ESG of the Future: A Forward Look at Corporate Greenhouse Gas Emissions, Potential ESG Improvers

Goldman Sachs Research expects increased focus on corporate emissions of greenhouse gases as ESG markets become more forward-looking and in response to both rising regulations including proposals from the SEC and carbon pricing considerations.

Goldman Sachs Research introduces their analysts’ estimates for Scope 1 and 2 greenhouse gas emissions for select companies in seven critical sectors. Their forecasts through 2025 imply that corporate emissions will remain below 2019 levels, but the reduction in corporate emissions intensity does not appear consistent with a path that limits global temperature rise to 1.5°C. Goldman Sachs Research expects an ESG investor shift from aspiration to action to lead to valuation premiums over time for leaders in corporate decarbonization with favorable corporate returns.