Commercial, Finance - March 5, 2021
Goldman Sachs completed $156B in sustainable financing in 2020
Goldman Sachs announced March 4 that it achieved a fifth of its 2030 sustainable financing goal that it set in 2020, with $156 billion completed and $93 billion of that dedicated to climate transition.
The investment bank announced last year that it would target $750 billion in financing, investing and advisory activities focused on climate transition and inclusive growth by 2030. Soon thereafter, the bank created the Sustainable Finance Group to coordinate its sustainability efforts and in February 2021 issued its first sustainability bond.
Goldman Sachs achieved carbon neutrality in its operations and business travel in 2015, but this week also committed to being net zero in its entire supply chain by 2030.
Since expanding its climate-focused strategy, Goldman Sachs built the Renewable Power Group, which owns over 2 GW in U.S. renewable energy capacity, and became an investor in ReNew Power, one of the largest renewable energy developers and operators in India with over 5 GW of operational capacity and nearly 5 GW under development. Over the last two years, the bank has also provided over $1.6 billion in equity financing to support the construction of a lithium-ion battery factory in Sweden.
The bank has begun to focus on reporting its emissions and encouraging clients to do that same.
“Still, the challenge of climate change is massive; it cannot be addressed by one company alone,” David Solomon, Goldman Sachs chairman and CEO, said in a statement. “That is why we have long advocated for the United States to rejoin the Paris Agreement and are committed to delivering on its ambitious goals, including by aligning our financing activities with a net zero by 2050 pathway. We are committed to working with our clients, our industry peers, and the public sector to make this commitment a reality. And while long-term aspirations are important, business leaders must not lose sight of what we can do in the here and now to accelerate climate transition. For our part, in addition to driving capital to climate solutions and accelerating the climate transition of our clients, we’re advancing on three separate fronts.”
- Report: Goldman Sachs, H&M ramp clean energy use
- Smart Energy Voices Podcast: Episode 5 - Goldman Sachs' Renewable Energy Journey
- Goldman Sachs Sets 2030 Targets
- Smart Energy Voices Podcast - Episode 37: The State of Sustainable Finance
- Citi, Goldman Sachs and Others Join Collaboration to Decarbonize Steel