Environmental Market Opportunities
Global Investment Research
Through our Global Investment Research, we are committed to systematically incorporating environmental, social and governance (ESG) criteria into the fundamental analysis of companies.
We believe that companies’ management of environmental and related social risks and opportunities may affect long-term corporate performance.
We further believe that the effects of climate change and other environmental risks are increasingly significant issues for capital market participants globally. Credible investment research can influence decisions made by investors, policymakers and regulators, which in turn may help to increase management teams’ focus on the importance of environmental and social issues.
We provide training for all new equity analysts on our approach to incorporating ESG factors as part of a long-term investment strategy. We also offer all of our research analysts access to ESG data in order to incorporate material ESG analysis across our sector investment research.
Launched in 2007 at the UN Global Compact Leaders Summit, GS SUSTAIN is a global, long-term investment research strategy designed to generate sustainable alpha by integrating analysis of financial strength, strategic positioning and ESG performance. Through GS SUSTAIN, we have been at the forefront of integrating environmental, social and governance criteria into the fundamental analysis of companies, and bringing greater investor attention to the importance of ESG factors in identifying companies that are best placed to manage 21st-century business risks.
The GS SUSTAIN ESG framework covers Goldman Sachs’ global research footprint of nearly 4,000 companies. GS SUSTAIN also maintains a 50 List of high-quality companies that are well positioned to sustain industry-leading total shareholder returns over a long-term investment horizon. The GS SUSTAIN 50 List has outperformed its global benchmark by 43% from its inception in June 2007 through year-end 2017.
Through our Global Markets Institute, whose mission is to contribute to public policy development on matters related to the global capital markets, and our equity research teams, we have produced thematic research on the risks and opportunities arising from climate change and water accessibility. Our research has also explored how environmental issues in countries such as China impact industry leaders and provide market opportunities.
See the select related research on our website:
Our Global Clean Energy Research and other industry coverage teams follow clean energy companies and innovative technologies around the world, including solar, wind, biofuels/biochemicals, energy efficiency, storage and electric vehicles. We will continue to leverage our market insights and investment research to better inform investors on how climate change and other critical environmental issues impact capital flows and investment opportunities.
Based on our research, we continue to actively meet with clients and investors, participate in and convene events, and provide technical input on strategic ESG initiatives, including disclosure around ESG data and performance, where appropriate.