First established in November 2005, the framework codifies the road map for continued environmental progress across each of the businesses of the firm.
Some highlights of the updated framework include the following:
- By 2025, Goldman Sachs will target $150 billion in clean energy financing and investments – expanding the existing $40 billion target set in 2012.
- By 2015, the firm will be the first U.S. investment bank to be carbon-neutral across its operations and business travel. By 2020, it will target $2 billion in green operational investments and seek to source 100% renewable power for its global electricity needs.
- Goldman Sachs will target the deployment of clean energy solutions to underserved markets to facilitate more equitable and affordable access through the launch of a clean energy access initiative.
- The Goldman Sachs Center for Environmental Markets will invest $10 million in grants through partnerships that will demonstrate the potential of innovative financial mechanisms to unlock capital for environmental solutions.
The framework also includes initiatives to facilitate capital for water, climate risk solutions and other environmental opportunities and to develop innovative applications for green bonds. In addition, Goldman Sachs Asset Management will expand its environmental, social and governance and impact investing capabilities.
Since 2006, Goldman Sachs says it has invested and financed $65 billion in clean energy around the world, structured over $14 billion in weather-related catastrophe bonds, invested $3.3 billion in green operational investments, and made over 50% of its global office portfolio green-building certified.
‘Over the past 10 years, we have built on our commitment to harness market-based solutions to help support a healthy environment and address the problem of climate change,’ says Lloyd Blankfein, chairman and CEO of Goldman Sachs. ‘We will continue to work towards deploying innovative financial mechanisms through an expanded investor base focused on environmental opportunities.’
Goldman Sachs says it has been at the forefront of innovative green finance, including the first rated solar securitization, the first U.S. yieldco listing, the first century green bond and the first green market securitization.
The firm's updated framework, as well as related content, is available here.