1、GOLDMAN SACHS 2023 SUSTAINABILITY REPORTDriving Long-Term Value:Our Client-Centric Sustainability StrategyContents3 Letter From Our Chairman and CEO5 Introduction6AboutGoldmanSachs7HistoricalSustainabilityMilestonesatGoldmanSachs9OurSustainableFinanceStrategy14OurSustainableFinanceFrameworkandSustai

2、nableFinanceCommitment16 Thematic Opportunities With Our Clients and Partners17LeveragingDataandMetricsforBetterDecision-Making24MobilizingTransitionFinanceThroughPublic-PrivatePartnerships31UnlockingEconomicOpportunities40ScalingTechnologySolutionstoSupporttheEnergyTransition46EnablingtheNewTranspo

3、rtationSectorValueChain53PreservingNaturalCapitalandProtectingBiodiversity58 Protecting the Value of Our Firm59Governance62RiskManagement64RegulatoryPreparedness65 Metrics and Targets66ProgressTowardOurFirmwide$750BillionSustainableFinanceCommitment68ProgressTowardOur2030SectoralTargets69ProgressTow

4、ardOurOperationalandSupplyChainCommitments74SASBIndex79ThematicIndexforOurExistingSustainabilityDisclosures80 Appendix 81Environmental&SocialDueDiligenceGuidelines85 Sustainability Issuance Report87Introduction89SustainabilityIssuanceFramework92SustainabilityIssuances97FeaturedInvestments100Reportof

5、IndependentAccountants102 Disclaimer1TheappendixwasaddedtothisreportonJune28,2024,andnootherchangesorupdatesweremadetothecontentofthereport.2 GOLDMAN SACHS 2023 SUSTAINABILITY REPORTDavid SolomonChairmanandChiefExecutiveOfficerLetter From Our Chairman and CEOWehavelongbeencommittedtoaddressingcritic

6、alenvironmentalissues,beginningin2005withourinauguralEnvironmentalPolicyFrameworkwherewewereoneofthefirstfinancialinstitutionstorecognizethescaleandurgencyofthechallengesposedbyclimatechange.Wehavealwaysacknowledgedthatnavigatingclimatetransitionwouldbecomplexandthatasafinancialinstitution,ourcentra

7、lfocusshouldremainonhowwecandeliversustainabilitysolutionsforourclientsandgrowcommercialcapabilitiestosupportthem.Thechallengesfacingclimatetransitionaremultifaceted:Oureconomyisheavilydependentuponawell-functioningenergysystem.Todaymorethan80%ofourglobalenergyneedscomefromfossilfuels.1Thatcoupledwi

8、ththebackdropofrisingenergydemandandgeopoliticalconflictsinUkraineandtheMiddleEasthasunderscoredtheneedforaffordableandreliableenergy.Inaddition,higherlevelsofinflationhavebeenheadwindstodecarbonizationasinputcostshaveincreasedandsupplychainsaremorecomplicatedtonavigate.Andtheimpactofemergingtechnol

9、ogyremainstobeseen,withsomesourcesindicatingthatelectricityconsumptionfromdatacenters,generativeAI,andcryptocurrenciescoulddoubleby2026comparedwith2022levels.2Scrutinyofsustainabilitycommitments,divergenceinclientpreferences,andregulatoryapproachestoclimatechangeacrossjurisdictionshavealsoevolved.Ou

10、rclientsincludepensionplansandretirementfunds,largeandsmallbusinesses,investors,andgovernmentsacrossvarioussectorsandgeographiesandwithadiversityofinvestmentstrategiesandbusinessmodels.Regulatoryregimesarealsoevolvingacrossjurisdictionswithdifferentscopesandtimelines.In2025,wewillbeoneofthefirstUSba

11、nkstofileaglobalfirmwidesustainabilityreportundertheEuropeanUnionsCorporateSustainabilityReportingDirective.Thisnewrequirementisexpansiveinscope,coveringnotonlyourfinancialexposurebutalsoourenvironmentalandsocialimpact,andweareinvestinginourdatamanagement,measurement,andreportingcapabilitiestoprepar

12、eforthisshiftintheregulatorylandscape.Despitealloftheseexternalforcesandevolutions,centraltoourfocusontheeffectsfromclimatechangeaswellasdecarbonizationhasalwaysbeenourcommercialcapabilitiesandtheinsightsthatwecanprovidetoourclientstohelptheminvestinopportunitiesandmanagerisk.Ialsowanttobeclearabout

13、ourroleinsupportingourclientsinthisarea:First,wewillcontinuetofinanceandadviseourclientsintheenergysector,andwewillalsoinvestininnovativedecarbonizationtechnologiesthatcanacceleratethetransition.Weneedtodoboth.Itsnotanor,itsanand.Second,werecognizethatthereisagapbetweenglobalclimateambitionandtherea

14、lityofwhereourenergysystemistoday,andthisgapwillnotbeclosedjustbyprivatesectorvoluntarycommitments.Governmenthasalwaysandwillcontinuetoplayacriticalroleinsettingpolicy,providingincentives,easingimplementationchallenges,andbalancingenergysecurityandeconomicgrowthobjectiveswithlong-termclimateambition

15、.Thereisnoquestionthatpolicyhasabigimpactonourclientsdecarbonizationgoalsandourabilitytosupportthem.Lastly,themostmeaningfulrolewecanplayinclimatetransitionisdevelopingthesolutionsourclientsneedtodeliverontheirdecarbonizationgoalsfortheirbusinesses.Overtime,wehavedevelopedindependentaspirationalgoal

16、sandcommitmentstomeasureourprogress,evolveourpractices,andprovidetransparencytoourclients1EnergyInstitute:72nd Edition of the Energy Institute(EI)Review of World Energy,2023.2InternationalEnergyAgency:Electricity 2024:Analysis and forecast to 2026,January2024.3 GOLDMAN SACHS 2023 SUSTAINABILITY REPO

17、RTandkeystakeholders.Thisincludesalong-termnetzerofinancingcommitmentandthreerelatedinterimgoalswhereweseeopportunitiestosupportourclientsdecarbonizationstrategiesintheEnergy,Power,andAutoManufacturingsectors.Inaddition,weseta$750billionsustainablefinancetargetby2030,andweareapproximately75%oftheway

18、thereafterjustfouryears.Wearecommittedtocontinuingtoinvestinourcapabilitiessowecanexpandtherangeofsustainablefinancesolutionswecanprovide,andlaterthisyear,weplantoprovideanupdateonournetzerosectoraltargets.Beyondourbusiness,wecontinuetobuildpartnershipsgloballytoaddressmarketgaps.In2023,wecompleteda

19、llocating$25millioninphilanthropiccapitaltotheClimateInnovationandDevelopmentFund,ablended-financefacilitywecreatedwithBloombergPhilanthropiesandtheAsianDevelopmentBank.Launchedin2021,thefundhascatalyzedapproximately$500millioninprivateandpubliccapitaltosupportsevenclimatesolutionprojectsinSouthandS

20、outheastAsia.IntheUS,ourpartnershipscontinuetopromotesustainableeconomicgrowththroughentrepreneurship.In2023,weexpandedourworksupportingsmallbusinesseswiththelaunchof10,000 Small Businesses Investment in Rural Communities,our$100millioncommitmenttobringourflagshipbusinesseducationprogramto20ruralsta

21、tesoverthenextfiveyears.WealsohaveextendedourOne Million Black Women:Black in Businessprogram,aneducationinitiativetohelpBlackwomensolopreneursgrowtheirbusinesses.Morethan600Blackwomenfrom40stateshaveparticipatedsofar.Theresplentyofworkahead,andwerereadyforthechallenge.Bysupportingourclientsandworki

22、ngwithourpartners,wewillcontinuetoexecuteoursustainabilitystrategyandcreatelong-termvalueforourshareholders.David Solomon ChairmanandChiefExecutiveOfficer“We will continue to finance and advise our clients in the energy sector,and we will also invest in innovative decarbonization technologies that c

23、an accelerate the transition.We need to do both.”4 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT01|Letter From Our Chairman and CEOAtGoldmanSachs,weaspiretobetheworldsmostexceptionalfinancialinstitution,unitedbyoursharedvaluesofpartnership,clientservice,integrity,andexcellence.Thesecoresharedvalueshavegu

24、idedusovertheyearsandhavehelpedusdevelopourclient-centricsustainabilitystrategy,focusedonhelpingourclientsachievetheirobjectives.Inthissection,weprovideanoverviewofGoldmanSachs,oursustainablefinancestrategyandoursustainability-dedicatedclient-facingteamsandcapabilitieswebringtoclients,andprogresstow

25、ardour$750billionsustainablefinancetarget.SECTION 02IntroductionIn This Section6AboutGoldmanSachs7HistoricalSustainabilityMilestonesatGoldmanSachs9OurSustainableFinanceStrategy14OurSustainableFinanceFrameworkandSustainableFinanceCommitmentGOLDMAN SACHS 2023 SUSTAINABILITY REPORT5 1GoldmanSachs:2023

26、Goldman Sachs 10-K.We aspire to be the worlds most exceptional financial institution,united by our shared values of partnership,client service,integrity,and excellence.About Goldman SachsGoldmanSachsisaleadingglobalfinancialinstitutionthatdeliversabroadrangeoffinancialservicestoalargeanddiversifiedc

27、lientbasethatincludescorporations,financialinstitutions,governments,andindividuals.Weoperatetwoprimarybusinesses:GlobalBanking&MarketsandAsset&WealthManagement.GlobalBanking&Markets(GBM)providesfinancing,advisoryservices,riskdistribution,andhedgingforourinstitutionalandcorporateclients.GBMincludesou

28、rInvestmentBanking,FixedIncome,CurrencyandCommodities(FICC),andEquitiesactivities.Asset&WealthManagement(AWM)providesinvestmentservicestohelpclientspreserveandgrowfinancialassetsandachievetheirfinancialgoals.Wemanageassetsacrossabroadrangeofinvestmentstrategiesandassetclasses,includingequity,fixedin

29、come,andprivatemarkets.GoldmanSachsAlternativesactivities,whicharetypicallylonger-term,includeinvestmentsinprivateequity,privatecredit,realestate,andinfrastructureassets.WithinPrivateWealthManagement(PWM),weprovidetailoredwealthadvisoryservicestoclients.2023 Financial Performance1(NetRevenue,USDmill

30、ions)Global Banking&MarketsAsset&Wealth ManagementPlatform Solutions$30BGBMTotal$46B$14BAWM6 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT02|Introduction2020CreatedAWMsSustainableInvestingGroupandGBMsCommoditiesSustainableSolutions2021LaunchedOne Million Black Women inpartnershipwithBlackwomenledorganiza

31、tionstoinvest$10billionininvestmentcapitaland$100millioninphilanthropiccapitaltoimpactthelivesofatleastonemillionBlackwomenandgirlsby2030Committedtoaligningourfinancingactivitieswithanetzeroby2050pathwayandexpandedouroperationalcommitmenttotargetnetzeroforoursupplychainIssued$800millioninauguralGold

32、manSachsbenchmarkSustainabilityBondAnnouncedGoldmanSachsBloombergClimateFinancePartnership,includingtheClimateInnovationandDevelopmentFundalongsidetheAsianDevelopmentBankLaunchedCarbonPortfolioAnalyticsforclientsinMarqueeBecamefoundingUSbankmemberofopensourcedatanon-profitOS-ClimateLaunchedESGBeacon

33、tosource,model,anddeliversustainabilitydatatoourbusinesses2022CreatedGBMsSustainableBankingGroupAcquiredNNInvestmentPartnerstobenefitfromcombiningitssustainability-relatedexpertiseandcapabilitieswithours2023Unlocked$500millionofblendedprivateandpublicsectorfinancethroughtheClimateInnovationandDevelo

34、pmentFundRaised$2.6billionforclimatetransitionrelatedHorizonstrategiesExpandedMarqueesportfolioofferingtoallowclientstoassesstheirportfoliosclimatetransitionLaunched10,000 Small Businesses Investment in Rural Communitiestoexpandbusinesseducationandcapitalaccessprogramsto20ruralUSstatesoverthenextfiv

35、eyearsGoldmanSachsAssetManagement(GSAM)namedTop3SustainableAlternativesManagerbyPEIMedia2012Inauguralcleanenergyfinancingandinvestmenttargetset2015ReachedcarbonneutralityacrossoperationsandbusinesstravelAcquiredImprintCapitalAdvisors2019EstablishedtheSustainableFinanceGroupAnnounced$750billionSustai

36、nableFinanceCommitmentby2030LaunchedCarbonomics,ourflagshipresearchseriesontheeconomicsofdecarbonization2009Launched10,000 Small Businesses,servingover17,000entrepreneurstodate,representingmorethan330,000employeesand$33billionintotalrevenue2001LaunchedUrbanInvestmentGroup,committing$19billiontodate2

37、004AnnouncedpartnershipwithWildlifeConservationSocietytoformKarukinkaNaturalParktopreserveinperpetuitymorethan735,000acresoflandinTierradelFuegoatthesoutherntipofSouthAmerica2005OneofthefirstUSbankstodevelopanEnvironmentalPolicyFramework2007LaunchedGSSUSTAIN,whichprovidesresearchanddatatoolstoclient

38、sexploringhowinnovation,regulation,andimplementationofenvironmental,social,andgovernance-relatedtopicswillimpactsustainableinvestingandbroadercapitalflows2008Launched10,000 Women,reachingover200,000womenacross150countriessinceinception201410,000 Women andInternationalFinanceCorporationlaunchedtheWom

39、enEntrepreneursOpportunityFacility,reachingmorethan200,000womenentrepreneursandunlocking$7.5billioninloanstowomen-ownedbusinessessinceinceptionHistorical Sustainability Milestones at GoldmanSachsBuildingondecadesofexperiencefromourcommercialapproachtosustainability,weanticipatetherapidlychangingneed

40、sofourclientstodevelopanddelivernewsustainablefinanceservicesandsolutionsthathelpthemdeliverontheirmostimportantsustainabilitypriorities.Our Long-Standing Commitment to SustainabilityWehavebeenhelpingourclientsandpartnersachievetheirsustainabilityobjectivesformorethantwodecades,beginningwiththelaunc

41、hofourUrbanInvestmentGroupin2001andourpartnershipwiththeWildlifeConservationSocietytoformKarukinkaNaturalParkin2004.In2005,webecameoneofthefirstUSbankstodevelopanEnvironmentalPolicyFramework.Overtime,wehavegrownoursustainability-relatedexpertisewithinourbusinesssegmentsandscaledoursuiteofsustainable

42、financecapabilitiesandsolutionstomeetthegrowingdemandfromourclients.AlltodatefiguresareasofDecember31,2023,unlessotherwisespecified.7 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT02|IntroductionRecent Sustainability MilestonesWehaveachievedmeaningfulmilestonesacrossanumberofkeyinitiatives:11AsofDecember3

43、1,2023,unlessotherwisespecified.2Representsgrossissuancesize.3AUMbasedonprivateimpactcapitalraisedoverpastfiveyearsthroughMarch2023byGoldmanSachsAlternatives,theUrbanInvestingGroup,andExternalInvestingGroup(XIG).ImpactcapitalisdefinedbyGIINsdefinitionofimpact,namely:Impactinvestmentsareinvestmentsma

44、dewiththeintentiontogeneratepositive,measurablesocialandenvironmentalimpactalongsideafinancialreturninprivatemarkets.PEIMediaranksGoldmanSachsastheworldsthird-largestmanagerofprivatemarketsimpactcapitalinthelatestNewPrivateMarketsimpact50.Paywalled,source:NewPrivateMarkets:Impact 50:The scale-up of

45、impact continues,June2023.4Includesallcapitalclosedasof12/31/2023.5TotalnotionalvalueofissuancesonwhichGoldmanSachshadarole.Climate-relateddebtincludesGreen,SustainabilityandTransitionbondsaswellasSustainability-linkedbondsperBloombergfrom01/01/23to01/01/24.Firmwide Sustainable Finance Milestone$555

46、Bsustainablefinanceactivitysince2019$2.5BofGoldmanSachssustainabilityissuances2since2021$9.4Bprivatemarketsimpactcapital,rankingGoldmanSachsastheworldsthird-largestprivatemarketsimpactmanager3Climate Transition$2.6BraisedforclimatetransitionrelatedHorizonstrategies4$77Bnotionalvalueofprimarymarketcl

47、imate-relateddebtissuance5inwhichGoldmanSachsparticipated$500MprivateandpublicsectorcapitalunlockedbyClimateInnovationandDevelopmentFund,includingforsomefirst-of-their-kindprojectsandsolutionsinareasofVietnamandIndiaInclusive Growth +$19BdeployedsincelaunchoftheUrbanInvestmentGroupinrealestateprojec

48、ts,socialenterprises,andlendingfacilitiesforsmallbusinesses +$2.3Binvestmentcapitaland$33millioninphilanthropiccapitalcommittedsincelaunchofOne Million Black Women,buildingthefoundationtoimpactthelivesofover200,000Blackwomenandgirls +$750Mcommittedto10,000 Small Businesseswitharecent$100millionexpan

49、sionof10,000 Small Businesses Investment in Rural Communities,expandingbusinesseducationandcapitalaccessprogramsto20ruralUSstatesoverthenextfiveyears +$3Bphilanthropicgivingworldwide,benefitingover10,800non-profitsin140countriesGOLDMAN SACHS 2023 SUSTAINABILITY REPORT02|Introduction|HistoricalSustai

50、nabilityMilestonesatGoldmanSachs8 GOLDMAN SACHS 2023 SUSTAINABILITY REPORTOur Sustainable Finance StrategyAsaleadingglobalfinancialinstitutionwithsustainabilityexpertiseacrossourorganization,wearesupporting$750billioninsustainableinvesting,financing,andadvisoryactivitiesby2030,leveragingourcommercia

51、lcapabilitiesandsolutionstohelpourclientsachievetheirsustainabilitygoals.Introduction to Our Sustainable Finance StrategyAsaninvestmentbank,assetmanager,corporateissuer,andriskmanager,GoldmanSachsisuniquelypositionedtohelpourclientsachievetheirsustainabilityobjectives fromcompanies,institutionalinve

52、stors,andgovernmentstoindividuals eachwiththeirowndistinctsetofsustainabilitypriorities.Thethreeleversofourclient-focusedsustainablefinancestrategyhelpusdrivelong-termvalueforourshareholders.Working With ClientsOursustainabilitystrategyiscenteredonhowwehelpourclientsachievetheirsustainabilityobjecti

53、ves.WehavedevelopedandcontinuetorefineourfirmwideOne Goldman Sachscommercialmodelthatleveragesthefulldepthandbreadthofourfranchise,withthegoalofbringingthebestofGoldmanSachsandoursustainablefinancecapabilitiestoourclients.Managing Our FirmWeprovideourpeoplewiththetools,resources,andsupporttheyneedto

54、enhancethevalueofourfirmbyservingourclients.Wealsoleveragethesecapabilitiestoprotectvaluethroughmanagingourownglobalfootprint.Bytendingtoouroperationsandsupplychain,westrivetoleadthroughactiontoadvancesustainablebusinessoutcomesoverthelongterm.Wealsoaimtoactivelymanageclimateandotherenvironmentaland

55、social-relatedrisks,whilepreparingforupcomingsustainability-relatedregulation.Addressing Market GapsWhenweandourclientsidentifygapsinthemarketplace,weseektoaddressthembyleveragingourexistingcapabilitiesandthoseofourstrategicpartners.Ourexternalpartnershipsandstrategicphilanthropysupportourworktodeve

56、lopinnovativesolutionstohelpourclients.Thelessonswelearnfurtherinformthedevelopmentandexecutionofoursustainablefinancecapabilitiesandthesolutionswebringtoourclientsandtomarkets.Asanexample,weseepolicyshiftsthatarebeginningtoincentivizeinvestmentincriticalmineralsandbatteryproductionatscale,andwehave

57、identifiedopportunitiesinthemarketplacetobringtogetherthepublicandprivatesectorstosupportinitiativesincludingblendedfinance;weworkcloselywithourclientsandstrategicpartnerstohelpaddressthesegaps.1Working With Clients3Addressing Market Gaps2Managing Our Firm9 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT02

58、|IntroductionWorking With ClientsWecontinuetointegratesustainability-relatedexpertiseintoourprimarybusinessesandacrossthefirm.Ourgrowingsuiteofsustainablefinanceservicesandsolutions,deliveredthroughourOne Goldman Sachscommercialmodel,allowsustobringclientsthebestofGoldmanSachstohelpthemachievetheirs

59、ustainabilitygoals.1Greenhousegases(GHG)aredefinedasgasesthattrapheatintheatmosphere,andincludecarbondioxide(CO2),methane(CH4),nitrousoxide(N2O),andfluorinatedgases.Eachgas,whencombusted,hasadifferentwarmingimpactontheatmosphere,otherwiseknownasGlobalWarmingPotential(GWP).Inourmetrics,weuseCO2equiva

60、lents(CO2e)tocapturethecontributionsofallGHGsinourphysicalemissionsintensities.Global Banking&MarketsSustainability Advisory:Advisory,M&A,IPO,Activism,andDecarbonizationstrategiesTransition Capital and Financing With Sustainable-Themed Products:Early-stagegrowthequity,financingforlegacyassetconversi

61、on,projectfinancingforgreenCapExinitiatives,taxequity,sustainableurbandevelopment,andsustainable-themedproductssuchasstructurednotes,custombaskets,andportfoliotransitiontradesESG Financing and Investor Connectivity:Traditionalandinnovativedebtandequityfinancingproducts,ESGinvestorconnectivitySponsor

62、/Client Coverage and Analytics:CoverageresourcesforESGcontentandsupportforESG-orientedinvestorsandemergingenergytransitioncompanies,andbespokeinvestoranalytics,includingcarbon,climatetransition,andESGportfolioanalyticsEnvironmental and Raw Material Markets:Renewableenergyandrenewableenergycertificat

63、essupply,procurement,andriskmanagement,principalfinancingacrossenvironmentalproductandcarbonmarkets,tradingandriskmanagementinrawmaterialmarketsrelevanttoclimatetransition,e.g.,batterymetalsGlobal Investment ResearchGS SUSTAIN:Researchanddatatoolstohelpclientsexplorehowinnovation,regulation,andimple

64、mentationofsustainabilitytopicswillimpactsustainableinvestingandbroadercapitalflowsCarbonomics:Flagshipseriesdedicatedtoexaminingtheeconomicsofdecarbonizationandsustainablegrowth,providingin-depthanalysisofcosts,incentives,andfinancingoptionsforkeytechnologiesunderpinningthepathstonetzerocarbonAsset

65、&Wealth ManagementSustainability Advisory:Clientadvisoryindevelopingorganizationalapproachandportfolio,assetclass,andthematicinvestingstrategiesResearch,Data,and Analytics:Analysesandtoolstohelpclientsanalyzetheirportfolios,andclimateintelligencetosupportinvestmentdecision-makingClient Products and

66、Solutions:Agrowingrangeofproductsandcustomcapabilitiesforclientsthatinclude:Incorporationofclimateandinclusivegrowthconsiderationsacrosscertainfunds,aswellasproductsdedicatedtothosethemes Developmentofdedicatedinternallymanaged,comingled,andcustomoptionsspanningbothpublicandprivatemarkets Extensiver

67、angeofexternal/openarchitecturepublicandprivateinvestmentoptionsthroughImprintOngoing Engagement:Dedicatedtransition-focusedresourcesforportfoliocompanies(e.g.,ValueAccelerator),publiccompanyengagementonpolicyanddisclosure,timetableofexpectationsforemissionsdisclosureandtargetsforrelevantverticals,a

68、ndportfoliocompaniesGHG1measurementsupportprogramOne Goldman Sachs“Ourfirmservesawiderangeofclients,eachwithitsowndistinctsetofpreferencesandobjectives.OurOne Goldman Sachsoperatingethoshelpsusdeliverthebestofourfirmssustainablefinanceexpertise,insights,andcapabilitiestoourclientstohelpthemadvanceth

69、eirstrategicpriorities.”John Waldron PresidentandCOO10 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT02|Introduction|OurSustainableFinanceStrategyOurprimarybusinessesdeliverourfirmssustainablefinancestrategytoclients.Belowaresustainability-dedicatedclient-facinggroupsthatareleadingthedeliveryofoursustaina

70、blefinancecapabilitiestoclientsfromallsectorsoftherealeconomyacrossbothpublicandprivatemarkets.Global Banking&MarketsOurGlobalBanking&Marketsfranchiseprovidessustainability-relatedfinancing,advisoryservices,andriskmanagement.WithinGBM,thereareseveralkeygroupsthatcontributetooursustainablefinanceinit

71、iatives.The Sustainable Banking Group(SBG)specializesindeliveringbespokeanalytics,advice,commercialization,andcapitalsolutionsforclientsfocusedonenergytransition,onadvancingtheirdecarbonizationgoalsandsustainabilityprofiles,thecirculareconomy,andonnature.Thesecapabilitiesincludetraditionaldebtandequ

72、ityfinance,blendedfinance,structuredfinance,andM&Aadvisory.The Commodities Sustainable Solutionsteamhelpsdriveourclimateobjectivesacrosscommoditiesmarketsbyprovidingprincipalfinancingandtradingsolutionsinareassuchascleanpowerandcarbonmarketsastheyworkwithourclientstohelpthemachievetheirnetzeroclimat

73、etransitionobjectives.Asset&Wealth ManagementOurAsset&WealthManagementbusinessprovidesclientsbreadthviasustainability-relatedcapabilities,acrosspublicandprivatemarkets,proprietaryandthird-partyproducts,portfoliostrategyandimplementation,anddepth,includingspecialistsustainabilityteamsandstrategies.AM

74、 Sustainable Client SolutionsisadedicatedsalesanddistributionteamwithinAWMthatmobilizesthefullrangeofinsights,advisoryservices,andinvestmentsolutionsforourclients.Public Markets Investinghascertaininvestmentteamsandcapabilitiesaswellassupportrolesthatmayfocusonclimatetransitionandinclusivegrowth,fro

75、mresearchanddatatoinvestmentteamsandstewardship.WithinPublicMarkets,theSustainableInvestingandInnovationPlatformactsasacentralresourceforSustainableInvesting(SI)andprovidesenhancedSI-tooling,data,andresearchcapabilities.Goldman Sachs Alternatives1alsohasteamsspecializinginsustainableinvesting.Sustai

76、nabilityintegrationisledbytheSustainability&Impactteam,whichspecializesinoperationalizingandscalingsustainabilitycapabilitiesacrosstheinvestingsleeves.TheSustainableInvestingGroupspecializesininvestingacrosstheclimatetransitionandinclusivegrowththematics,partneringwithclientsthroughaseriesofGoldmanS

77、achsHorizonstrategies.Working With Clients(continued)Enhancing Our Sustainability-Related Commercial Solutions for ClientsWecontinuetoleveragecomplementarystrengthsofourexistinginvestingteamstolaunchnewsustainability-relatedstrategiesinlinewithmanyofourclientspreferences.Forexample,inMarch2023,welau

78、nchedaGlobalImpactCorporateBondstrategyandaUSDGreenBondstrategymanagedbyadedicatedGreen,Social,andImpactbondsteamthatjoinedthefirmthroughouracquisitionofNNIPin2022.Furtherexpandingonourcombinedstrengths,werecentlylaunchedaGlobalGreenBondstrategythatleveragesouracquiredexpertiseingreenbondinvestingwi

79、thinapassiveinvestmentapproach.1PreviouslyknownasPrivate Markets Investinginpriorreporting.11 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT02|Introduction|OurSustainableFinanceStrategyAsset&Wealth Management(continued)OurExternal Investing Group(XIG)isresponsibleforidentifying,researching,andselectinglea

80、dingthird-partyinvestmentmanagers.ImprintisadedicatedteamwithinXIGfocusedonthematicresearch,managerselection,andco-investmentsacrosssustainablegrowththemes.WithinourPrivate Wealth Management(PWM)business,theSustainableSolutionsGroup(SSG)advisesclientsondevelopingtheirsustainableinvestingstrategyandw

81、orkscloselywithfirmwideresourcestodriveinnovationandproductofferingstohelpmeetourclientssustainableandimpactinvestinggoals.Global Investment ResearchOurGlobalInvestmentResearch(GIR)teamisinstrumentalininformingandeducatingourclientsandinvestorsaboutsustainability.WithinGIR,twokeyresearchinitiatives,

82、GSSUSTAINandCarbonomics,provideinvaluableinsightstoinformsustainableinvestmentdecisions.GS SUSTAIN,establishedin2007,providesresearchanddatatoolstoclientsexploringhowinnovation,regulation,andimplementationofsustainabilitytopicswillimpactsustainableinvestingandbroadercapitalflows.Carbonomics,launched

83、in2019,isGIRsflagshipseriesdedicatedtoexaminingtheeconomicsofdecarbonizationandsustainablegrowth,providingin-depthanalysisofcosts,incentives,andfinancingoptionsforkeytechnologiesunderpinningthepathstonetzerocarbonemissions.Working With Clients(continued)12 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT02|

84、Introduction|OurSustainableFinanceStrategyManaging Our Firm and Addressing Market GapsIn2019,theExecutiveOffice(EO)launchedtheSustainableFinanceGroup(SFG)toformalizeanddrivethefirmssustainabilitystrategyandrelatedeffortsacrossGoldmanSachs.InpartnershipwithotherEOteamsincludingOfficeofGovernment&Regu

85、latoryAffairs,InvestorRelations,CorporateCommunications,andothers,SFG advancesthefirmsintegratedcommercialapproachtosustainabilitythroughcentralcoordinationofourfirmsregulatorypreparedness,targetsandcommitments,reporting,strategicpartnerships,environmentalandsocialriskpolicies,andourcross-segmentcom

86、mercialdeliverystrategy.OtherinternalfunctionalgroupssupportingthefirmssustainabilitystrategyincludeControllers,Risk,SustainableOperationsandESGBeacon,amongothers.PleaseseetheProtecting the Value of Our Firmsectionformoreinformationonthesegroups.Sustainability ReportingLeadsstrategyandexecutionoffla

87、gshipfirmwidevoluntarysustainabilityreporting,andadvisesonsustainabilityandclimate-focusedreportsdevelopedbythefirmsbusinessesandregionalgroups.Regulatory PreparednessProvidessustainability-relatedexpertisetohelpinformthefirmsapproachtoregulatorysustainabilityreportingimplementation.Cross-Segment St

88、rategyCoordinatesstrategicfirmwidecommercialopportunities,subjecttoexistingfirmpolicies,proceduresandcontrols.Strategic PartnershipsIdentifiesanddeliversexternalpartnershipsthatenableGoldmanSachstosupportourworktodevelopinnovativesolutionstohelpourclients.Thelessonswelearnfurtherinformthedevelopment

89、andexecutionofoursustainablefinancecapabilitiesandthesolutionswebringtoourclientsandtomarkets.Environmental and Social RiskOverseesthefirmwideEPFandglobaltransactionguidancetoprotectthefirmsreputationbynavigatingsustainabilityrisksthatmaybeassociatedwithcommercialopportunities.Targets and Commitment

90、sManagessustainablefinanceandotherbusiness-relatedsustainabilitytargetsandrelatedintegrationstrategy,includingthefirmwide$750billionsustainablefinancecommitmentand2030sectoralportfoliosphysicalemissionsintensitytargets.Our Integrated,Firmwide Sustainability Strategy13 GOLDMAN SACHS 2023 SUSTAINABILI

91、TY REPORT02|Introduction|OurSustainableFinanceStrategyOur Sustainable Finance FrameworkClimate TransitionClean EnergyEnablerenewableenergygeneration,energyefficiency,andgridservices.Sustainable TransportShiftmodesoftransitthroughelectricvehicles,connectedservices,autonomousdriving,andpublictransport

92、ationdevelopment.Sustainable Food and AgricultureEnablegreenagriculturalproduction,storage,processing,anddistributiontofeedtheworld.Waste and MaterialsPromotesustainableproductionandconsumption,alongwithresponsiblewastemanagement.Ecosystem ServicesContributetothesustainablemanagementofnaturalresourc

93、esandmonetizethevalueofforests,water,andbiodiversity.Inclusive GrowthAccessible and Innovative HealthcareEnabletheuseofdigitaltechnology,advanceddevices,anddiagnosticsforbetteroutcomes.Financial InclusionAdvancefinancialinclusionforall,includingunderservedpopulations,bypromotingaccesstocapital,finan

94、cialtechnology,andproductsthatincreaseaccess,supportfinancialhealth,anddrivemoreequitableeconomicgrowth.Accessible and Affordable EducationEnablegreateraccesstoeducation,improvelearningoutcomes,andhelpcloseopportunitygapsforlearnersofallages.CommunitiesEnableinfrastructuredevelopment,affordablehousi

95、ng,andlivelihoodadvancement.Our Sustainable Finance Framework and Sustainable Finance CommitmentIn2019,welaunchedourSustainableFinanceFrameworkandannouncedourfirmwide10-year,$750billionsustainablefinancecommitmenttosupportclientdemandforsustainablefinancesolutionsacrossourfinancing,investing,andadvi

96、soryworkwithclients.Our Sustainable Finance FrameworkDesignedtosupportoursustainablefinancestrategy,ourSustainableFinanceFrameworkisorganizedaroundtwosustainabilitythemesweexpecttofacilitatethegreatestimpactthroughourcommercialworkwithclientsandstrategicpartnersClimateTransitionandInclusiveGrowth.Th

97、efivesub-themeswithinClimateTransitionandfoursub-themeswithinInclusiveGrowthhelpusprioritizehowwecontinuetodevelopandrefineoursustainablefinancecapabilitiestomeetbothcurrentandfutureclientdemand.14 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT02|IntroductionFacilitating Our Clients Priorities Through Our

98、$750B Sustainable Finance CommitmentSincesettingour10-yeargoal,weveachievedapproximately$555billionincommercialactivity,including$302billioninClimateTransition,$74billioninInclusiveGrowth,andtheremainderinmultiplethemes.1Thisprogressdemonstratesourabilitytocaptureclientdemandbydirectingcapitaltoward

99、solutionsthathelpourclientsachievetheirsustainabilityobjectives.Formoreinformationoncontributionbybusinesssegmentandsub-theme,pleaseseetheMetrics and Targetssection.Inthenextsectionofthisreport,wesharehowwearehelpingourclientscaptureopportunitiesandaddressmarketgapstohelpthemachievetheirsustainabili

100、tygoals.2Notable TransactionsRedwood MaterialsTheme:Climate Transition Business Segment:AWMGoldmanSachsAlternativesco-ledthe$1billionSeriesDfundingroundtosupportRedwoodMaterials,aleadinglithium-ionbatterymaterialsmanufacturer,initsefforttodevelopandlocalizetheUSbatterysupplychainforelectricvehiclesa

101、ndenergystorage.Amara NZeroTheme:Climate Transition Business Segment:GBMGoldmanSachsactedasJointGlobalCoordinatorandJointPhysicalBookrunneronAmaraNZeros270millionGreenSeniorSecuredNotes.Amaraisagloballeadingdistributorofproductsandservicesusedintheenergytransition,directlycontributingtoworldwidedeca

102、rbonizationefforts.Thiswasoneofthefirsthigh-yieldgreenbondswithproceedsusedforacquisitionfinancing,alignedwiththeICMAGreenBondPrinciples.AmarapublishedaGreenBondFrameworkwithaSecondPartyOpinion.Grow TherapyTheme:Inclusive Growth Business Segment:AWMGoldmanSachsAlternativesinvestedinGrowTherapy,alead

103、ingbehavioralhealthproviderenablementplatformstrivingtocreateamoreaccessiblehealthcareindustrybyallowingmentalhealthprofessionalstofindpatients,conductvirtualorin-personvisits,andbillandcollectpayments.The Ohio State UniversityTheme:Inclusive Growth Business Segment:GBMGoldmanSachsHigherEducationtea

104、mservedasleadDealerManagerforTheOhioStateUniversityonaninnovativeliabilitymanagementtransactiontargeting$600millionofoutstandingdebt.Thetransactionwaspartofalargerbondfinancingthatraised$300millionofproceedsforanewin-patienthospitalfacilityatTheOhioStateUniversityWexnerMedicalCenter.Remainder in Mul

105、tiple ThemesClimate Transition$302B$555BAchievement to dateInclusive Growth$74B$750BProgress Toward 2030 Target1IncludesactivityrelatingtobothClimateTransitionandInclusiveGrowth.2CasestudyexamplesintheThematic Opportunities With Our Clients and Partnerssectionareforillustrativepurposesonlyandinlimit

106、edinstancesdonotfallwithinscopeofGoldmanSachs$750billionSustainableFinanceCommitment.15 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT02|Introduction|OurSustainableFinanceFrameworkandSustainableFinanceCommitmentSECTION 03In This Section17LeveragingDataandMetricsforBetterDecision-Making24MobilizingTransiti

107、onFinanceThroughPublic-PrivatePartnerships31UnlockingEconomicOpportunities40ScalingTechnologySolutionstoSupporttheEnergyTransition46EnablingtheNewTransportationSectorValueChain53PreservingNaturalCapitalandProtectingBiodiversityThematic Opportunities With Our Clients and PartnersOurclientscontinuetos

108、eekmarketsexpertise,accesstocapital,andinnovativesustainablefinancesolutionstosupporttheirdecarbonizationandsustainablegrowthstrategies.Throughourrecentworkwithclientsinallsectorsoftherealeconomyacrosspublicandprivatemarkets,wesharesixthematicopportunitiesintodaysmarketplace.GOLDMAN SACHS 2023 SUSTA

109、INABILITY REPORT16 GOLDMAN SACHS 2023 SUSTAINABILITY REPORTLeveraging Data and Metrics for Better Decision-Making In This Chapter19OurCentralizedSustainabilityDataHub20LeveragingDatatoSupportaRangeofInvestors23ExploringGenAItoSupportOurClientsandOurReporting17 GOLDMAN SACHS 2023 SUSTAINABILITY REPOR

110、T03|Thematic Opportunities With Our Clients and PartnersAtGoldmanSachs,datainformsourdecision-making,fromhowwemanageourfirmtohowwehelpourclientsdeliverontheirsustainabilityambitions.Asaninvestmentbank,assetmanager,corporateissuer,andriskmanager,weseektousemeasurementapproachesandanalyticaltoolstoimp

111、roveouridentificationandmanagementofrisksandopportunities.Notonlyisdataafundamentalcomponentofregulatorypreparedness,italsoenablesourtrackingandreportingonprogresstowardourexistingtargetsandcommitmentsandbringingdifferentiatedinsightstoourclients.Todayssustainabilitydatalandscapeiscomplexanddevelopi

112、ng.Reliabilityofthisdataremainsakeychallengeformanycompaniesandinvestorstoexecutetheirsustainabilitystrategies.Whilethedatalandscapecontinuestoevolve,significantchallengesremain,particularlytheavailability,consistency,andcomparabilityofdecision-usefuldata.Theproliferationoffragmentedsustainabilitydi

113、sclosurerequirementsacrossjurisdictionscreatesfurthercomplexityaswellasthepotentialforhighercompliancecosts,drivenbynewoperationalprocesses,reporting,andrelatedcontrolsassociatedwiththisdata.Aswecontinueourefforttocomplywithexistingandforthcomingregionalsustainabilityreportingrequirementsfocusedonfi

114、nancialmateriality,e.g.,UnitedKingdomFinancialConductAuthoritysTaskforceonClimate-RelatedFinancialDisclosures,wealsoarepreparingfortheEuropeanUnionsCorporateSustainabilityReportingDirective(CSRD)thatmandatestheEuropeanSustainabilityReportingStandards(ESRS),whichrequiresbothfinancialandimpact-related

115、disclosures.Asweassessthedatalandscapeinpreparationforourmandatoryfirmwidesustainabilityreportingin2025,wecontinueourworkwithtodaysdatatodevelopbothcommercialandriskmanagementtoolsandsolutionstohelpourclientsandfirmimprovedecision-makingcapabilities.18 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Them

116、atic Opportunities With Our Clients and Partners|LeveragingDataandMetricsforBetterDecision-MakingOur Centralized Sustainability DataHubWestrivetoprovideourclientsandbusinesseswiththemostaccurateanddecision-usefuldataavailable,leveragingourin-houseproprietarysolutionsandexternalresources.Weprovideour

117、clientswithtoolstohelpthemconsistentlyandeffectivelyevaluatetheirclimateperformanceandprogress,identifyopportunities,andallocatecapitaltomeettheirobjectives.Overview of Our Sustainability Data JourneyGoldmanSachshasalonghistoryofdataengineering;forexample,ourSecuritiesDatabaseplatformwaslaunchedin19

118、93toblendquantitativefinance,engineering,andtechnology.In2013,GoldmanSachsstartedtomakethisavailabletoinstitutionalclientsviaMarquee,ourdigitalplatformforinstitutionalandcorporateclients.Ourplatformscontinuetoevolvewiththedevelopmentofopensource,cloudnative,andAIinnovation,butourcoretenantsremain co

119、llectingthehighest-qualitydataandfosteringtheinnovationofbestmetricstohelpbuildtrust.Continuingourpursuitofinnovativetoolsandsolutions,welaunchedESGBeaconin2021,creatingacentralizedsustainabilitydatahub.ApartnershipbetweenSFGandourengineeringteams,thisdatahubcontinuestodevelopsolutionstoimprovedecis

120、ion-making,andmanageriskandregulatorychange,whiledeliveringuniqueinsightstoourbusinessesandclients.1ESG Beacon:Enabling Firmwide Data Integration and ConnectivityESGBeaconbuildsonthefirmwidedataplatform,knownasLegend,ensuringintegrationandconnectivitytootherfirmwidedata.ESGBeaconprovidesadedicatedte

121、amtosource,model,anddeliversustainabilitydata,actingasautilitytobusinessesacrossthefirm.ESGBeaconsapproachistodesignandcurate“data models”clearnamesanddefinitionsofthedataelementsandrulesofhowtheylinktogetheracrosstopics.Supportingstrongdatagovernance,itprovidestoolstohelpuserstranslatebetweendiffer

122、entmodels,tracklineagebacktoauthoritativesources,andcomparemultipleprimarysources ultimatelyformingacommondatalanguagetoenabledataintegrityandconnectivitytosupportourbusinessesandclients.Sinceitslaunch,ESGBeaconhasenabledmoreeffectiveandefficientsharingandvalidationofunderlyingcorporateemissionsandi

123、nvestmentsdatatoevaluateclimate-relatedrisksandopportunities,monitorprogressonpublicsustainabilitycommitments,andpreparefortheevolvingsustainabilityreportinglandscape.1Subjecttofirmpolicies,procedures,andcontrols.19 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients a

124、nd Partners|LeveragingDataandMetricsforBetterDecision-MakingLeveraging Data to Support aRange of InvestorsWehaveclientsacrossallsectors,includinghard-to-abatesectors.Asaresult,measuringcarbonemissionsisanimportanttoolformanagingandmonitoringclimaterisk.Byestablishingabaselinefootprint,orestimateofth

125、eemissionsassociatedwithanentitysactivities,investorsandmanagerscanmakemoreinformeddecisionsabouttheirstrategicplansandsetrealisticgoalsforreductions.WithinourAWMbusiness,wesupportprivateportfoliocompaniesastheyseektomeasureandmanagetheircarbonfootprint.CASE STUDYSupporting Carbon Footprint Measurem

126、ent for Goldman Sachs Alternatives Portfolio CompaniesIn2023,webeganemissionsinventoryingourGoldmanSachsAlternativesportfolioatscale,developingaprogramandtoolstohelpportfoliocompaniesbegincalculatingtheircarbonfootprint,frommeasurementthroughthefirststepsofdecarbonization.Throughanegotiatedagreement

127、withaGHGAccountingserviceprovider,GoldmanSachsAlternativesofferstoworkwithparticipatingportfoliocompaniestoconductactivity-basedemissionsaccountingacrossScope1and2emissionsaswellastoestimateScope3emissions.Ourofferingincludesaninventoryplanningexerciseco-developedbyGoldmanSachsAlternativesthatwascom

128、pletedin2023,alongsiderecommendationsondataimprovementsthatcanenhancethequalityandusabilityoftheirGHGfootprints.Basedonfootprintresults,ourprovideralsosharesbespoke,high-leveldecarbonizationrecommendationswithportfoliocompanies,allowingthemtoconsiderthebestnextstepstodecarbonizetheirbusinesses.Compa

129、niescanalsochoosetoengagewiththeprovideronnetzeroplanning,upstreamScope3analysis,anddecarbonizationplanningthroughenhancedSaaSofferings.In2023,29companiesparticipatedinthisprogram,andourworkallowedustohelpacceleratepilotstobringactivity-basedemissionsinformationfromdiligenceintoadetaileddecarbonizat

130、ionanalysisandplanningexercise.Theirdatawasalsousedinfund-leveldecarbonizationopportunityassessmentandplanningexercisestoenhanceoureffortsandimpact.Wecontinuetoexpandcoverageacrossourportfolioandidentifylearningsfromourworktodate,includingstrategiestohelpimproveportfoliocompanydataquality,enhancedat

131、avalidationandcontrols,andprovidemoreactionableinformationtocompaniesandassetmanagers.20 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|LeveragingDataandMetricsforBetterDecision-MakingLeveraging Data to Support a Range of Investors(continued)CASE STUD

132、YEnhancing the GS SUSTAIN Climate Transition ToolTomeetourclientsneedstobetterunderstandtransitionrisksandopportunities,GIRsGSSUSTAINin2022developedtheClimateTransitionTool,whichcombinesexistingclimate-relateddisclosureswithGSSUSTAINproprietaryClimateTransitionmetrics,whereapplicable,toquantifythetr

133、ansparencyofacompanysclimatetransitionplananditsdecarbonizationperformance.InQ42023,MarqueeincorporatedGSSUSTAINsClimateTransitionToolmetrics,allowingGBMclientstoanalyzetheirportfoliosclimateperformance.TheClimateTransitionToolutilizes20+metricsandcoversmorethan7,000publiccompaniesacross50+sectors,i

134、ncluding3,200+intheAmericas,2,600+inAPAC,and1,200+inEMEA.TheClimateTransitionToolprovidesaviewoncompaniesclimatetransitioneffortsthroughthelensoftwodistinctframeworkswithassociatedscores:TheTransition Plan Transparencyframeworkisanabsoluteassessmentofcompaniesdisclosuresacrossmetricsthatdemonstratew

135、hetheracompanyhasatransitionstrategyinplace(e.g.,targets)andhowintegratedthestrategyiswiththebroaderbusinessstrategy(e.g.,TaskForceonClimate-RelatedFinancialDisclosuressupport,assuranceofdisclosures).TheTransition Performanceframeworkisasector-relativeassessment,factoringinchangesinthecarbonemission

136、sprofileofacompanyandgreenbusinessmixexposures(e.g.,greenrevenueandgreenCapEx),incorporatingGIRresearchanalystsforward-lookingestimateswhereapplicable.1GIR:GS SUSTAIN:Accelerating the Energy Transition:Metrics and Tools to measure progress,November2022.2GIR:GS SUSTAIN:Avoided Emissions:How quantifyi

137、ng Avoided Emissions can broaden the decarbonization investment universe,July2023.Ourclientsrelyonawiderangeofdatatosupporttheirsustainableinvestingdecisions,fromassetallocationtoinvestmentselectionandimpactmeasurement.Assustainabilityinvestingmaturesandbecomesmoredata-driven,thereisrisingfocustoqua

138、ntifyimpact whetherenvironmentalorsocial.1Impactmetricssuchasavoidedemissionscansupportsectorsthatplayacriticalroleinemissionsoutsideoftraditionalpureplaygreensectors.2Tocapturethisclientdemand,PWMutilizesitsbespokeESGPortfolioDiagnostictool,whichprovidesmetricstoimprovetransparencyonenvironmentalan

139、dsocialissuesinpublicmarketportfoliosforclients.InGBM,wehaveexpandedourMarqueeofferingtoincludeMarqueeMarketView,aninnovativevisualanalyticsdashboardingsolutiondesignedtostreamlineourinstitutionalclientsinvestmentprocesses.ProvidinganecosystemofvisualinsightsdevelopedbyGoldmanSachsthoughtleaders,the

140、toolhelpsanswerimportantquestionsinglobalmarkets allthroughasingle,unifiedplatform.GIRsGSSUSTAINsuiteofsustainabilitymetricscanbevisualizedinMarqueeMarketView.Inaddition,MarqueesportfolioanalyticshelpclientsanalyzetheirportfoliosclimateperformanceusingmetricsfromGSSUSTAINsClimateTransitionTool.Marqu

141、eeMarketViewallowsinstitutionalclientstogainvisualinsightsfromthedatatoolsprovidedbyGSSUSTAIN.“Investorsarelookingtounderstandtechnologiesandcompaniesthroughoutthesupplychainthatarecatalystsforreturns-enhancinginnovationandsustainableimprovement,drivingourresearchandanalyticstobemoreforward-lookinga

142、ndfocusedoncriticalmetricsunderlyingopportunity,risk,andperformance.”Brian Singer GlobalHeadofGSSUSTAIN,GlobalInvestmentResearch21 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|LeveragingDataandMetricsforBetterDecision-MakingTosupportourclientsinmana

143、gingrisksandcapturingopportunitiesforcertainstrategies,wehavedevelopedourowninternalsustainabilityassessmentmethodologytoquantifykeysustainabilitymetricstoenablecomparabilityacrosspublicmarketsinvestments,asdescribedbelowontheleft.Separately,investorsneedhigh-quality,interoperabledatatosupporttheiri

144、nvestmentprocesses.Asweexpectdataqualitytoimproveovertime,investorsneedtoinvestcapitaltoday.Opensourcedatacanhelpaddressthisgap,andwesharehowwearesupportingopensourceclimatetoolswiththeLinuxFoundationbelowontheright.Leveraging Data to Support a Range of Investors(continued)1Thesustainabilitymeasurem

145、enttoolkitwasdevelopedforGoldmanSachsAssetManagementpublicteamsonlyandissubjecttointernalinformationbarrierrestrictions.Thetoolkitwasdesignedtocovercorporatepublicequitiesandfixedincomesecurities,butissubjecttodataavailabilityandsubjecttochangeatanytime.CASE STUDYInternally Developed Sustainability

146、Measurement Toolkit for Our Public Markets Investing TeamsInApril2024,AssetManagementPublicMarketsInvestingrolledoutaninternalsustainabilitymeasurementtoolkitforitsteamsthatseektointegrateESGfactorsorconsiderationsintheirinvestmentprocess.Thetoolkitaimstoenhanceexistinginternallydevelopedscorecardsa

147、ndtoolingbyincorporatingdataandpromotingcollaborationamongourPublicMarketsInvestingteams1onsustainabilityissues.ThedevelopmentprocessfocusedonidentifyingfinanciallymaterialESGissuesforpubliccompanies.Basedonthisprinciple,aswellasonexistingAWMframeworksandindustrystandards,PublicMarketsInvestingbuilt

148、thistoolkitpredicatedon14keyissueareasrollinguptosixthemesandthreesub-scores(E,S,andG).RecognizingthatESGconsiderationsvarybyindustry,aninternalproprietarymaterialitymapwascreatedtodeterminetherelevantESGissuesforeachindustrybasedoninputfromtheinvestmentteams.Thematerialitymapseekstoranktheimportanc

149、eofeachissue.Theissueassessmentsaredesignedtoquantifyeachofthe14ESGissuesforeachcompanyintheuniverse.ThesequantitativeresultsarethenaggregatedwiththematerialitymapintoonequantitativeESGmeasure.Finally,whereapplicable,publicequityandcreditanalystsmayusethetoolkittoinformtheiroverallview,includingthei

150、rESGrating.CASE STUDYSupporting Open Source Climate Tools With the Linux FoundationGoldmanSachssupportsopensourcetoolsandanalyticsthatourclientsandotherscanusetoadvancesolutionstodatachallengesthroughourparticipationinvariousindustrygroups.Forexample,OpenSourceClimate(OS-Climate)anumbrellaprojectoft

151、heLinuxFoundationusingopensourcebestpractices waslaunchedwiththeaimofbuildinganon-profit,transparentlygovernedpublicutilityofclimate-relateddataandanalyticstorapidlyscaleinvestmentintheclimatetransition.SincebecomingOS-ClimatesfoundingUSbankmemberin2021,wehavesupportedthenon-profitsworktodevelopanop

152、ensourcedataplatformandnetzeroalignmenttoolsthatcanbeusedacrossindustries.ThroughourmembershipintheFintechOpenSourceFoundation(FINOS)afellowprojectoftheLinuxFoundationGoldmanSachshascontributedtotheopensourcedesignofsustainabilityreportingtoolstohelpincreasedatatransparency,accuracy,andefficiency,an

153、dsupporthigherlevelsofauditassurance.InNovember2023,GoldmanSachshostedadaylongHackathon,wheremorethan60professionalsfrommorethan15firms,includingnon-profits,data-vendors,financialservices,lineage-platforms,consultants,andauditors,participated.Wejoinedintestingclimatedatasjourneyfromcollectiontoaggre

154、gationtodigitalreporting,andplantocontinuecontributingtoopensourcesolutionsthathelpaddresssomeoftodayscommondatachallenges.22 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|LeveragingDataandMetricsforBetterDecision-MakingExploring GenAI to Support Our

155、 Clients and Our ReportingIn2023,ourfirmbeganexploringhowGenerativeAI(GenAI)couldhelpadvancedatasourcing,verification,andanalyticsbyautomaticallystructuringandsummarizinglargevolumesofunstructureddatatomeetvariedandemergingmandatorysustainabilityreportingrequirementsandhelpdeliveronourclientsneeds.H

156、avinghigh-qualityandup-to-datedataiscrucialforprovidinghigh-qualitysolutionstoourclients,stakeholders,andregulators.However,challengespersistinthesustainability-relateddataspaceduetolimitedcompanyreporting,amongotherfactors.Moreover,disclosuresofcompaniesincertaingeographicregions,includingAsia,aren

157、otpublishedinEnglish,increasingthecomplexityoftheexercise.Thecurrentmanualprocessisresource-intensive,limitingthedepthofanalysisandrelyingonreadilyavailablemetricsratherthanharder-to-identify,morecomprehensivedata.Goingforward,GenAIcouldhelptoaddresssomeofthesechallengesbyautomatingdatadiscoveryanda

158、nalytics,offeringafront-to-backframeworkthatcanbedeployedacrosstheentireorganization,subjecttoimplementationofappropriatecontrols,toensurepotentialrisksaresuitablyassessedandmanaged.Inthiscontext,GenAIcouldhelptodynamicallycollectandstructureunstructureddatabasedonuser-definedtermsandbecapableofproc

159、essingdatainanylanguage.WelookforwardtocontinuingtoidentifywaystoadvanceourGenAIeffortstoenhancethevaluewebringtoclientsandsupportourownreporting.“Our data engineers work every day to enable Goldman Sachs to be a data-driven organization.Sustainability data is notoriously noisy.As we explore emergin

160、g technologies like GenAI,our focus is on how to reduce noise by curating quality data that can help clients with their sustainability goals.”Neema Raphael ChiefDataOfficerandHeadofDataEngineering23 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|Lever

161、agingDataandMetricsforBetterDecision-MakingMobilizing Transition Finance Through Public-Private PartnershipsIn This Chapter25Q&AWithKaraSuccosoMangoneandJohnGreenwood27BlendingFundstoUnlockAdditionalCapital29SupportingPublicPolicyWithPrivateInvestment30CatalyzingFundingforSpecificRegionalNeeds24 GOL

162、DMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners$3T$6Tinvestmentneededperannumformitigationandadaptationfinancingthrough20501Combiningprivatecapitalwithpublicfundsiscriticaltocatalyzinginvestmentintransitionfinanceandmeetingtheinvestmentrequirementsformiti

163、gationandadaptationfinancing,estimatedat$3$6trillionperyearthrough2050.1Since2015,GoldmanSachshasbeenworkingwithclientstohelpdevelopinnovativeblendedfinancestructurestoattractcommercialcapitaltowardprojectsthatcontributetosustainabledevelopment.Wecontinuetoworkwithourclientstohelpincreasefinancingfo

164、rsolutionsthroughthedevelopmentofinnovativesustainablefinancingstructures.Belowisanexcerptofarecentdiscussionontheroleofpublic-privatepartnershipsandrelatedfinancingstructureswithKaraSuccosoMangoneandJohnGreenwood.Q&A With Kara Succoso Mangone and John GreenwoodQ:Why is blended finance a compelling

165、tool for investing in emerging markets today,and what are some of the challenges in traditional finance that public-private partnerships can help overcome?Kara:Privateinvestorswilloftenshyawayfromcertainprojectsormarketsbecauseofspecificrisksthatcannotbewellmanaged,particularlyindevelopingeconomies.

166、Thereareseveraltraditionalfinance-relatedchallengesthatpublic-privatepartnershipscanhelpovercome.Forexample,byblendingdifferentsourcesofcapitalwithdiscretefinancialreturnobjectives,thisapproachcancrowdinadditionalpoolsofcapitalfordevelopmentprojectsinemergingmarketsthatmightnothavebeenavailableother

167、wise.Inaddition,blendedfinancetransactionscanserveasademonstrationofcommercialviabilityandfinancialsustainabilityofprojects,whichcanhelpscaleupadditionalinvestmentsandabroaderrangeofstakeholderstoengageinfutureprojectswithsimilarriskprofiles.Q:What are some effective public-private financing structu

168、res youve seen in the marketplace?And,at what stage(s)of a project are they typically used?John:Weveseenpublicandphilanthropicinvestorsprovidecapitalonbelow-markettermswithinthecapitalstructuretolowertheoverallcostofcapitalorprovideanadditionallayerofprotectiontoprivateinvestors.Othertimes,developme

169、ntbankscanhelpprovidecreditenhancementsthroughguaranteesorinsurance.Oneofthecompellingbenefitsofblendedfinanceisthatitcanbeusedatdifferentstagesofaproject,fromprovidingabridgeforearly-stagefront-endengineeringanddesignandpermitting,toprojectsthathavereachedfinalinvestmentdecisionthatrequirecatalytic

170、capitaltofillreturnprofilegapsandcrowdinadditionalfunds.Inaddition,itcanalsobeusedbylow-carboncompaniesinneedofconcessionarycapitaltohelpscaletheirtechnologiesorsolutions.(left)Kara Succoso Mangone,HeadofSustainableFinanceGroup(right)John Greenwood,Co-HeadofAmericasStructuredFinanceandHeadofInvestme

171、ntBankingforLatinAmerica1Prasadetal.:Mobilizing Private Climate Financing in Emerging Market and Developing Economies,July2022.25 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|MobilizingTransitionFinanceThroughPublic-PrivatePartnershipsQ&A With Kara

172、Succoso Mangone and John Greenwood(continued)Q:In 2021,the firm launched the Climate Innovation and Development Fund,in partnership with Bloomberg Philanthropies and the Asian Development Bank.What was the objective of the fund,how was it structured,and are there any early results you can share?Kara

173、:TheAsianDevelopmentBankrecentlyestimated$700Bofinvestmentperannumisrequiredthrough2050toachievethegoalsoftheParisAgreement.1Addressingmarketgapslikethiswithstrategicpartnersisacorefeatureofourfirmssustainablefinancestrategy.ComplementingourstructuringandfinancingcapabilitiesandexpertisewiththeAsian

174、DevelopmentBankson-the-groundexperienceandrelationshipsinemergingAsianeconomiesandBloombergPhilanthropiesexpertiseinmarketdata,welaunchedtheClimateInnovationandDevelopmentFundtohelpincreasethepace,scale,andambitionofclimatesolutionsthatcancontributetothecleanenergytransition.ManagedbytheAsianDevelop

175、mentBankandseededwithgrantcapitalfromGoldman Sachs GivesandBloombergPhilanthropies,thefundleveragedauniqueblendedfinancefacilitystructurefeaturingvariousfinancemechanismstomobilizecapitalthroughthetargeteduseofconcessionalfinancing,e.g.,capitalexpenditurebuy-downgrants,performanceormilestone-basedgr

176、ants,andliquidityreserves.ThesefinancingmechanismswereblendedwithADBsownlending,investment,andfinancingmobilizedfromotherinvestors.Withtheclosingofthefundsseventhandfinalinvestment,wereencouragedbytheconcessionalcapitalthathelpedunlock$500millioninprivatesectorandgovernmentinvestmentsacrosssevenproj

177、ects,eachaimedathelpingacceleratetechnologiesandmarketsforalow-carbonfuture.Q:Public-private partnership has been helpful to mobilize capital for climate transition technologies and solutionsin emerging markets.Are there any other areas where you see this type of partnership playing a key role?John:

178、Protecting,preserving,andrestoringnatureanditsecosystemsisinextricablyconnectedwithglobaleffortstomitigatetheimpacts,andadapttotheconsequencesof,achangingclimate.Wehavealreadyseensomeexamplesofhowpublic-privatepartnershipcansupportnaturalecosystems.In2022,forexample,wehelpedanislandcountryintheCarib

179、beanissuedebtguaranteedbyadevelopmentbanktoenablethecountrytoadvanceandprotectitsblueeconomybystrengtheningitsresiliencethroughimprovedclimateriskmanagementincoastalandoffshoreareas,promotingbettermanagementofmarineresources,andreducingmarinepollution.Wealsoseenew,emergingopportunitiestohelpsovereig

180、nclientswithinnovativefinancingstructures.Forexample,debt-for-natureswapsareanew,innovativetoolthatincentivizessovereigns,especiallydevelopingeconomies,toprotect,preserve,orrestoretheirnaturalecosystemsinexchangeforreducingtheirdebtburden.Debt-for-natureswapscanbeusedtosupportoursovereignclientsinad

181、vancingtheirfinancial,naturalcapital,andclimate-relatedgoals.1Asia in the Global Transition to Net Zero:Asian Development Outlook 2023 Thematic Report,April2023.26 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|MobilizingTransitionFinanceThroughPublic

182、-PrivatePartnershipsBlending Funds to Unlock Additional CapitalThepublicsectorisincreasinglyseekinginnovativefinancialstructuresandprivatesectorresourcestoprotectconsumersfromvolatileenergypricesandpromoteeconomicgrowth.Blendingpublicandprivatefundscanincreasethepoolofresourcesavailablefordevelopmen

183、tprojectsandconsumeraid.In2022,theChileangovernmentregulatedenergypriceincreasesforresidentialhouseholdsandsmallcompanies,1andcreatedanewsecurity,knownasClientTransitoryProtectionMechanism(MPC)backedbytheChileansovereign.TheseMPCcertificatesaremanagedbythetreasurytocompensatepowergenerationcompanies

184、thatreceivebelow-marketratesduetothelaw.Underthisnewstructure,microandsmallbusinessesareprotectedfromlargepriceincreases,whilepowergenerationcompaniescancontinuetoinvestininfrastructureandprovidereliableservicestotheircustomers.CASE STUDYStabilizing Electricity Prices for Consumers With Chile Electr

185、icity MPC$1.1 Billion Senior Secured FinancingIDBInvest,theprivatesectorfinancingarmoftheInter-AmericanDevelopmentBank,soughttoraisemoneytopurchaseMPCcertificatesandcompensatethepowergenerationcompanies.AsSoleGlobalCoordinator,SolePlacementAgent,andJointBookrunner,GoldmanSachsleda$1.1billionseniorse

186、curedfinancingtopurchaseMPCcertificatesleveringtheIDBspreferredcreditorstatus.Moreover,theissuanceandthebroaderprogramofferedtheparticipatingpowergenerationcompaniesliquiditybyallowingthemtomonetizetheirreceivablesandsupportedthegovernmentsgoalofavoidingrisesinelectricitypricestothemostvulnerableend

187、consumers.ThiscapitalwillhelpsupportthehealthoftheChileanelectricitysector,whichhasseensolarproductionrisebymorethan1,000%since2015.21IDBInvest:IDB Invest Supports Electricity Price Stability for Consumers and Small Businesses in Chile,August2023.2IEA:ChileCountries&Regions,asofMarch2024.27 GOLDMAN

188、SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|MobilizingTransitionFinanceThroughPublic-PrivatePartnershipsBlending Funds to Unlock Additional Capital(continued)Utilizingpublicandprivatefundstodiversifyenergysourcesthroughblendedfinancecanimprovethestabilityo

189、fenergyprices,whilehelpingtoensurereliabilityandemissionsreductions.RussiasinvasionofUkrainehadcreatedsignificantvolatilityinEuropeanenergymarkets,resultingindiversificationofenergyproviders.Aspartofthisdiversification,CzechhydropoweroperatorENERGO-PROsoughttoexpandoperationsandinvestinnewassetsinEu

190、rope.CASE STUDYDiversifying Europes Energy Mix With ENERGO-PROTofacilitatethisdiversification,GoldmanSachsactedasSoleGlobalCoordinatorandBookrunnerforENERGO-PROsissuanceof300millionSeniorUnsecuredGuaranteedNotesinJuly2023.Theissuancealsobenefitedfroma$545millionunconditionalandirrevocablecreditguara

191、nteeprovidedbytheU.S.InternationalDevelopmentFinanceCorporation(“DFC”andthe“DFCGuaranty”);thisenabledtheissuancetoachieveaMoodysratingofAa1(significantlyhigherthantheirBBB-corporaterating),allowingENERGO-PROtosecurelong-termfinancingatsignificantinterestratesavingsduringaperiodofprolongedvolatilitya

192、ndregainaccesstointernationalcapitalmarkets.ENERGO-PROisaleadingelectricitydistributionandrenewablegenerationcompanyintheBlackSearegionwithmorethan2.5milliongridcustomersand10.5TWhofdistributedelectricity,and34operatinghydropowerplantswithaninstalledcapacityof749MW.ThistransactionallowedENERGO-PROto

193、scaleitsproductioncapabilitiesandwillsuccessfullyenablethediversificationofenergysourcesinEasternEurope helpingtocreatelessrelianceonRussianexportedoilandgasandwastheDFCsfirstguaranteeforabondissuanceinEuropeandfirstguarantyundertheEuropeanEnergySecurityandDiversificationAct.28 GOLDMAN SACHS 2023 SU

194、STAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|MobilizingTransitionFinanceThroughPublic-PrivatePartnershipsSupporting Public Policy With Private InvestmentIn2015,GoldmanSachsAssetManagementacquiredtheassetsofImprintCapitalAdvisors,oneofthelargestESGandimpactinvestorsinthe

195、industry,andformedExternalInvestingGroup(XIG)Imprint.XIGImprintisdedicatedtosourcing,drivingduediligenceon,andinvestingin,impactmanagersacrossassetclassesandimpactthemes.XIGImprintsinvestmentstrategiesleverageitsrigorousmanagerselection,portfolioconstruction,riskmanagement,andimpactinvestingexpertis

196、e.1Coretothisstrategyistheidentificationofopportunitiesfrompolicysupportorincentives.IntheEuropeanmarket,thereareprivateinvestmentfundsdedicatedtoinfrastructureassets,whiletheGermangovernmenthasintroducedsubsidyregimesthatsupportrenewables.2Followingincreasedinvestorinterestinclimatetransitioninvest

197、mentopportunities,XIGImprintinvestedinNeXtWindforaPWMclient.NeXtWindisaGermanonshorewindrepoweringfirmthatistakingadvantageofstreamlinedpermittingandincreasingsubsidylevelsfromtheGermangovernment.1Source:XIGImprint,asofMarch2024.Theportfolioriskmanagementprocessincludesanefforttomonitorandmanagerisk

198、butdoesnotimplylowrisk.2Appunnetal.:Germanys2022renewablesandefficiencyreforms,December2022.CASE STUDYNeXtWindInAugust2023,XIGImprintprovideda$15millioninvestmentalongsideSandbrookCapitalintoNeXtWind.Foundedin2020,NeXtWindhasacquiredmultipleoperatingonshorewindprojectsandboughtaninterestinagreenfiel

199、ddevelopment.Bycapitalizingonnew,efficientwindturbinetechnology,NeXtWindplanstodoubleexistingportfoliopowergeneration.Additionalvaluecreationisexpectedthroughopportunisticgreenfieldacquisitions.AlongsidethecoreGermanrepoweringstrategy,NeXtWindalsoplanstoexpandintootheradjacentstrategiessuchassolaran

200、dbatteryco-location,leveragingmanagementteamandSandbrookCapitalexperience.29 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|MobilizingTransitionFinanceThroughPublic-PrivatePartnershipsCASE STUDYClimate Innovation and Development FundIn2021,weannounced

201、thelaunchoftheClimateInnovationandDevelopmentFund,ablendedfinancefacilitydesignedtosupportsustainablelow-carboneconomicdevelopmentwithafocusonSouthandSoutheastAsiatoincreasethepace,scale,andambitionofclimatesolutionsandcontributetothecleanenergytransition.ManagedbytheAsianDevelopmentBankandseededwit

202、hconcessionalcapitalfromGoldmanSachsandBloombergPhilanthropies,theCIDFinvestedacrosssevenprojectsthroughout2022and2023.FormoreinformationontheCIDFandtheapproximately$500millionofblendedprivateandpublicsectorfinanceithelpedcatalyzefortheseprojects,pleaseseetheCIDFreport.5ThroughtheCIDF,wedemonstrated

203、thatblendedfinancecanserveasamechanismtoincreasefundingandbeapowerfultooltohelpdrivesustainabledevelopment.CombiningdifferentsourcesofcapitalenabledCIDFtomobilizesignificantlymorefundingforsocialandinfrastructureprojects.Basedonthisexperienceindevelopingandprovidingblendedfinancesolutions,weidentifi

204、edsixkeylearningsfromCIDF:Catalyzing Funding for SpecificRegional NeedsDespitegrowthinrecentyears,globalclimatefinancehasnotyetreachedthescalenecessarytomeettheestimatedtransitionrequirements.In20212022,averageclimatefinanceflowsreachednearly$1.3trillion nearlydouble20192020levels,butwellbelowtheest

205、imatedneed.1ThegapisparticularlyacuteinpartsofAsia,wherelocaleconomiesremainheavilydependentonpublicsectorfinancing andwherecleanenergyinvestmentisstillinitsearlystages.2InIndiaalone,itisestimatedthatthepowersectorhasanearly$650billioninvestmentopportunity,whichwouldsupportits450GWrenewableenergytar

206、get,3whileVietnammayneed$8$10billionannuallyoverthesameperiod.4Tohelpdrivemorecapitalintotheregiontofacilitatetheenergytransition,GoldmanSachsandBloombergPhilanthropiespartneredtoseedandlaunchtheClimateInnovationandDevelopmentFund(CIDF)in2021,inpartnershipwiththeAsianDevelopmentBank.1ClimatePolicyIn

207、itiative:Global Landscape of Climate Finance 2023,November2023.2GFMAetal.:Climate Finance Markets and the Real Economy,December2020.3ClimateFinanceLeadershipInitiative:CFLI India,asofApril2024.4USAID:Clean Energy,September2020.5GoldmanSachsetal.:Progress and Lessons from the Climate Innovation and D

208、evelopment Fund,November2023.1.Strategic Partnerships3.Proof-of-Concept5.Innovative Financing2.Additional Capital4.Project Selection and Visibility6.Regional FocusStrategicpartnershipsbringaddedvalueviapooledexperienceandexpertise.Blendedfinanceaidsinprovingtheconceptforinnovativetechnologiesandcomm

209、ercialviability.Innovativefinancemechanismsimprovecommercialviability.Blendingfundsunlockedsignificantadditionalcapitalmorethan20 xtheinitialinvestmentonaverage.Rigorousprojectselectionhelpsaddressthechallengesofprioritizingwhichopportunitiestopursue.Tailoringfundstospecificregionscanmaximizeimpact.

210、30 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|MobilizingTransitionFinanceThroughPublic-PrivatePartnershipsUnlocking Economic OpportunitiesIn This Chapter:32InvestingOurOwnCapitalinOurCommunities37InvestinginPrivateSectorSolutionsforOurClients03|Th

211、ematic Opportunities With Our Clients and Partners31 GOLDMAN SACHS 2023 SUSTAINABILITY REPORTInthischapter,wedemonstratehowweleverageourfirmscommunitydevelopmentcapitaltosupportourcommunitiesacrosstheareasofaffordablehousing,entrepreneurship,andbusinesseducation.Inaddition,wesharehowweinvestclientsa

212、ssetsinprivatemarketsforinnovativeeducationsolutionsandinpublicmarketsforsustainabledevelopment.Investing Our Own Capital in Our CommunitiesOurinvestmentstrategyincommunitiesisinformedbyresearchtoidentifyareasofacuteneedandhighestpotentialimpact.Inadditiontoresearch,listeningandrespondingtocommunity

213、needsiscoretoourapproach.Whetheritisexpanding10,000 Small Businessesintoruralstates,orlaunchingOne Million Black Women:Black in Businesstoservesolopreneurs,ourgoalistodirectourexpertiseandinvestmentsintohigh-impactopportunities.Partnershipsarealsoessentialtoourstrategy.Academicinstitutions,Community

214、DevelopmentFinancialInstitutions(CDFIs),andotherlocalpartnersplayacriticalroleinthesuccessfulexecutionofourinvestmentsandprograms,andweareinvestedinthecapacityandresilienceoftheseorganizations.The impact of our work is far-reaching:+$19Bofcommunityloansandinvestmentsince2001+$3Bphilanthropicgivingwo

215、rldwide+250Kentrepreneursserved1 194Kaffordableunitsbuiltorpreserved “Driving economic growth and opportunity in communities where we work and live continues to be our North Star.Weapproach our community investing with the same rigor andintensity as our broader client franchise,with a focus on helpi

216、ng deliver measurable impact in the near and long term.”Asahi Pompey GlobalHeadofCorporateEngagementandPresidentofGoldmanSachsFoundation1EntrepreneursservedacrossthreeGoldmanSachsinitiatives:10,000 Small Businesses,10,000 Women,andOne Million Black Women.32 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03

217、|Thematic Opportunities With Our Clients and Partners|UnlockingEconomicOpportunitiesSupporting Entrepreneurship in Our CommunitiesWhensurveyingruralsmallbusinessesacrosstheUnitedStates,only7%believetheyreceiveafairamountofprivatesectorresources.1Further,68%ofruralbusinessesreportchallengesinattracti

218、ngworkerstoliveintheircommunities,comparedwith46%innon-ruralcommunities.2Inrecognitionofthesechallengesfacedbyruralentrepreneurs,weannounced10,000 Small Businesses Investment in Rural Communities,a$100millioncommitmenttoprovidebusinesseducationandaccesstocapitalto20statesinthenextfiveyears.1GoldmanS

219、achs:GoldmanSachs10,000SmallBusinessesLaunches$100MillionInvestmentinRuralCommunitiesAcrossAmerica,September2023.2GoldmanSachs:Investing$100 million in the heart of rural communities,asofMarch2024.3GoldmanSachs:AsPartof$100MillionInvestmentinRuralCommunities,GoldmanSachs10,000SmallBusinessesLaunches

220、inArkansas,October2023.CASE STUDYCatalyzing Entrepreneurship in Rural Communities With 10,000 Small BusinessesTohelpsupportmorebusinessesthroughouttheruralUS,welauncheda$100millionInvestmentinRuralCommunitiesinSeptember2023throughourexisting10,000 Small Businesses(10KSB)program.Thisinvestmentwillpro

221、videcomprehensivesupporttoruralandsmallbusinessownersandincludes$75millioninlendingcapitaltoCDFIs,$15milliontofundthe10,000 Small Businesseseducationprogramatlocalcommunitycolleges,and$10millioninaccesstocapitalcapacity-buildinggrants.Theinitiativeplanstoreachover800ruralsmallbusinessownersacross20s

222、tatesoverthenextfiveyears,contributingtojobcreationandeconomicgrowth.Aspartofthe$75millioncommitmenttoCDFIs,inOctoberweannouncedthefirstlendingcommitmentof$20milliontotheCDFIHopeEnterpriseCorporationbasedinJackson,Mississippi,tohelpsupportabroadergroupofeightsmallerCDFIslocatedthroughouttheSouth3pro

223、vidingsmallbusinessloansandtechnicalassistanceinruralcommunities.Throughthisinitiative,ruralentrepreneurswillbeintegratedintoanationalnetworkofsmallbusinessowners,creatingnewchannelsofaccessforbusinessleaderswhowouldotherwisenothavetheopportunitytoengage.Bothprogramsbuildonour10KSBprogramthatlaunche

224、din2009,whichhashelpedentrepreneursgrowtheirbusinesseswithresults-orientedbusinesstraining,accesstocapital,andpersonalizedsupportservices.IntheUS,morethan14,500smallbusinessownershavegraduatedfromtheprogram,employingover280,000peopleanddrivingmorethan$25billioninannualrevenue.Lee PorterOwner of Ozar

225、k Green RoofsFayetteville,ArkansasLeePorteristheownerofOzarkGreenRoofsinFayetteville,Arkansas.Heradmissionto10,000 Small BusinessescameatapivotaltimeinhercompanysgrowthhavingrecentlyacquiredtwosignificantcontractstoputgreenroofsonJBHuntTransportationHeadquartersandtheAliceL.WaltonSchoolofMedicine.Le

226、eisutilizingthe10KSBcurriculumandnetworktopivotintoagrowthperiod,buildingoffherfiveyearsofbusinesssuccess,withaspirationstobethedefiningresourceforgreenroofsinthestateofArkansas.33 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|UnlockingEconomicOpport

227、unitiesSupporting Entrepreneurship in Our Communities(continued)Largelyduetolowerearningsandlimitedaccesstocapital,BlackAmericansaremuchlesslikelytoownhigh-returnassets,includingtheirownbusinesses.1Only0.5%ofsingleBlackwomenownabusiness,aratethatis24timeslowerthanforsinglewhitemen.2OurBlack Womenomi

228、csresearchshowsthataddressingtheearningsgapforBlackwomencouldcreateupto1.7millionUSjobsandraisethelevelofannualUSGDPby1.4%2.1%peryear.3Informedbythesefindings,GoldmanSachslaunchedOne Million Black Women:Black in Business,aneducationprogramfocusedonBlackwomensolopreneurs,providingthemwithtoolsandbusi

229、nesseducationtheyneedtogrowtheirbusiness,withtheaimofbringingjobandwealthcreationtotheircommunities.CASE STUDYHelping Black Women Solopreneurs Grow Revenues and Create Jobs Through One Million Black Women:Black in BusinessTheOne Million Black Women:Black in Business(BIB)initiativeisa10-weekeducation

230、programthatcoverstopicscoretobusinessgrowth,includinggoalsetting,businessprocesses,understandingyourcustomer,identifyingopportunitiesforgrowth,businessfinancials,andmasteringthebusinesspitch.Thisphilanthropicprogramhasnowgraduatedmorethan600Blackwomensolopreneursfromacross40states,includingWashingto

231、n,D.C.Followingtheirparticipation,BIBalumniareimmediatelydemonstratingtheimpactoftheirinvolvement:61%ofprogramalumnireportedincreasesinrevenuesjustsixmonthsaftercompletingtheprogram,comparedwith29%forallBlacknon-employerfirmsthatincreaserevenuesatthe12-monthmark.4In2024,Black in Businessaimstoenroll

232、another450+solopreneursandpartnerwithNewYorkUniversitySternSchoolofBusinessasthenationalacademicpartnertodeliverthecurriculumthroughitsaward-winningfaculty.Byexpandingthenationalnetworkofsmallbusinessowners,BIBalumniwillcontinuetogrowtheiraccesstobusinessknowledgeandsupport.Recentalumnihavebeenablet

233、oapplytheirlearningsdirectlytotheirbusinessandgrow:Marsha WilliamsOwner,R/E Brokerages of AmericaCohort 2/VirginiaMarshaisownerofR/EBrokeragesofAmerica,whichoffersrealestate,propertymanagement,commercialfacilitymanagement,andrelocationservices.Shefoundedthecompanyin2021,leveragingher20+yearsofreales

234、tateexperience.UponenteringtheOne Million Black Women:Black in Business program,Marshasetagoaltoscaleherbusinessandhireherfirstemployee.Aftercompletingtheprogram,Marshaexpandedherteamandbroughtonnewemployees,attributingherbusinessgrowthtotheprogramsimpact,contributingtogreaterjobcreationinVirginia.S

235、ubena ColliganCEO of EHS Transformation ConsultantsCohort 4/GeorgiaSubenaisCEOandfounderofEHSTransformationConsultants,anoccupationalhealthandsafetyconsultingfirmthatspecializesintransformingunsafeworkplacesintoindustrybenchmarks.AnAirForceveteran,Subenatooktheleapintoentrepreneurshipin2021usingher4

236、01(k)toseedherbusiness.AftergraduatingfromtheOne Million Black Women:Black in Businessprogram,Subenagainedconfidence,increasedherrevenue,andextendedherclientrostertoincludeaFortune500rankedcompany,majoracademicinstitution,andnationalbakedgoodsproducer.1GoldmanSachs:Black Womenomics:Investing in the

237、Underinvested,March2021.2Ibid.3Ibid.4FEDSmallBusiness:2023 Report on Nonemployer Firms:Findings from the 2022 Small Business Credit Survey,May2023.34 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|UnlockingEconomicOpportunitiesImproving Housing Afford

238、ability to Promote Stability and OpportunityHousingaffordabilityisamajorobstacletogrowthforadvancedeconomiesandisespeciallyacuteintheUnitedStates.AlmosthalfofAmericanhouseholdsthatrentarecostburdened,definedasspendingmorethan30%oftheirgrossincomeonrent,whilenearlyaquarterofAmericanhomeownersarealsoc

239、lassifiedascostburdened.1Housingaffordabilitydoesnotjustimpacttheindividuallivesofthosestrugglingtomakeendsmeet italsohasadirectconsequenceonthebroadereconomy.Withoutaccesstoaffordablehousing,familieshavefeweropportunitiestoincreasetheirearnings,creatinganestimated$2trillionannualdragonUSGDPgrowthfr

240、omlowerwagesandproductivity.2Addressingthehousingaffordabilitygap,includingthelackoffinancingforlow-incomehousing,canenhanceopportunitiesacrossourcommunities.Thereisademonstratedneedformorehousingstocktobedeveloped,andyetMinorityBusinessEnterprises(MBEs)facechallengessecuringfinancingforpropertydeve

241、lopmentduetostringentnetworthandliquidityrequirementsfromtraditionallenders.ToconnectMBEstomuch-neededcapital,welaunchedtheMinorityBusinessEnterpriseDevelopersGuarantyFacilityinNewYorkCitythispastyear.1JointCenterforHousingStudiesofHarvardUniversity:The State of the Nations Housing 2023,2023.2Nation

242、alLowIncomeHousingCoalition:The Problem,asofMarch2024.CASE STUDYExpanding Affordable Housing With the Minority Business Enterprise Developers Guaranty FacilityTohelpfacilitateMBEdeveloperfinancing,GoldmanSachsworkedcloselywiththeNewYorkCityHousingDevelopmentCorporation(HDC)andNewYorkCityDepartmentof

243、HousingPreservationandDevelopment(HPD)todevelopaninnovativefinancingstructureprovidingsupportforaffordablehousingprojectssponsoredbyminoritydeveloperscertifiedasMBEs.GoldmanSachswillofferupto$25millionfromGSAMtoestablishaguarantyfacility(“theFacility”),matchedwith$25millionfromthecity,toprovideasupp

244、lementalbackstopforconstructionprojectsandreducetheaccess-to-capitalgapforqualifiedMBEdevelopers,allowingthemtoobtainconstructionfinancingforwhichtheymightnototherwisequalify.LeveragingHPDspipelineofdevelopmentopportunities,theFacilitywillbeutilizedtosupportaffordablehousingprojectsinNewYorkCity,wit

245、hcommitmentsoriginatedoverafive-yearinvestmentperiod.Atleast10affordablehousingprojectssponsoredbygrowingMBEdevelopersareexpectedtobenefitfromtheFacility,removingoneofthemajorbarrierstoentryforthesebusinessesandenablingMBEdeveloperstosucceedbyscalingtheiroperationsandbuildingatrackrecordasaffordable

246、housingdevelopers.AsahiPompey,GlobalHeadofCorporateEngagement,speaksatthelauncheventatCityHallinNewYorkCitytoannouncethe$50millionguarantyfacility.35 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|UnlockingEconomicOpportunitiesImproving Housing Afford

247、ability to Promote Stability and Opportunity(continued)Inadditiontoaddressingfinancinggapsfornewhousing,GoldmanSachsisalsohelpingsupportthepreservationofexistingaffordablehousing.TheLow-IncomeHousingTaxCredit(LIHTC),createdin1986,providestaxcreditstoprivatedeveloperswhoagreetokeeprentsatspecifiedper

248、centagesofAreaMedianIncome(AMI).From1987to2009,approximately2.2millionunitsweredevelopedthroughLIHTC,representingnearlyone-thirdofallnewmultifamilyrentalhousing.1After1530years,theaffordabilityrequirementsexpire,andrentstypicallyreverttomarketrate.Byprovidingcompetitivefinancingcontingentoncontinued

249、affordability,investorsandfinancialintermediariescanhelpmaintainhousingaffordabilityinexistingLIHTCpropertiesandpreventturnoverandresultinginstabilityinaffordablehousingdrivenbyrentincreases.1HUD:WhatHappenstoLIHTCPropertiesAfterAffordabilityRequirementsExpire?,asofMarch2024.CASE STUDYPreserving LIH

250、TC Affordability in the Project Horizon PortfolioInApril2023,GoldmanSachsfinancedtheacquisitionandpreservationoftheProjectHorizonportfolio,consistingof10,474majorityaffordablehousingunitsacross90propertiesinTexas,Illinois,Indiana,Wisconsin,Florida,SouthCarolina,Kentucky,andNewYork.Primarilycomposedo

251、fformerLIHTCunitsaffordabletohouseholdsearningupto60%ofAMI,theacquisitionwillhelppreserveaffordabilityintheunits,whichriskedbeingconvertedtomarketrateunitsupontheexpirationoftheoriginalLIHTCrestrictions.Theaveragerentacrosstheportfolioisbelow$1,000perunit,andtheportfoliohousesmorethan30,000residents

252、,includingthoseinmajorcitiessuchasChicago,Dallas,Milwaukee,Tampa,andIndianapolis.Theacquisitionwillhelppreserveaffordabilityacrossover10,000unitsofformerLIHTCprojectsthatcouldotherwisebeatriskofbeingconvertedtomarketuponexpirationofland-userestrictionsputinplaceatthetimeoforiginalLIHTCfinancialclosi

253、ngs.Byproviding$454millionJVequitytothepartnership,GoldmanSachswasabletohelpsupportthepreservationofhigh-qualityaffordablehousingoptionsforlocalcommunitiesaroundthecountry.36 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|UnlockingEconomicOpportunitie

254、sInvesting in Private Sector Solutions for Our ClientsWithincreasinginterestandactivityinsustainableandimpactinvesting,ourclientsareseekingwaystoenhancealignmentoftheirinvestmentswiththeirrespectivesustainabilityorimpactobjectives.Throughouropenarchitectureplatform,ourAWMclientfranchiseprovidesclien

255、tswithaholisticsuiteofsolutionsacrosspublicandprivatemarkets,enablingustoinvestourclientsassetstomeettheirdiscretesustainableandimpactinvestingobjectiveswiththesamerigorandrisk-returnstandardsofourtraditionalinvestmentmanagementcapabilities.Investing our clients capital aligned with their thematic p

256、references$1.3BGlobalSocialImpactPublicEquityStrategyAUS1,2$8.3BGoldmanSachsAlternativescontributiontotheInclusiveGrowththemeofoursustainablefinancetarget$1.2BcapitalcommittedbyXIGImprintonbehalfofinvestorsgloballyacross+40InclusiveGrowththemedstrategies2 “We are investing in segments of the economy

257、,including the education sector,among others,that are undergoing significant disruption.Our investments are a great example of how private capital can help scale innovative business models to provide needed solutions in a creative way.”Greg Shell HeadofInclusiveGrowthStrategy,GoldmanSachsAlternative

258、s1AUS:AssetsUnderSupervision.2Asof12/31/23.37 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|UnlockingEconomicOpportunitiesInvesting in Education to Enable Innovation and GrowthLowreadingproficiencyhashistoricallybeenanimportantissueinK-12education.1F

259、undinggapsbetweenaffluentandunderresourcedstudents,estimatedatnearly$2,700perstudentindistrictswithmoreminoritystudents,2persistintheAmericaneducationalsystem,resultinginacompoundingnegativeimpactinourcommunities.TheCOVID-19pandemichasalsoresultedinunprecedentedlearningloss,withNationalAssessmentofE

260、ducationProgressscorespointingtoamulti-decadelowinreadingproficiencylevelsacrosstheboard,whilein17states studentsaremorethanahalfofaschoolyeardelayedinlearning,onaverage.3Recentfindingsrevealthat68%ofUSfourth-gradersarenotproficientinreading,upfrom66%in2019.4 Asaresult,extensivefundingatthestateandf

261、ederallevelhasbeenallocatedtoaddressboththeachievementgapsandpandemic-drivenlearningloss.High-dosagetutoring,definedasone-on-oneorsmall-grouptutoringatleastthreetimesperweek,5isoneofthreesolutionshighlightedbythefederalgovernmenttoimprovestudentachievement.Inaddition,ashifttoevidence-basedliteracypr

262、acticesknownastheScience of Readingisunderwaynationally,withover35statespassingrelevantlegislationsince2013.6Duetoshortagesacrossresourcingandstaffing,schoolsareexpectedtocontinueleveragingtheprivatesectortohelpimplementthesesolutions.ThroughourSustainableInvestingGroupsnewInclusiveGrowthStrategy,we

263、areinvestinginsolutionstohelpreducethislearningloss.CASE STUDYClosing Learning Gaps Through an Approach Grounded in the Science of Reading With Ignite ReadingGoldmanSachsrecentlyledaSeriesBfinancingforIgniteReading,acompanyprovidingone-to-onefoundationalreadingskillstutoringbasedontheScienceofReadin

264、gtostudentsinK12schoolsanddistricts.Foundedin2019,IgniteReadinghasrapidlyscaledwhiledemonstratingstrongefficacytodate.AstudyconductedbyAmericanInstitutesforResearchofkindergartenthroughthirdgradersinsixschooldistrictsinMassachusettsconfirmedthatafter14weeksoftutoringwithIgniteReading,thenumberofstud

265、entswhoscoredatorabovebenchmarkontheDIBELSassessmentgrewfrom11%to45%.Theseoutcomeshaveprovenconsistentregardlessofastudentsgender,race,ethnicity,language,socioeconomicstatus,orspecialneeds.Duringthe20222023schoolyear,94%ofstudentsservedbythecompanywereFreeorReducedLunchenrollees,73%identifiedasfroma

266、nunderrepresentedcommunity,27%identifiedasmultilinguallearners,and17%receivedspecialeducationservices.71Hernandezetal.:DoubleJeopardy:HowThird-GradeReadingSkillsandPovertyInfluenceHighSchoolGraduation,April2011.2Morgan:Equal Is Not Good Enough,November2022.3Bryantetal.:COVID-19LearningDelayandRecove

267、ry:WhereDoUSStatesStand?,January2023.4AnnieE.CaseyFoundation:SincePandemicsStart,42StatesSeeRiseInFourth-GradersBelowReadingProficiency,November2022.5Sawchuk:High-DosageTutoringIsEffective,ButExpensive.IdeasforMakingItWork,August2020.6Schwartz:WhichStatesHavePassedScienceofReadingLaws?WhatsinThem?,J

268、uly2022,updatedJanuary2024.7IgniteReading:Our Proven Program Gets Results,asofMarch2024.38 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|UnlockingEconomicOpportunitiesDefining Social Impact Investing to Drive Sustainable DevelopmentInvestorsareincrea

269、singlyrecognizingthatpromotingeconomicopportunitiesinallcommunitiesisakeytodurable,long-termeconomicgrowth.Withinflationarypressuresandsluggisheconomicgrowthdisproportionatelyaffectinglower-incomecommunities,investmentinsocialsolutionsisontherise.1BuildingamoresustainableglobaleconomyiscentraltotheU

270、nitedNationsSustainableDevelopmentGoals(SDGs).ManyoftheSDGsoverlapacrosstargetstoexpandaccesstoessentialgoodsandservices.Companiesinavarietyofsectorsarehelpingtomakethishappen,includingenablersofdigitalconnectivityforremotecommunitiesandreducedhealthcarecosts.Otherpromisingcompaniesaredrivinginnovat

271、ioninareassuchaseducationandsupplyingmoreaffordablehomes.2OurGlobalSocialImpactEquitystrategyisdesignedtodeliveronthesustainabilitypreferencesandgoalsofourclientswhoareseekingbothfinancialreturnsandpositivesocialoutcomes.CASE STUDYInvesting$1.3 Billion in Global Social Impact Public Equity Strategy3

272、Tocapitalizeonthistrendanddrivesustainableoutcomes,GoldmanSachslauncheditsfirstdedicatedsocialimpactpublicequitystrategyinJune2023.Withapproximately$1.3billioninAUS,thestrategyseekstocreatepositivesocialimpactbyinvestingincompaniesconsideredtobesustainableinvestments.Thesecompaniesaimtoprovidesoluti

273、onsthatdrivesocialsustainabilitybyvirtueoftheiralignmenttokeythemesassociatedwithsolvingsocialproblems.Companiesintheportfolioprovide,invest,orcreateproducts,services,ortechnologiesacrossanumberofinvestmentthemes:Thriving Communities:Investmentinareassuchasaffordablehousing,digitalinclusion,accessto

274、cleanwaterandsanitation,andaccesstocleanenergy.Withintheseareas,weinvestincompaniesincludinginformationtechnologyprovidersanddevelopersofwater-treatmentandpurificationsolutions.Economic Empowerment:Enablepeopletoparticipateineconomicdevelopmentbyinvestingineducation,equaljobopportunities,andfinancia

275、linclusion.Withinthistheme,weinvestincompaniesincludingprovidersofonlineandhybrideducation,humanresourcecompanies,andproviders,ofmobilephonebasedfinancialservicessolutions.Good Health and Well Being:Contributetoimprovingqualityoflifebyfocusingonareassuchasnutritiousfood,activelifestyle,andaccessible

276、andinnovativehealthcare.Withintheseareas,thestrategyinvestsincompaniesincludingmedicaltechnologydevelopers,healthcare/insuranceproviders,andoperatorsoffitnesscenters.Safe Society:Helpbuildasafesocietyandincreasequalityoflifeforindividualsandcommunities.Thisthemecoversareassuchasdataprivacyandsecurit

277、y,humansafety,climatechangeresilience,andaccountableinstitutions.Weinvestincompaniesincludingcloudsecurityproviders,safetyequipmentmanufacturers,andenvironmentalconsultingfirms.1GIR:10 Predictions for Sustainable Investing in 2023,January2023.2GIR:SocialCapital:HowBusinessCanDriveImpactThroughAfford

278、ability,September2022.3PleasenotethatforthepurposesoftheEuropeanSustainableFinanceDisclosureRegulation,therepresentativeaccountofthestrategyisanArticle9productthathasasustainableinvestmentobjective.PleasenotethatthismaterialincludescertaininformationonGoldmanSachssustainabilitypracticesandtrackrecor

279、d,atanorganizationalandinvestmentteamlevel,whichmaynotnecessarilybereflectedintherepresentativeaccount.Pleaserefertotheofferingdocumentsofanyproduct(s)priortoinvestment,fordetailsonhowandtheextenttowhichtheproduct(s)takesESGconsiderationsintoaccountonabindingornonbindingbasis.39 GOLDMAN SACHS 2023 S

280、USTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|UnlockingEconomicOpportunitiesScaling Technology Solutions to Support the Energy TransitionIn This Chapter42ExpandingtheRenewableEnergyRollout44UsingGeothermalPowertoHelpMeetElectricityDemand45SupportingRenewableSourcesofNat

281、uralGas40 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners1EnergyInstitute:2023 Statistical Review of World Energy,June2023.2IEA:Net Zero Roadmap 2023 Update,October2023.3EnergyInstitute:2023 Statistical Review of World Energy,June2023.4Ibid.5GIRCarbono

282、mics.TheglobaleconomyhasbeenpoweredbytraditionalenergysourcessincetheIndustrialRevolutionandwillcontinuetorelyontraditionalfuelsthroughouttheenergytransitiontohelpensureenergyreliabilityandaffordabilityasnewtechnologiesandenergysourcesscaletomeetdemand.1Transitioningtoalow-carbonfuturewillrequireadi

283、versesetofenergysources,requiringanestimated$4.5trillionperannumincleanenergyinvestmenttomeetParisAgreementclimategoals.2Globalpowergenerationnearlydoubledinthepasttwodecades,increasingbyapproximately35%from2010to2022.3Duringthesametime,theshareoffossilfuels(coal,petroleum,andnaturalgas)fellfrom68%o

284、ftotalgenerationto62%,whiletheshareofrenewables(excludinghydroelectricity)rosefrom4%to14%,representingmorethanafourfoldincreaseintotalrenewablegeneration.4AccordingtoourCarbonomicsresearch,wepredictthesetwotrendsofdecliningbutsignificantfossilfuelshareandincreasingrenewablegenerationtocontinuethroug

285、h2030duetocontinuedgrowthinelectricitydemand.By2030,wepredictthatfossilfuelsharewillfallto48%oftotalgenerationwhilerenewableshare(excludinghydro)willdoubletonearly30%.5Tohelpaddressthescopeandscaleoftheinvestmentrequired,GoldmanSachsseekstotakeacomprehensiveapproachtosupportingtheseemergingandscalin

286、gtechnologies,includingwind,solar,geothermal,andrenewablenaturalgas,amongothers,whichwillplayacriticalroleinenablingasecure,affordableenergyfuture.Global Power Generation by Year05,00010,00015,00020,00025,00030,00035,000Electricity Generation(TWh)20302029202820272026202520242023202220212020201920182

287、0172016201520142013201220112010 Coal Petroleum Liquids Natural Gas(incl.NG+CCUS)Nuclear Hydroelectric Conventional Renewables(excl.Hydro)Other“Ourclientsareinadynamicstageevaluatingadiversefutureofenergy,oneofcontinuedrelianceontraditionalenergysourceswhilesolutionsaredeployedtosupportbroad-basedele

288、ctrificationandaddressareassuchasrenewablesintermittencyandAIdatacenterspowerdemand.Asatrustedadvisor,wearefocusedonhelpingourclientssupportexistinginfrastructureandbringnew,innovativetechnologiestomarketatscalethatwillhelpcontributetomeetingincreasedglobalenergydemandneedsthroughourdifferentiatedsu

289、iteoffinancing,investing,andadvisorycapabilities.”Suhail Sikhtian GlobalHeadofNaturalResourcesInvestingBankingSource:EnergyInstitute,GIRCarbonomics41 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|ScalingTechnologySolutionstoSupporttheEnergyTransition

290、Expanding the Renewable EnergyRolloutAkeyfocusofourclientsissupportingincrementalenergyneeds,driveninpartbytheprospectofdata-centergrowthduetoAI,andtherolloutofrenewableenergytechnologyindevelopedmarkets,includingtheUnitedStates,whichrepresented13.5%ofglobalemissionsin2021.1GiventhesizeofUSemissions

291、,andlikelydemandincreasesfromEVcharginganddatacenters,itiscriticaltocontinueexpandingtherolloutofdomesticrenewableenergy.Newenergytechnologiesalsorepresentasignificantinvestmentopportunity,withpolicyincentivesandrelatedmultipliereffectsexpectedtodrivetrillionsofdollarsininvestmentsacrossrenewabletec

292、hnologies,accordingtoGoldmanSachsCarbonomicsresearch.2Inadditiontorenewablepowergenerationcapacity,substantialinvestmentintransmissioninfrastructure,whichconnectsgenerationfacilitiestoend-usecustomers,isneededtoenablelow-costwindandsolartoconnecttothegrid.AccordingtotheUSDepartmentofEnergy(DOE),theU

293、Swillneedtoexpandtransmissionsystemsby60%by20303tomeetgrowingenergydemand.Wearehelpingourclientsdriveinternationalgridinfrastructureinvestment,includingadvisingEliaGroup,aBelgiantransmissionandpowergenerationcompany,onitsinvestmentintheUSrenewableenergymarket.CASE STUDYInvesting in Renewable Infrast

294、ructure With Elia GroupEliaGroup(“Elia”),oneofthelargestelectrictransmissionsystemoperatorsinEurope,acquired(throughitsWindGridsubsidiary)a35.1%stakeinenergyReGigaProjects(“energyReGiga”),asubsidiaryofenergyReLLC.TheinvestmentvaluesenergyReGigaat$1.1billiononapost-moneybasis.Elias$400millioninvestme

295、ntwillbedeployedoverthreeyearstofundenergyReGigaspipelineofprojectsunderdevelopmentcomprisingtransmission-ledonshorewindandsolargeneration,transmissionlines,andoffshorewindgenerationassets.TheinvestmentallowsEliatoentertheUSmarketwithastrongandwell-establishedstrategicpartner.EliaandenergyRewillbeab

296、letoleveragetheirrespectivestrengthsbybuildinguponcomplementarytechnicalexpertiseandcapabilitiestosupportenergytransition.GoldmanSachsactedassolefinancialadvisortoEliaonthistransaction.1IEA:GreenhouseGasEmissionsfromEnergyDataExplorer,asofMarch2024.2GIR:Carbonomics:The third American energy revoluti

297、on,August2023.3UnitedStatesDepartmentofEnergy:Queued Up But in Need of Transmission,asofMarch2024.42 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|ScalingTechnologySolutionstoSupporttheEnergyTransitionExpanding the Renewable Energy Rollout(continued)

298、1GIR,PVInsights,viaGS Intelligence.Technologicalandfinancialinnovationshavebroughtrenewableenergysourcesintothemainstream,resultinginmoreaffordableenergy,reducedcarbonemissions,energydiversification,andjobcreation.Since2008,thepriceofsolarmoduleshasdroppedby85%,accordingtoGoldmanSachsresearch,1makin

299、gsolarcompetitivewithothertechnologies.Assolarproductionexpandsandbecomesalargerpartoftheglobalenergymix,itiscriticaltocontinueinvestinginnewtechnologies.WerecentlysupportedNextrackeronitsseparationfromitsparentcompanytoenablegreaterflexibilityforitsfuturegrowthplans.Thecompanyiscreatingsolutionstha

300、toptimizesolarenergyproductionefficiencyusingsoftwareandtrackingtechnologythatmonitorsthemovementofthesun.CASE STUDYAdvising Nextrackers Spin-Off to Support Intelligent Solar Electricity ProductionGoldmanSachsservedasfinancialadvisoronthespin-offofNextracker,Inc.,aleadingproviderofintelligent,integr

301、atedsolartrackerandsoftwaresolutionsusedforutility-scaleanddistributed-generationsolarprojectsglobally.Nextrackersproductsenablesolarpanelsinlarge-scalepowerplantstofollowthesunsmovementandoptimizesolarperformance.Thisallowsmoreenergytobeproducedfromafacility,acceleratingtheadoptionofsolarelectricit

302、yproduction.Followinga$638millionUSIPOinFebruary2023,NextrackersuccessfullyspunofffromitsparentcompanyFlexLtd.inJanuary2024.Supportingthespin-offandservingasfinancialadvisortoaleadingsolartechnologyfirmisanopportunityforustoenablesolutionsneededforcleanenergyproduction.“Solar comprises the largest s

303、hare of new power generation capacity globally,and Nextracker is well positioned to continue driving utility-scale and distributed generation solar power as the world transitions to renewable energy.”Dan Shugar FounderandCEO,Nextracker43 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunit

304、ies With Our Clients and Partners|ScalingTechnologySolutionstoSupporttheEnergyTransitionUsing Geothermal Power to Help Meet Electricity DemandAkeycomponentofdiversifyingtheglobalenergymixisfindinganewsourceoflow-carbonbaselinegenerationtomeetgrowingpowerdemand.IntheUnitedStates,theDOEexpectselectric

305、itydemandtoaccelerateoverthenextdecade,1drivenbynewindustrialfacilitiesanddatacenters.Whilemostofthisnewdemandisexpectedtobemetbywindandsolarpowergeneration,thereisaneedfornewlow-carbonsourcesofbaseloadgeneration,whichcansteadilyproduceelectricitywhenintermittentenergysourcessuchaswindandsolarproduc

306、elesspower.TheDOEhasidentifiedgeothermalenergyasalow-carboncandidatetomeetthisneed.Geothermalplantscanproduceelectricity24/7,emitnogreenhousegases,andhavelifecycleemissionssixto20timeslowerthannaturalgas.2Whileconventionalgeothermalgenerationrequiresexistinggeologicfeaturestopumpwaterunderground,nex

307、t-generationgeothermaltechnologiescanexpandproductiontonewareas,withthepotentialfor90GWofinstalledcapacityby2050.3GoldmanSachsclientFervoEnergyisattheforefrontofnext-generationgeothermalpower,andwehelpedsupporttheireffortstoexpandgeothermalproductionandadvancegeothermaltechnology.CASE STUDYRaising C

308、apital to Accelerate Fervo Energys Deployment of Next-Generation GeothermalGoldmanSachsactedasexclusiveplacementagentforFervoEnergysrecent$244millioncapitalraise.ThisfinancingwillunlockFervosnextphaseofgrowth,deployingproventechnologyadaptedfromtheoilandgasindustryatscaletodelivercommerciallyviable2

309、4/7carbon-freeenergy.Sinceitslastfundraise,Fervohassuccessfullybroughtitsfirstcommercialprojectonline,establishingFervossystemasthemostproductiveenhancedgeothermalsystem(EGS)inhistory.FervohasalsobegundrillingatCapeStation,a400MWprojectinBeaverCounty,Utah.Earlydrillingresultsshowreduceddrillingtimes

310、andlowercoststhatsignificantlyexceedDepartmentofEnergyexpectationsforEGS.ThefundraisewillsupportFervoscontinuedoperationsatCapeStation,whichwillbegindeliveringcleanelectricitytothegridin2026.1UnitedStatesDepartmentofEnergy:DOE Releases New Report Outlining Solutions to Meet Growing Electricity Deman

311、d,April2024.2UnitedStatesDepartmentofEnergy:Geothermal Basics,asofMarch2024.3UnitedStatesDepartmentofEnergy:LPOTechTalk:Next-GenerationGeothermal,March2024.44 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|ScalingTechnologySolutionstoSupporttheEnergyT

312、ransitionCASE STUDYSupporting Renewable Natural Gas Production With Carolina RenewablesGoldmanSachsprovideda$70millionloantosupporttheramp-upandoperationofanRNGproductionfacilityinNorthCarolinaforsponsorCarolinaRenewables.Thefacilityutilizesvariousagricultural,industrial,andcommercialfeedstockssucha

313、sswinewaste,poultrywaste,andotherwastestoproduceRNGandprovideasustainableenergysource.Thiscontributestoreducinggreenhousegasemissionswhilealsopromotingacirculareconomybyrepurposingorganicwasteintoenergy.TheRNGproducedbythefacilitywillbeinjectedintoexistingpipelinesfordeliverytoDukeEnergyandBritishPe

314、troleum.Currently,thefeedstocksusedinthefacilityaredisposedinlandfills,sprayedonopenfields,orburned,releasingmethaneintotheatmosphere.Byusingthesewasteproductsasasubstitutionforfossilfuelbasednaturalgas,CarolinaRenewablesiscreatingamoresustainablesourceofgasproductionandmeetinglocaldemandforalternat

315、ivestoreducetheircarbonfootprint.1EPA:An Overview of Renewable Natural Gas from Biogas,January2024.2Ibid.3NGVAmerica:Renewable Natural Gas Breaking Motor Fuel Usage Records,April2023.4EPA:An Overview of Renewable Natural Gas from Biogas,January2024.Supporting Renewable Sources of Natural GasInadditi

316、ontosupportingnewrenewableenergytechnology,GoldmanSachsisalsosupportingourclientsworkinidentifyingmoresustainablefuelsourcesforexistingenergyinfrastructure.RenewableNaturalGas(RNG)isnaturallyoccurringbiogasthathasbeenrefinedtouseinlieuoftraditionalnaturalgas.1Thebiogascanbesourcedfromlandfills,munic

317、ipalwaterrecoveryfacilities,organicwastemanagementfacilities,andlivestockfarms.ReplacingconventionalnaturalgaswithRNGcanreduceGHGemissions,improveairquality,providefuelsourcediversification,andsupportamorecirculareconomy.2Sourcinghigh-qualityinputsandreducingwasteiscrucialtorealizingthebenefitsofRNG

318、,andGoldmanSachsAlternativeshasworkeddirectlywithVerdaliainEuropeandSynthicaintheUStoadvancesustainableRNG.SynthicaproducesRNGderivedfromprocessingpre-consumerorganicwaste,whileVerdaliasfeedstockwillprimarilybeagriculturalandlivestockwaste.VerdaliaandSynthicaarebothworkingtodesign,build,own,andopera

319、temedium-tolarge-scaleanaerobicRNGproductionfacilities.Bothportfoliocompaniesareworkingtoadvancecleanenergyandcirculareconomysolutions.Historically,demandforRNGhasbeenconcentratedinthetransportsector,asnaturalgashasincreasinglybeenusedasatransportationfuelfortrucksandbuses.Usageinthetransportationse

320、ctorhasincreasedby218%since2018,3drivenbylow-carbonfuelstandards.However,demandforRNGhasincreasedinnon-transportationuse-casesforgasutilities,corporations,andotherentitiesseekingtoreducethecarbonintensityoftheiroperations.Manycompaniesintheindustrialsectorareseekingsolutionstomeetfast-approachingdea

321、dlinesforGHGreductions,especiallycompaniesthatusenaturalgasforhigh-heatandsteamprocesses.RNGisaviablealternative,asitcanbeusedasadirectreplacementfornaturalgas.AkeydriverinRNGdemandisgovernmentrenewableportfoliostandards,whicharebecomingmorestringent,and,inmanycases,recognizeRNGasanacceptablerenewab

322、leresource.However,akeychallengetoproducingRNGistheavailabilityofcapitalandhighupfrontcostscomparedwithexistinggridinfrastructure.4Additionally,securingofftakeagreementscanaddtothechallengesofsecuringfinancing.Byaddressingtheseissues,financialfirmscanhelptheirclientsfacilitatecircularsolutionsbyturn

323、ingwasteintonewrenewableenergysources.WorkingwithourclientCarolinaRenewables,GoldmanSachsprovidedafinancingforafacilityproducingRNGthroughanaerobicdigestionbyusingexistingwasteproductsandsellingtheRNGundercontractsunderpinnedbystateandotherincentives,thusfacilitatingtheexpansionofRNGproductioninthes

324、tate.45 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners|ScalingTechnologySolutionstoSupporttheEnergyTransitionEnabling the New Transportation Sector Value ChainIn This Chapter48DiversifyingtheSourcingofCriticalMineralsandBatteryComponentProduction51Fac

325、ilitatingGrid-ScaleBatteryStorageforEnhancedEnergyResiliency46 GOLDMAN SACHS 2023 SUSTAINABILITY REPORT03|Thematic Opportunities With Our Clients and Partners1IEA:TransportEnergySystem,asofFebruary2024.2ForfurtherdetailonhowdifferenttechnologieshaveshiftedtheCarbonomicscostcurve,pleaseseethelatest C

326、arbonomics cost curve report.Transportation,whichaccountsformorethanathirdofglobalCO2emissions,1isundergoingrapidchangeduetotheglobalrolloutoflight-dutyelectricvehicles,whiletheelectrificationofothertransportationsectorsisbecomingincreasinglyevident.AtGoldmanSachs,wearesupportingourclientstohelpcrea

327、temoresustainablevaluechainsbydiversifyingthesourcingofcriticalmineralsandenhancingbatteryrecycling,whilehelpingtoensurethatelectricgridsandrelatedinfrastructureareequippedtohandleincreaseddemandandimprovereliabilityandaffordability.Takentogether,ourclientsprioritiesarehelpingtotransformthetransport

328、ationsectoracrossthevaluechain.WhilecleantechnologiesdominatedbyrenewablepowerremainatthelowerendoftheCarbonomicscostcurve,theyhavebecomerelativelymoreexpensiveyearoveryear,drivenbylowergasprices,higherinterestrates,andcostinflation.Atthesametime,relativelymoreexpensivetechnologies,suchaselectricveh

329、iclesandtransportation,havebecomelessexpensiveduetolowerrawmaterialcostsandsimplerbatteryintegration.2Thechartbelowshowsthetransportationsectortechnologiescarbonabatementcostreductionsfrom2022to2023.Inadditiontothesecosttrends,weseeincreasingfocusfromcorporatesandconsumersonsolutionstoimproveconsump

330、tionefficiency.Thisisdriveninpartbytheneedforenergyandlanduseefficiencyinserviceofmeetingbroaderenvironmentalandfinancialgoals,thecontinueddeploymentofmaterial-intensive,low-carbontechnologies,andanticipatedsupplyshortfallsofcriticalmaterialsoverthecomingdecade.Demandforcriticalmineralsisexpectedtos

331、ignificantlyincreaseoverthenextdecades,whichcouldstrainsupplychainsandminingfacilities.Circulareconomysolutionsofferanarrayofbenefits,includingtheextensionofproductlifespanandthereductionofwastematerials.Acrossthetransportationsector,wesupportourclientsacrossvariouscomponentsofthevaluechaintohelpimp

332、rovethereliabilityandaffordabilityofelectricandelectrifiedsolutions.4644424038363432302826242220181614121086420-500-400-300-200-10001002000-100-200-300-400-500Forillustrativepurposes,thischartonlyincludesthereductionsincarbonabatementcostchangesfortransportationsectortechnologies.Thetechnologieswith

333、increasedabatementcostsfrom2022to2023thatarenotshowninclude,butarenotlimitedto,renewablepower,renewablepowerwithenergystorage,SAF,andbuildingsefficiency(heatpumps),amongothers.Source:GIRTransportation Sector Technologies Carbon Abatement Cost Reductions From the 2022 to 2023 Carbonomics Cost Curves(US$/tnCO2)Carbon Abatement Cost Change in 2023 Cost Curve vs.2022(US$/tnCO2eq)GHG Emissions Abatemen