Investing in a Low-Carbon Future

One of the roles we play as a financial institution in the transition toward a low-carbon future is to invest alongside our clients in helping to scale up clean technology and other environmentally beneficial projects.

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In 2012, we extended our long standing commitment by establishing a $40 billion target to finance and invest in companies that promote clean technology alternatives over the next decade. In the two years since our new target, we have co-invested $1 billion in clean energy opportunities, and since the inception of our Environmental Policy Framework  in November 2005, we have co-invested nearly $5 billion in clean energy and environmentally beneficial projects.

These investments have provided the necessary funding that emerging industries need to achieve the economies of scale that will help them become more cost-competitive. Our portfolio consists of companies and projects in the areas of solar, wind, advanced biofuels and geothermal energy. We also have investments in energy efficiency technologies, sustainable real estate development and companies that focus on market infrastructure development.
 

 

 

In India, ReNew Power has continued to expand its production of wind power. We are the lead investor in ReNew Power through an equity investment made through our Merchant Banking Division. The company has a goal to expand its wind portfolio, reaching 1 gigawatt capacity by 2015, and becoming the subcontinent’s leading renewable energy producer.

In July 2013, we entered into a power purchase agreement with ReNew Power to supply our Crystal Downs facility in Bangalore with renewable energy.  The partnership showcases our continued commitment to growing the renewable energy sector in India, both as an investor and as a credit worthy user of clean energy in support of our own 2020 carbon neutrality goal.

In addition to our clean energy investments, the Urban Investment Group (UIG) has committed over $3 billion in capital to help revitalize inner cities through financing projects that bring needed housing, jobs, education, healthcare and other services to underserved and emerging communities. UIG has increasingly focused on green initiatives to facilitate lower energy costs and more sustainable and vibrant neighborhoods.  For example, We invested $10 million to finance the development and installation of solar panels on the rooftops of not-for-profit Community Action Partnerships (“CAPs”) in New Jersey. CAPs are local organizations that carry out the Community Action Program to promote self-sufficiency based on local community needs, such as operating Head Start programs, job training centers and food pantries.  Our investment generates significant environmental and financial benefits to low- and moderate-income communities by producing local, zero-emission energy at a reduced price for the not-for-profit CAPs and by creating temporary and permanent jobs. 

 

This document is posted to GS.com for information only and is not for redistribution.  This document has been prepared by the Environmental Markets Group at Goldman Sachs and is not a product of the research department of Goldman Sachs.  This document should not be used as a basis for trading in the securities or loans of the companies named herein or for any other investment decision. This document does not constitute an offer to sell the securities or loans of the companies named herein or a solicitation of proxies or votes and should not be construed as consisting of investment advice.

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