Sustainable Finance

We believe that sustainability has evolved from aspirational ideals to commercial solutions. 

Today, sustainable finance is no longer on the sidelines, but increasingly core to a company’s business. We are helping our clients accelerate climate transition and advance inclusive growth, bringing the full strength of the firm across our commercial expertise, capabilities and knowledge to deliver results that help contribute to broader growth and opportunity.

Sustainability is a firmwide mandate with a focus on the dual and inter-connected themes of climate transition and inclusive growth, and at the center is the Sustainable Finance Group which is partnering with our global businesses to harness capital markets to drive the transition to an inclusive, low-carbon economy.

Our Goal

Where the world is going

We are committed to helping our clients position themselves for a future in which sustainability is core to all industries and integrated across markets, with successful commercial solutions. We will achieve this vision by doing what we do best — invest, finance, advise, and innovate — to drive global climate transition and inclusive growth strategies that accelerate positive change. That’s why we’re targeting $750 billion in sustainable finance growth themes by 2030.

Climate Transition

Clean Energy

Our clean energy focus supports our clients’ efforts to reduce emissions and environmental impact by enabling renewable energy generation, energy efficiency and grid services.

Case Study: ReNew Power India

Funds managed by Goldman Sachs have been long-time supporters of Renew Power India, beginning from the fund’s early stage investments in ReNew Power to Investment Banking Division working on three green bonds totaling to ~$1.3 billion. On the path to helping ReNew Power become India’s largest independent renewable energy company, ReNew’s business growth has also contributed 4,000+ new jobs to the Indian economy across more than 95 villages. ReNew’s growth is playing a key role in India’s transition to a low-carbon economy.

Sustainable Transport

Our sustainable transport focus enables clients in the sector to reduce their environmental impact by shifting the mode of transit or increasing per-trip efficiency through electric vehicles, connected services, autonomous driving and public transportation development.

Case Study: Northvolt

Northvolt, a Sweden-based European supplier of sustainable, high-quality battery cells and systems, targeting the automotive and energy storage sectors. In 2019, Goldman Sachs, alongside Volkswagen Group and BMW, led a $1 billion equity capital raise for Northvolt. This capital enables the construction of an initial 16GWh lithium-ion battery cell manufacturing capacity at Northvolt’s gigafactory in Sweden, Northvolt Ett, the first gigafactory in Europe. Northvolt’s “greenest battery on earth” is powered by 100% renewable electricity and is implemented through a localized and traceable supply chain with ambitions to pursue material recycling.

Sustainable Food & Agriculture

Starting with agricultural production and moving through storage, processing and distribution to green consumer products: our focus is on enabling improved sustainability of the food and agriculture value chain.   

Case Study: Twiga Foods

Twiga Foods, a Kenyan B2B food distribution company, recently raised $23.75 million in a series B equity round led by Goldman Sachs. Since its launch in 2014, Twiga has been building Kenya’s only end-to-end distribution for fresh and processed food. The equity raised will fund the continued development of Twiga’s proprietary technology and logistics assets to support the rollout of its distribution system and lay the foundation for expansion into other cities on the African continent, thereby helping to drive sustainable access to lower cost higher quality food. 

Waste & Materials

Our focus on Waste and Materials includes supporting clients that manage waste responsibly and promote sustainable production and consumption through their operations. 

Case Study: Restaurant Technologies

In 2018, funds managed by Goldman Sachs acquired Restaurant Technologies, Inc. Headquartered in Minneapolis, Restaurant Technologies provides a closed-loop system to commercial kitchens which is a safer, cleaner, sustainable and more efficient way to manage cooking oil. Once used cooking oil is collected from customer locations by Restaurant Technologies, it is sold to producers of biofuels to be used as a feedstock in the production of such fuels. Restaurant Technologies has a diverse set of customers from independent restaurants to grocery stores and hospitality venues.

Ecosystem Services

Through our work in ecosystem services we are monetizing the value of forests, water, and biodiversity and contributing to the sustainable management of natural resources for our clients.

Case Study: The Conservation Fund

The Conservation Fund worked with Goldman Sachs to offer first-of-its-kind set green bonds totaling $150 million. Proceeds from the green bonds will be used to increase the scale of the “Working Forest Fund” dedicated to mitigating climate change, strengthening rural economies and protecting natural ecosystems through the permanent conservation of at-risk working forests. Working forests — forestland that is sustainably managed to supply a steady, renewable supply of wood for industry and consumer purposes — provide jobs and community benefits in addition to environmental protection.  

Inclusive Growth


Digitization of healthcare is leading to better accessibility. Micro finance solutions are enabling the growth of SMEs and entrepreneurs. Financing solutions around affordable housing are addressing underserved markets. At its core, inclusive growth is about supporting communities, drawing on innovative finance and partnerships to mitigate unequal access and affordability among underserved populations. Leaning on the principles of inclusivity and disruptive thinking, Goldman Sachs is supporting concrete solutions to drive inclusive growth.

Accessible & Innovative Healthcare

We are advancing accessible and innovative healthcare to enable the use of digital technology, coordination, and infrastructure advancements for our clients, as well as to support advanced devices and diagnostics toward better healthcare outcomes.

Case Study: Grupo Oncolinicas

Headquartered in Sao Paulo, Brazil, Oncoclinicas is the largest private provider of comprehensive oncology treatment in the country. Goldman Sachs’ sustainable finance solutions have enabled Oncoclinicas to build large-scale projects and continue investing in the most advanced technologies in cancer treatment. As an investor since 2015, our capital has helped to support growth and expansion into 25 cities in Brazil and in 2018 we became the organization’s largest shareholder.

Financial Inclusion

We are working with our clients to advance the growth and advancement of financial technology, insurance products and alternative credit to help support financial inclusion for all.   

Case Study: MPOWER

In 2019, Goldman Sachs provided $100 million loan financing facility to MPower, a provider of student loans to international and DACA students attending universities in the U.S. and Canada. MPower works with over 350 top universities and colleges across the U.S. and Canada to provide financing to students from over 200 countries.

Accessible & Affordable Education

We are working with our clients to enable greater access to education, improve learning outcomes, and help close opportunity gaps for learners of all ages. 

Case Study: Climb Credit

Climb Credit received $50 million in lending capital from Goldman Sachs to provide financing for people to affordably learn valuable career skills with life-changing impact. The capital allows Climb Credit to expand access to career-transforming education and skills training for people with various financial backgrounds, and promote economic mobility for their users. Since 2014, their loans have funded the education of over 15,000 learners and they've partnered with nearly 200 schools that provide training for career paths with strong earning potential in today’s economy.

Communities

Our focus is anchored in community investment and supporting clients to enable infrastructure development, affordable housing and livelihood advancement.       

Case Study: Bedford Stuyvesant Restoration Corporation

Responding to the need for quality affordable housing in New York, Goldman Sachs partnered with the leading not-for-profit organization Bedford Stuyvesant Restoration Corporation (BSRC), the nation’s first Community Development Corporation, to finance six separate mixed-use mixed-income housing developments within a single neighborhood in Brooklyn. Goldman Sachs’ Social Impact Fund also provided a $12 million lending facility to help BSRC expand its operations and improve organizational efficiency.

Our Sustainability Journey

Announcing the Formation of the Sustainable Finance Group

Our Commitment to Eliminating Plastics

Sustainable Finance Innovation Forum

Clean Energy Impact

Goldman Sachs Acquires Imprint Capital

Innovative Green Bond Transactions

Tackling Water Challenges

Clean Energy Financing & Investment Target

Signatory to the United Nations Principles for Responsible Investing

Clean Technology & Renewables Group

Committing To Carbon Neutrality

Goldman Sachs Asset Management Launches SUSTAIN Product

Global Investment Research Launches GS SUSTAIN Platform

Center for Environmental Markets

Environmental Policy Framework

Announcing the Formation of the Sustainable Finance Group

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Our Commitment to Eliminating Plastics

The firm is on track to remove 85% of the plastics we consume by the end of 2019. In addition to replacing plastic bottles and straws, this effort includes plastic film presentation covers and bindings.

Sustainable Finance Innovation Forum

We hosted the 2017 Sustainable Finance Innovation Forum to discuss the latest market developments and innovations that are defining the next frontier of sustainable economic growth.

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Clean Energy Impact

After achieving our initial goal of financing and investing $40 billion in clean energy, we put the number in context as we look ahead to our expanded target: $150 billion by 2025.

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Goldman Sachs Acquires Imprint Capital

In 2015, Goldman Sachs acquired Imprint Capital, a leading institutional impact investing firm and innovator in developing investment solutions that generate measurable environmental, social, and effective governance (“ESG”) impact alongside a financial return.

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Innovative Green Bond Transactions

We led several innovative transactions to expand the green bond market – from the first century green bond and the first green energy market securitization to the first Latin America renewable project green bond.

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Tackling Water Challenges

We structured several public-private partnerships to finance much needed water infrastructure and hosted a summit focused on financial solutions in the water sector.

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Clean Energy Financing & Investment Target

During a time when the clean energy markets were volatile, we established a target to deploy $40 billion of capital to advance the clean energy sector over the following decade. In 2015, we expanded our target to $150 billion by 2025.

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Signatory to the United Nations Principles for Responsible Investing

Through GSAM, we joined a global network of investors to advance our commitment to environmental, social and governance integration across our investment platform.

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Clean Technology & Renewables Group

We established a group within Investment Banking to lead the growing clean energy sector. We have been the leading financier helping clean energy scale up globally.

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Committing To Carbon Neutrality

We established a new goal to achieve carbon neutrality in our operations by 2020 by adopting a carbon reduction framework. In 2015, we expedited our commitment by five years and will be carbon neutral starting from 2015 onwards.

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Goldman Sachs Asset Management Launches SUSTAIN Product

We launched a global equity product to create investment opportunities that meet sustainability criteria.

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Global Investment Research Launches GS SUSTAIN Platform

We launched GS SUSTAIN at the UN Global Compact Leaders Summit. GS SUSTAIN incorporates ESG criteria into the fundamental analysis of companies to identify long-term outperformers.

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Center for Environmental Markets

We launched the Center for Environmental Markets with three partnerships focused on researching market solutions and informing policy to address climate change. Since then, we have contributed $13 million to additional partnerships and pilot projects focused on clean energy, energy and resource efficiency, water and other critical environmental issues.

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Environmental Policy Framework

Our Environmental Policy Framework articulates our conviction that a healthy environment is a foundation for a strong and sustainable economy and our commitment to leveraging market solutions to address critical environmental challenges.

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Environmental Policy Framework

In November 2005, Goldman Sachs established our Environmental Policy Framework, which articulated our belief in the importance of a healthy environment and our commitment to leveraging our people, capital and ideas to address critical environmental issues. In 2015, we released an updated policy outlining a more ambitious roadmap. We have continued to build upon our commitment to the environment across each of our businesses.

VIEW POLICY DOWNLOAD POLICY [PDF]

Environmental and Social Risk Management

We approach the management of environmental and social risks with the same care and discipline as any other business risk, and undertake a robust review process to take the environmental and social impacts and practices of our clients and potential clients into consideration in our business selection decisions.

EXPLORE

Our Operational Impact

Minimizing our operational impact is a prerequisite of sound environmental policy and a necessary complement to our core business activities.

ZERO

Net carbon emissions across our global operations and business travel from 2015 onwards

100%

Renewable power goal for our global electricity needs by 2020

$2bn

Targeted in green operational investments by 2020

70%

Real estate green-building certified by 2020

Our People and Thought Leadership

Environmental stewardship is not only about how we operate our business, but also about how we engage our people.  Through programs sponsored across our global businesses, environmental issues are discussed and environmental initiatives are acted upon. We will continue to look for opportunities to further engage our employees on environmental opportunities.

News and Events

"Goldman's Commercially Driven Plan for Sustainability"
Op-ed by David Solomon, Chairman and Chief Executive Officer, Goldman Sachs. 
Read on LinkedIn

Exchanges at Goldman SachsIs Sustainable Finance the Next Big Commercial Opportunity?

John Goldstein of Goldman Sachs discusses the firm’s sustainability goals over the next 10 years and explains the commercial opportunity across two core themes–climate transition and inclusive growth. Listen Now

Statement on the Publication of the Climate Finance Leadership Initiative Report 

On September 18, 2019, the Climate Finance Leadership Initiative (CFLI) released a report, Financing the Low Carbon Future, aimed at mobilizing private climate finance at the scale and speed needed to support the transition to a low-carbon economy. Read Press Release

The Long & Short of It: The Plastics Paradox

The increasing pressure to reduce single-use plastic and changing consumer behavior is putting a question mark on the long-term demand growth of the plastics industry. Nikhil Bhandari of Goldman Sachs Research explains how efforts to limit plastic’s environmental impact could affect the industry over the next decade. Watch Video

Exchanges at Goldman Sachs: How Can Cities Adapt to Climate Change?

Goldman Sachs’ Amanda Hindlian and Sandra Lawson discuss key findings of their team’s recent research report. Listen Now