The Goldman Sachs Group, Inc. (NYSE: GS) has announced that it will expand its clean energy target to $150 billion in financings and investments by 2025 as part of its updated Environmental Policy Framework. First established in November 2005, the new framework codifies the roadmap for continued environmental progress across each of Goldman Sachs’ businesses.
“Over the past 10 years, we have built on our commitment to harness market-based solutions to help support a healthy environment and address the problem of climate change. We will continue to work towards deploying innovative financial mechanisms through an expanded investor base focused on environmental opportunities,” said Lloyd Blankfein, Goldman Sachs Chairman and Chief Executive Officer.
The updated Environmental Policy Framework includes expanded targets and key initiatives that will guide Goldman Sachs’ ongoing contributions to a sustainable future. Some highlights include:
- By 2025, Goldman Sachs will target $150 billion in clean energy financing and investments, expanding the existing $40 billion target set in 2012.
- By 2015, Goldman Sachs will be the first US investment bank to be carbon neutral across its operations and business travel. By 2020, the firm will target $2 billion in green operational investments and seek to source 100 percent renewable power for its global electricity needs.
- Goldman Sachs will target the deployment of clean energy solutions to underserved markets to facilitate more equitable and affordable access through the launch of a Clean Energy Access Initiative.
- TheGoldman Sachs Centre for Environmental Markets will invest $10 million in grants through partnerships that will demonstrate the potential of innovative financial mechanisms to unlock capital for environmental solutions.
The framework also includes initiatives to facilitate capital for water, climate risk solutions and other environmental opportunities, and to develop innovative applications for green bonds, as well as our approach to environmental and social risk management. In addition, Goldman Sachs Asset Management will expand its Environmental, Social and Governance (ESG) and impact investing capabilities.