Leading global investment banking, securities and investment management firm Goldman Sachs announced a series of sustainability and sustainable finance announcements today, including stating that the bank will align its financing activities with a net zero by 2050 pathway.
In setting this new commitment, Goldman joins other major Wall Street banks who have also set goals to Paris Agreement aligned financing. Earlier this week, Citi’s Jane Fraser established a 2050 net zero greenhouse gas (GHG) financing target for the bank on her first day as CEO. Bank of America, Morgan Stanley, and JPMorgan have made similar commitments.
The new commitments were revealed in an update on the bank’s sustainable finance goals by Chairman and CEO David Solomon.
“We are committed to working with our clients, our industry peers, and the public sector to make this commitment a reality. And while long-term aspirations are important, business leaders must not lose sight of what we can do in the here and now to accelerate climate transition.”
Solomon highlighted several initiatives the bank is pursuing towards its own climate goals, encompassing disclosure, setting near-term targets, and the integration of climate risk considerations into business practices.
On the disclosure front, Goldman issued its first TCFD report last year, and the bank has begun asking our clients to disclose more of their climate data, and to encourage companies it invests in to adopt the SASB and TCFD frameworks. Solomon said that the bank is aspiring to integrate both frameworks into the investment process of its Goldman Sachs Asset Management business.
In terms of near- and mid-term goals, Goldman Sachs committed to set interim business-related climate targets by the end of 2021. The bank also set a new commitment to achieve net zero carbon emissions in its supply chain by 2030.
The company also said that in its upcoming TCFD report this year, it will lay out in detail how it is taking climate-risk considerations into account both in its business practices and its business selection.
In the update, Solomon also stated that Goldman has already reached over 20% of its 2030 target of $750 billion in sustainable financing, investing, and advisory activity after just one year. Solomon also highlighted other sustainable finance highlights for the bank, including its own recent $800 million sustainability bond issue.
“The fact that we surpassed a fifth of our goal in a single year demonstrates that sustainable finance has already become a core offering from Goldman Sachs – and the demand among our clients shows no signs of slowing down.”