Goldman Sachs Releases Decarbonization Goals in TCFD Report for 2021

Accelerating Transition is the 2021 TCFD Report. The paper updates the company's climate change and low-carbon economic framework. It includes 2030 ambitions in industries where Goldman Sachs sees client partnership prospects. A worldwide climate transition requires extraordinary public and private investment.

Accelerating Transition, the 2021 Task Force on Climate-Related Financial Disclosures (TCFD) Report, was released today by The Goldman Sachs Group, Inc. ("Goldman Sachs"). The report updates the firm's comprehensive framework for dealing with the effects of climate change and transitioning to a low-carbon economy. The Accelerating Transition report includes new targets for 2030 in sectors where Goldman Sachs sees opportunities to partner with its clients to drive decarbonization in the real economy, in addition to detailing Goldman Sachs' own climate risk management policies and governance.

Goldman Sachs Chairman and Chief Executive Officer David Solomon stated:

“As a financial institution, we believe we can achieve the greatest impact in advancing the climate transition by partnering with our clients across our business. Whether it’s by developing new sustainability-linked financing solutions, offering world-class strategic advice, or co-investing in cutting-edge clean energy companies, we’re constantly innovating and expanding new commercial capabilities to accelerate our clients’ transition. This will take time and require thoughtful public policy, along with the private and public sectors working together to achieve a more sustainable future. Our Accelerating Transition report shows our determination to do our part.”

The firm's approach to advancing the Paris Agreement's goals is based on working with clients to drive progress toward net zero ambitions, engaging partners and broader stakeholders, and managing the firm's own climate-related risks, which is guided by a newly formed Firmwide Climate Steering Group. Achieving a global inclusive climate transition will necessitate unprecedented levels of investment from both the public and private sectors. To meet this challenge, Goldman Sachs will use its deep market expertise and differentiated risk capabilities to direct capital to critical or innovative climate solutions, such as its collaboration with Bloomberg Philanthropies and the Asian Development Bank on clean energy projects in South and Southeast Asia, or Apple's Restore Fund, a first-of-its-kind carbon removal initiative launched with Conservation International.

Following Goldman Sachs' March 2021 commitment to align its financing activities to a net zero 2050 pathway, as well as its participation in the United Nations-convened Net Zero Banking Alliance, the firm has now established an initial set of 2030 targets for the Oil & Gas, Power, and Auto Manufacturing sectors based on their materiality to global emissions, Goldman Sachs' own business, and the availability of sufficient data to engage with clients in a meaningful way. These targets, which cover Goldman Sachs' corporate lending commitments, debt and equity capital markets financing, and on-balance-sheet debt and equity investments, present a significant opportunity for the firm to help advance the transition and contribute to a more sustainable future for all.

Source: GoldmanSach news