Goldman Sachs

Sector: Corporate

Employees:

> 26,467

TARGETS

> 7% reduction in CO₂e emissions (Scope 2) 2005-12

Achievements

> $1.5 billion invested in alternative energy companies and projects in the cellulosic ethanol, wind, wind turbine, solar photovoltaic and geothermal sectors.
> 19% share in the holding company of the Chicago Climate Exchange and European Climate Exchange.

Benefits

> Strong returns and deal profits from investments in the clean energy sector and carbon markets, demonstrated by the sale of Horizon Wind and the rapid growth in value of the global carbon markets - already worth over $30 billion.

Low Carbon Solutions

Background

US-based Goldman Sachs is a leading international bank with net revenues of $37.7 billion and $676 billion in assets under management in FY2006.
The impact of climate change action taken by Goldman Sachs, arguably the most prestigious investment bank in the world, is the wave of action by those that follow in its footsteps. A well-respected Wall Street corporation speaking up about climate change, and making investments in the low carbon economy, adds credibility to the positive arguments for taking action.

In its own operations, Goldman is set to reduce GHG emissions from electricity to 7% below 2005 levels by 2012. It has adopted uniform green building standards, focusing on procurement policies including paper and wood products that are Forest Stewardship Council certified and locally sourced goods and energy efficient products.

The firm is betting on the positive returns of the low carbon economy. Goldman’s environmental framework acknowledges the need for action to regulate the emission of GHGs and commits the firm to investing $1 billion in renewable energy. Goldman has in fact exceeded its commitment, investing over $1.5 billion in alternative energy companies and projects in the cellulose ethanol, wind, wind turbine, solar photovoltaic and geothermal sectors. Until recently Goldman owned the wind energy developer Horizon Wind Energy, which is responsible for the Maple Ridge Wind Farm project about 75 miles northeast of Syracuse, N.Y. and is developing the Marble River Wind Farm and the Dairy Hills Wind Farm, also in N.Y. Horizon expects to have 1350MW of wind projects in operation by the end of 2007. In addition to renewable energy investment, Goldman is investing in carbon emissions trading, having purchased a 19% share in the holding company of the Chicago Climate Exchange and European Climate Exchange. The global carbon market is expected to be worth $40 billion in 2012.
In addition, Goldman has established a Center for Environmental Markets, which awards research grants for projects that examine public policy options for establishing market-based solutions to environmental problems, and has already awarded $2.3 million.