Climate Action

Goldman Sachs joins UN Principles for Responsible Banking with new net zero target

Goldman Sachs will be joining the UN principles for Responsible Banking as it announces new net zero target.

  • 09 March 2021
  • Rachel Cooper

Goldman Sachs will be joining the UN principles for Responsible Banking as it announces new net zero target.

Last year, Goldman Sachs developed a framework to put climate transition and inclusive growth at the forefront of our work with clients, announcing that it would target $750 billion in financing, investing, and advisory activity to nine areas focused on these two priorities by 2030.

One year on, the bank has reached $156 billion of its total, including $93 billion dedicated to climate transition. This week, Goldman Sachs announced it will be expanding its operational carbon commitment to include its supply chain, targeting net zero carbon emissions by 2030.

The company will be joining the U.N. Principles for Responsible Banking to ensure its strategy is in line with the Paris Agreement goals and will be working to develop more comprehensive climate data and to promote more thorough disclosure.

David Solomon, Goldman Sachs Chairman and CEO, said: "We’ve made a concerted effort to make public our own progress in cutting our greenhouse-gas emissions. We were the first U.S. bank to disclose under the Sustainability Accounting Standards Board (SASB) standards, and last year, we issued our inaugural Taskforce on Climate-related Financial Disclosure (TCFD) report, which explained how the management and oversight of climate change is integrated into our business."

The bank also launched its Sustainable Finance Group along with dedicated sustainability councils within the businesses, each led by a senior leader within the firm, to integrate sustainable solutions into its work with clients. In addition to this, last month, Goldman Sachs issued its first-ever sustainability bond, which funds commercial activity tied to its $750 billion commitment.

David Solomon added: "We’ve joined the U.N. Principles for Responsible Banking to make sure our strategy is in line with the Paris Agreement goals. As part of this commitment, we will conduct an impact analysis of our firm’s activities and enhance our own emissions disclosures. And using this forum to collaborate with our industry peers, we will also set interim business-related climate targets by the end of 2021. We are also advancing the proactive management of our operations—in 2015, we became the first of our peers in the financial-services sector to reach carbon neutrality in our operations and business travel."

"So though we’ve made progress on our sustainable finance goals, one thing is clear: to make even further progress, collaboration is vital, especially in the short term. So we encourage business leaders from all industries to join these collective efforts. After all, it’s the gains we make in the short term that will make our success in the long term possible."