The environmental and social impact of our operations also extends to the goods and services provided on our behalf by third party vendors. We are committed to adopting more sustainable procurement and supply chain practices.
We continue to advance our commitments to sustainable supply chain management through the development of our ESG vendor governance framework that is integrated across our whole procurement and vendor management lifecycle, prioritizing our material risks and promoting innovative collaboration with our vendors.
2025 Commitments around our Supply Chain
- Assess 100% of global vendors for ESG risks
- Increase spend with diverse vendors by 50% (from a 2020 baseline)
- Procure 100% green cleaning products for on-site cafeterias globally
- Procure 50% sustainably sourced food for on-site cafeterias globally
- Reach Net Zero emissions in our operations and supply chains by 2030
Responsible Procurement & Supply Chain Management
Environmental, social and governance (ESG) is core to our decision-making processes when selecting vendors to deliver goods and services to the firm.
Our Vendor Code of Conduct, which forms part of our vendor on-boarding requirements - and applies to all vendors globally, states the expectations we have of our supply chain and their subcontractors to adopt ethical, safe, fair and environmentally responsible business practices. We work with our key vendors to set ESG goals and targets, and understand their approach to ESG through self-assessment questionnaires.
We engage our vendors across a host of ESG topics in order to drive change across our operations and within our supply chain. Climate change is one of our key environmental focus areas and in 2020 we received the highest rating ‘A’ for the Carbon Disclosure Project (CDP) supplier engagement assessment. We will also continue to work with our vendor partners to make progress toward our 2030 Net Zero supply chain commitment.
Every year we release our Modern Slavery Statement outlining the steps we take to manage the risks of modern slavery and human trafficking within our operations and supply chain. We perform enhanced due diligence on our vendors in industries and geographies at higher high risk of slavery and human trafficking. We also train our people so that they can identify risks of slavery and human trafficking within our supply chain and know how to raise concerns and continually screen our vendors against an extensive set of media, government and regulatory sources in order to identify potentially adverse information.
Our Vendor Diversity program is a core component of our sustainable supply chain strategy. Our program provides a platform to engage with small and diverse businesses, and seeks to create a supply chain that is reflective of the diversity of the communities where we live and work and the clients we serve. In 2020, Goldman Sachs bought goods and services worth over $265 million from small and diverse vendors globally, representing 5% of our addressable spend. 70% was with minority-/women-owned businesses and 30% with small businesses. 28% of our overall spend was Tier 2. We remain committed to holding ourselves and our vendors accountable in our efforts to increase spend with small and diverse businesses from our 2020 baseline by 50% by 2025. As we look to the year ahead, we will continue to partner across the firm to identify diverse businesses from our 10,000 Women and 10,000 Small Businesses alumni and Launch With GS and One Million Black Women initiatives.
During the demolition and construction of Plumtree Court in London, we engaged with our contractors and their supply chain to help minimize our impact on the environment and promote the engagement of local labor, local and small businesses, as well as create opportunities for apprentices and trainees. Highlights include:
- Finalist in the Inclusive Employment Award category of the City of London’s Dragon Awards for the efforts undertaken during construction to drive a diverse and inclusive workforce
- Over £100M spent with local SME
- More than 200,000 hours worked by apprentices and trainees
- Worked with our lead contractors and St Mungo’s Homeless Charity to support transition from homelessness, enabling candidates to work on our construction site
- All onsite workers paid at least the London Living Wage
- Focus on inclusivity and wellbeing onsite: mental health training, English lessons, health screenings
- Hundreds of local students exposed to careers in the built environment
- Over 99% of waste was diverted from landfill
- 100% of timber used was from sustainably managed forests (Forest Stewardship Council certified)
- Partnership with Waste Match to re-use, remanufacture, sell or donate all non-fixed furniture items (FFE) from the legacy London campus; over 9,000 assets are being donated to charities, schools and medical establishments, and 2,600 tons of waste have been saved from landfill
- Partnership with our onsite vendor and Olleco to collect our used cooking oil and to recycle it into renewable energy. The biodiesel produced, which meets the EU specification EN 14214, is sold to the fuel majors, where it is blended for use in forecourts. This initiative is a great example of a successful circular economy model, with the final biodiesel product saving more than 86% carbon emissions compared to regular fossil diesel.
Our global operational efforts to enhance our sustainable procurement include, but are not limited to:
- Technology: Reusable bulk server packaging; e-waste recycling or re-purposing by ISO 14001-Certified Vendors; deploying remote access soft-tokens
- Food: Sustainable purchasing and operations; removal of single use plastics, recycling; composting, and food donations
- Paper and Print: Sustainable purchasing, recycling, print reduction (includes default duplex and secure printing, printer consolidation and transitioning to electronic statements). We are committed to a 30% reduction of paper per-capita from 2017 to 2025
- Furniture/Technology/Office Supplies: Sustainable purchasing; reuse protocols
- Travel: Eco-friendly cars and ferries; enhanced access to video conferencing in lieu of travel; investment in cycle facilities and elimination of onsite car parking spaces in London; transportation pooling for commutation rides in Bengaluru
- Events: Sustainable events management best practice under the ISO 20121 standards, focus on minimizing plastic, paper and food waste and maximizing use of small and diverse businesses.
- Capital Projects: Environmental and social performance of demolition and construction contractors, buying and hiring locally and sourcing certified sustainable materials