to climate
change disclosures 60 percent of the time and shareholder proposals
related to a 2-degree scenario analysis 100 percent of the time1

Consumer & Wealth Management: ESG and impact investing is a fast- • Provides innovative client solutions across portfolios, investment
growing area for our consumer and wealth management businesses, strategies and products, including customizable passive ESG
with investment strategies across a number of innovative environmental options, ESG structured notes, and renewable funds and other
and social themes. climate offerings

Global Markets: Goldman Sachs facilitates the efficient development

of carbon and other climate-related commodity markets. Our Global • Supported over $1.5 billion of new build renewable investments
Markets business has been a leading participant in the global energy through 1,250 MW+ of renewable offtake transactions since 2018
markets for over 20 years and is active in both carbon and renewable • Market maker in carbon credits, participating in the EU Emission
energy markets, helping developers and corporates scale solutions Trading Scheme from its inception and in the California carbon market
and mitigate risks.

GSAM Stewardship Report, 2019.

1

Global Markets and our other businesses are supported by our Global Investment Research (GIR) division. GIR is a
leading provider of ESG thought leadership with a dedicated global SUSTAIN team. SUSTAIN research includes an ESG
framework through which to evaluate corporate ESG engagement, and investing roadmaps and thematic pieces on the
risks and opportunities associated with sustainability. Climate change has been a growing area of research focus, with
topics such as carbon pricing, climate resiliency of cities, climate strategies of Big Oil companies, and investing in climate
solutions. Read the reports here.

For additional details, please refer to our 2019 Sustainability Report.

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Public Policy and Industry Engagement

We continue to work with other companies, nonprofit organizations and other stakeholders to share insights and
further best practices that advance sustainability and climate transition. In addition, where appropriate, we advocate for
effective climate policy to help inform ways to advance market solutions that can help address climate change.
The following are examples.

• Paris Climate Agreement: We have actively engaged in making the business case for global climate action, including
support for the 2015 UNFCCC Paris Agreement. We were one of the first US companies to commit to the White House
American Business Act on Climate Pledge in 2015; we signed an open letter alongside 29 other CEOs in 2017 to support
the US staying in the Paris Agreement; and more recently, we were part of a group of 80+ CEOs and labour leaders
reiterating our support that staying in the Paris Agreement will strengthen US competitiveness in global markets.

• Carbon pricing: We have long articulated the need for governments to provide transparency around the costs of
greenhouse gas (GHG) emissions and to create long-term value for GHG emissions reductions. More recently, in a
December 2019 editorial, our CEO David Solomon underscored the urgency and business case for climate transition and
called for governments to put a price on carbon. In February 2020, Goldman Sachs, alongside more than 25 companies,
joined as a founding member of the Climate Leadership Council (CLC) to support a revenue-neutral carbon fee and
dividend plan for the US.

• Catalyzing climate finance: We have continued to leverage our market insights to help catalyze greater capital flows
to address climate change. In 2019, we joined the CEO-led Climate Finance Leadership Initiative (CFLI) as one of
seven founding members, to support greater mobilization of climate finance flows. In September 2019, CFLI delivered
its Financing the Low-Carbon Future report to the UN to inform ways to further mobilize private climate finance at the
scale and speed needed to support a rapid and orderly transition to a low-carbon global economy.

• Integrating climate-related risks and opportunities: In 2019, Goldman Sachs Asset Management teamed up with a
select group of other leading asset managers to advance climate-related investment among national sovereign wealth
funds (SWFs). Known as the One Planet Asset Managers Initiative, this collaboration supports the efforts of the One
Planet SWF Working Group, composed of leading sovereign wealth funds, to drive a deeper consideration of the impact
of climate change on investment portfolios.

Operational Best Practices

In addition to harnessing the breadth of our businesses to help our clients with their climate transition and scaling
innovative market solutions to address climate change, Goldman Sachs is committed to being a leader in implementing
sustainability practices that minimize the impact of our global operations on the environment. For example, we have been
carbon neutral from 2015 onward across our global direct Scope 1, indirect (market-based) Scope 2, and Scope 3 business
travel emissions. Additionally, by year-end 2020, we are committed to procuring 100% renewable energy and attaining
LEED Gold or equivalent for 70 percent of our global corporate real estate footprint.

In December 2019, we established a new suite of 2025 operational sustainability goals with a focus on strategic,
collaborative partnerships that drive market transformation, as outlined in our Sustainability Report. The firm has been a
member of RE100 since 2015 and recently joined additional initiatives EV100 and EP100 with ambitious commitments
to electrify transport and deploy smarter energy use — making us the first US company to become a member of all three
of The Climate Group’s global corporate leadership initiatives to accelerate the clean energy transition.

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Risk Management
Because we are a global financial services firm with clients operating in diverse sectors and offices across many
countries, climate change presents a range of potential risk considerations across our businesses and activities. For
example, climate change may cause extreme weather events that disrupt operations at one or more of our primary
locations, which may negatively affect our ability to service and interact with our clients and also may adversely affect the
value of our investments. Climate change may also have a negative impact on the financial condition of our clients, which
may decrease cash flows from those clients and increase the credit risk associated with loans and other credit exposures
to these clients. Additionally, our reputation may be impacted as a result of our involvement, or our clients’ involvement,
in certain industries or projects associated with climate change.

The table below provides a description of the range of climate-related risk considerations.

Risk Description

Market Physical and transition risk could impact the value of assets in which we make markets and invest.

Counterparty financial performance and collateral values could deteriorate as the transition
Credit
and physical impacts of climate change manifest over time.

Climate-related disruptions could impact the availability and accessibility of capital in markets for
Liquidity
certain sectors and securities.

Increased severity of climate-related events could impact our office locations and disrupt our
Operational
systems, people and processes across our global footprint.

Growing stakeholder focus on corporate action to meet emissions reduction targets can result
Reputation in increased reputational risk and reduced client and employee loyalty, investor divestment and
impacts to client activity.

Climate-related disclosures are increasingly important and climate-related litigation could also result
Legal
from stranded assets, acute climate events or resulting market price declines.

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Climate-Risk Scenario Analysis

Our overall business structure, strategy and comprehensive risk management provide a strong foundation for
managing and mitigating these potential risks. However, climate change is highly complex and non-linear, with many
uncertainties. In addition, new data, tools, and expectations are continuously evolving. As such, we have a climate
change risk management framework, which includes stress testing based on an initial set of scenarios. As part of
ongoing implementation, we are undertaking further refinement of the scenarios with the goal of improving their risk
management benefit.

As a global financial institution, we use a variety of stress-testing techniques to calculate the potential impact of a wide
range of potential market moves. We perform stress testing on a regular basis to ensure a comprehensive analysis
of our vulnerabilities and idiosyncratic risks in anticipation of market events or conditions, which include climate
considerations. For climate stress testing, we perform both (i) transition risk stress tests on the value of our balance
sheet-related equity and credit assets, and (ii) physical risk stress tests on our global properties. The following is what
we have initially undertaken:

(i) Transition Risk Stress Test

Transition risk arises from changes to policy, technology and consumer preferences over time that reduce reliance on
carbon-intensive products and services. The composition of industries, particularly in the energy sector, will change as
a result of compliance with climate policy changes such as the implementation of the Paris Agreement. Since individual
countries will implement decarbonization policies in different ways, changes to industries will also depend on where they
are located and how the policies evolve over time. Climate policy changes introduce financial risks to financial institutions
that may own or finance companies whose value could be affected. To measure these risks, we perform transition risk
stress testing.

Currently, we perform transition risk stress tests under two scenarios: 1) a scenario in which the Paris Agreement is fully
implemented by all countries; and 2) a scenario in which the Paris Agreement is partially implemented in line with current
policy plans. In implementing each scenario, we assume that a credible policy change is announced and that the market
consequently adjusts credit ratings and prices of affected companies and trades. In each stress test, we estimate the
change in credit ratings that would result from each policy change as well as the changes in equity and credit prices that
are consistent with those credit rating changes. We then reprice all affected assets on our balance sheet to measure the
total change in value that would result under each scenario.

(ii)  Physical Risk Stress Test

Physical risk arises from changes to the environment that are produced directly by the continuing concentration of GHGs
in the atmosphere and the consequent increases in temperature, precipitation, sea level and other environmental factors.
Physical changes in the environment may affect the value of properties directly; an increase in sea level, coupled with
more extreme precipitation and hurricanes, would affect the value of coastal properties, for example. But physical risks
may also influence the value of assets indirectly by reducing local economic growth, worsening health or lowering labor
productivity. The magnitude of physical risks that manifest is linked to transition scenarios, since GHG emissions and their
resulting impacts will be determined by policy-driven mitigation measures.

In our physical stress test, we examine the effect of heat stress, water stress, extreme precipitation, sea level rise, and
flooding on our properties. The climate policy that we assume in our stress test is a high-emissions policy. We assume that
the concentration of GHGs increases even more than expected under current policies and that therefore temperature and
other environmental risks worsen relative to business-as-usual expectations.

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(iii)  Next Steps

These initial stress tests were helpful in understanding relative sensitivities and providing a starting point for further
refining the analysis. To that end, we are working to enhance our transition risk and physical risk stress tests along a
number of dimensions in order to improve their decision usefulness. In our transition risk stress test, we are examining
how to increase its flexibility so that we can run a wider range of scenarios that incorporate more varied policy changes.
Similarly, in our physical risk stress tests, we are exploring how we might incorporate a wider range of policy changes,
such as full adherence to the Paris Agreement. We are also considering how to add more physical risks to our physical
stress test, such as wildfires, and how to better estimate the effects of physical risks on asset values. More broadly, we
are investigating whether the transition risk and physical risk stress tests should be unified or whether it would be more
beneficial to keep them separate.

Comprehensive Risk Management Approach

Business Structure and Strategy:

As a global financial institution with a diverse set of businesses and clients, our business structure and strategy help us
manage overall climate-related risks and increase our ability to participate in climate-related opportunities.

• A significant part of our client financings in our Investment Banking business are provided through our underwritten
offerings where we connect users of capital with investors versus holding financings on our balance sheet. For
underwritings, how we perform due diligence, make business selection decisions and provide relevant disclosures
are critical and form part of our comprehensive risk management approach.

• Our Asset Management and Consumer & Wealth Management businesses largely relate to client assets and are
integrating ESG considerations, including climate-related strategies for our clients, as well as taking into account factors
that could be material in valuing performance and risk, such as those relating to climate change.

• Our Global Markets business is highly diversified and managed in a way that reflects real-time information and shifts
in potential risks.

Given this current business mix and structure, and based on our initial stress tests, the direct balance sheet impacts
from climate change are relatively modest. However, our ability to effectively manage climate risks and opportunities is
important across our businesses in serving our clients and managing and protecting existing pools of assets while
creating opportunities for further growth.

Business Activities:
We believe that effective risk management is critical to our success. Accordingly, we have a well-established enterprise
risk management (ERM) framework, which is ultimately overseen by our Board. The ERM framework employs a
comprehensive, integrated approach to risk management, and it is designed to enable robust risk management processes
through which we identify, assess, monitor and manage the risks we assume in conducting our business activities.

As part of our risk management approach, we have firmwide policy guidelines and dedicated teams that support business
selection and review processes:

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• Firmwide policy guidelines for carbon-intensive sectors and activities, such as coal-fired power generation, palm
oil, and oil & gas are included in our Environmental Policy Framework (EPF). The EPF was updated in December
2019 to restrict certain carbon-related business activities and to strengthen our work with clients to help them with
their climate transition.

• Upfront business selection and due diligence processes that include 14 key sector and cross-sector guidelines, and
worst-case-loss calculations for physical commodities in certain carbon-intensive sectors, complement the EPF. These
guidelines and tools are leveraged across the various activities of the firm at the business selection stage and through
designated committee review processes. There are escalation mechanisms and protocols undertaken at each stage.
Where relevant, we also incorporate extreme weather and flooding event probability into worst-case-loss calculations
for certain transactions. See Environmental and Social Risk Management for more information.

• Risk Identification and Scenario Design, which is a periodic process that we undertake to review the materiality of
evolving risks in our business activities over a two-year forward-looking horizon, includes the assessment of impact from
climate change.

In addition, our ongoing risk monitoring from credit, liquidity, and market risk management teams, mark-to-market portfolio
valuations, dynamic hedging, and insurance requirements where relevant, enables overall position management and
exposure reduction where potential material risks are identified.

Operations:
For our physical assets, the Firmwide Resilience and Operational Risk Committee oversees business continuity planning
and crisis management efforts, including planning for climate-related risks. The committee oversees efforts related to:

• Regular resiliency reviews

• Comprehensive infrastructure and business continuity assessments
• Overall real estate site selection and management strategy
• Business Continuity Planning and remote access infrastructure

We also consider such risks through all stages of our corporate real estate strategy, from site selection and building design
to occupancy and facilities management. Within our operations, we utilize various metrics and dashboards to prioritize and
track risks that pose a threat to the health and safety of our employees or to the firm’s critical infrastructure assets that
support core business functions.

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Metrics and Targets

Business Opportunities: The firm has had a long-standing commitment to harnessing market solutions to address climate
change. One of the key ways we have been doing this is by mobilizing capital to scale clean energy, given energy is the
largest contributor of greenhouse gas emissions. Clean energy also brings benefits of energy diversification and security,
technology innovation, and green jobs, as well as health benefits. Since 2006, we have mobilized over $115 billion in clean
energy financing and investments.

Going forward, we have a more expansive goal to deploy $750 billion in sustainable finance over the next 10 years, with
a focus on climate transition and inclusive growth. Please refer to our Sustainability Report for more information about our
Sustainable Finance Goals.

Operations and GHG Emissions: To ensure we remain a leader in implementing sustainability practices and reducing
operational risk, our Services Division is committed to minimizing the impact of our operations on the environment and
adopting best practices. We have been carbon neutral across our global operations and business travel since 2015, and
are progressing on our 2020 operational goals. Additionally, alongside the sustainable finance target, we announced new
operational goals for 2025, with a focus on strategic, collaborative partnerships that drive market transformation.
See Our Operational Impact.

We currently measure, disclose and reduce Scope 1 and Scope 2 GHG emissions from our own activities, and also
disclose Scope 3 emissions related to business travel. See page 47 for our latest GHG emissions and energy use data
for 2019.

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The Path Forward

This report is the first step in our application of TCFD recommendations. Goldman Sachs is committed to continuing
our work with various stakeholders, including clients, shareholders, peer banks and other key constituents to improve
methodologies on climate-related risk analysis and disclosures and to furthering climate-related opportunities to
facilitate the transition to a sustainable low-carbon economy. Per the TCFD recommendations, which acknowledge that
implementation is a journey that will evolve over time, we will continue to refine our climate initiatives and disclosure in a
way that progresses our ability to more effectively manage risk-and-capture strategic growth opportunities while helping
to inform the broader market. We look forward to continuing our engagement on this important topic, and leveraging the
breadth of our businesses to navigate the transition to a low-carbon economy.

This document is not a product of Goldman Sachs Global Investment Research. This document should not be used as a basis for trading in the securities or
loans of the companies named herein or for any other investment decision. This document does not constitute an offer to sell the securities or loans of the
companies named herein or a solicitation of proxies or votes and should not be construed as consisting of investment advice. This material is not intended to
be used as a general guide to investing, or as a source of any specific investment recommendations. Goldman Sachs is not providing any financial, economic,
legal, accounting, or tax advice or recommendations. This material does not purport to contain a comprehensive overview of Goldman Sachs products and
offering and may differ from the views and opinions of other departments or divisions of Goldman Sachs and its affiliates.

This report contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements are not historical facts, but instead represent only the firm’s beliefs regarding future events, many of which, by their nature,
are inherently uncertain and outside of the firm’s control. It is possible that the firm’s actual results may differ, possibly materially, from the anticipated goals
and targets indicated in these forward-looking statements. For information about some of the risks and important factors that could affect the firm’s future
results, see Item 8.01 of the firm’s Report on Form 8-K dated April 15, 2020 and “Risk Factors” in Part I, Item 1A of the firm’s Annual Report on Form 10-K for
the year ended December 31, 2019.

Statements about the effects of the COVID-19 pandemic on the firm’s targets and results may constitute forward-looking statements and are subject to the
risk that the actual impact may differ, possibly materially, from what is currently expected.

© 2020 Goldman Sachs & Co. LLC. All rights reserved.

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