GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

Driving Long-Term Value:
Our Client-Centric
Sustainability Strategy

Contents

3

Letter From Our Chairman and CEO

58

Protecting the Value of Our Firm

59

Governance

62

Risk Management

64

Regulatory Preparedness

5

Introduction

6

About Goldman Sachs

7

Historical Sustainability Milestones at Goldman Sachs

9

Our Sustainable Finance Strategy

65

Metrics and Targets

14

Our Sustainable Finance Framework and Sustainable
Finance Commitment

66

Progress Toward Our Firmwide $750 Billion Sustainable
Finance Commitment

68

Progress Toward Our 2030 Sectoral Targets

69

Progress Toward Our Operational and Supply Chain
Commitments

74

SASB Index

79

Thematic Index for Our Existing Sustainability Disclosures

16

Thematic Opportunities With
Our Clients and Partners

17

Leveraging Data and Metrics for Better Decision-Making

24

Mobilizing Transition Finance Through Public-Private
Partnerships

31

Unlocking Economic Opportunities

80

Appendix¹

40

Scaling Technology Solutions to Support the Energy
Transition

81

Environmental & Social Due Diligence Guidelines

46

Enabling the New Transportation Sector Value Chain

53

Preserving Natural Capital and Protecting Biodiversity

85

Sustainability Issuance Report

87

Introduction

89

Sustainability Issuance Framework

92

Sustainability Issuances

97

Featured Investments

100

Report of Independent Accountants

102

Disclaimer

1 The appendix was added to this report on June 28, 2024, and no other changes or updates were made to the content of the report.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

2

David Solomon
Chairman and Chief
Executive Officer

Letter From Our Chairman and CEO
We have long been committed to addressing critical environmental issues, beginning in2005 with our inaugural Environmental Policy Framework where we were one of the first
financial institutions to recognize the scale and urgency of the challenges posed by climatechange. We have always acknowledged that navigating climate transition would be complex
and that as a financial institution, our central focus should remain on how we can deliver
sustainability solutions for our clients and grow commercial capabilities to support them.
The challenges facing climate transition are multifaceted: Our economy is heavily dependent upon a well-functioning
energy system. Today more than 80% of our global energy needs come from fossil fuels.1 That coupled with the backdropof rising energy demand and geopolitical conflicts in Ukraine and the Middle East has underscored the need for affordable
and reliable energy. In addition, higher levels of inflation have been headwinds to decarbonization as input costs haveincreased and supply chains are more complicated to navigate. And the impact of emerging technology remains to be seen,
with some sources indicating that electricity consumption from data centers, generative AI, and cryptocurrencies could
double by 2026 compared with 2022 levels.2
Scrutiny of sustainability commitments, divergence in client preferences, and regulatory approaches to climate change
across jurisdictions have also evolved. Our clients include pension plans and retirement funds, large and small businesses,
investors, and governments across various sectors and geographies and with a diversity of investment strategies andbusiness models. Regulatory regimes are also evolving across jurisdictions with different scopes and timelines. In 2025,
we will be one of the first US banks to file a global firmwide sustainability report under the European Union’s Corporate
Sustainability Reporting Directive. This new requirement is expansive in scope, covering not only our financial exposure
but also our environmental and social impact, and we are investing in our data management, measurement, and reporting
capabilities to prepare for this shift in the regulatory landscape.
Despite all of these external forces and evolutions, central to our focus on the effects from climate change as well as
decarbonization has always been our commercial capabilities and the insights that we can provide to our clients to help
them invest in opportunities and manage risk. I also want to be clear about our role in supporting our clients in this area:
First, we will continue to finance and advise our clients in the energy sector, and we will also invest in innovative
decarbonization technologies that can accelerate the transition. We need to do both. It’s not an or, it’s an and.
Second, we recognize that there is a gap between global climate ambition and the reality of where our energy system
is today, and this gap will not be closed just by private sector voluntary commitments. Government has always and willcontinue to play a critical role in setting policy, providing incentives, easing implementation challenges, and balancing
energy security and economic growth objectives with long-term climate ambition. There is no question that policy
has a big impact on our clients’ decarbonization goals and our ability to support them.
Lastly, the most meaningful role we can play in climate transition is developing the solutions our clients need todeliver on their decarbonization goals for their businesses. Over time, we have developed independent aspirational
goals and commitments to measure our progress, evolve our practices, and provide transparency to our clients

1 Energy Institute: 72nd Edition of the Energy Institute (EI) Review of World Energy, 2023.
2 International Energy Agency: Electricity 2024: Analysis and forecast to 2026, January 2024.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT3

01 | Letter From Our Chairman and CEO“We will continue to finance and advise
our clients in the energy sector, and we will
also invest in innovative decarbonization
technologies that can accelerate the transition.
We need to do both.”and key stakeholders. This includes a long-term net zero financing commitment and three related interim goals where wesee opportunities to support our clients’ decarbonization strategies in the Energy, Power, and Auto Manufacturing sectors.
In addition, we set a $750 billion sustainable finance target by 2030, and we are approximately 75% of the way there after
just four years. We are committed to continuing to invest in our capabilities so we can expand the range of sustainablefinance solutions we can provide, and later this year, we plan to provide an update on our net zero sectoral targets.
Beyond our business, we continue to build partnerships globally to address market gaps. In 2023, we completed allocating$25 million in philanthropic capital to the Climate Innovation and Development Fund, a blended-finance facility we createdwith Bloomberg Philanthropies and the Asian Development Bank. Launched in 2021, the fund has catalyzed approximately$500 million in private and public capital to support seven climate solution projects in South and Southeast Asia.
In the US, our partnerships continue to promote sustainable economic growth through entrepreneurship. In 2023, we
expanded our work supporting small businesses with the launch of 10,000 Small Businesses Investment in Rural Communities,
our $100 million commitment to bring our flagship business education program to 20 rural states over the next five years.
We also have extended our One Million Black Women: Black in Business program, an education initiative to help Black womensolopreneurs grow their businesses. More than 600 Black women from 40 states have participated so far.
There’s plenty of work ahead, and we’re ready for the challenge. By supporting our clients and working with our partners,
we will continue to execute our sustainability strategy and create long-term value for our shareholders.

David Solomon
Chairman and Chief Executive Officer

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

4

SECTION 02

Introduction
At Goldman Sachs, we aspire to be the world’s most exceptional financial
institution, united by our shared values of partnership, client service,integrity, and excellence.
These core shared values have guided us over the years and have helped
us develop our client-centric sustainability strategy, focused on helping
our clients achieve their objectives. In this section, we provide an overview
of Goldman Sachs, our sustainable finance strategy and our sustainabilitydedicated client-facing teams and capabilities we bring to clients, andprogress toward our $750 billion sustainable finance target.

In This Section
6

About Goldman Sachs

7

Historical Sustainability Milestones
at Goldman Sachs

9

Our Sustainable Finance Strategy

14

Our Sustainable Finance
Framework and Sustainable
Finance Commitment

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT5

02 | Introduction

About Goldman Sachs
Goldman Sachs is a leading global financial institution that delivers a broad range of financial
services to a large and diversified client base that includes corporations, financial institutions,
governments, and individuals. We operate two primary businesses: Global Banking & Markets
and Asset & Wealth Management.
Global Banking & Markets (GBM) provides financing, advisory services, risk distribution,and hedging for our institutional and corporate clients. GBM includes our Investment Banking,Fixed Income, Currency and Commodities (FICC), and Equities activities.
Asset & Wealth Management (AWM) provides investment services to help clients preserveand grow financial assets and achieve their financial goals. We manage assets across a broad
range of investment strategies and asset classes, including equity, fixed income, and private
markets. Goldman Sachs Alternatives activities, which are typically longer-term, include
investments in private equity, private credit, real estate, and infrastructure assets. Within Private
Wealth Management (PWM), we provide tailored wealth advisory services to clients.

2023 Financial Performance1(Net Revenue, USD millions)Global Banking & Markets
Asset & Wealth Management
Platform Solutions

$30B
GBM

Total

$46B
$14B
AWM

We aspire to be
the world’s most
exceptional financial
institution, united
by our shared valuesof partnership, client
service, integrity,and excellence.

1 Goldman Sachs: 2023 Goldman Sachs 10-K.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT6

02 | Introduction

Historical Sustainability Milestones at Goldman Sachs
Building on decades of experience from our commercial approach to sustainability, we anticipate
the rapidly changing needs of our clients to develop and deliver new sustainable finance services
and solutions that help them deliver on their most important sustainability priorities.

Our Long-Standing Commitment to Sustainability
We have been helping our clients and partners achieve their sustainability objectives for more than
two decades, beginning with the launch of our Urban Investment Group in 2001 and our partnershipwith the Wildlife Conservation Society to form Karukinka Natural Park in 2004. In 2005, we became
one of the first US banks to develop an Environmental Policy Framework. Over time, we have grown
our sustainability-related expertise within our business segments and scaled our suite of sustainablefinance capabilities and solutions to meet the growing demand from our clients.

2001

2004

2005

2007

2008

Launched Urban Investment
Group, committing ~$19 billion
to dateAnnounced partnership with
Wildlife Conservation Society
to form Karukinka Natural Parkto preserve in perpetuity morethan 735,000 acres of land inTierra del Fuego at the southern
tip of South America

One of the first US
banks to develop an
Environmental Policy
Framework

Launched GS SUSTAIN, which
provides research and data tools toclients exploring how innovation,
regulation, and implementationof environmental, social, andgovernance-related topics will
impact sustainable investing andbroader capital flows

Launched 10,000 Women,reaching over 200,000
women across 150 countries
since inception

2009

2012

2014

2015

2019

Launched 10,000 Small Businesses,
serving over 17,000 entrepreneurs
to date, representing more than
330,000 employees and $33 billion
in total revenue

Inaugural clean energy
financing and investment
target set

10,000 Women and International
Finance Corporation launched the
Women Entrepreneurs Opportunity
Facility, reaching more than
200,000 women entrepreneurs
and unlocking ~$7.5 billion in loans
to women-owned businesses
since inception

Reached carbon neutrality
across operations andbusiness travel

Established the Sustainable
Finance GroupAcquired Imprint Capital
Advisors

Announced $750 billion
Sustainable FinanceCommitment by 2030
Launched Carbonomics, ourflagship research series on theeconomics of decarbonization

2020

2021

2022

2023

Created AWM’s
Sustainable InvestingGroup and GBM’s
Commodities
Sustainable Solutions

Launched One Million Black Women in partnership with Black
women–led organizations to invest $10 billion in investment
capital and $100 million in philanthropic capital to impact the
lives of at least one million Black women and girls by 2030

Created GBM’s Sustainable
Banking Group

Unlocked ~$500 million of blended
private and public sector financethrough the Climate Innovation andDevelopment Fund

Committed to aligning our financing activities witha net zero by 2050 pathway and expanded our operational
commitment to target net zero for our supply chain
Issued $800 million inaugural Goldman Sachs benchmark
Sustainability Bond
Announced Goldman Sachs Bloomberg Climate FinancePartnership, including the Climate Innovation andDevelopment Fund alongside the Asian Development Bank
Launched Carbon Portfolio Analytics for clients in Marquee
Became founding US bank member of open source datanon-profit OS-Climate
Launched ESG Beacon to source, model, and deliver
sustainability data to our businesses

Acquired NN Investment
Partners to benefit fromcombining its sustainabilityrelated expertise andcapabilities with ours

Raised ~$2.6 billion for climate transition–
related Horizon strategies
Expanded Marquee’s portfolio offering
to allow clients to assess their portfolios’
climate transition
Launched 10,000 Small Businesses
Investment in Rural Communities to expand
business education and capital accessprograms to 20 rural US states overthe next five years
Goldman Sachs Asset Management(GSAM) named Top 3 Sustainable
Alternatives Manager by PEI MediaAll to date figures are as of December 31, 2023, unless otherwise specified.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT7

02 | Introduction | Historical Sustainability Milestones at Goldman Sachs

Recent Sustainability Milestones
We have achieved meaningful milestones across a number of key initiatives:1

Firmwide Sustainable Finance Milestone~$555B~$2.5Bsustainable finance activity
since 2019~$9.4Bof Goldman Sachs sustainability
issuances2 since 2021

private markets impact capital,
ranking Goldman Sachs as
the world’s third-largest private
markets impact manager3

Climate Transition~$2.6B~$77B

raised for climate transition–
related Horizon strategies4~$500M

notional value of primarymarket climate-related
debt issuance5 in which
Goldman Sachs participatedprivate and public sector capital
unlocked by Climate Innovation
and Development Fund, including
for some first-of-their-kind projects
and solutions in areas of Vietnam
and India

Inclusive Growth+$19B+$2.3B+$750M+$3B

deployed since launchof the Urban Investment
Group in real estate
projects, social enterprises,
and lending facilities forsmall businesses

investment capital and$33 million in philanthropic
capital committed sincelaunch of One Million
Black Women, building thefoundation to impact
the lives of over 200,000
Black women and girls

committed to 10,000 Small Businesses
with a recent $100 million expansionof 10,000 Small Businesses Investment
in Rural Communities, expanding
business education and capitalaccess programs to 20 rural US
states over the next five years

philanthropic giving
worldwide, benefiting
over 10,800 non-profitsin 140 countries

1 As of December 31, 2023, unless otherwise specified.
2 Represents gross issuance size.
3 AUM based on private impact capital raised over past five years through March 2023 by Goldman Sachs Alternatives, the Urban Investing Group, and External Investing Group (XIG).
Impact capital is defined by GIIN’s definition of impact, namely: Impact investments are investments made with the intention to generate positive, measurable social and environmental
impact alongside a financial return in private markets. PEI Media ranks Goldman Sachs as the world’s third-largest manager of private markets impact capital in the latest New Private
Markets impact 50. Paywalled, source: New Private Markets: Impact 50: The scale-up of impact continues, June 2023.
4 Includes all capital closed as of 12/31/2023.
5 Total notional value of issuances on which Goldman Sachs had a role. Climate-related debt includes Green, Sustainability and Transition bonds as well as Sustainability-linked bonds per
Bloomberg from 01/01/23 to 01/01/24.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT8

02 | Introduction

Our Sustainable Finance Strategy
As a leading global financial institution with sustainability expertise across our organization,
we are supporting $750 billion in sustainable investing, financing, and advisory activities by
2030, leveraging our commercial capabilities and solutions to help our clients achieve theirsustainability goals.

Introduction to Our Sustainable Finance Strategy
As an investment bank, asset manager, corporate issuer, and risk manager, Goldman Sachs is uniquely positioned to help our clientsachieve their sustainability objectives — ​from companies, institutional investors, and governments to individuals — ​each with their own
distinct set of sustainability priorities. The three levers of our client-focused sustainable finance strategy help us drive long-term value
for our shareholders.

1

WorkingWith Clients2

Managing
Our Firm

3

Addressing
Market Gaps

Working With Clients

Addressing Market Gaps

Our sustainability strategy is centered on how we help our clientsachieve their sustainability objectives. We have developed andcontinue to refine our firmwide One Goldman Sachs commercial
model that leverages the full depth and breadth of our franchise,with the goal of bringing the best of Goldman Sachs and oursustainable finance capabilities to our clients.

When we and our clients identify gaps in the marketplace, we
seek to address them by leveraging our existing capabilities andthose of our strategic partners. Our external partnerships andstrategic philanthropy support our work to develop innovative
solutions to help our clients. The lessons we learn further inform thedevelopment and execution of our sustainable finance capabilities
and the solutions we bring to our clients and to markets.

Managing Our Firm
We provide our people with the tools, resources, and support theyneed to enhance the value of our firm by serving our clients. We also
leverage these capabilities to protect value through managing ourown global footprint. By tending to our operations and supply chain,
we strive to lead through action to advance sustainable businessoutcomes over the long term. We also aim to actively manage
climate and other environmental and social-related risks, while
preparing for upcoming sustainability-related regulation.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORTAs an example, we see policy shifts that are beginning toincentivize investment in critical minerals and battery production
at scale, and we have identified opportunities in the marketplace
to bring together the public and private sectors to support
initiatives including blended finance; we work closely with ourclients and strategic partners to help address these gaps.

9

02 | Introduction | Our Sustainable Finance Strategy

Working With Clients
We continue to integrate sustainability-related expertise into our primary businesses and acrossthe firm. Our growing suite of sustainable finance services and solutions, delivered through our
One Goldman Sachs commercial model, allows us to bring clients the best of Goldman Sachs to
help them achieve their sustainability goals.

Global Banking & Markets

Asset & Wealth Management

Sustainability Advisory: Advisory, M&A, IPO, Activism,
and Decarbonization strategies

Sustainability Advisory: Client advisory in developing organizational
approach and portfolio, asset class, and thematic investing strategies

Transition Capital and Financing With Sustainable-Themed
Products: Early-stage growth equity, financing for legacy
asset conversion, project financing for green CapEx initiatives,
tax equity, sustainable urban development, and sustainablethemed products such as structured notes, custom baskets, andportfolio transition trades

Research, Data, and Analytics: Analyses and tools to help clientsanalyze their portfolios, and climate intelligence to support investment
decision-making

ESG Financing and Investor Connectivity: Traditional and innovative
debt and equity financing products, ESG investor connectivity• Incorporation of climate and inclusive growth considerations acrosscertain funds, as well as products dedicated to those themes

Sponsor/Client Coverage and Analytics: Coverage resources for
ESG content and support for ESG-oriented investors and emerging
energy transition companies, and bespoke investor analytics, including
carbon, climate transition, and ESG portfolio analytics• Development of dedicated internally managed, comingled,
and custom options spanning both public and private markets

Environmental and Raw Material Markets:
Renewable energy and renewable energy certificates
supply, procurement, and risk management,
principal financing across environmental productand carbon markets, trading and risk managementin raw material markets relevant to climatetransition, e.g., battery metals

Client Products and Solutions: A growing range of products
and custom capabilities for clients that include:• Extensive range of external/open architecture public and private
investment options through Imprint

One
Goldman
Sachs

Ongoing Engagement: Dedicated transitionfocused resources for portfolio companies (e.g.,
Value Accelerator), public company engagementon policy and disclosure, timetable of expectations
for emissions disclosure and targets for relevant
verticals, and portfolio companies GHG1 measurement
support program

Global Investment Research
GS SUSTAIN: Research and data tools to help
clients explore how innovation, regulation, and implementationof sustainability topics will impact sustainable investing
and broader capital flows

Carbonomics: Flagship series dedicated to examining the
economics of decarbonization and sustainable growth, providing in-depth
analysis of costs, incentives, and financing options for key technologies
underpinning the paths to net zero carbon“Our firm serves a wide range of clients, each with its own distinct set of preferences and objectives.
Our One Goldman Sachs operating ethos helps us deliver the best of our firm’s sustainable financeexpertise, insights, and capabilities to our clients to help them advance their strategic priorities.”
John Waldron President and COO

1 Greenhouse gases (GHG) are defined as gases that trap heat in the atmosphere, and include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases. Each gas, when
combusted, has a different warming impact on the atmosphere, otherwise known as Global Warming Potential (GWP). In our metrics, we use CO2 equivalents (CO2e) to capture the contributionsof all GHGs in our physical emissions intensities.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT10

02 | Introduction | Our Sustainable Finance Strategy

Working With Clients (continued)

Our primary businesses deliver our firm’s sustainable finance strategy to clients. Below aresustainability-dedicated client-facing groups that are leading the delivery of our sustainable financecapabilities to clients from all sectors of the real economy across both public and private markets.

Global Banking & Markets
Our Global Banking & Markets franchise provides sustainability-related financing, advisory services, and risk management.
Within GBM, there are several key groups that contribute to our sustainable finance initiatives.
The Sustainable Banking Group (SBG) specializes in delivering bespoke analytics, advice, commercialization, and capitalsolutions for clients focused on energy transition, on advancing their decarbonization goals and sustainability profiles, the circular
economy, and on nature. These capabilities include traditional debt and equity finance, blended finance, structured finance, and
M&A advisory. The Commodities Sustainable Solutions team helps drive our climate objectives across commodities markets byproviding principal financing and trading solutions in areas such as clean power and carbon markets as they work with our clientsto help them achieve their net zero climate transition objectives.

Asset & Wealth Management
Our Asset & Wealth Management business provides clients breadth via sustainability-related capabilities, across public and private
markets, proprietary and third-party products, portfolio strategy and implementation, and depth, including specialist sustainability
teams and strategies.
AM Sustainable Client Solutions is a dedicated sales and distribution team within AWM that mobilizes the full range of insights,
advisory services, and investment solutions for our clients. Public Markets Investing has certain investment teams and capabilities
as well as support roles that may focus on climate transition and inclusive growth, from research and data to investment teams andstewardship. Within Public Markets, the Sustainable Investing and Innovation Platform acts as a central resource for Sustainable Investing(SI) and provides enhanced SI-tooling, data, and research capabilities. Goldman Sachs Alternatives1 also has teams specializing insustainable investing. Sustainability integration is led by the Sustainability & Impact team, which specializes in operationalizing andscaling sustainability capabilities across the investing sleeves. The Sustainable Investing Group specializes in investing across the climatetransition and inclusive growth thematics, partnering with clients through a series of Goldman Sachs Horizon strategies.

Enhancing Our Sustainability-Related Commercial Solutions for Clients
We continue to leverage complementary strengths of our existing investing teams to launch new sustainability-related strategies in line with manyof our clients’ preferences. For example, in March 2023, we launched a Global Impact Corporate Bond strategy and a USD Green Bond strategy
managed by a dedicated Green, Social, and Impact bonds team that joined the firm through our acquisition of NN IP in 2022. Further expanding on
our combined strengths, we recently launched a Global Green Bond strategy that leverages our acquired expertise in green bond investing withina passive investment approach.

1 Previously known as Private Markets Investing in prior reporting.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT11

02 | Introduction | Our Sustainable Finance Strategy

Working With Clients (continued)

Asset & Wealth Management (continued)
Our External Investing Group (XIG) is responsible for identifying, researching, and selecting leading third-party investment
managers. Imprint is a dedicated team within XIG focused on thematic research, manager selection, and co-investments acrosssustainable growth themes. Within our Private Wealth Management (PWM) business, the Sustainable Solutions Group (SSG)
advises clients on developing their sustainable investing strategy and works closely with firmwide resources to drive innovationand product offerings to help meet our clients’ sustainable and impact investing goals.

Global Investment Research
Our Global Investment Research (GIR) team is instrumental in informing and educating our clients and investors aboutsustainability. Within GIR, two key research initiatives, GS SUSTAIN and Carbonomics, provide invaluable insights to informsustainable investment decisions.
GS SUSTAIN, established in 2007, provides research and data tools to clients exploring how innovation, regulation, andimplementation of sustainability topics will impact sustainable investing and broader capital flows. Carbonomics, launched in
2019, is GIR’s flagship series dedicated to examining the economics of decarbonization and sustainable growth, providing in-depth
analysis of costs, incentives, and financing options for key technologies underpinning the paths to net zero carbon emissions.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT12

02 | Introduction | Our Sustainable Finance Strategy

Managing Our Firm and Addressing Market Gaps
In 2019, the Executive Office (EO) launched the Sustainable Finance Group (SFG) to formalize
and drive the firm’s sustainability strategy and related efforts across Goldman Sachs.
In partnership with other EO teams including Office of Government & Regulatory Affairs, Investor
Relations, Corporate Communications, and others, SFG advances the firm’s integrated commercial
approach to sustainability through central coordination of our firm’s regulatory preparedness,targets and commitments, reporting, strategic partnerships, environmental and social risk policies,
and our cross-segment commercial delivery strategy.

Targets and Commitments

Sustainability Reporting

Manages sustainable financeand other business-related
sustainability targets and related
integration strategy, including thefirmwide $750 billion sustainablefinance commitment and 2030
sectoral portfolios’ physicalemissions intensity targets.

Leads strategy and executionof flagship firmwide voluntarysustainability reporting, and advises
on sustainability and climatefocused reports developed by
the firm’s businesses andregional groups.

Cross-Segment Strategy
Coordinates strategic firmwidecommercial opportunities,
subject to existing firm policies,
procedures and controls.

Our Integrated,
Firmwide
Sustainability
Strategy

Environmental andSocial Risk
Oversees the firmwide EPF andglobal transaction guidance toprotect the firm’s reputation
by navigating sustainability risks
that may be associated withcommercial opportunities.

Regulatory Preparedness
Provides sustainability-related
expertise to help inform the firm’s
approach to regulatory sustainability
reporting implementation.

Strategic Partnerships
Identifies and delivers external
partnerships that enable Goldman
Sachs to support our work to develop
innovative solutions to help our clients.
The lessons we learn further informthe development and execution of
our sustainable finance capabilities
and the solutions we bring toour clients and to markets.

Other internal functional groups supporting the firm’s sustainability strategy include Controllers, Risk, Sustainable Operations and
ESG Beacon, among others. Please see the Protecting the Value of Our Firm section for more information on these groups.
GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

13

02 | Introduction

Our Sustainable Finance Framework
and Sustainable Finance Commitment
In 2019, we launched our Sustainable Finance Framework and announced our firmwide 10-year,$750 billion sustainable finance commitment to support client demand for sustainable financesolutions across our financing, investing, and advisory work with clients.

Our Sustainable Finance Framework
Designed to support our sustainable finance strategy, our Sustainable Finance Framework is organized around two sustainability
themes we expect to facilitate the greatest impact through our commercial work with clients and strategic partners — Climate Transition
and Inclusive Growth. The five sub-themes within Climate Transition and four sub-themes within Inclusive Growth help us prioritize
how we continue to develop and refine our sustainable finance capabilities to meet both current and future client demand.

Our Sustainable Finance Framework

Climate Transition

Inclusive Growth

Clean Energy
Enable renewable energy generation, energy efficiency,
and grid services.

Accessible and Innovative Healthcare
Enable the use of digital technology, advanced devices,and diagnostics for better outcomes.

Sustainable Transport
Shift modes of transit through electric vehicles,
connected services, autonomous driving, and public
transportation development.

Financial Inclusion
Advance financial inclusion for all, including underserved
populations, by promoting access to capital, financial technology,
and products that increase access, support financial health,and drive more equitable economic growth.

Sustainable Food and Agriculture
Enable green agricultural production, storage, processing,and distribution to feed the world.
Waste and Materials
Promote sustainable production and consumption,
along with responsible waste management.
Ecosystem Services
Contribute to the sustainable management of
natural resources and monetize the value of forests,
water, and biodiversity.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

Accessible and Affordable Education
Enable greater access to education, improve learning outcomes,
and help close opportunity gaps for learners of all ages.
Communities
Enable infrastructure development, affordable housing,and livelihood advancement.

14

02 | Introduction | Our Sustainable Finance Framework and Sustainable Finance Commitment

Facilitating Our Clients’ Priorities ThroughOur $750B Sustainable Finance Commitment
Since setting our 10-year goal, we’ve achieved approximately $555 billion in commercial activity, including $302 billion in Climate
Transition, $74 billion in Inclusive Growth, and the remainder in multiple themes.1 This progress demonstrates our ability to captureclient demand by directing capital toward solutions that help our clients achieve their sustainability objectives. For more informationon contribution by business segment and sub-theme, please see the Metrics and Targets section.

Progress Toward 2030 Target
Notable Transactions$750B

Redwood Materials
Theme: Climate Transition
Business Segment: AWM
Goldman Sachs Alternatives co-led the $1 billion Series D
funding round to support Redwood Materials, a leading
lithium-ion battery materials manufacturer, in its effort todevelop and localize the US’ battery supply chain for electricvehicles and energy storage.

~$555B

Achievement to date

Amara NZero
Theme: Climate Transition
Business Segment: GBM
Goldman Sachs acted as Joint Global Coordinator and Joint
Physical Bookrunner on Amara NZero’s €270 million Green Senior
Secured Notes. Amara is a global leading distributor of products
and services used in the energy transition, directly contributing toworldwide decarbonization efforts. This was one of the first highyield green bonds with proceeds used for acquisition financing,aligned with the ICMA Green Bond Principles. Amara publisheda Green Bond Framework with a Second Party Opinion.

Grow Therapy
Theme: Inclusive GrowthBusiness Segment: AWM
Goldman Sachs Alternatives invested in Grow Therapy,
a leading behavioral health provider enablement platform
striving to create a more accessible healthcare industry byallowing mental health professionals to find patients, conduct
virtual or in-person visits, and bill and collect payments.

The Ohio State University

Climate Transition$302B

Inclusive Growth$74B

Theme: Inclusive GrowthBusiness Segment: GBM
Goldman Sachs’ Higher Education team served as lead Dealer
Manager for The Ohio State University on an innovative liability
management transaction targeting $600 million of outstanding
debt. The transaction was part of a larger bond financing thatraised $300 million of proceeds for a new in-patient hospital
facility at The Ohio State University Wexner Medical Center.
Remainder in
Multiple Themes

In the next section of this report, we share how we are helping our clients capture opportunities
and address market gaps to help them achieve their sustainability goals.2
1 Includes activity relating to both Climate Transition and Inclusive Growth.
2 Case study examples in the Thematic Opportunities With Our Clients and Partners section are for illustrative purposes only
and in limited instances do not fall within scope of Goldman Sachs’ $750 billion Sustainable Finance Commitment.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

15

SECTION 03

ThematicOpportunities
With Our Clientsand Partners
Our clients continue to seek markets expertise, access to capital, and innovative
sustainable finance solutions to support their decarbonization and sustainablegrowth strategies. Through our recent work with clients in all sectors of the real
economy across public and private markets, we share six thematic opportunities
in today’s marketplace.

In This Section
17

Leveraging Data and Metrics
for Better Decision-Making

31

Unlocking Economic
Opportunities

24

Mobilizing Transition FinanceThrough Public-Private
Partnerships

40

Scaling Technology Solutions
to Support the Energy
Transition

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

46

Enabling the New
Transportation Sector
Value Chain

53

Preserving Natural
Capital and Protecting
Biodiversity

16

03 | Thematic Opportunities With Our Clients and Partners

Leveraging Data
and Metrics for
Better DecisionMaking

In This Chapter
19

Our Centralized Sustainability
Data Hub

20

Leveraging Data to Supporta Range of Investors

23

Exploring GenAI to Support
Our Clients and Our Reporting

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03 | Thematic Opportunities With Our Clients and Partners | Leveraging Data and Metrics for Better Decision-Making

At Goldman Sachs, data informs our decision-making, from how we manage our firm to how
we help our clients deliver on their sustainability ambitions. As an investment bank, asset
manager, corporate issuer, and risk manager, we seek to use measurement approaches andanalytical tools to improve our identification and management of risks and opportunities.
Not only is data a fundamental component of regulatory preparedness, it also enables our
tracking and reporting on progress toward our existing targets and commitments and bringing
differentiated insights to our clients.
Today’s sustainability data landscape is complex and developing. Reliability of this data remains a key challenge for many
companies and investors to execute their sustainability strategies. While the data landscape continues to evolve, significant
challenges remain, particularly the availability, consistency, and comparability of decision-useful data.
The proliferation of fragmented sustainability disclosure requirements across jurisdictions creates further complexity as wellas the potential for higher compliance costs, driven by new operational processes, reporting, and related controls associatedwith this data. As we continue our effort to comply with existing and forthcoming regional sustainability reporting requirements
focused on financial materiality, e.g., United Kingdom Financial Conduct Authority’s Taskforce on Climate-Related Financial
Disclosures, we also are preparing for the European Union’s Corporate Sustainability Reporting Directive (CSRD) that mandates
the European Sustainability Reporting Standards (ESRS), which requires both financial and impact-related disclosures.
As we assess the data landscape in preparation for our mandatory firmwide sustainability reporting in 2025, we continue ourwork with today’s data to develop both commercial and risk management tools and solutions to help our clients and firm
improve decision-making capabilities.

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03 | Thematic Opportunities With Our Clients and Partners | Leveraging Data and Metrics for Better Decision-Making

Our Centralized
Sustainability Data Hub
We strive to provide our clients and businesses with the most accurate and decisionuseful data available, leveraging our in-house proprietary solutions and external resources.
We provide our clients with tools to help them consistently and effectively evaluate theirclimate performance and progress, identify opportunities, and allocate capital to meettheir objectives.

Overview of Our
Sustainability Data JourneyGoldman Sachs has a long history of data engineering; for example, our Securities Database platform was launched
in 1993 to blend quantitative finance, engineering, and technology. In 2013, Goldman Sachs started to make this available
to institutional clients via Marquee, our digital platform for institutional and corporate clients. Our platforms continue
to evolve with the development of open source, cloud native, and AI innovation, but our core tenants remain — c​ ollecting
the highest-quality data and fostering the innovation of best metrics to help build trust.
Continuing our pursuit of innovative tools and solutions, we launched ESG Beacon in 2021, creating a centralized
sustainability data hub. A partnership between SFG and our engineering teams, this data hub continues to develop
solutions to improve decision-making, and manage risk and regulatory change, while delivering unique insights to ourbusinesses and clients.1

ESG Beacon: Enabling Firmwide
Data Integration and Connectivity
ESG Beacon builds on the firmwide data platform, known as Legend, ensuring integration and connectivity to otherfirmwide data. ESG Beacon provides a dedicated team to source, model, and deliver sustainability data, acting as a utility
to businesses across the firm.
ESG Beacon’s approach is to design and curate “data models” — ​clear names and definitions of the data elements andrules of how they link together across topics. Supporting strong data governance, it provides tools to help users translate
between different models, track lineage back to authoritative sources, and compare multiple primary sources — u​ ltimately
forming a common data language to enable data integrity and connectivity to support our businesses and clients.
Since its launch, ESG Beacon has enabled more effective and efficient sharing and validation of underlying corporate
emissions and investments data to evaluate climate-related risks and opportunities, monitor progress on publicsustainability commitments, and prepare for the evolving sustainability reporting landscape.

1 Subject to firm policies, procedures, and controls.

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19

03 | Thematic Opportunities With Our Clients and Partners | Leveraging Data and Metrics for Better Decision-Making

Leveraging Data to
Support a Range of Investors
We have clients across all sectors, including hard-to-abate sectors. As a result, measuring carbon
emissions is an important tool for managing and monitoring climate risk. By establishing a baseline
footprint, or estimate of the emissions associated with an entity’s activities, investors and managers
can make more informed decisions about their strategic plans and set realistic goals for reductions.
Within our AWM business, we support private portfolio companies as they seek to measure andmanage their carbon footprint.

CASE STUDY

Supporting Carbon Footprint Measurement forGoldman Sachs Alternatives Portfolio Companies
In 2023, we began emissions inventorying our Goldman Sachs
Alternatives portfolio at scale, developing a program and tools to
help portfolio companies begin calculating their carbon footprint,
from measurement through the first steps of decarbonization.
Through a negotiated agreement with a GHG Accounting service
provider, Goldman Sachs Alternatives offers to work with participating
portfolio companies to conduct activity-based emissions accounting
across Scope 1 and 2 emissions as well as to estimate Scope 3
emissions. Our offering includes an inventory planning exercise
co-developed by Goldman Sachs Alternatives that was completed
in 2023, alongside recommendations on data improvements thatcan enhance the quality and usability of their GHG footprints. Basedon footprint results, our provider also shares bespoke, high-level
decarbonization recommendations with portfolio companies, allowing
them to consider the best next steps to decarbonize their businesses.
Companies can also choose to engage with the provider on net zeroplanning, upstream Scope 3 analysis, and decarbonization planning
through enhanced SaaS offerings.
In 2023, 29 companies participated in this program, and our work
allowed us to help accelerate pilots to bring activity-based emissions
information from diligence into a detailed decarbonization analysis
and planning exercise. Their data was also used in fund-level
decarbonization opportunity assessment and planning exercises toenhance our efforts and impact. We continue to expand coverage
across our portfolio and identify learnings from our work to date,including strategies to help improve portfolio company data quality,
enhance data validation and controls, and provide more actionable
information to companies and asset managers.

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03 | Thematic Opportunities With Our Clients and Partners | Leveraging Data and Metrics for Better Decision-Making

Leveraging Data to Supporta Range of Investors (continued)

Our clients rely on a wide range of data to support their sustainable
investing decisions, from asset allocation to investment selection
and impact measurement. As sustainability investing maturesand becomes more data-driven, there is rising focus to quantify
impact — ​whether environmental or social.1 Impact metrics suchas avoided emissions can support sectors that play a critical rolein emissions outside of traditional pure play green sectors.2

Marquee MarketView allows institutional
clients to gain visual insights from the data
tools provided by GS SUSTAIN.

To capture this client demand, PWM utilizes its bespoke ESG Portfolio Diagnostic tool, which provides metrics
to improve transparency on environmental and social issues in public market portfolios for clients. In GBM,
we have expanded our Marquee offering to include Marquee MarketView, an innovative visual analytics
dashboarding solution designed to streamline our institutional clients’ investment processes. Providing an
ecosystem of visual insights developed by Goldman Sachs thought leaders, the tool helps answer importantquestions in global markets — ​all through a single, unified platform. GIR’s GS SUSTAIN suite of sustainability
metrics can be visualized in Marquee MarketView. In addition, Marquee’s portfolio analytics help clientsanalyze their portfolios’ climate performance using metrics from GS SUSTAIN’s Climate Transition Tool.

CASE STUDY

Enhancing the GS SUSTAIN Climate Transition Tool
To meet our clients’ needs to better understand transition risks and opportunities, GIR’s GS SUSTAIN in 2022 developed the Climate Transition
Tool, which combines existing climate-related disclosures with GS SUSTAIN proprietary Climate Transition metrics, where applicable, toquantify the transparency of a company’s climate transition plan and its decarbonization performance. In Q4 2023, Marquee incorporated
GS SUSTAIN’s Climate Transition Tool metrics, allowing GBM clients to analyze their portfolios’ climate performance. The Climate Transition
Tool utilizes 20+ metrics and covers more than 7,000 public companies across 50+ sectors, including 3,200+ in the Americas, 2,600+ in APAC,
and 1,200+ in EMEA. The Climate Transition Tool provides a view on companies’ climate transition efforts through the lens of two distinct
frameworks with associated scores:
The Transition Plan Transparency framework is an absolute assessment of companies’ disclosures across metrics that demonstrate whether
a company has a transition strategy in place (e.g., targets) and how integrated the strategy is with the broader business strategy (e.g., Task
Force on Climate-Related Financial Disclosures support, assurance of disclosures).
The Transition Performance framework is a sector-relative assessment, factoring in changes in the carbon emissions profile of a company
and green business mix exposures (e.g., green revenue and green CapEx), incorporating GIR research analysts’ forward-looking estimates
where applicable.

“Investors are looking to understand technologies and companies throughout the supply chain that are catalysts for
returns-enhancing innovation and sustainable improvement, driving our research and analytics to be more forward-looking
and focused on critical metrics underlying opportunity, risk, and performance.”
Brian Singer Global Head of GS SUSTAIN, Global Investment Research

1 GIR: GS SUSTAIN: Accelerating the Energy Transition: Metrics and Tools to measure progress, November 2022.
2 GIR: GS SUSTAIN: Avoided Emissions: How quantifying Avoided Emissions can broaden the decarbonization investment universe, July 2023.

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03 | Thematic Opportunities With Our Clients and Partners | Leveraging Data and Metrics for Better Decision-Making

Leveraging Data to Supporta Range of Investors (continued)

To support our clients in managing risks and capturing opportunities for certain strategies, we havedeveloped our own internal sustainability assessment methodology to quantify key sustainability
metrics to enable comparability across public markets investments, as described below on the left.
Separately, investors need high-quality, interoperable data to support their investment processes.
As we expect data quality to improve over time, investors need to invest capital today. Open source
data can help address this gap, and we share how we are supporting open source climate tools
with the Linux Foundation below on the right.

CASE STUDYInternally Developed Sustainability
Measurement Toolkit for Our PublicMarkets Investing TeamsIn April 2024, Asset Management PublicMarkets Investing rolled out an internalsustainability measurement toolkit for its
teams that seek to integrate ESG factors
or considerations in their investment
process. The toolkit aims to enhanceexisting internally developed scorecards
and tooling by incorporating data andpromoting collaboration among our PublicMarkets Investing teams1 on sustainability
issues. The development process focusedon identifying financially material ESG
issues for public companies. Based on
this principle, as well as on existing AWM
frameworks and industry standards,
Public Markets Investing built this toolkit
predicated on 14 key issue areas rolling up
to six themes and three sub-scores (E, S,
and G). Recognizing that ESG considerations
vary by industry, an internal proprietary
materiality map was created to determine
the relevant ESG issues for each industry
based on input from the investment
teams. The materiality map seeks to rank
the importance of each issue. The issue
assessments are designed to quantify eachof the 14 ESG issues for each company inthe universe. These quantitative results arethen aggregated with the materiality map
into one quantitative ESG measure. Finally,
where applicable, public equity and credit
analysts may use the toolkit to inform theiroverall view, including their ESG rating.

CASE STUDY

Supporting Open Source Climate Tools
With the Linux Foundation
Goldman Sachs supports open source tools and analytics that our clientsand others can use to advance solutions to data challenges through ourparticipation in various industry groups. For example, Open Source Climate(OS-Climate) — a​ n umbrella project of the Linux Foundation using open
source best practices — ​was launched with the aim of building a non-profit,
transparently governed public utility of climate-related data and analytics torapidly scale investment in the climate transition. Since becoming OS-Climate’s
founding US bank member in 2021, we have supported the non-profit’s work
to develop an open source data platform and net zero alignment tools thatcan be used across industries. Through our membership in the Fintech Open
Source Foundation (FINOS) — ​a fellow project of the Linux Foundation — ​Goldman Sachs has contributed to the open source design of sustainability
reporting tools to help increase data transparency, accuracy, and efficiency,
and support higher levels of audit assurance. In November 2023, Goldman
Sachs hosted a daylong Hackathon, where more than 60 professionals from
more than 15 firms, including non-profits, data-vendors, financial services,
lineage-platforms, consultants, and auditors, participated. We joined in testingclimate data’s journey from collection to aggregation to digital reporting, andplan to continue contributing to open source solutions that help addresssome of today’s common data challenges.

1 The sustainability measurement toolkit was developed for Goldman Sachs Asset Management public teams only and is subject to internal information barrier restrictions.
The toolkit was designed to cover corporate public equities and fixed income securities, but is subject to data availability and subject to change at any time.

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03 | Thematic Opportunities With Our Clients and Partners | Leveraging Data and Metrics for Better Decision-Making

Exploring GenAI to Support
Our Clients and Our Reporting
In 2023, our firm began exploring how Generative AI (GenAI) could help advance data
sourcing, verification, and analytics by automatically structuring and summarizing large
volumes of unstructured data to meet varied and emerging mandatory sustainability reporting
requirements and help deliver on our clients’ needs. Having high-quality and up-to-date
data is crucial for providing high-quality solutions to our clients, stakeholders, and regulators.
However, challenges persist in the sustainability-related data space due to limited company
reporting, among other factors. Moreover, disclosures of companies in certain geographic
regions, including Asia, are not published in English, increasing the complexity of the exercise.
The current manual process is resource-intensive, limiting the depth of analysis and relying
on readily available metrics rather than harder-to-identify, more comprehensive data. Goingforward, GenAI could help to address some of these challenges by automating data discovery
and analytics, offering a front-to-back framework that can be deployed across the entire
organization, subject to implementation of appropriate controls, to ensure potential risks are
suitably assessed and managed. In this context, GenAI could help to dynamically collect andstructure unstructured data based on user-defined terms and be capable of processing data
in any language. We look forward to continuing to identify ways to advance our GenAI efforts
to enhance the value we bring to clients and support our own reporting.

“Our data engineers work every day toenable Goldman Sachs to be a data-driven
organization. Sustainability data is notoriously
noisy. As we explore emerging technologies
like GenAI, our focus is on how to reduce noise
by curating quality data that can help clientswith their sustainability goals.”

Neema Raphael Chief Data Officer and Head of Data Engineering

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03 | Thematic Opportunities With Our Clients and Partners

Mobilizing
Transition FinanceThrough PublicPrivate Partnerships

In This Chapter
25

Q&A With Kara Succoso Mangone
and John Greenwood

27

Blending Funds to Unlock Additional Capital

29

Supporting Public Policy With Private Investment

30

Catalyzing Funding for Specific Regional Needs

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03 | Thematic Opportunities With Our Clients and Partners | Mobilizing Transition Finance Through Public-Private Partnerships

Combining private capital with public funds is critical to catalyzing
investment in transition finance and meeting the investment
requirements for mitigation and adaptation financing, estimatedat $3–$6 trillion per year through 2050.1 Since 2015, Goldman Sachs
has been working with clients to help develop innovative blended
finance structures to attract commercial capital toward projects
that contribute to sustainable development. We continue to workwith our clients to help increase financing for solutions through thedevelopment of innovative sustainable financing structures.

~$3T–$6T
investment needed per annum for
mitigation and adaptation financing
through 20501

Below is an excerpt of a recent discussion on the role of public-private partnerships andrelated financing structures with Kara Succoso Mangone and John Greenwood.

Q&A With Kara Succoso Mangone
and John Greenwood(left) Kara Succoso Mangone,
Head of Sustainable Finance Group(right) John Greenwood, Co-Headof Americas Structured Financeand Head of Investment Banking
for Latin America

Q: Why is blended finance a compelling tool for investing in emerging markets today, and what are someof the challenges in traditional finance that public-private partnerships can help overcome?
Kara: Private investors will often shy away from certain projects or markets because of specific risks that cannot bewell managed, particularly in developing economies. There are several traditional finance-related challenges that publicprivate partnerships can help overcome. For example, by blending different sources of capital with discrete financial
return objectives, this approach can crowd in additional pools of capital for development projects in emerging markets
that might not have been available otherwise. In addition, blended finance transactions can serve as a demonstration ofcommercial viability and financial sustainability of projects, which can help scale up additional investments and a broader
range of stakeholders to engage in future projects with similar risk profiles.
Q: What are some effective public-private financing structures you’ve seen in the marketplace?
And, at what stage(s) of a project are they typically used?
John: We’ve seen public and philanthropic investors provide capital on below-market terms within the capital
structure to lower the overall cost of capital or provide an additional layer of protection to private investors. Other times,
development banks can help provide credit enhancements through guarantees or insurance. One of the compelling
benefits of blended finance is that it can be used at different stages of a project, from providing a bridge for early-stage
front-end engineering and design and permitting, to projects that have reached final investment decision that require
catalytic capital to fill return profile gaps and crowd in additional funds. In addition, it can also be used by low-carbon
companies in need of concessionary capital to help scale their technologies or solutions.

1 Prasad et al.: Mobilizing Private Climate Financing in Emerging Market and Developing Economies, July 2022.

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03 | Thematic Opportunities With Our Clients and Partners | Mobilizing Transition Finance Through Public-Private Partnerships

Q&A With Kara Succoso Mangone
and John Greenwood (continued)

Q: In 2021, the firm launched the Climate Innovation and Development Fund, in partnership with Bloomberg
Philanthropies and the Asian Development Bank. What was the objective of the fund, how was it structured,and are there any early results you can share?
Kara: The Asian Development Bank recently estimated ~$700B of investment per annum is required through 2050 toachieve the goals of the Paris Agreement.1 Addressing market gaps like this with strategic partners is a core feature of
our firm’s sustainable finance strategy. Complementing our structuring and financing capabilities and expertise with the
Asian Development Bank’s on-the-ground experience and relationships in emerging Asian economies and Bloomberg
Philanthropies’ expertise in market data, we launched the Climate Innovation and Development Fund to help increase thepace, scale, and ambition of climate solutions that can contribute to the clean energy transition. Managed by the AsianDevelopment Bank and seeded with grant capital from Goldman Sachs Gives and Bloomberg Philanthropies, the fundleveraged a unique blended finance facility structure featuring various finance mechanisms to mobilize capital throughthe targeted use of concessional financing, e.g., capital expenditure buy-down grants, performance or milestone-based
grants, and liquidity reserves. These financing mechanisms were blended with ADB’s own lending, investment, andfinancing mobilized from other investors.
With the closing of the fund’s seventh and final investment, we’re encouraged by the concessional capital that helped
unlock ~$500 million in private sector and government investments across seven projects, each aimed at helping acceleratetechnologies and markets for a low-carbon future.
Q: Public-private partnership has been helpful to mobilize capital for climate transition technologies
and solutions in emerging markets. Are there any other areas where you see this type of partnership playing
a key role?
John: Protecting, preserving, and restoring nature and its ecosystems is inextricably connected with global efforts tomitigate the impacts, and adapt to the consequences of, a changing climate. We have already seen some examples of
how public-private partnership can support natural ecosystems. In 2022, for example, we helped an island country in the
Caribbean issue debt guaranteed by a development bank to enable the country to advance and protect its blue economy
by strengthening its resilience through improved climate risk management in coastal and offshore areas, promoting
better management of marine resources, and reducing marine pollution. We also see new, emerging opportunities tohelp sovereign clients with innovative financing structures. For example, debt-for-nature swaps are a new, innovative toolthat incentivizes sovereigns, especially developing economies, to protect, preserve, or restore their natural ecosystems in
exchange for reducing their debt burden. Debt-for-nature swaps can be used to support our sovereign clients in advancing
their financial, natural capital, and climate-related goals.

1 Asia in the Global Transition to Net Zero: Asian Development Outlook 2023 Thematic Report, April 2023.

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Blending Funds to Unlock
Additional Capital
The public sector is increasingly seeking innovative financial structures and private sector
resources to protect consumers from volatile energy prices and promote economic
growth. Blending public and private funds can increase the pool of resources available
for development projects and consumer aid.
In 2022, the Chilean government regulated energy price increases for residential households
and small companies,1 and created a new security, known as Client Transitory Protection
Mechanism (MPC) backed by the Chilean sovereign. These MPC certificates are managed
by the treasury to compensate power generation companies that receive below-market
rates due to the law. Under this new structure, micro and small businesses are protectedfrom large price increases, while power generation companies can continue to invest in
infrastructure and provide reliable services to their customers.

CASE STUDY

Stabilizing Electricity Prices for
Consumers With Chile Electricity MPC$1.1 Billion Senior Secured Financing
IDB Invest, the private sector financing arm of
the Inter-American Development Bank, soughtto raise money to purchase MPC certificates andcompensate the power generation companies.
As Sole Global Coordinator, Sole Placement
Agent, and Joint Bookrunner, Goldman Sachs led
a $1.1 billion senior secured financing to purchase
MPC certificates levering the IDB’s preferredcreditor status. Moreover, the issuance and thebroader program offered the participating power
generation companies liquidity by allowing themto monetize their receivables and supported thegovernment’s goal of avoiding rises in electricity
prices to the most vulnerable end consumers. This
capital will help support the health of the Chilean
electricity sector, which has seen solar production
rise by more than 1,000% since 2015.2

1 IDB Invest: IDB Invest Supports Electricity Price Stability for Consumers and Small Businesses in Chile, August 2023.
2 IEA: Chile — ​Countries & Regions, as of March 2024.

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03 | Thematic Opportunities With Our Clients and Partners | Mobilizing Transition Finance Through Public-Private Partnerships

Blending Funds to Unlock
Additional Capital (continued)

Utilizing public and private funds to diversify energy sources through blended finance can
improve the stability of energy prices, while helping to ensure reliability and emissions reductions.
Russia’s invasion of Ukraine had created significant volatility in European energy markets, resulting
in diversification of energy providers. As part of this diversification, Czech hydropower operator
ENERGO-PRO sought to expand operations and invest in new assets in Europe.

CASE STUDYDiversifying Europe’s Energy Mix With ENERGO-PRO
To facilitate this diversification, Goldman Sachs acted as Sole Global Coordinator and Bookrunner for ENERGO-PRO’s issuanceof €300 million Senior Unsecured Guaranteed Notes in July 2023. The issuance also benefited from a $545 million unconditional
and irrevocable credit guarantee provided by the U.S. International Development Finance Corporation (“DFC” and the “DFC
Guaranty”); this enabled the issuance to achieve a Moody’s rating of Aa1 (significantly higher than their BBB- corporate rating),
allowing ENERGO-PRO to secure long-term financing at significant interest rate savings during a period of prolonged volatility
and regain access to international capital markets. ENERGO-PRO is a leading electricity distribution and renewable generationcompany in the Black Sea region with more than 2.5 million grid customers and 10.5 TWh of distributed electricity, and 34 operatinghydropower plants with an installed capacity of 749 MW. This transaction allowed ENERGO-PRO to scale its production capabilities
and will successfully enable the diversification of energy sources in Eastern Europe — ​helping to create less reliance on Russian
exported oil and gas and was the DFC’s first guarantee for a bond issuance in Europe and first guaranty under the European Energy
Security and Diversification Act.

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Supporting Public Policy
With Private Investment
In 2015, Goldman Sachs Asset Management acquired the assets of Imprint Capital Advisors, one of thelargest ESG and impact investors in the industry, and formed External Investing Group (XIG) Imprint.
XIG Imprint is dedicated to sourcing, driving due diligence on, and investing in, impact managers
across asset classes and impact themes. XIG Imprint’s investment strategies leverage its rigorous
manager selection, portfolio construction, risk management, and impact investing expertise.1
Core to this strategy is the identification of opportunities from policy support or incentives. In theEuropean market, there are private investment funds dedicated to infrastructure assets, while
the German government has introduced subsidy regimes that support renewables.2 Following
increased investor interest in climate transition investment opportunities, XIG Imprint invested in
NeXtWind for a PWM client. NeXtWind is a German onshore wind repowering firm that is taking
advantage of streamlined permitting and increasing subsidy levels from the German government.

CASE STUDY

NeXtWind
In August 2023, XIG Imprint provided a$15 million investment alongside Sandbrook
Capital into NeXtWind. Founded in 2020,
NeXtWind has acquired multiple operating
onshore wind projects and bought an interestin a greenfield development. By capitalizing
on new, efficient wind turbine technology,
NeXtWind plans to double existing portfolio
power generation. Additional value creation
is expected through opportunistic greenfieldacquisitions. Alongside the core German
repowering strategy, NeXtWind also plans to
expand into other adjacent strategies suchas solar and battery co-location, leveraging
management team and Sandbrook Capital
experience.

1 Source: XIG Imprint, as of March 2024. The portfolio risk management process includes an effort to monitor and manage risk but does not imply low risk.
2 Appunn et al.: Germany’s 2022 renewables and efficiency reforms, December 2022.

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03 | Thematic Opportunities With Our Clients and Partners | Mobilizing Transition Finance Through Public-Private Partnerships

Catalyzing Funding for Specific Regional Needs
Despite growth in recent years, global climate finance has not yet reached the scale necessary
to meet the estimated transition requirements. In 2021–2022, average climate finance flows reachednearly $1.3 trillion — ​nearly double 2019–2020 levels, but well below the estimated need.1 The gap
is particularly acute in parts of Asia, where local economies remain heavily dependent on public
sector financing — ​and where clean energy investment is still in its early stages.2 In India alone, itis estimated that the power sector has a nearly $650 billion investment opportunity, which would
support its 450 GW renewable energy target,3 while Vietnam may need $8–$10 billion annually
over the same period.4
To help drive more capital into the region to facilitate the energy transition, Goldman Sachs andBloomberg Philanthropies partnered to seed and launch the Climate Innovation and Development
Fund (CIDF) in 2021, in partnership with the Asian Development Bank.

CASE STUDY

Climate Innovation and Development Fund
In 2021, we announced the launch of the Climate Innovation and Development Fund, a blended finance facility designed to support
sustainable low-carbon economic development with a focus on South and Southeast Asia to increase the pace, scale, and ambition ofclimate solutions and contribute to the clean energy transition. Managed by the Asian Development Bank and seeded with concessional
capital from Goldman Sachs and Bloomberg Philanthropies, the CIDF invested across seven projects throughout 2022 and 2023. For more
information on the CIDF and the approximately $500 million of blended private and public sector finance it helped catalyze for theseprojects, please see the CIDF report.5
Through the CIDF, we demonstrated that blended finance can serve as a mechanism to increase funding and be a powerful tool to help drive
sustainable development. Combining different sources of capital enabled CIDF to mobilize significantly more funding for social and infrastructure
projects. Based on this experience in developing and providing blended finance solutions, we identified six key learnings from CIDF:

1. Strategic Partnerships

Strategic partnerships bring added value via pooled experience and expertise.

2. Additional Capital

Blending funds unlocked significant additional capital — more than 20x
the initial investment on average.

3. Proof-of-Concept

Blended finance aids in proving the concept for innovative technologies
and commercial viability.

4. Project Selection and Visibility

Rigorous project selection helps address the challenges of prioritizing
which opportunities to pursue.

5. Innovative Financing

Innovative finance mechanisms improve commercial viability.

6. Regional Focus

Tailoring funds to specific regions can maximize impact.

1 Climate Policy Initiative: Global Landscape of Climate Finance 2023, November 2023.
2 GFMA et al.: Climate Finance Markets and the Real Economy, December 2020.
3 Climate Finance Leadership Initiative: CFLI India, as of April 2024.
4 USAID: Clean Energy, September 2020.
5 Goldman Sachs et al.: Progress and Lessons from the Climate Innovation and Development Fund, November 2023.

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03 | Thematic Opportunities With Our Clients and Partners

UnlockingEconomic
Opportunities

In This Chapter:
32

Investing Our Own Capitalin Our Communities

37

Investing in Private Sector
Solutions for Our Clients

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03 | Thematic Opportunities With Our Clients and Partners | Unlocking Economic Opportunities

In this chapter, we demonstrate how we leverage our firm’s community development capital tosupport our communities across the areas of affordable housing, entrepreneurship, and businesseducation. In addition, we share how we invest clients’ assets in private markets for innovativeeducation solutions and in public markets for sustainable development.

Investing Our Own Capitalin Our Communities
Our investment strategy in communities is informed by research to identify areas of acute needand highest potential impact. In addition to research, listening and responding to community
needs is core to our approach. Whether it is expanding 10,000 Small Businesses into rural states,or launching One Million Black Women: Black in Business to serve solopreneurs, our goal is to direct
our expertise and investments into high-impact opportunities. Partnerships are also essential
to our strategy. Academic institutions, Community Development Financial Institutions (CDFIs),
and other local partners play a critical role in the successful execution of our investments andprograms, and we are invested in the capacity and resilience of these organizations.
The impact of our work is far-reaching:+$19Bof community loans
and investment since 2001+$3B
philanthropic
giving worldwide+250K ~194K
entrepreneurs served1

affordable units built
or preserved

1 Entrepreneurs served across three Goldman Sachs initiatives: 10,000 Small Businesses, 10,000 Women, and One Million Black Women.

“Driving economic growth and opportunity in communities where
we work and live continues to be our North Star. We approach
our community investing with the same rigor and intensity as ourbroader client franchise, with a focus on helping deliver measurable
impact in the near and long term.”
Asahi Pompey Global Head of Corporate Engagement and President of Goldman Sachs Foundation

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Supporting Entrepreneurship in Our Communities
When surveying rural small businesses across the United States, only 7% believe they receive a fairamount of private sector resources.1 Further, 68% of rural businesses report challenges in attracting
workers to live in their communities, compared with 46% in non-rural communities.2
In recognition of these challenges faced by rural entrepreneurs, we announced 10,000 Small Businesses
Investment in Rural Communities, a $100 million commitment to provide business education andaccess to capital to 20 states in the next five years.

CASE STUDY

Catalyzing Entrepreneurship in Rural Communities
With 10,000 Small Businesses
To help support more businesses throughout the rural US, we launched a $100 million Investment
in Rural Communities in September 2023 through our existing 10,000 Small Businesses (10KSB)
program. This investment will provide comprehensive support to rural and small business owners
and includes $75 million in lending capital to CDFIs, $15 million to fund the 10,000 Small Businesses
education program at local community colleges, and $10 million in access to capital capacitybuilding grants. The initiative plans to reach over 800 rural small business owners across 20 statesover the next five years, contributing to job creation and economic growth.
As part of the $75 million commitment to CDFIs, in October we announced the first lending
commitment of $20 million to the CDFI Hope Enterprise Corporation based in Jackson, Mississippi,
to help support a broader group of eight smaller CDFIs located throughout the South3 providing
small business loans and technical assistance in rural communities. Through this initiative, rural
entrepreneurs will be integrated into a national network of small business owners, creating newchannels of access for business leaders who would otherwise not have the opportunity to engage.

Lee Porter
Owner of Ozark Green Roofs
Fayetteville, Arkansas
Lee Porter is the owner of Ozark Green
Roofs in Fayetteville, Arkansas. Her
admission to 10,000 Small Businesses came ata pivotal time in her company’s growth — ​having recently acquired two significant
contracts to put green roofs on JB Hunt
Transportation Headquarters and theAlice L. Walton School of Medicine. Lee isutilizing the 10KSB curriculum and network
to pivot into a growth period, building off
her five years of business success, withaspirations to be the defining resource forgreen roofs in the state of Arkansas.

Both programs build on our 10KSB program that launched in 2009, which has helped entrepreneurs
grow their businesses with results-oriented business training, access to capital, and personalized
support services. In the US, more than 14,500 small business owners have graduated from theprogram, employing over 280,000 people and driving more than $25 billion in annual revenue.

1 Goldman Sachs: Goldman Sachs 10,000 Small Businesses Launches $100 Million Investment in Rural Communities Across America, September 2023.
2 Goldman Sachs: Investing $100 million in the heart of rural communities, as of March 2024.
3 Goldman Sachs: As Part of $100 Million Investment in Rural Communities, Goldman Sachs 10,000 Small Businesses Launches in Arkansas, October 2023.

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Supporting Entrepreneurshipin Our Communities (continued)

Largely due to lower earnings and limited access to capital, Black Americans are much less likely
to own high-return assets, including their own businesses.1 Only 0.5% of single Black women
own a business, a rate that is 24 times lower than for single white men.2 Our Black Womenomics
research shows that addressing the earnings gap for Black women could create up to 1.7 million
US jobs and raise the level of annual US GDP by 1.4%–2.1% per year.3
Informed by these findings, Goldman Sachs launched One Million Black Women: Black in Business,an education program focused on Black women solopreneurs, providing them with tools andbusiness education they need to grow their business, with the aim of bringing job and wealthcreation to their communities.

CASE STUDY

Helping Black Women Solopreneurs Grow
Revenues and Create Jobs Through One Million
Black Women: Black in Business
The One Million Black Women: Black in Business (BIB) initiative is a
10-week education program that covers topics core to businessgrowth, including goal setting, business processes, understanding
your customer, identifying opportunities for growth, businessfinancials, and mastering the business pitch. This philanthropic
program has now graduated more than 600 Black women solopreneurs
from across 40 states, including Washington, D.C. Following their
participation, BIB alumni are immediately demonstrating the impactof their involvement: 61% of program alumni reported increases inrevenues just six months after completing the program, comparedwith 29% for all Black non-employer firms that increase revenues
at the 12-month mark.4
In 2024, Black in Business aims to enroll another 450+ solopreneurs
and partner with New York University Stern School of Businessas the national academic partner to deliver the curriculum throughits award-winning faculty. By expanding the national network ofsmall business owners, BIB alumni will continue to grow their accessto business knowledge and support.

Recent alumni have been able to apply their learnings
directly to their business and grow:
Subena Colligan
CEO of EHS Transformation Consultants
Cohort 4/Georgia
Subena is CEO and founder of EHS Transformation Consultants, anoccupational health and safety consulting firm that specializes intransforming unsafe workplaces into industry benchmarks. An Air Forceveteran, Subena took the leap into entrepreneurship in 2021 using her
401(k) to seed her business.
After graduating from the One Million Black Women: Black in Businessprogram, Subena gained confidence, increased her revenue, andextended her client roster to include a Fortune 500–ranked company,
major academic institution, and national baked goods producer.

Marsha Williams
Owner, R/E Brokerages of America
Cohort 2/Virginia
Marsha is owner of R/E Brokerages of America, which offers realestate, property management, commercial facility management, andrelocation services. She founded the company in 2021, leveraging her
20+ years of real estate experience.
Upon entering the One Million Black Women: Black in Business program,
Marsha set a goal to scale her business and hire her first employee.
After completing the program, Marsha expanded her team and broughton new employees, attributing her business growth to the program’s
impact, contributing to greater job creation in Virginia.

1 Goldman Sachs: Black Womenomics: Investing in the Underinvested, March 2021.
2 Ibid.
3 Ibid.
4 FED Small Business: 2023 Report on Nonemployer Firms: Findings from the 2022 Small Business Credit Survey, May 2023.

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03 | Thematic Opportunities With Our Clients and Partners | Unlocking Economic Opportunities

Improving Housing Affordability toPromote Stability and Opportunity
Housing affordability is a major obstacle to growth for advanced economies and is especiallyacute in the United States. Almost half of American households that rent are cost burdened, definedas spending more than 30% of their gross income on rent, while nearly a quarter of American
homeowners are also classified as cost burdened.1
Housing affordability does not just impact the individual lives of those struggling to make ends
meet — i​t also has a direct consequence on the broader economy. Without access to affordable
housing, families have fewer opportunities to increase their earnings, creating an estimated $2 trillion
annual drag on US GDP growth from lower wages and productivity.2 Addressing the housing
affordability gap, including the lack of financing for low-income housing, can enhance opportunities
across our communities.
There is a demonstrated need for more housing stock to be developed, and yet Minority BusinessEnterprises (MBEs) face challenges securing financing for property development due to stringent
net worth and liquidity requirements from traditional lenders. To connect MBEs to much-needed
capital, we launched the Minority Business Enterprise Developers Guaranty Facility in New York
City this past year.

CASE STUDY

Expanding Affordable Housing With the Minority
Business Enterprise Developers Guaranty Facility

Asahi Pompey, Global Head of Corporate Engagement,
speaks at the launch event at City Hall in New York City
to announce the $50 million guaranty facility.

To help facilitate MBE developer financing, Goldman Sachs worked closely with
the New York City Housing Development Corporation (HDC) and New York City
Department of Housing Preservation and Development (HPD) to develop an
innovative financing structure providing support for affordable housing projects
sponsored by minority developers certified as MBEs. Goldman Sachs will offer up
to $25 million from GSAM to establish a guaranty facility (“the Facility”), matchedwith $25 million from the city, to provide a supplemental backstop for construction
projects and reduce the access-to-capital gap for qualified MBE developers, allowing
them to obtain construction financing for which they might not otherwise qualify.
Leveraging HPD’s pipeline of development opportunities, the Facility will beutilized to support affordable housing projects in New York City, with commitments
originated over a five-year investment period. At least 10 affordable housing projects
sponsored by growing MBE developers are expected to benefit from the Facility,
removing one of the major barriers to entry for these businesses and enabling MBE
developers to succeed by scaling their operations and building a track record asaffordable housing developers.

1 Joint Center for Housing Studies of Harvard University: The State of the Nation’s Housing 2023, 2023.
2 National Low Income Housing Coalition: The Problem, as of March 2024.

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Improving Housing Affordability toPromote Stability and Opportunity (continued)

In addition to addressing financing gaps for new housing, Goldman Sachs is also helping support
the preservation of existing affordable housing. The Low-Income Housing Tax Credit (LIHTC), createdin 1986, provides tax credits to private developers who agree to keep rents at specified percentagesof Area Median Income (AMI). From 1987 to 2009, approximately 2.2 million units were developed
through LIHTC, representing nearly one-third of all new multifamily rental housing.1 After 15–30
years, the affordability requirements expire, and rents typically revert to market rate. By providing
competitive financing contingent on continued affordability, investors and financial intermediaries
can help maintain housing affordability in existing LIHTC properties and prevent turnover andresulting instability in affordable housing driven by rent increases.

CASE STUDY

Preserving LIHTC Affordability in the Project Horizon Portfolio
In April 2023, Goldman Sachs financed the acquisition and preservation of the Project Horizon portfolio, consisting of 10,474 majority
affordable housing units across 90 properties in Texas, Illinois, Indiana, Wisconsin, Florida, South Carolina, Kentucky, and New York.
Primarily composed of former LIHTC units affordable to households earning up to 60% of AMI, the acquisition will help preserve
affordability in the units, which risked being converted to market rate units upon the expiration of the original LIHTC restrictions.
The average rent across the portfolio is below $1,000 per unit, and the portfolio houses more than 30,000 residents, including thosein major cities such as Chicago, Dallas, Milwaukee, Tampa, and Indianapolis.
The acquisition will help preserve affordability across over 10,000 units of former LIHTC projects that could otherwise be at risk of being
converted to market upon expiration of land-use restrictions put in place at the time of original LIHTC financial closings. By providing$454 million JV equity to the partnership, Goldman Sachs was able to help support the preservation of high-quality affordable housing
options for local communities around the country.

1 HUD: What Happens to LIHTC Properties After Affordability Requirements Expire?, as of March 2024.

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Investing in Private Sector Solutions for Our Clients
With increasing interest and activity in sustainable and impact investing, our clients are seeking
ways to enhance alignment of their investments with their respective sustainability or impact
objectives. Through our open architecture platform, our AWM client franchise provides clients witha holistic suite of solutions across public and private markets, enabling us to invest our clients’ assets
to meet their discrete sustainable and impact investing objectives with the same rigor and riskreturn standards of our traditional investment management capabilities.
Investing our clients’ capital aligned with their thematic preferences~$1.3B
Global Social Impact Public
Equity Strategy AUS1,2~$8.3B

Goldman Sachs Alternatives’ contribution
to the Inclusive Growth theme of oursustainable finance target~$1.2B

capital committed by XIG Imprint onbehalf of investors globally across+40 Inclusive Growth–themed strategies2

1 AUS: Assets Under Supervision.
2 As of 12/31/23.

“We are investing in segments of the economy, including
the education sector, among others, that are undergoingsignificant disruption. Our investments are a great exampleof how private capital can help scale innovative businessmodels to provide needed solutions in a creative way.”
Greg Shell Head of Inclusive Growth Strategy, Goldman Sachs Alternatives

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03 | Thematic Opportunities With Our Clients and Partners | Unlocking Economic Opportunities

Investing in Education to Enable Innovation and Growth
Low reading proficiency has historically been an important issue in K-12 education.1 Funding
gaps between affluent and underresourced students, estimated at nearly $2,700 per student
in districts with more minority students,2 persist in the American educational system,
resulting in a compounding negative impact in our communities.
The COVID-19 pandemic has also resulted in unprecedented learning loss, with National
Assessment of Education Progress scores pointing to a multi-decade low in reading
proficiency levels across the board, while in 17 states students are more than a half of aschool year delayed in learning, on average.3 Recent findings reveal that 68% of US fourthgraders are not proficient in reading, up from 66% in 2019.4 As a result, extensive fundingat the state and federal level has been allocated to address both the achievement gaps andpandemic-driven learning loss.
High-dosage tutoring, defined as one-on-one or small-group tutoring at least three times
per week,5 is one of three solutions highlighted by the federal government to improvestudent achievement. In addition, a shift to evidence-based literacy practices known as the
Science of Reading is underway nationally, with over 35 states passing relevant legislation since2013.6 Due to shortages across resourcing and staffing, schools are expected to continue
leveraging the private sector to help implement these solutions. Through our Sustainable
Investing Group’s new Inclusive Growth Strategy, we are investing in solutions to help
reduce this learning loss.

CASE STUDY

Closing Learning Gaps Through an Approach Groundedin the Science of Reading With Ignite Reading
Goldman Sachs recently led a Series B financing for Ignite Reading, a company providing one-to-one foundational reading
skills tutoring based on the Science of Reading to students in K–12 schools and districts.
Founded in 2019, Ignite Reading has rapidly scaled while demonstrating strong efficacy to date. A study conducted byAmerican Institutes for Research of kindergarten through third graders in six school districts in Massachusetts confirmedthat after 14 weeks of tutoring with Ignite Reading, the number of students who scored at or above benchmark on the DIBELS
assessment grew from 11% to 45%. These outcomes have proven consistent regardless of a student’s gender, race, ethnicity,
language, socioeconomic status, or special needs. During the 2022–2023 school year, 94% of students served by the company
were Free or Reduced Lunch enrollees, 73% identified as from an underrepresented community, 27% identified as multilingual
learners, and 17% received special education services.7

1 Hernandez et al.: Double Jeopardy: How Third-Grade Reading Skills and Poverty Influence High School Graduation, April 2011.
2 Morgan: Equal Is Not Good Enough, November 2022.
3 Bryant et al.: COVID-19 Learning Delay and Recovery: Where Do US States Stand?, January 2023.
4 Annie E. Casey Foundation: Since Pandemic’s Start, 42 States See Rise In Fourth-Graders Below Reading Proficiency, November 2022.
5 Sawchuk: High-Dosage Tutoring Is Effective, But Expensive. Ideas for Making It Work, August 2020.
6 Schwartz: Which States Have Passed ‘Science of Reading’ Laws? What’s in Them?, July 2022, updated January 2024.
7 Ignite Reading: Our Proven Program Gets Results, as of March 2024.

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03 | Thematic Opportunities With Our Clients and Partners | Unlocking Economic Opportunities

Defining Social Impact Investing
to Drive Sustainable Development
Investors are increasingly recognizing that promoting economic opportunities in all communities is a
key to durable, long-term economic growth. With inflationary pressures and sluggish economic growthdisproportionately affecting lower-income communities, investment in social solutions is on the rise.1
Building a more sustainable global economy is central to the United Nations’ Sustainable Development
Goals (SDGs). Many of the SDGs overlap across targets to expand access to essential goods andservices. Companies in a variety of sectors are helping to make this happen, including enablers of digitalconnectivity for remote communities and reduced healthcare costs. Other promising companies are
driving innovation in areas such as education and supplying more affordable homes.2 Our Global Social
Impact Equity strategy is designed to deliver on the sustainability preferences and goals of our clients
who are seeking both financial returns and positive social outcomes.

CASE STUDY

Investing $1.3 Billion in Global Social Impact Public Equity Strategy3
To capitalize on this trend and drive sustainable outcomes, Goldman Sachs launched its first dedicated social impact public equity strategy
in June 2023. With approximately $1.3 billion in AUS, the strategy seeks to create positive social impact by investing in companies considered
to be sustainable investments. These companies aim to provide solutions that drive social sustainability by virtue of their alignment to key
themes associated with solving social problems. Companies in the portfolio provide, invest, or create products, services, or technologies
across a number of investment themes:

Thriving Communities: Investment in areas such as affordable housing, digital inclusion, access to clean water and sanitation,
and access to clean energy. Within these areas, we invest in companies including information technology providers anddevelopers of water-treatment and purification solutions.
Economic Empowerment: Enable people to participate in economic development by investing in education, equal job opportunities,
and financial inclusion. Within this theme, we invest in companies including providers of online and hybrid education, human resourcecompanies, and providers, of mobile phone–based financial services solutions.
Good Health and Well Being: Contribute to improving quality of life by focusing on areas such as nutritious food, active lifestyle, andaccessible and innovative healthcare. Within these areas, the strategy invests in companies including medical technology developers,
healthcare/insurance providers, and operators of fitness centers.
Safe Society: Help build a safe society and increase quality of life for individuals and communities. This theme covers areas such asdata privacy and security, human safety, climate change resilience, and accountable institutions. We invest in companies including
cloud security providers, safety equipment manufacturers, and environmental consulting firms.

1 GIR: 10 Predictions for Sustainable Investing in 2023, January 2023.
2 GIR: Social Capital: How Business Can Drive Impact Through Affordability, September 2022.
3 Please note that for the purposes of the European Sustainable Finance Disclosure Regulation, the representative account of the strategy is an Article 9 product that has a sustainable investment objective.
Please note that this material includes certain information on Goldman Sachs sustainability practices and track record, at an organizational and investment team level, which may not necessarily be reflectedin the representative account. Please refer to the offering documents of any product(s) prior to investment, for details on how and the extent to which the product(s) takes ESG considerations into accounton a binding or nonbinding basis.

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03 | Thematic Opportunities With Our Clients and Partners

Scaling Technology
Solutions to
Support the Energy
Transition

In This Chapter
42

Expanding the Renewable
Energy Rollout

44

Using Geothermal Power toHelp Meet Electricity Demand

45

Supporting Renewable
Sources of Natural Gas

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03 | Thematic Opportunities With Our Clients and Partners | Scaling Technology Solutions to Support the Energy Transition

The global economy has been powered by traditional energy sources since the Industrial Revolution
and will continue to rely on traditional fuels throughout the energy transition to help ensure
energy reliability and affordability as new technologies and energy sources scale to meet demand.1
Transitioning to a low-carbon future will require a diverse set of energy sources, requiring an estimated$4.5 trillion per annum in clean energy investment to meet Paris Agreement climate goals.2
Global Power Generation by Year
Coal

Petroleum Liquids

Natural Gas (incl. NG+CCUS)

NuclearHydroelectric Conventional

Renewables (excl. Hydro)

Other

Electricity Generation (TWh)35,00030,00025,00020,00015,00010,000
5,000

30
20

29
20

28
20

27
20

26
20

25
20

24
20

23
20

22
20

21
20

20
20

19
20

18
20

17
20

16
20

15
20

14
20

13
20

12
20

11
20

20

10

0

Source: Energy Institute, GIR Carbonomics

Global power generation nearly doubled in the past two decades, increasing by approximately 35% from 2010 to 2022.3 During the sametime, the share of fossil fuels (coal, petroleum, and natural gas) fell from 68% of total generation to 62%, while the share of renewables(excluding hydroelectricity) rose from 4% to 14%, representing more than a fourfold increase in total renewable generation.4
According to our Carbonomics research, we predict these two trends of declining but significant fossil fuel share and increasing renewablegeneration to continue through 2030 due to continued growth in electricity demand. By 2030, we predict that fossil fuel share will fall to
48% of total generation while renewable share (excluding hydro) will double to nearly 30%.5
To help address the scope and scale of the investment required, Goldman Sachs seeks to take a comprehensive approach to supportingthese emerging and scaling technologies, including wind, solar, geothermal, and renewable natural gas, among others, which will playa critical role in enabling a secure, affordable energy future.
1 Energy Institute: 2023 Statistical Review of World Energy, June 2023.
2 IEA: Net Zero Roadmap 2023 Update, October 2023.
3 Energy Institute: 2023 Statistical Review of World Energy, June 2023.
4 Ibid.
5 GIR Carbonomics.

“Our clients are in a dynamic stage evaluating a diverse future of energy, one of continued reliance on traditional energy
sources while solutions are deployed to support broad-based electrification and address areas such as renewables
intermittency and AI data centers’ power demand. As a trusted advisor, we are focused on helping our clients support
existing infrastructure and bring new, innovative technologies to market at scale that will help contribute to meeting increased
global energy demand needs through our differentiated suite of financing, investing, and advisory capabilities.”
Suhail Sikhtian Global Head of Natural Resources Investing Banking

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03 | Thematic Opportunities With Our Clients and Partners | Scaling Technology Solutions to Support the Energy Transition

Expanding the Renewable Energy Rollout
A key focus of our clients is supporting incremental energy needs, driven in part by the prospectof data-center growth due to AI, and the rollout of renewable energy technology in developed
markets, including the United States, which represented 13.5% of global emissions in 2021.1 Given
the size of US emissions, and likely demand increases from EV charging and data centers, it iscritical to continue expanding the rollout of domestic renewable energy. New energy technologies
also represent a significant investment opportunity, with policy incentives and related multipliereffects expected to drive trillions of dollars in investments across renewable technologies,
according to Goldman Sachs Carbonomics research.2
In addition to renewable power generation capacity, substantial investment in transmission
infrastructure, which connects generation facilities to end-use customers, is needed to enable
low-cost wind and solar to connect to the grid. According to the US Department of Energy (DOE),
the US will need to expand transmission systems by 60% by 20303 to meet growing energy
demand. We are helping our clients drive international grid infrastructure investment, including
advising Elia Group, a Belgian transmission and power generation company, on its investmentin the US renewable energy market.

CASE STUDY

Investing in Renewable
Infrastructure With Elia Group
Elia Group (“Elia”), one of the largest electric transmission system
operators in Europe, acquired (through its WindGrid subsidiary)a 35.1% stake in energyRe Giga Projects (“energyRe Giga”), a
subsidiary of energyRe LLC. The investment values energyRe Giga
at $1.1 billion on a post-money basis. Elia’s $400 million investment
will be deployed over three years to fund energyRe Giga’s pipelineof projects under development comprising transmission-led
onshore wind and solar generation, transmission lines, and offshore
wind generation assets. The investment allows Elia to enter the US
market with a strong and well-established strategic partner. Eliaand energyRe will be able to leverage their respective strengths bybuilding upon complementary technical expertise and capabilities
to support energy transition. Goldman Sachs acted as sole financial
advisor to Elia on this transaction.

1 IEA: Greenhouse Gas Emissions from Energy Data Explorer, as of March 2024.
2 GIR: Carbonomics: The third American energy revolution, August 2023.
3 United States Department of Energy: Queued Up… But in Need of Transmission, as of March 2024.

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Expanding the Renewable Energy Rollout (continued)

Technological and financial innovations have brought renewable energy sources into themainstream, resulting in more affordable energy, reduced carbon emissions, energy diversification,and job creation. Since 2008, the price of solar modules has dropped by 85%, according toGoldman Sachs research,1 making solar competitive with other technologies. As solar production
expands and becomes a larger part of the global energy mix, it is critical to continue investingin new technologies. We recently supported Nextracker on its separation from its parent company
to enable greater flexibility for its future growth plans. The company is creating solutions that
optimize solar energy production efficiency using software and tracking technology that monitors
the movement of the sun.

“Solar comprises the largest
share of new power generation
capacity globally, and Nextracker
is well positioned to continue
driving utility-scale anddistributed generation solar
power as the world transitions
to renewable energy.”
Dan Shugar Founder and CEO, Nextracker

CASE STUDY

Advising Nextracker’s Spin-Off to Support Intelligent Solar Electricity Production
Goldman Sachs served as financial advisor on the spin-off of Nextracker, Inc., a leading provider of intelligent, integrated solar tracker
and software solutions used for utility-scale and distributed-generation solar projects globally. Nextracker’s products enable solar panels inlarge-scale power plants to follow the sun’s movement and optimize solar performance. This allows more energy to be produced from a facility,
accelerating the adoption of solar electricity production. Following a $638 million US IPO in February 2023, Nextracker successfully spun off
from its parent company Flex Ltd. in January 2024. Supporting the spin-off and serving as financial advisor to a leading solar technology firm
is an opportunity for us to enable solutions needed for clean energy production.

1 GIR, PV Insights, via GS Intelligence.

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Using Geothermal Power toHelp Meet Electricity Demand
A key component of diversifying the global energy mix is finding a new source of low-carbon baseline
generation to meet growing power demand. In the United States, the DOE expects electricity demandto accelerate over the next decade,1 driven by new industrial facilities and data centers. While mostof this new demand is expected to be met by wind and solar power generation, there is a need for new
low-carbon sources of baseload generation, which can steadily produce electricity when intermittent
energy sources such as wind and solar produce less power.
The DOE has identified geothermal energy as a low-carbon candidate to meet this need. Geothermal
plants can produce electricity 24/7, emit no greenhouse gases, and have lifecycle emissions six to 20 times
lower than natural gas.2 While conventional geothermal generation requires existing geologic features
to pump water underground, next-generation geothermal technologies can expand production to newareas, with the potential for 90 GW of installed capacity by 2050.3 Goldman Sachs client Fervo Energy
is at the forefront of next-generation geothermal power, and we helped support their efforts to expand
geothermal production and advance geothermal technology.

CASE STUDY

Raising Capital to Accelerate Fervo Energy’s
Deployment of Next-Generation Geothermal
Goldman Sachs acted as exclusive placement agent
for Fervo Energy’s recent $244 million capital raise.
This financing will unlock Fervo’s next phase of growth,
deploying proven technology adapted from the oil andgas industry at scale to deliver commercially viable 24/7
carbon-free energy. Since its last fundraise, Fervo has
successfully brought its first commercial project online,
establishing Fervo’s system as the most productive
enhanced geothermal system (EGS) in history. Fervo has
also begun drilling at Cape Station, a 400 MW projectin Beaver County, Utah. Early drilling results show
reduced drilling times and lower costs that significantly
exceed Department of Energy expectations for EGS.
The fundraise will support Fervo’s continued operations
at Cape Station, which will begin delivering clean
electricity to the grid in 2026.

1 United States Department of Energy: DOE Releases New Report Outlining Solutions to Meet Growing Electricity Demand, April 2024.
2 United States Department of Energy: Geothermal Basics, as of March 2024.
3 United States Department of Energy: LPO Tech Talk: Next-Generation Geothermal, March 2024.

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Supporting Renewable Sources of Natural Gas
In addition to supporting new renewable energy technology, Goldman Sachs is also supporting
our clients’ work in identifying more sustainable fuel sources for existing energy infrastructure.
Renewable Natural Gas (RNG) is naturally occurring biogas that has been refined to use in lieu
of traditional natural gas.1 The biogas can be sourced from landfills, municipal water recovery
facilities, organic waste management facilities, and livestock farms. Replacing conventional natural
gas with RNG can reduce GHG emissions, improve air quality, provide fuel source diversification,and support a more circular economy.2
Sourcing high-quality inputs and reducing waste is crucial to realizing the benefits of RNG, and Goldman Sachs Alternatives has
worked directly with Verdalia in Europe and Synthica in the US to advance sustainable RNG. Synthica produces RNG derived
from processing pre-consumer organic waste, while Verdalia’s feedstock will primarily be agricultural and livestock waste. Verdalia
and Synthica are both working to design, build, own, and operate medium- to large-scale anaerobic RNG production facilities.
Both portfolio companies are working to advance clean energy and circular economy solutions.
Historically, demand for RNG has been concentrated in the transport sector, as natural gas has increasingly been used as atransportation fuel for trucks and buses. Usage in the transportation sector has increased by 218% since 2018,3 driven by low-carbon
fuel standards. However, demand for RNG has increased in non-transportation use-cases for gas utilities, corporations, and otherentities seeking to reduce the carbon intensity of their operations. Many companies in the industrial sector are seeking solutions
to meet fast-approaching deadlines for GHG reductions, especially companies that use natural gas for high-heat and steam
processes. RNG is a viable alternative, as it can be used as a direct replacement for natural gas.
A key driver in RNG demand is government renewable portfolio standards, which are becoming more stringent, and, in manycases, recognize RNG as an acceptable renewable resource. However, a key challenge to producing RNG is the availability ofcapital and high upfront costs compared with existing grid infrastructure.4 Additionally, securing offtake agreements can add tothe challenges of securing financing. By addressing these issues, financial firms can help their clients facilitate circular solutions
by turning waste into new renewable energy sources. Working with our client Carolina Renewables, Goldman Sachs provided afinancing for a facility producing RNG through anaerobic digestion by using existing waste products and selling the RNG undercontracts underpinned by state and other incentives, thus facilitating the expansion of RNG production in the state.

CASE STUDY

Supporting Renewable Natural Gas
Production With Carolina Renewables
Goldman Sachs provided a $70 million loan to support the ramp-up and operation of an RNG production facility
in North Carolina for sponsor Carolina Renewables. The facility utilizes various agricultural, industrial, and commercial
feedstocks such as swine waste, poultry waste, and other wastes to produce RNG and provide a sustainable energy
source. This contributes to reducing greenhouse gas emissions while also promoting a circular economy by repurposing
organic waste into energy. The RNG produced by the facility will be injected into existing pipelines for delivery to Duke
Energy and British Petroleum. Currently, the feedstocks used in the facility are disposed in landfills, sprayed on open
fields, or burned, releasing methane into the atmosphere. By using these waste products as a substitution for fossil
fuel–based natural gas, Carolina Renewables is creating a more sustainable source of gas production and meeting local
demand for alternatives to reduce their carbon footprint.

1 EPA: An Overview of Renewable Natural Gas from Biogas, January 2024.
2 Ibid.
3 NGV America: Renewable Natural Gas Breaking Motor Fuel Usage Records, April 2023.
4 EPA: An Overview of Renewable Natural Gas from Biogas, January 2024.

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03 | Thematic Opportunities With Our Clients and Partners

Enabling
the New
Transportation
Sector Value
Chain

In This Chapter
48

Diversifying the Sourcingof Critical Minerals and Battery
Component Production

51

Facilitating Grid-Scale Battery
Storage for Enhanced Energy
Resiliency

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT46

03 | Thematic Opportunities With Our Clients and Partners | Enabling the New Transportation Sector Value Chain

Transportation, which accounts for more than a third of global CO2 emissions,1 is undergoing
rapid change due to the global rollout of light-duty electric vehicles, while the electrificationof other transportation sectors is becoming increasingly evident. At Goldman Sachs, weare supporting our clients to help create more sustainable value chains by diversifying
the sourcing of critical minerals and enhancing battery recycling, while helping to ensurethat electric grids and related infrastructure are equipped to handle increased demandand improve reliability and affordability. Taken together, our clients’ priorities are helping
to transform the transportation sector across the value chain.
While clean technologies dominated by renewable power remain at the lower end of the Carbonomics cost curve, they
have become relatively more expensive year over year, driven by lower gas prices, higher interest rates, and cost inflation.
At the same time, relatively more expensive technologies, such as electric vehicles and transportation, have become lessexpensive due to lower raw material costs and simpler battery integration.2 The chart below shows the transportation
sector technologies’ carbon abatement cost reductions from 2022 to 2023.
In addition to these cost trends, we see increasing focus from corporates and consumers on solutions to improve consumption
efficiency. This is driven in part by the need for energy and land use efficiency in service of meeting broader environmental
and financial goals, the continued deployment of material-intensive, low-carbon technologies, and anticipated supply
shortfalls of critical materials over the coming decade. Demand for critical minerals is expected to significantly increaseover the next decades, which could strain supply chains and mining facilities. Circular economy solutions offer an array ofbenefits, including the extension of product lifespan and the reduction of waste materials. Across the transportation sector,
we support our clients across various components of the value chain to help improve the reliability and affordability ofelectric and electrified solutions.

200

Transportation Sector Technologies’ Carbon Abatement Cost Reductions
From the 2022 to 2023 Carbonomics Cost Curves (US$/tnCO2)

100

Transport (Road, Aviation, Shipping)00
Carbon Abatement Cost Change in 2023
Cost Curve vs. 2022 (US$/tnCO2eq)

LNG
Shipping

-100
-100

HDV Hydrogen
FCEV

-200
-200
Biofuels

-300
-300

LDV Gasoline
to EV
LDV Diesel
to EV

-400
-400

-500
-500
0

0

2

2

4

4

GHG Emissions Abatement Potential (Gt CO2eq)

6

6

8

8

10

For illustrative purposes, this chart only includes the reductions in carbon abatement cost changes for transportation sector technologies. The technologies
with increased abatement costs from 2022 to 2023 that are not shown include, but are not limited to, renewable power, renewable power with energy storage,
SAF, and buildings efficiency (heat pumps), among others.
Source: GIR

1 IEA: Transport — ​Energy System, as of February 2024.
2 For further detail on how different technologies have shifted the Carbonomics cost curve, please see the latest Carbonomics cost curve report.

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03 | Thematic Opportunities With Our Clients and Partners | Enabling the New Transportation Sector Value Chain

Diversifying the Sourcing of Critical Minerals
and Battery Component Production
The adoption of electric vehicles (EVs) is rising, with EV car sales predicted to grow to 73 million
units in 2040, up from around two million in 2020, according to Goldman Sachs research.1
With the typical electric car requiring six times the raw material input of internal combustion
vehicles,2 the need for critical minerals is expected to increase dramatically.
Total demand for critical minerals over the next two decades is expected to rise by 90% forlithium, 60%–70% for nickel and cobalt, and 40% for copper and other rare earth elements
under a below 2 degrees C scenario.3 Ensuring these materials are sustainability sourced
to minimize impact to natural ecosystems and communities is essential, as alternative
manufacturing methods such as recycling and reuse are crucial to reducing raw material
demand and diversifying the supply chain.
Graphite is another critical mineral in high demand from battery manufacturers, composing
approximately 33% of lithium-ion battery cells by weight.4 Graphite manufacturing is anenergy-intensive process that is mainly conducted in emerging markets, where grid electricity
is carbon intensive. By developing a fully integrated source of battery anode material (a key
battery material), General Motors’ investment in Nouveau Monde Graphite (NMG) is helping
to create a more resilient North American supply chain for critical minerals.

CASE STUDY

Supporting General Motors’ $150 Million
Equity Investment for Sustainable Critical Minerals
Goldman Sachs acted as exclusive financial advisor to GM on its investment in NMG. The transaction is a milestone forthe industry, with GM’s investment demonstrating continued strong interest from original equipment manufacturers
and battery cell manufacturers in securing local, sustainably sourced EV battery materials. In addition, it demonstrates
Goldman Sachs’ support of key investment projects transforming the transportation sector. GM committed an aggregate
equity investment of $150 million in NMG. NMG aspires to become a strategic supplier to the world’s leading battery andautomobile manufacturers, providing high-performing and reliable advanced materials while promoting sustainability
and supply chain traceability. GM’s first tranche investment of $25 million will be used to support NMG’s execution planfor its Phase-2 Matawinie Mine and Bécancour Battery Material Plant in Québec, Canada, while the second tranche
investment of $125 million will support NMG developing the first fully integrated (from ore to active anode material) sourceof battery anode material in North America.5 Under the terms of the agreement, NMG will provide GM with 18,000 tons
per annum of active anode material. The agreement will support GM’s EV production and add to its progress in developinga more sustainable and resilient North American–focused EV supply chain.

1 Goldman Sachs: Electric Vehicles are Forecast to Be Half of Global Car Sales by 2035, February 2023.
2 IEA: The Role of Critical Minerals in Clean Energy Transitions, March 2022.
3 Ibid.
4 Transport & Environment: From dirty oil to clean batteries, March 2021.
5 NMG: NMG Announces Offtake Agreement with GM, February 2024.

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03 | Thematic Opportunities With Our Clients and Partners | Enabling the New Transportation Sector Value Chain

Diversifying the Sourcing of Critical Minerals
and Battery Component Production (continued)

In addition to substantial raw material needs, EV battery manufacturing requires advanced
engineered materials known more specifically as cathode active materials (CAM) and their precursors(pCAM).1, 2 These materials are the basis for EV batteries and are a key driver of the range, safety,
durability, and carbon footprint. While most of the world’s battery materials are made frommined metals, battery and automobile manufacturers are developing methods to incorporate
recycled materials as part of their production process. This includes Ascend Elements, a US-based
manufacturer of engineered materials.

CASE STUDY

Advancing North America’s First
Cathode Production Facility With
Ascend Elements
Ascend Elements, a US-based manufacturerof sustainably engineered battery materials
for electric vehicles, is commercializing anefficient circular method to make sustainable
battery materials using recycled inputs.
Ascend Elements’ recycled battery materials
help meet the growing demand for electricvehicle batteries while reducing supply chain
carbon emissions.3 Goldman Sachs acted as
the sole private placement agent on Ascend
Elements’ recent $622 million Series D private
placement round. The funding will advanceconstruction of Ascend Elements’ Apex 1
facility in Hopkinsville, Kentucky, which willbe North America’s first pCAM and CAM
manufacturing facility.

1 National Academies Press: The Competitive Edge: Research Priorities for U.S. Manufacturing, 1991.
2 Ascend Elements: Ascend Elements to Supply Sustainable Cathode Precursor (pCAM) Made from Recycled Battery Materials to Major U.S. Customer, June 2023.
3 Ascend Elements: Ascend Elements Raises $542 Million to Accelerate Production of U.S.-engineered Lithium-Ion Battery Materials, September 2023.

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03 | Thematic Opportunities With Our Clients and Partners | Enabling the New Transportation Sector Value Chain

Diversifying the Sourcing of Critical Minerals
and Battery Component Production (continued)

Batteries are the single most important component of an EV, representing 40% of total price,1and are a key determinant of the vehicle’s range and performance. Battery manufacturing
also represents a focal point of the entire EV supply chain, where critical minerals, engineeredmaterials, and global supply chains converge. The manufacturing process itself requires large
amounts of energy, estimated at around 50–65 kWh of electricity per kWh of battery capacity.2
Currently, most lithium battery production is located in markets where more traditional sourcesof energy like coal are the primary energy source.3 However, new battery manufacturers suchas Northvolt are locating production facilities closer to their customers and using low-cost
renewable energy for improved economics, reduced carbon footprint, and increased useof recycled materials to meet their sustainability ambition.

CASE STUDY

Northvolt’s Financing Journey
to Make a Greener Battery
Northvolt is a European supplier of sustainable, highquality lithium-ion battery cells and systems. Manufacturingwith clean energy, the company’s mission is to deliver
lithium-ion batteries with a 90% lower carbon footprintcompared with those made using conventional methods,
and establish capabilities to enable 50% of all of its
raw material requirements to be sourced from recycled
batteries by 2030. In 2019, Northvolt raised $1 billion
from a consortium of investors co-led by funds managed
by Goldman Sachs Asset Management and Volkswagen
Group. Goldman Sachs Investment Banking acted as
private placement agent in connection with two follow-on
equity investment rounds in 2020 and 2021, as well as theconvertible note capital raise in 2022 that was further
increased in 2023. In each instance, funds managed byGoldman Sachs Asset Management participated in thesefinancing activities. Northvolt’s funding is supporting its
expansion in Europe and North America and in executing
on its mission to enable the energy transition throughthe development of a local, sustainable supply chain
for lithium-ion batteries.

1 Carey & Lienert: Focus: The battery test race to work out what used EVs are really worth, October 2023.
2 Kurland: Energy use for GWh-scale lithium-ion battery production, December 2019.
3 MIT Climate Portal: How much CO2 is emitted by manufacturing batteries?, as of March 2024.

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03 | Thematic Opportunities With Our Clients and Partners | Enabling the New Transportation Sector Value Chain

Facilitating Grid-Scale Battery Storage
for Enhanced Energy Resiliency
The rapid growth in EVs will also increase demand for consumers and businesses on electricgrids, from both dedicated roadside EV chargers and home charging. Charging an EV
battery can pull as much as 150 kilowatts from the grid — ​the equivalent of 1,500 100-wattlightbulbs — i​n less than an hour.1 At the same time, solar and wind power are forming alarger portion of electric grids, but are intermittent, creating the need for flexible power
capacity to smooth market imbalances and improve grid stability. Battery facilities that canstore large amounts of renewable energy are critical to meeting this demand. These gridscale facilities can charge up when the sun is flooding the system with power and discharge
it when demand is high to improve affordability and resiliency for consumers.
Scaling up short-duration storage assets, such as large-scale lithium-ion batteries, iscritical for electric grid operators to provide reliable, low-cost electricity while increasing
the amount of renewable power generation on the grid. Furthermore, with increasing
grid demand from EV charging needs, data centers, and other industrial demand, project
developers and grid operators are investing in battery grid storage projects. Companies
like GridStor are addressing these challenges and expanding the rollout of grid-scalebattery storage.

CASE STUDY

Helping to Prepare the Grid for a Net Zero Future
To address these electricity needs in the marketplace and capitalize on the opportunity, the Sustainable Investing Groupand infrastructure investing teams established GridStor as an operating company to acquire, develop, and operate standalone battery energy storage projects. Such energy storage systems expect to charge electricity during hours with relatively
high renewable energy supply; the systems then discharge electricity during hours with low renewable energy supply, highdemand, or when the grid needs instant response capacity for reliability. The battery storage assets are expected to playa critical role in providing grid reliability and help reduce price volatility. Since launching in April 2022, the GridStor teamhas grown to 36 employees, and had its first 60 MW come online in December 2023.

“Finding innovative, profitable solutions in private markets that address complex climate-related challenges andenable other companies, sectors, and value chains to become more sustainable themselves, presents a compellinginvestment opportunity for our Goldman Sachs Alternatives business to support the diverse set of our clients’investment preferences, by leveraging the distinctive breadth of our open architecture platform, which includes
both Goldman Sachs solutions and those of other specialized external managers.”
John Goldstein Global Head of AM Sustainable Client Solutions

1 Goldman Sachs Asset Management: How Battery Storage May Ease the Shift to Renewables (gsam.com), April 2021.

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03 | Thematic Opportunities With Our Clients and Partners | Enabling the New Transportation Sector Value Chain

Facilitating Grid-Scale Battery Storage
for Enhanced Energy Resiliency (continued)

The climate transition is driving a significant global build-out of intermittent renewable power
generation, such as wind and solar. In turn, these accelerated shifts in the global energy mix
are leading to market imbalances and the need for more flexible power capacity, as well as
presenting challenges for system operators in maintaining grid stability. In recent years, this has
intensified the demand for clean power technologies such as battery energy storage systems.

CASE STUDY

Pearl Street
To help meet these demands and challenges, the Commodities Sustainable Solutions team within the Commodities Group (partof GBM) is developing GS Pearl Street — ​a platform to provide trading, route-to-market, and principal financing solutions forclean power technologies. GS Pearl Street builds on our 20 years of experience in trading and financing in power markets, andwill support owners of clean power assets and system operators as they manage the transition to renewable power generation.
As part of this innovative platform, we are offering the owners of grid-scale energy storage systems a route-to-market solution
combined with long-term project financing.

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03 | Thematic Opportunities With Our Clients and Partners

Preserving
Natural Capitaland Protecting
Biodiversity

In This Chapter
55

Leveraging Nature-Based Solutions to Help
Achieve Climate and Biodiversity Goals

56

Addressing Critical Water Challenges to Improve
Availability, Resiliency, and Affordability

57

Facilitating Decarbonization in
Hard-to-Abate Sectors

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03 | Thematic Opportunities With Our Clients and Partners | Preserving Natural Capital and Protecting Biodiversity

The World Economic Forum estimates that $10.1 trillion in annual business value and395 million jobs could be created by 2030 through the preservation of our ecosystems,
biodiversity, and natural capital.1 While preserving natural capital and protecting biodiversity
is crucial to ensuring a sustainable economy, measuring its progress has its challenges.
Unlike measuring climate change with one core metric, GHG emissions, there is no one
metric to capture natural capital loss and degradation. With the final Taskforce on NatureRelated Financial Disclosures recommendations published in September 2023, we continue
to assess our integration of these recommendations into our business decision-making
and support for our clients as they seek to help preserve natural capital and protect
biodiversity loss.
The world is dependent on nature and ecosystems for $44 trillion of economic output, or more than half of the world’s
GDP.2 There is a growing recognition that biodiversity loss and insufficient related ecosystem services present systemicrisk that could impact sustainability goals, economic growth, and stability. Managing the risks created by the declineof biodiversity and identifying the opportunities afforded by global conservation and remediation efforts requires aninnovative and thoughtful approach.

1 WEF: New Nature Economy Report II, 2020.
2 Ibid.

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03 | Thematic Opportunities With Our Clients and Partners | Preserving Natural Capital and Protecting Biodiversity

Leveraging Nature-Based Solutions to
Help Achieve Climate and Biodiversity Goals
Despite significant efforts to decarbonize, additional mitigation tools are needed to complement
the move toward lower carbon-sources of energy. One such opportunity is investing in nature-based
solutions (NBS), which have the potential to deliver one-third of the climate mitigation necessary
by 20301 while simultaneously providing human well being and biodiversity benefits.2
To help bridge this gap, Goldman Sachs offers clients seeking to support these goals an NBS investment
strategy through XIG Imprint, our impact investing unit.

CASE STUDY

Restoring Forests With Appleand Conservation International
In 2021, Apple launched The Restore Fund with Imprint and Conservation
International to invest in forestry projects that sequester carbon anddemonstrate a viable financial model to scale forest restoration. With afocus on reforestation projects that support forest protection, biodiversity,and water quality, and provide jobs in local communities, the investments
contribute to the broader climate transition. The Restore Fund invested
alongside BTG Pactual Timberland Investment Group (TIG) in a reforestation
strategy in the Cerrado region of Brazil, the biologically richest savanna in
the world, which contains 11,000 plant species, half of which are endemic
to the region. TIG’s two-part strategy seeks to conserve and restore native
ecosystems on half of their properties, and establish commercial tree
farms that produce long-lived, renewable wood products, and sequester
carbon on the other half. To date, Imprint has invested in a 35,000-hectare
portfolio of properties with TIG and other investors. Biodiversity baseline
assessments indicate that the portfolio supports over 297 species ofanimals and plants (including puma, ocelot, tapir, and orange-winged
parrot). The portfolio currently supports 133 full-time-equivalent (FTE)
jobs, an increase from nine FTE jobs prior to acquisition.

“Our clients are increasingly seeking portfolios that generate financial returns and also
create positive impact. Nature-based solutions can be a great investment opportunity
to help these clients achieve their investment objectives.”
Lisa Williams Head, Nature-Based Solutions, XIG Imprint

1 Griscom et al., 2017: Natural Climate Solutions. Proceedings of the National Academy of Sciences, 2017.
2 World Bank: Climate Explainer: Nature-Based Solutions, May 2022.

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03 | Thematic Opportunities With Our Clients and Partners | Preserving Natural Capital and Protecting Biodiversity

Addressing Critical Water Challenges to Improve
Availability, Resiliency, and Affordability
Rising costs and inefficient practices are creating water affordability issues for communities worldwide,with an estimated four billion people experiencing severe water scarcity for at least one month per
year.1 Addressing these basic needs will require increased financing to clean water. Goldman Sachs
Research estimates that an additional $200 billion per year is needed through 2030 to support cleanwater pathways.2
Our work with clients in the water sector demonstrates how targeted capital can help address our
nature and social challenges together.

CASE STUDY

Advising Evoqua’s Acquisition by Xylem to Create One of
the World’s Largest Pure-Play Water Technology Companies
Evoqua Water Technologies Corp. was a leading provider of mission-critical water and wastewater treatment solutions, offering abroad portfolio of products, services, and expertise to support industrial, municipal, and recreational customers. The company was
acquired by Xylem Inc in May 2023 in an all-stock transaction reflecting a value of approximately $7.5 billion and creating one of thelargest pure-play water technology companies in the world. Xylem is a leading water Equipment, Technology and Service company
whose customers include utilities and engineering, procurement, and construction firms. Its key products include water infrastructure
and measurement and control solutions. We acted as the lead financial advisor to Evoqua in its sale to Xylem, supporting the creationof a transformative platform addressing global water challenges and uniting cultures with sustainability at their core.

1 UNICEF: Water scarcity | UNICEF, as of February 2023.
2 GIR: Green Capex: Making infrastructure happen, October 2021.
3 Xylem: Xylem Completes Acquisition of Evoqua, May 2023.

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03 | Thematic Opportunities With Our Clients and Partners | Preserving Natural Capital and Protecting Biodiversity

Facilitating Decarbonizationin Hard-to-Abate Sectors
Carbon emissions are concentrated in a handful of sectors. The Energy, Materials, Autos, Capital
Goods and Utilities sectors represent only 22% of the market, but contribute approximately 82%
of total global emissions, 94% of total water consumption and 93% of total waste,1 highlighting
the need for sound transition plans that safeguard the environment.
We are working with our clients to help them deliver on their transition strategies while considering
energy security and affordability.
Circular solutions, such as capture and sequestration technology, can reduce the negative impactsof energy exploration during the transition to a low carbon economy. In working with Milestone
Environmental Services we are supporting operators to help achieve their waste and emissions
reduction ambitions.

CASE STUDY

Global Environmental
Transition Equity Strategy
Goldman Sachs Asset Management Global
Environmental Transition Equity Strategy was launchedin November 2023 and is our first strategy dedicatedto the transition from a carbon emissions–intensive
economy to one that is increasingly renewable energy–
based, low-carbon, and environmentally friendly.
Investing across the range of high-emitting sectors
with the biggest impact not only on carbon emissions
but also on water consumption and waste generation,
the portfolio consists of predominantly high-quality,
mature, value-oriented companies that exhibit strong
free-cash-flow yields and potentially attractive
valuations. The five key themes the strategy focuseson are extraction, power generation, manufacturing,transportation, and consumption. Crucial to thesuccessful implementation of the strategy is for us
to partner with the portfolio companies, identify
synergies, advance sustainability practices, andfocus on shareholder value creation. Our Investment
Stewardship team is critical to our process in our roleas an active asset manager. This strategy leverages
Goldman Sachs Asset Management’s proprietaryinternal tools and systems to both qualitatively andquantitatively assess the environmental impact
and transition plans of the companies in which they
invest for clients.

CASE STUDY

Milestone Environmental Services
Milestone Environmental Services, headquartered in Houston,
Texas, is a leading environmental services and carbon managementcompany and one of the largest independent energy waste
sequestration companies in the United States. Milestone operates
a leading integrated network of waste management infrastructurethat reduces the carbon impact of its customers by permanently
sequestering hydrocarbon waste over a mile below the surface,preventing greenhouse gas emissions and water and groundcontamination. Milestone was acquired by SK Capital Partners
from Amberjack Capital Partners in October 2023. The acquisition
will drive forward the continued growth of Milestone’s business,
services and client base. Goldman Sachs served as the exclusive
financial advisor to Milestone on the sale to SK Capital Partners,
supporting the company on its mission to offer alternative,
environmentally responsible solutions to clients in the oil andgas sector aiming to meet their carbon reduction goals andadvance their sustainability objectives.

1 MSCI, Goldman Sachs Asset Management. Market as denoted by MSCI ACWI, as of September 2023.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

57

SECTION 04

Protecting theValue of Our Firm
We employ a comprehensive approach to safeguarding the value of our
firm, integrating governance, risk management, and regulatory preparedness.
We continually evaluate and enhance our governance structures, policies,
and practices, while fostering a culture where risk management is ingrainedin our decision-making process. Our risk frameworks cover a range of climate,environmental and other social-related risks, while our risk appetite adapts
to changing market conditions. Both governance and risk management are
key to regulatory preparedness, allowing Goldman Sachs to stay positioned
for growth while meeting regulatory requirements.

In This Section
59

Governance

62

Risk Management

64

Regulatory Preparedness

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04 | Protecting the Value of Our Firm

Governance
Responsibly managing our business is paramount. From the oversight of our Board of
Directors to internal governance structures, we manage a broad spectrum of financial andnonfinancial risks across our businesses. This includes the evaluation of sustainabilityrelated opportunities, management of climate and other sustainability-related risks, andpreparation of our voluntary and regulatory-required sustainability disclosures.

Goldman Sachs Sustainability-Related Organizational Structure

Board Oversight
Goldman Sachs
Board ofDirectors

Goldman Sachs Group Board of Directors and Committees

Subsidiary
Boards

Subsidiary Boards

Internal Governance
SeniorManagement
Committees

Firmwide Enterprise Risk Committee

Firmwide Reputational Risk Committee

Sustainability
and ClimateFocused
ForumsFirmwide Sustainability Steering Group

Sustainable Asset Working GroupInternal Functional Groups

Executive OfficeSustainable Finance Group

Controllers

Investor Relations

Risk

Office of Government & Regulatory Affairs

Corporate Planning and Management —Sustainable Operations

Office of Corporate Engagement

Internal
Corporate
Functional
GroupsData Engineering — ESG Beacon

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04 | Protecting the Value of Our Firm | Governance

Board Oversight
Board of Directors
The Goldman Sachs Group, Inc. Board of Directors and its
committees are responsible for overseeing the business and affairsof our firm, including oversight of the management of the firm’s
most significant risks.
Given the interdisciplinary nature of the oversight of sustainability,
including priorities of climate transition and inclusive growth,and the financial and nonfinancial risks related to these activities,
the Board carries out its oversight of these matters directly, atthe full Board level, as well as through its committees, including
its Risk and Public Responsibilities Committees.
This may include periodic updates on the firm’s sustainability
strategy and initiatives, as well as targets, progress and incentives
related thereto, discussions regarding the climate models thefirm utilizes to assess physical and transition risks, and reviewsof our sustainability- and climate-related reporting.
Risk Committee
The Risk Committee of the Board plays a central role in our
Board’s oversight of firmwide financial and nonfinancial risks.
This includes the firm’s overall risk-taking tolerance and risk
governance, including with respect to climate risk. As part ofits oversight, the Risk Committee receives periodic updates
on our climate risk management approach, including scenario
analysis capabilities and integration into existing risk
management processes.
Public Responsibilities Committee
The Public Responsibilities Committee of the Board assists theBoard in its oversight of our firmwide sustainability strategy andsustainability issues affecting the firm. As part of its oversight,
the Public Responsibilities Committee receives periodic updates
on our sustainability strategy and reporting as well as updates
on initiatives such as One Million Black Women and 10,000 Small
Businesses. The Public Responsibilities Committee also periodicallyreviews our governance and related policies and processes forsustainability and climate-related matters.
Subsidiary Boards

Internal Governance
Senior Management Committees
Various senior management committees and groups oversee ourtransaction selection decisions and risk management processes.
The Firmwide Enterprise Risk Committee (ERC) is responsible
for overseeing all of our financial and nonfinancial risks, including
climate-related risk. The ERC, through its oversight of the Enterprise
Risk Management Framework, monitors the firm’s risk profile on bothan aggregate and segment level, inclusive of key trends, top andemerging risks, and significant events that potentially affect the firm’s
risk profile. The ERC is co-chaired by the chief risk officer (CRO) andchief operating officer. The chief financial officer is vice-chair, andthe Committee also includes senior firm leaders, many of whom arealso members of other firmwide risk committees.
Our Firmwide Reputational Risk Committee is responsible
for assessing reputational risks through thematic discussions andby reviewing transactions identified as having potential heightened
reputational risk, including those driven by sustainability-related
issues, pursuant to the criteria established by the Firmwide
Reputational Risk Committee and as determined by committee
leadership.
Sustainability and Climate-Focused Forums
In addition to senior management committees, several firmwide
forums are focused on convening key senior stakeholders fromacross our businesses and corporate functional groups to oversee
climate and other sustainability-related issues.
The Sustainability Steering Group convenes key senior
stakeholders, including those from the Sustainable Finance Group(SFG), Risk, Controllers, Global Banking & Markets (GBM) and Asset& Wealth Management (AWM). This group provides guidanceon key climate risk and opportunity decisions, including interim
goal setting to achieve our long-term net zero by 2050 pathwaycommitment. Chaired by the firm’s CRO and head of SFG, the group
reviews progress and provides feedback on climate strategy, risk
management, integration and climate-related capabilities more
broadly. This includes oversight of our 2030 sectoral targets in
Energy, Power and Auto Manufacturing, and associated voluntary
reporting. Further, the group oversees firmwide regulatory
sustainability implementation, including oversight of sustainability
reporting requirements.

As applicable, boards of our subsidiary entities around the globe
may provide additional oversight of sustainability matters as may
be required from time to time.

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04 | Protecting the Value of Our Firm | Governance

The Sustainable Asset Working Group (SAWG) discusses,
guides, and validates sustainable client offerings and attributions
at the transaction and product level, as well as applying ourallocation methodology for transactions that contribute toward
our firmwide $750 billion sustainable finance commitment. This
commitment is built on commercial activity that is aligned with
our firm’s Sustainable Finance Framework. SAWG also governs
the firm’s Sustainability Issuance Framework and sustainability
issuances. Finally, SAWG serves as an internal control group to help
ensure accuracy and accountability for our firmwide $750 billion
sustainable finance commitment and consists of members fromour businesses, SFG and control-side personnel.
Internal Functional Groups
We embed sustainability responsibilities within various firmwide
functional teams that support our businesses and clients. In addition,a group of senior leaders from across the firm reviews and provides
feedback prior to sustainability report disclosures.
Our Executive Office (EO) plays an integral role in setting andadvancing Goldman Sachs’ corporate strategy and in preserving thefirm’s distinctive culture. The EO is responsible for safeguarding thefirm’s relationship with alumni, clients, shareholders, policymakers
and the broader public, while ensuring our own people remain
informed about the firm’s priorities, including sustainability-related
priorities. The EO also partners with the businesses to sourcehigh-impact opportunities in line with the firm’s sustainabilityrelated objectives.
In addition to SFG, which leads the advancement of firmwide
sustainability strategy, other EO teams supporting the firm’s
sustainability strategy include the Office of Government &Regulatory Affairs (OGRA), Investor Relations (IR), and the
Office of Corporate Engagement (OCE). OGRA manages
relationships with regulatory and legislative bodies around theworld, while also advancing a public policy agenda in supportof the firm and our clients, and partners with SFG on discussions
on sustainability-related policy topics, where applicable. IR works
closely with senior management to shape the firm’s external
engagement with equity and debt investors, research analysts,
rating agencies, credit counterparties and sustainability-focused
stakeholders. The team also collaborates with key internal
constituents on competitive positioning, firmwide strategic initiatives,and capital and resource management. OCE leverages our capital,
people, and innovations to help address economic and societal
challenges, catalyze markets, and transform communities.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

Other Internal Functional Groups outside the EO include
Controllers, responsible for the tracking and review of progress
toward select firmwide sustainability-related targets, including the2030 sectoral targets. This team also coordinates with SFG andvarious functional teams to ensure the consistency, accuracy andcompleteness of reporting toward these targets and other climaterelated disclosures.
Risk is an independent risk oversight and control function of thefirm and is responsible for the effective identification, monitoring,evaluation, and management of the firm’s financial and nonfinancial
risks. At an operational level, Risk specialist teams are responsible
for the development of the firm’s climate, environmental andsocial-related risks programs, including setting and evaluating risk
appetite, quantifying climate-related risk and integrating thatrisk into business and risk management practices. Select teams
within Risk also guide environmental, health and safety standards
for our investing activities and perform due diligence on proposed
investment transactions to help business teams identify and mitigate
potential sustainability risks.
Corporate Planning & Management (CPM) unifies Finance &Planning, Spend Management, Operational Risk and Resilience,and CPM Engineering teams to deliver business planning andanalytics, expense management, third-party risk management,sustainability initiatives for our operations and supply chain,and governance strategies across the firm. As part of CPM, theSustainable Operations team manages the firm’s operational andsupply chain sustainability-related goals, including our commitment
to achieve net zero by 2030, and partners with Corporate &Workplace Solutions to deliver environmentally responsible
workplace solutions.
Data Engineering is the group that seeks to deliver fast, easyand secure access to high-quality data for running businesses
effectively at scale. Their work spans a combination of curatingcore datasets for the firm, hosting a consolidated enterprise data
platform that enables building, publishing, and consuming highquality data services, collaboration with divisions in machinelearning, data design, and data licensing, and enforcing strong
data governance throughout the firm. Within Data Engineering is
ESG Beacon, a team focused on sustainability data and sharedtooling to streamline use and ensure strong governance. The teamsources, ingests, models, and delivers shared sustainability data
to businesses across the firm.

61

04 | Protecting the Value of Our Firm

Risk Management
As a global financial institution, Goldman Sachs is exposed to climate and other environmental
and social-related risks that manifest in different ways across our businesses.
We manage these risks through our three lines of defense to ensure robust oversight and monitoring across the organization. As
highlighted earlier in this report, we see climate and other environmental and social-related opportunities across our financing, investing
and advisory activities. From a risk perspective, extreme weather events and chronic changes in temperatures resulting from climatechange may disrupt operations or affect the value of our clients’ and the firm’s portfolios; further, there are other environmental risks suchas biodiversity and social risks impacting human capital. To identify, mitigate and adapt to these climate and other environmental andsocial-related risks, we are focused on advancing our risk management capabilities, building on our risk management culture.

Our Three Lines of Defense

Climate Risk Management

Goldman Sachs Enterprise Risk Management Framework consistsof several key processes, including risk identification and assessment,risk appetite, limits and threshold setting, risk reporting andmonitoring, and risk decision-making. Our risk management
framework is based on a “three lines of defense” structure, which
covers financial and nonfinancial risks, including climate andother environmental and social-related risks.

Risk identification serves as the foundation for our firm’s risk
processes, informing risk strategy, mitigants and controls. Our
bank’s risk identification process is supported by quantification
methods, data infrastructure and analytics, culminating in ourcomprehensive Risk Factor Inventory encompassing financial
and nonfinancial risks, including climate-related risks.

First Line: Our Businesses
Our businesses are considered the first line of defense and areaccountable for outcomes of risk-generating activities, as well as
for assessing and managing those risks, including climate and otherenvironmental and social-related risks, within clients’ risk appetiteand the firm’s risk appetite.
Second Line: Independent Oversight and Control Functions
Independent risk oversight and control functions are considered thesecond line of defense. There are both business segment–specificand firmwide risk and control functions that perform second-line
risk management activities, including independent assessment,
oversight, and challenge of the risks taken by the first line of defense.

This identification of climate-related risks precedes a materiality
assessment of risk factors that may manifest across the firm’s
businesses. The risk taxonomy is the classification structure bywhich the firm organizes potential risks and risk events, providing
common terms for risk identification, assessment, monitoring
and reporting processes. Within this taxonomy, climate-relatedrisks are categorized within the broader Strategic and Business
Environment Risk category as distinct, stand-alone risks.
Additionally, we consider climate-related risks to be potential
drivers across all risk categories. In describing physical and transition
risks as risk drivers, we emphasize how they may impact otherrisk categories (Credit and Market Risk, Liquidity and Funding Risk,
and Operational Risk) over a range of time horizons.

Third Line: Audit
Internal Audit is the third line of defense and provides independent
assessments and opinions of the firm’s overall control environment,risk management controls, and governance processes. Internal Audit
reports to the Board Audit Committee.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT62

04 | Protecting the Value of Our Firm | Risk Management

Other Environmental and Social Risk Management
Guidelines and Policies

As our risk management modeling evolves, we are increasingly
considering climate-related risks alongside other environmental
and biodiversity risks such as seismic and water stress risk. We also
integrate and manage environmental and social risks through risk
assessment and reporting. These environmental risks may not be
exclusively linked to long-term changes in the climate; nonetheless,we find they are best assessed together with climate-related risks.
Given the significance of these environmental risks, in-house
specialist teams consider climate-related and environmental (C&E)
risk in an integrated manner.

Our perspectives on sustainability are informed by our stakeholders,
including investors, nongovernmental organizations and regulators — ​and they help us to better advise our clients in terms of how to
improve environmental and social practices. Examples of our firm’s
related guidelines include our EPF, Code of Business Conduct andEthics, the Statement on Human Rights, Statement on Modern Slaveryand Human Trafficking, and the Vendor Code of Conduct. Notably, our
EPF guides our overall approach to sustainability issues — ​including
management of environmental and social risk across a broad scopeof sectors and products.

We proactively manage and publicly report the material impactsof sustainability-related risks to our firm, including C&E and social
risks across our first- and second-line teams. Dedicated teams
within Legal and Compliance examine and advise the firm on legal,
regulatory and reputational environmental, social and governancerisks. Select teams within the Risk division also guide environmental,
health and safety standards for our investing activities and perform
Environmental, Health and Safety (EHS) due diligence on proposed
investment transactions to help business teams identify and mitigate
potential risk.

Our advisory, financing and direct investing teams include
environmental and social due diligence as part of the review process.
Transactions that may have significant environmental or social
risks, including reputational risks, are escalated for enhanced review
and business selection discussion. Several teams are involved inhelping businesses identify and mitigate potential environmental
and social risks, including our Business Intelligence Group, SFG, andOperational Risk. For several sectors with particular environmental
sensitivity (e.g., Oil & Gas, Chemicals, Metals & Mining, Forestry,
Water), business teams are equipped with enhanced due diligence
guidelines and training to evaluate and engage with new and existing
business opportunities more effectively.1

2023 Transaction Highlights
In 2023, SFG reviewed more than 2,600 transactions for environmental and social reputational risks.

800

759
681

700
600
500
400

332

298

300

249
156

200

77

100

60

28

16
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hc
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lt
H

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2

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1 We focus primarily on climate-specific risks in this disclosure; however, many of the program enhancements described apply to both climate risk and environmental and social risk.
2 Power includes Biofuels.
3 Industrials includes Forestry.
4 Infrastructure includes Transportation.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT63

04 | Protecting the Value of Our Firm

Regulatory Preparedness
Goldman Sachs has been providing voluntary sustainability disclosures for the better part of two
decades, beginning with our first Environmental Report in 2006. We have since evolved our voluntarysustainability disclosures to increase transparency, including with our first SASB disclosure in 2019.
Since then, the sustainability reporting landscape has continued
to evolve, with a shift from voluntary to mandatory reporting.
In June 2023, global sustainability standard setter International
Sustainability Standards Board (ISSB) published its inaugural IFRS S1(General Requirements for Disclosure of Sustainability-Related
Financial Information) and IFRS S2 (Climate-Related Disclosures)standards. With its goal to create a global baseline of consistent,
comparable, and decision-useful sustainability information forinvestors that could be used alongside financial statements, the ISSB
sought to facilitate interoperability across jurisdictions to reduce
the operational burden and complexity of new regulatory reportingfor corporates, including Goldman Sachs and our clients.
Some jurisdictions, however, have already passed laws that mandate
disclosures that go well beyond the ISSB’s definition of materiality
and global baseline of disclosures. For example, Goldman Sachs
Group at the consolidated level will be subject to new, extraterritorial
sustainability-related laws that have been implemented by EU
policymakers and member states. In particular, Goldman Sachs will
be subject to new, extensive disclosure requirements that exceed
the ISSB’s global baseline as required under the EU CSRD.

We are investing to be able to produce the required sustainability
data and associated reporting capabilities. We are also reviewing ourexisting governance and oversight structures and developing andimplementing our longer-term operating model. We are designing aflexible operating model to meet our voluntary reporting objectives
as well as to comply with existing and additional forthcoming
mandatory reporting requirements across other jurisdictions.
Continuing to prepare for this shift in sustainability reporting
will guide our approach to broader sustainability measurement,
reporting and commitments as well as our ongoing assessmentof voluntary and regulatory frameworks, which may influence ourcontinued participation in voluntary sustainability-related industry
organizations. As this shift unfolds, our client-centric sustainability
strategy will persist as we continue to develop and deploy innovative
products and solutions for our clients, work with regulators andstrategic partners to address gaps in the marketplace, and protect
and preserve the long-term value of our firm.

While Goldman Sachs published a regulatory disclosure under
the CSRD’s predecessor, the Non-financial Reporting Directive, in
2023 for one of our European entities, the CSRD will significantly
expand both the scope and breadth of both qualitative andquantitative financial and impact-related disclosures associatedwith the 12 ESRS.

For information on our existing statements, policies, and reports on sustainability, please visit
the Corporate Governance section of our website. For more information about our financial andnonfinancial regulatory disclosures, please visit the Regulatory Disclosures section of our website.
GOLDMAN SACHS 2023 SUSTAINABILITY REPORT64

SECTION 05

Metrics
and Targets
Our overall sustainability strategy is supported by specific metrics and targets
that help us track progress, report to our stakeholders, and drive our businessdecision-making.
These metrics and targets support our strategic objective of working with ourclients to help them achieve their sustainability goals, while managing our firm’s
sustainability-related risks and opportunities.

In This Section
66

Progress Toward Our Firmwide$750 Billion Sustainable
Finance Commitment

68

Progress Toward Our 2030
Sectoral Targets

69

Progress Toward Our
Operational and Supply
Chain Commitments

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT74

SASB Index

79

Thematic Index for Our
Existing Sustainability
Disclosures65

05 | Metrics and Targets

Progress Toward Our Firmwide $750 Billion
Sustainable Finance Commitment
In 2019, we developed our Sustainable Finance Framework and announced our firmwide
10-year, $750 billion sustainable finance commitment to support the increasing demand forsustainable finance solutions across our financing, investing, and advisory work with clients.
We have made significant progress over the first four years. Since setting this 10-year commitment, we have achieved
approximately $555 billion1 in commercial activity, including $302 billion in Climate Transition, $74 billion in Inclusive
Growth, and the remainder in multiple themes.2 Of the $302 billion in Climate Transition, the most significant sub-theme
contributor is from Clean Energy followed by Sustainable Transport and Ecosystem Services, which together drive themajority of the contribution.
This progress reflects our integrated sustainable finance strategy and our ability to direct capital toward solutions
necessary to help our clients achieve their sustainability ambition.

Progress Toward 2030 Target~$555B

Achievement to date

Climate Transition$302B

Inclusive
Growth$74B$750B

Remainder in
Multiple Themes

Progress by Business Segment
Global Banking & Markets
Asset & Wealth Management
Platform Solutions

Annual Progress (2023)

2%
PS

Cumulative Progress

62%
GBM

1%
PS

Total

Total

~$130B
36%
AWM

56%
GBM

~$555B
43%
AWM

1 As of 12/31/23.
2 Includes activity relating to both Climate Transition and Inclusive Growth.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT66

05 | Metrics and Targets

Progress Toward Our Firmwide $750 Billion
Sustainable Finance Commitment (continued)

Progress by Theme
Annual Progress (2023)

Climate Transition
Inclusive GrowthMultiple Themes

Clean Energy 30%

30%

Total

~$130B
5%

65%

Accessible and Innovative Healthcare <1%
Accessible and Affordable Education <1%
Financial Inclusion 2%
Communities 3%
Food and Agriculture <1%
Waste and Materials 1%
Sustainable Transport 3%
Ecosystem Services 23%
Climate Transition — Multiple Themes 8%

Cumulative Progress

Clean Energy 34%

33%

Total

~$555B

54%

13%

Accessible and Innovative Healthcare 2%
Financial Inclusion 2%

Sustainable Transport 7%

Accessible and Affordable Education 2%
Communities 7%
Food and Agriculture <1%
Waste and Materials 2%

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

Ecosystem Services 7%
Climate Transition — Multiple Themes 4%67

05 | Metrics and Targets

Progress Toward Our 2030 Sectoral Targets
We are committed to working with our clients, investors and the public sector to support
the goals of the Paris Agreement. At the same time, we recognize that there are substantial
gaps between the Paris-aligned scenarios and the current state of policies, commitments,
and technologies. In our ongoing pursuit of these targets, we continue to evaluate data
quality, and, if necessary, adjust our reporting and methodology to ensure the accuracy
and relevance of our metrics.
In December 2021, we published physical emissions intensitybased targets1 related to our financing activities in Energy,2,3Power, and Auto Manufacturing4 using 2019 data. These sectors
reflect where we saw the greatest opportunity to proactively
engage clients, to deploy capital required for the transition, andto invest in new commercial solutions to support the transition toa low-carbon economy.

In December 2023, we provided our first update on progress toward
these 2030 sectoral targets,5 taking into account the most recent
data available for our physical emissions intensity calculation.6
In our 2021 portfolios, we have begun to see progress toward theseportfolio targets, but reiterate that year-to-year progress may notalways be linear. Below is a summary of our December 2023 update.
For more detailed information on this progress, please see theGoldman Sachs 2023 TCFD Report.

2030 Sectoral Targets and Intensities of Our 2021 Financing Portfolios
Sector

Metric2019 Baseline

2021 Intensitya

2021 vs. 20192030 Sectoral
Targets

EnergygCO2e / MJ

72

72

0%

56–60 (17–22%)b

Power

kgCO2e / MWh

417

296

-29%

147–219 (48–65%)b

Auto Manufacturing

gCO2e / km

152

119

-22%

70–77 (49–54%)b

a Majority of vendor data was pulled during July 2023.
b Reduction percentage from 2019 baseline to 2030 sectoral target.

Later this year, we plan to provide another update on our sectoral
targets. We will continue to support our clients in critical sectors
as they deliver on their climate transition strategies, including
by providing financing and investing in climate transition–enabling

technology and infrastructure. As relevant regulations are finalized,
we anticipate providing additional disclosures in 2025 to comply withclimate- and other sustainability-related reporting requirements,
including those of the EU CSRD.

1 The upper bound of each target does not exceed the expectations set by the below 2 degrees C scenario, whereas the lower limit aligns with the 1.5 degrees C pathways.
The referenced 2- and 1.5-degrees C pathways are based on Goldman Sachs’ Carbonomics research, which starts with the same science-based carbon budgets from IPCC
as other research scenarios and builds out pathways based on the costs of different technologies and approaches to decarbonization. For additional details on theGoldman Sachs Carbonomics research, please refer to the Goldman Sachs TCFD Report 2021.
2 Includes all liquid and gaseous fuels, such as oil, natural gas, hydrogen, biofuels, and sustainable aviation fuel.
3 Energy has been renamed from Oil & Gas in the Goldman Sachs TCFD Report 2021.
4 Our target is specifically focused on light-duty-vehicle auto manufacturing, including both cars and light trucks for passenger and commercial uses.
5 Emission scopes vary across sectors: Energy and Auto Manufacturing encompass Scopes 1, 2, and 3, while Power focuses solely on Scope 1 emissions. For detailed methodology
and rationale on scope inclusion/exclusion in each sector, please refer to pages 44–46 of the Goldman Sachs TCFD Report 2021.
6 Due to the time lag that exists for company-reported intensities and vendor ingestion of company emissions and production data, 2021 is the most current year
where data exists across all three of these inputs for our physical emissions intensity calculation.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT68

05 | Metrics and Targets

Progress Toward Our Operationaland Supply Chain Commitments
We are committed to increasing the sustainability of Goldman Sachs’ operations, businesstravel, and supply chain globally. This is why we set 2025 sustainability goals, that aim tofurther improve our performance across a range of areas including water, waste and energy
consumption, renewable energy procurement, and sustainable supply chain practices. In thepast year, we have advanced progress toward our commitments that target net zero by 2030
in our operations and supply chain.
Following this 2030 net zero commitment, we conducted a detailed assessment across our footprint to better understand key
emissions sources. In 2023, we revised our carbon accounting methodology, which included leveraging a third-party technology
solution. Our new measurement approach incorporates the latest climate science, helps increase the accuracy of our reported
emissions, and enables the integration of more advanced carbon calculations.1 We expect this new measurement approachto enable us to identify more impactful opportunities for emissions reduction across all scopes, including our Scope 3 emissions,which we seek to reduce in partnership with our vendors.
The following section presents our current operational and supply chain sustainability metrics, along with key progress updates.

2023 Metrics and Key Indicators
2022–2023
Trend

2023

2022

2021

2017
Base Year

308

292

286

286

$46,254$47,365$59,339$32,730

10.6

10.7

10.6

10.0

45,30048,50043,90033,60053,00052,80051,00040,600

70%

71%

74%

–

◊ ISO 14001–Certified Operations (% of sq. ft.)4

100%

100%

100%

–

◊ ISO 20121–Certified Events (% onsite events)4

100%

100%

100%

–

41,701

39,81942,83042,103Natural gas6

42%

62%

69%

88%

Other fuels7

58%

38%

31%

12%

Organization
Global facilities reported2
Revenues ($M)
Operational rentable square feet (million sq. ft.)2
Employees
Occupied seats2, 3

↑
↓
↓
↓
↑

Certification◊ LEED-certified buildings (% of sq. ft.)4↓

EnergyGlobal direct energy consumption (MWh)5↑

1 As a result of this update, we have re-baselined our Scope 1, 2, and 3 (excluding Category 15) emissions back to our 2017 base year. The updates to our Scope 1, Scope 2, and Scope 3
Business Travel are reflected in the operational metrics table.
2 This metric includes data that was normalized for sites that closed during the reporting year by multiplying the site value by the percentage of time Goldman Sachs operated the facility.
3 Occupied seats represent the number of people expected in the office, including both contingent workers and employees.
4 This symbol ◊ before an indicator denotes a commitment through Goldman Sachs’ 2025 ESG and Net Zero Commitments and ongoing 2020 Operational Commitments. Further informationon these commitments may be found on our Operational Impact pages here. Net Emissions represent achievement of ongoing Carbon Neutral commitment. Reductions are from a 2017 baseline,
except plastics, which are from a 2021 baseline or where otherwise noted.
5 Historical energy, water and greenhouse gas metrics were updated to reflect a new methodology in 2023. For originally reported values, please refer to our 2022 and 2021 Sustainability Reports.
Global renewable energy consumption and verified carbon credits reflect the totals at the time of original reporting (excluding the methodology impact).
6 Historical data points may be adjusted to reflect new information and/or changes to accounting methodologies.
7 Other fuels include fuel oil, LPG, vehicle fuel and jet fuel.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT69

05 | Metrics and Targets | Progress Toward Our Operational and Supply Chain Commitments

2023 Metrics and Key Indicators (continued)

2022–2023
Trend

2023

2022

2021

2017
Base Year↓451,817466,608

441,102504,826

Purchased electricity

97%

96%

96%

97%

Purchased steam & chilled water

3%

4%

4%

3%

493,518

506,427

483,932

546,929

-10%

-7%

-12%

n/a

18.9

21.5

21.4

32.7

-42%

-34%

-35%

n/a

436,210

448,939

416,660

453,518

100%

100%

100%

94%

Energy (continued)
Global intermediate energy consumption (MWh)5

Global direct and intermediate energy consumption (MWh)5↓

Reduction in global energy consumption from baseline (%)
Energy use intensity for offices (kWh/sq. ft.)↓

◊ Reduction in energy use intensity for offices from baseline (%)4
Global renewable energy consumption (MWh)↓◊ Percent renewable energy4, 8Greenhouse Gas (GHG) Emissions
Scope 1 — Direct (metric tons CO2-equivalent [tCO2e])5↑13,842

12,595

12,648

11,102Natural gas6

23%

35%

42%

61%

Other fuels7

43%

30%

26%

11%

HFC refrigerants

34%

35%

32%

28%

155,105

156,468

145,013

190,782

Purchased electricity

98%

98%

98%

99%

Purchased steam & chilled water

2%

2%

2%

1%

9,252

9,821

11,121

18,192

Purchased electricity

68%

67%

70%

85%

Purchased steam & chilled water

32%

33%

30%

15%

79,91561,517

21,496

120,335

Commercial air9

90%

84%

67%

81%

Other travel10

10%

16%

33%

19%

168,947

169,063

157,661

201,884

23,094

22,41623,76929,294

103,009

83,93345,265

149,629

0

0

0

0

Verified carbon avoidance credits (tCO2e)1179,91557,233

26,116

146,950

Verified carbon removals (tCO2e)11

23,094

21,82020,0000

Scope 2 (location) — Indirect (tCO2e)5

Scope 2 (market) — Indirect (tCO2e)5

Scope 3: Category 6 — Business travel (tCO2e)5Total Emissions: Scope 1 & 2 (location) (tCO2e)5Total Emissions: Scope 1 & 2 (market) (tCO2e)5Total Emissions: Scope 1, 2 (market), and 3 Category 6 (tCO2e)5◊ Net Emissions: Scope 1, 2 (market), and 3 Category 6 (tCO2e)4, 5

↓
↓
↑
↓
↑
↑

4 This symbol ◊ before an indicator denotes a commitment through Goldman Sachs’ 2025 ESG and Net Zero Commitments and ongoing 2020 Operational Commitments. Further informationon these commitments may be found on our Operational Impact pages here. Net Emissions represent achievement of ongoing Carbon Neutral commitment. Reductions are from a 2017 baseline,
except plastics, which are from a 2021 baseline or where otherwise noted.
5 Historical energy, water and greenhouse gas metrics were updated to reflect a new methodology in 2023. For originally reported values, please refer to our 2022 and 2021 Sustainability Reports.
Global renewable energy consumption and verified carbon credits reflect the totals at the time of original reporting (excluding the methodology impact).
6 Historical data points may be adjusted to reflect new information and/or changes to accounting methodologies.
7 Other fuels include fuel oil, LPG, vehicle fuel, and jet fuel.
8 The firm sourced renewable electricity equivalent to 100% of global electricity consumption. 96% is in line with RE100 market boundary criteria and requirements for firms joining prior to 2021.
9 This includes impact of incremental changes in air travel emission factors in 2023.
10 This includes charter air, rail/bus, ferry, car, and hotels.
11 The firm purchases third-party-verified carbon offsets (avoidance and/or removal credits) with emission claims that are tracked on the registries of Verra, Green-e, Gold Standard, or other similar
platforms. For YE 2023, credits are sourced from a variety of projects: Madre de Dios REDD projects, Hechu Afforestation Project in Anhui Province, India’s Breathing Space Improved Cooking Stoves
Programme, Guizhou Province Qianxinan Afforestation Project, and Ascend N2O Abatement project in US. Credits are applied to net emissions: Scope 1, 2 (market) and Scope 3 Category 6.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT70

05 | Metrics and Targets | Progress Toward Our Operational and Supply Chain Commitments

2023 Metrics and Key Indicators (continued)

2022–2023
Trend

2023

2022

2021

2017
Base Year↓

918,515930,682

826,151

1,026,286

-11%

-9%

-20%

n/a

13.0

12.7

11.2

19.0

-32%

-33%

-41%

n/a

2,744

3,676

2,820

5,979

68%

55%

58%

57%

◊ Landfilled material4 12

4%

3%

3%

7%

Waste to energy

28%

42%

39%

36%

Water
Global water withdrawal (m3)Reduction in global water withdrawal from baseline (%)↑

Water use intensity for offices (m3/occupied seat)◊ Reduction in water-use intensity for offices from baseline (%)4

Waste

↓

Global business waste (metric tons)12
Recycled/Composted material
,

↑

380

193

321

265

100%

100%

100%

100%

723

676

158

4,171

Recycled/Composted material

90%

61%

84%

99%

Landfilled material

10%

25%

16%

1%

Waste to energy

0%

14%

0%

0%

57

51

42

168

Certified new fibers (FSC/SFI)

95%

94%

96%

69%

Post-consumer recycled

3%

3%

3%

22%

New fibers

2%

3%

1%

9%

1,253

1,051

965

4,583

-73%

-77%

-79%

n/a

67%

58%

48%

–

21%

11%

12%

–

22

29

27

–

◊ Plastic beverage bottles and disposable plastics (%)4 6

75%

84%

91%

–

Office supplies (%)6

25%

16%

9%

–

98%

97%

60%

–

32%

–

–

–

Global e-waste (metric tons)
Recycled material↑

Global construction waste (metric tons)

Responsible Sourcing↑

Paper consumption (million sheets)↑

Paper consumption/employee (sheets)◊ Reduction in paper consumption/employee from baseline (%)4

↑
↑
↓

,

◊ Green cleaning products (%)4 6,◊ Sustainably sourced food (%)4 6,

Single-use plastics (metric tons)6 13,

Supply Chain◊ Vendors with inherently higher ESG risk who have been assessed (%)4, 14,◊ Spend $1.5B with small and diverse vendors (%)4 15

4 This symbol ◊ before an indicator denotes a commitment through Goldman Sachs’ 2025 ESG and Net Zero Commitments and ongoing 2020 Operational Commitments. Further informationon these commitments may be found on our Operational Impact pages here. Net Emissions represent achievement of ongoing Carbon Neutral commitment. Reductions are from a 2017 baseline,
except plastics, which are from a 2021 baseline or where otherwise noted.
6 Historical data points may be adjusted to reflect new information and/or changes to accounting methodologies.
12 The firm has diverted 100% business waste from landfill where alternative disposal methods exist. Currently, no alternatives exist in Hong Kong, Australia, and New Zealand.
13 2021 is the new baseline year for single-use plastics because data boundary has increased and data collection has improved.
14 All vendors whom we deem to have an inherently higher ESG risk — ​which includes higher risk of modern slavery and human trafficking — ​and are over our material spend threshold,
are required to complete an ESG questionnaire.
15 In 2022, we achieved our 2025 goal early and set a new goal to spend cumulative $1.5 billion with small and diverse vendors globally between 2023 and 2025.

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05 | Metrics and Targets | Progress Toward Our Operational and Supply Chain Commitments

Progress Toward 2030 Net Zero Commitments
In 2023, we continued to engage our vendors to understand their climate goals.

2023 Supply Chain Net Zero Initiatives

Emissions Footprint
and Climate Goals
Disclosure
Vendors representing over 70%
of our supply chain emissions
disclosed their emissions andclimate goals, helping us tounderstand our footprint andprepare for reporting on our
supply chain.

Net Zero
Carbon Goals

Educational
Sessions

Free Vendor
Resources

Nearly 40% of the vendors weengaged in 2023 have a net zerocarbon commitment.

Hosted a series of educationalsessions with key vendors tocommunicate our goals and thevalue of GHG measurement.

Offered free resources to help
vendors complete a GHG
footprint for the first time.

Driving Sustainability in Our Workplaces
Since 2005, the firm has had a global focus on designing, building,and operating sustainable workplaces.
As of 2023, 70% of our global workplace square footage is LEED(or equivalent)-certified, demonstrating a consistent frameworkfor healthy and efficient green buildings.1 Building on global efforts,
our new LEED Platinum office in Hyderabad, India, which openedin October 2023, showcases key sustainability initiatives, including
maximizing exposure to natural light, utilizing a sensor-driven
lighting system, increasing energy efficiency levels to 11% higher
than benchmark building standards, and using high-efficiency
filters to promote healthy indoor air quality. Hyderabad Opel has
been awarded WELL Platinum certification for New & Existing
Interiors, marking a significant milestone as the firm’s first Platinum
certified property in our portfolio. WELL provides evidence-based
strategies across a number of areas to offer a holistic pathway toenhancing the health and well being of our people, including air
and water quality, healthy foods, lighting and acoustics, thermal
comfort, restriction and management of polluting compounds andvolatile organic chemicals (VOCs) and ergonomics and movement.
Sample highlights from Opel contributing to the certification
include indoor connectivity through the vertical grand staircase,biophilia, collaboration areas that boost flexibility to help lower
stress, 100% height-adjustable desks with ergonomic chairs and an
overall approach to sustainable design. Sourcing of office furniturefor Hyderabad was also designed to reduce waste and support our
inclusive growth strategies. 100% of furniture in our collaboration
spaces was reused from previous offices, and all furniture in our
cafeteria and offices was sourced from Howe Work Spaces, amicro and woman-owned business, that is also a Goldman Sachs
10,000 Women graduate.

1 U.S. Green Building Council: LEED rating system and International WELL Building Council: WELL rating system, as of March 2024.

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05 | Metrics and Targets | Progress Toward Our Operational and Supply Chain Commitments

Driving Sustainability in Our Workplaces (continued)

Since 2020, we have sourced electricity equivalent to 100% of ourglobal consumption from renewable sources and continue our focus
on adding clean power to the grid by executing long-term powerpurchase agreements. We continue to identify opportunities tomore efficiently operate existing workplaces and reduce energy
consumption. In 2023, we fully transitioned the Plumtree Court officein London to a demand-based heating operation that aligns withbuilding occupancy. This approach led to an approximately 45%
reduction in natural gas usage compared with 2022. Across three
key locations, we have leveraged our Intelligent Building Platform(IBP) to reduce overall energy consumption. In 2023 alone, thisidentification process pinpointed thousands of instances where

equipment in these buildings was operating below its maximum
achievable efficiency, enabling us to reduce their overall energy
consumption by approximately 12 gigawatt hours as comparedwith 2022. The IBP employs technology to constantly monitor oursites and identify deviations from optimal performance in building
equipment and systems.
Across our global hospitality operations, which include on-site
cafeterias and micro-markets, we continue to increase ourpurchasing of sustainably sourced food and reduce our global
plastic consumption.

Supply Chain Sustainability Progress
After exceeding our 2025 small and diverse vendor spend goal three years early in 2022, we set a new goal tospend $1.5 billion between 2023–2025. We continued to grow our spend with small and diverse vendors in 2023,
increasing our spend to $485 million globally, which brings us nearly a third of the way to our 2025 goal. The
percentage of our addressable spend with small and diverse vendors remained constant at 7%.
In 2023, we were recognized by WEConnect International with a Gold award in their 2023 Top Global Championsfor Supplier Diversity and Inclusion, demonstrating a high level of commitment to global supplier diversity
efforts.1 We continued to advance our efforts in the UK, becoming founding members of Veteran Owned UK
and sponsoring the MSDUK and WEConnect International regional conferences. Globally, we delivered training
to over 150 small and diverse businesses from our One Million Black Women and 10,000 Small Businesses programs
and partnered with Disability:IN and OutBritain to prepare their members on how to do business with large
corporations.
We continue to refine our approach to managing ESG-related risks in our supply chain. In 2023, we automatedthe categorization of a vendor’s ESG risk profile within the vendor management system, with ESG risk contributing
to the overall risk profiles of our vendors. We also issued an updated Vendor Code of Conduct to all our vendors,
encouraging them to commit to legal, ethical, safe, fair and environmentally responsible business practices. In 2023,
we partnered with STOP THE TRAFFIK, a non-profit working to prevent modern slavery and human trafficking, tohost a session for our vendor management and sourcing teams on modern slavery and human trafficking and its
intersection with climate change.

$485M
global spend with small anddiverse businesses in 2023~$35M

increase in small anddiverse spend comparedwith 2022

63%

of small and diverse
spend with minority- andwomen-owned businesses

38%

of small and diverse spend
with Tier 2 vendors2

Reducing Barriers to Entry
We listened to 10,000 Small Businesses alumni in our supply chain to better understand their experiences working with large corporations and thebarriers that may exist for small businesses. Participants highlighted cash flow constraints and the complexities of corporate procurement
processes as key challenges. In response, we introduced more favorable payment terms globally for our small business population and developed
training for our global Strategic Sourcing teams on best practices when buying from small businesses.

1 WEConnect International: 2023 Top Global Champions for SD&I.
2 Tier 2 vendor spend is direct and indirect subcontracted spend with a small and/or diverse vendor through a large non-diverse vendor.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT73

05 | Metrics and Targets

SASB Index
We leverage the Sustainability Accounting Standards Board (SASB) standards to provide disclosure for
metrics related to the three sectors that most closely align to our mix of businesses: Asset Management& Custody Activities, Investment Banking & Brokerage and Commercial Banks. Disclosures that appear
in more than one of these sector standards are included in a separate section at the top of our SASB
Index below.
Unless otherwise noted, all data and descriptions apply to our entire firm, not just the businesses
relevant to that sector. We do not currently disclose all metrics included in the standards for thesethree sectors, but we will continue to evaluate them in the future. All data is as of or for the year
ended December 31, 2023, unless otherwise noted.
Topic

Accounting Metric

Code

Response

Percentage of gender and racial/ethnic group representationfor (1) executive management,(2) non-executive management,(3) professionals, and (4) all other
employees

FN-IB-330a.1.

US Workforce Demographics

FN-AC-330a.1

Updated data will be included in our forthcoming 2023 People Strategy
Report.

Description of whistleblower policies
and procedures

FN-IB-510a.2

Raising Integrity Concerns

FN-AC-510a.2

Code of Business Conduct and Ethics

Disclosures Included in Multiple Sectors’ Standards
Diversity &Inclusion

Business
EthicsAs part of our commitment to improving diversity at the firm, we havealso published our progress toward our aspirational goals; please see
pages 5–6 of our 2023 Form 10-K.

FN-CB-510a.2
Total amount of monetary losses as aresult of legal proceedings associatedwith:• Marketing and communicationof financial product-related
information to new and returning
customers;

FN-AC-270a.2
FN-AC-510a.1

Net provisions for litigation and regulatory proceedings were$115 million for 2023.

FN-IB-510a.1
FN-IB-510b.3
FN-CB-510a.1• Fraud, insider trading, anti-trust,anti-competitive behavior, market
manipulation, malpractice, or otherrelated financial industry laws or
regulations; and• Professional integrity, including dutyof careGOLDMAN SACHS 2023 SUSTAINABILITY REPORT74

05 | Metrics and Targets | SASB Index

Topic

Accounting Metric

Code

Response

Disclosures Included in Multiple Sectors’ Standards (continued)
Systemic Risk
Management

Global Systemically Important Bank
(G-SIB) score, by category

FN-IB-550a.1
FN-CB-550a.1

The G-SIB surcharge is updated annually based on financial data fromthe prior year and is generally applicable for the following year. The
G-SIB surcharge is calculated using two methodologies, the higher ofwhich is reflected in the firm’s risk-based capital requirements. The first
calculation (Method 1) is based on the Basel Committee’s methodology
which, among other factors, relies upon measures of the size, activity
and complexity of each G-SIB. The second calculation (Method 2)
uses similar inputs but includes a measure of on short-term wholesalefunding. Further information about Method 1 can be found on the Bankfor International Settlement’s website and further information about
Method 2 can be found on the Federal Reserve Board’s website.
We are bound by Method 2 and our applicable G-SIB buffer is 3%.
Please see pages 12, 88–89 and 203–204 of our 2023 Form 10-K for
further information. Further information about the indicators which
factor into the calculation can be found in our FR Y-15 filing, which canbe accessed here:(https://www.bis.org/bcbs/gsib/)(https://www.govinfo.gov/content/pkg/FR-2015-08-14/pdf/201518702.pdf)(https://www.ffiec.gov/NPW)

Description of approach toincorporation of results of mandatory
and voluntary stress tests into
capital adequacy planning, longterm corporate strategy, and otherbusiness activities

FN-IB-550a.2
FN-CB-550a.2

We conduct various scenario analyses, including as part of theComprehensive Capital Analysis and Review and Dodd-Frank Act
Stress Tests, as well as our resolution and recovery planning.
Please see pages 14–18, 84, and 86–88 of our 2023 Form 10-K.

Asset Management & Custody Activities
Transparent
Information &Fair Advice for
Customers

Description of approach to
informing customers about
products and services

FN-AC-270a.3

We believe our clients are best served by having a clear understandingof how we work together, the capacities in which we act and the fees
we charge. In addition to contracts for products and services, as well
as regulatory disclosures, we provide Wealth Management clients acomprehensive brochure outlining the services we provide and therelated fee structures, including how their advisor is compensated foreach type of service and fee. Please also refer to the Business Standards
Committee Impact Report, Code of Business Conduct and Ethics and Risk
Factors detailed on pages 31–59 of our 2023 Form 10-K for additionalfirmwide information.

Incorporationof ESG Factors
in Investment
Management
and Advisory

Amount of assets undermanagement, by asset class,that employ (1) integrationof environmental, social, andgovernance (ESG) issues,(2) sustainability themed investing,and (3) screening

FN-AC-410a.1

As of December 2023, Goldman Sachs Asset Management manages$327.6 billion in sustainability-related assets under supervision.

Description of approach toincorporation of environmental,social and governance (ESG)
factors in investment and/or
wealth management processes
and strategies

FN-AC-410a.2

At Goldman Sachs Asset Management, we believe ESG factors canbe important tools for identifying investment risk and capturing
opportunities on behalf of our clients. Our approaches to ESG
integration will vary by investment team and asset class and Goldman
Sachs Asset Management’s Statement on Sustainable Investing — P​ ublic
Investing sets out a summary of some of the elements of our approachto Sustainable Investing in our public markets investment businesses.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT75

05 | Metrics and Targets | SASB Index

Topic

Accounting Metric

Code

Response

Asset Management & Custody Activities (continued)
Incorporationof ESG Factors
in Investment
Management
and Advisory(continued)

Description of proxy voting andinvestee engagement policies andprocedures

Systemic Risk
Management

Description of approach toincorporation of liquidity risk
management programs into portfolio
strategy and redemption risk
management

FN-AC-410a.3

Please see our Approach to Stewardship, which sets out a summaryof some of the elements of our approach to stewardship in theGoldman Sachs Asset Management public markets investing business,
including our approach to engagement, proxy voting and industry
leadership. Please also see our most recent Stewardship Report, our UK
Stewardship Code Statement, and our Global Proxy Voting Policy.
Stewardship (gsam.com)

FN-AC-550a.2

Goldman Sachs Asset Management (GSAM) oversees liquidity risk
management for the funds and client portfolios for which it serves asfund manager/investment advisor.
GSAM monitors liquidity risk associated with a portfolio’s ability to meetpotential cash outflows related to investor redemptions/withdrawals
or potential liabilities related to derivative positions and secured
funding trades, as well as changes in the liquidity of positions within
the portfolio.
GSAM manages the liquidity of its portfolios in line with the investment
strategy of each portfolio, applicable regulatory requirements, potential
investor redemption requests and broader macro market conditions, at
all times in the context of GSAM’s obligations and its role as a fiduciary,
where applicable.

n/a

n/a

Total exposure to securities financing
transactions

FN-AC-550a.3

As of December 2023, we had $40.2 billion of credit exposure
from securities financing transactions. Please see page 117 of our2023 Form 10-K for further information.

Net exposure to written credit
derivatives

FN-AC-550a.4

As of December 2023, written credit derivatives had a total grossnotional amount of $523.77 billion and purchased credit derivatives
had a total gross notional amount of $595.23 billion. Please see
page 162 of our 2023 Form 10-K for further information.

(1) Total registered and (2) total
unregistered assets undermanagement (AUM)

FN-AC-000.A

Registered AUS: $663 billion

Total assets under custody andsupervision

FN-AC-000.B$2.8 trillion Assets Under Supervision. Please see page 78 of our2023 Form 10-K for further information.

Environmental Policy Framework

Unregistered AUS: $2,149 billion

Investment Banking & Brokerage
Incorporationof ESG Factors
in Investment
Banking &Brokerage
Activities

Description of approach toincorporation of environmental,social, and governance (ESG)
factors in investment banking andbrokerage activities

FN-IB-410a.3

Professional
Integrity

Description of approach to ensuring
professional integrity, including dutyof careFN-IB-510b.4

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

Please see page 45 of our 2023 TCFD Report, which highlights
targets for sectors that are material to our financing portfolio. These
sectors reflect where we see the greatest opportunity to proactively
engage with our clients, deploy capital required for the transition,and invest in new commercial solutions to support transition to the
low-carbon economy.
The firm maintains a Code of Business Conduct and Ethics and requires
employees to annually certify they have reviewed and will comply withthe code. See the Business Standards Committee Impact Report and ourBusiness Principles for further information.

76

05 | Metrics and Targets | SASB Index

Topic

Accounting Metric

Code

Response

FN-IB-550b.1

MRT is a regulatory term applied in the UK and Germany, but nota concept we apply to our global workforce. Within our UK entity
workforce only, ~40% of total remuneration awarded to MRTs for 2022
performance was variable. Within our German entity workforce only,~29% of total remuneration awarded to MRTs for 2022 performance
was variable.

Investment Banking & Brokerage (continued)
Employee
Incentives andRisk Taking

Percentage of total remunerationthat is variable for Material Risk
Takers (MRTs)

Note that we apply a pay-for-performance philosophy across ourorganization. Please see our Compensation Principles for further
information.

n/aPercentage of variable remunerationof Material Risk Takers (MRTs) towhich malus or clawback provisions
were applied

FN-IB-550b.2

All equity-based awards granted to employees are subject torobust forfeiture and clawback provisions. Please see page 52 ofour 2023 Proxy Statement.

Discussion of policies aroundsupervision, control, and validationof traders’ pricing of Level 3 assets
and liabilities

FN-IB-550b.3

Please see pages 64–65 of our 2023 Form 10-K.

(1) Number and (2) value of(a) underwriting, (b) advisory, and(c) securitization transactions

FN-IB-000.A

Per Dealogic, our transaction volumes for 2023 were
Announced mergers and acquisitions$923B

Completed mergers and acquisitions$1,008B

Equity and equity-related offerings$43B

Debt offerings$209B

Please see page 74 of our 2023 Form 10-K for further information.

n/a(1) Number and (2) value of
proprietary investments and loans
by sector

FN-IB-000.B

The table below presents the concentration of our $35.9 billion of
firmwide gross corporate loans by industry:
Consumer & Retail

11%

Diversified Industrials

17%

Financial Institutions

8%

Funds

4%

Healthcare

9%

Natural Resources & Utilities

8%

Real Estate

13%

Technology, Media & Telecom.

25%

Other (incl. Special Purpose Vehicles)

5%

The table below presents the asset class breakdown of our $13.7 billionof equity securities at fair value (reported within our Asset & WealthManagement and Global Banking & Markets segments):
Corporate

73%

Real Estate27%

For further information about investments, please see pages 113 and165, respectively, of our 2023 Form 10-K.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT77

05 | Metrics and Targets | SASB Index

Topic

Accounting Metric

Code

Response

Commercial Banks
Data Security

Description of approach toidentifying and addressing data
security risks

FN-CB-230a.2

Please refer to our Client Security Statement, which provides an
overview of the firm’s approach to information security and its practices
to secure data, systems and services, similarly aligned around the fivefunctions of the National Institute of Standards and Technology (NIST)
Cybersecurity Framework (CSF).

Financial
Inclusion& Capacity
Building(1) Number and (2) amount of loans
outstanding qualified to programs
designed to promote small businessand community development

FN-CB-240a.1

As of December 2023, our Urban Investment Group had $0.93 billion
of debt assets outstanding from 102 transactions and $4.1 billionof equity assets outstanding from 244 transactions. See our Urban
Investment Group’s website for further information.

Incorporationof ESG Factors
in Credit
Analysis

Please also refer to our programs 10,000 Small Businesses, which
provides entrepreneurs in the US and UK access to education, capitaland business support services, and 10,000 Women, a global initiative
providing women entrepreneurs with a business and management
education, mentoring and networking, and access to capital.
Number of participants in financial
literacy initiatives for unbanked,
underbanked or underserved
customers

FN-CB-240a.4

Please refer to our One Million Black Women: Black in Business program,which is dedicated to equipping sole proprietors with the tools
necessary to turn their business potential into business growth.

Commercial and industrial credit
exposure, by industry

FN-CB-410a.1

Credit Exposure from firmwide Corporate Loans and Lending
Commitments by Industry:
Consumer & Retail

12%

Diversified Industrials

20%

Financial Institutions

9%

Funds

3%

Healthcare

10%

Natural Resources & Utilities

16%

Real Estate

7%

Technology, Media & Telecom.

21%

Other (incl. Special Purpose Vehicles)

2%

Please see page 113 of our 2023 Form 10-K for further information.
Description of approach toincorporation of environmental,social, and governance (ESG) factors
in credit analysis

FN-CB-410a.2(1) Number and (2) value of loans
by segment: (a) personal, (b) small
business and (c) corporate

FN-CB-410a.2

Environmental Policy Framework
Please see page 7 of our 2023 TCFD Report, which outlines theintegration of climate risk into our risk program.
The table below presents firmwide information by loan type:
Corporate$35.9B

Commercial Real Estate$26.0B

Residential Real Estate$25.4B

Securities-Based$14.6B

Other Collateralized$62.2B

Installment$3.3B

Credit Cards$19.4B

Other

$1.6B

Please see page 168 of our 2023 Form 10-K for further information.
GOLDMAN SACHS 2023 SUSTAINABILITY REPORT78

05 | Metrics and Targets

Thematic Index for Our Existing
Sustainability Disclosures
Goldman Sachs has been providing voluntary sustainability-related disclosures for the better
part of two decades, beginning with our first Environmental Report in 2006. We have sinceadvanced our voluntary disclosures to meet the growing set of investor expectations, beginningwith our first SASB disclosure in 2019, and our inaugural Task Force on Climate-Related Financial
Disclosures in 2020. As investor expectations for voluntary sustainability disclosures continue to
evolve, this year we provide a thematic index below that maps disclosures from this report aswell as other existing disclosures to the four core content areas of interest to investors, including
Governance, Strategy, Risk Management, and Metrics and Targets.
As the sustainability reporting landscape continues to change, we plan to continue providing
transparency and comparability of decision-useful sustainability-related information to
our investors.
Core Content Areas for Investors

2023 Sustainability Report Content Areas

Other Existing Disclosures

Governance• Governance (pages 59–61)• Public Responsibilities Committee• Risk Committee• Proxy Statement for 2024 Annual Meeting of
Shareholders (pages 8–30)• Goldman Sachs 2023 TCFD Report (pages 9–12)

Strategy• Our Sustainable Finance Strategy (pages 9–13)• Form 10-K (pages 7–8)

• Our Sustainable Finance Framework (page 14)• Proxy Statement for 2024 Annual Meeting of
Shareholders (pages 32–34)• Thematic Opportunities With Clients and Partners(pages 16–57)

Risk Management• Risk Management (pages 62–63)• Goldman Sachs 2023 TCFD Report (pages 35–42)

Metrics and Targets• Progress Toward Our Firmwide $750 Billion
Sustainable Finance Commitment (pages 15,
66–67)• Goldman Sachs 2023 TCFD Report (pages 43–51)• Progress Toward Our 2030 Sectoral Targets(page 68)
• Progress Toward Our Operational and Supply Chain
Commitments (pages 69–73)• SASB Metrics (page 74–78)

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

79

SECTION 06

Appendix1

In This Section
81

Environmental & Social Due
Diligence Guidelines

1 The appendix was added to this report on June 28, 2024, and no other changes or updates were made to the content of the report.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT80

06 | Appendix

Environmental & Social Due Diligence Guidelines
The firm’s position on environmental and social risk due diligence was previously captured withina section of a broader environmental policy framework document that also included historicalsustainability initiatives across our operations, business activities, research, and governance. Goingforward the relevant risk-based due diligence guidelines will be regularly reviewed and incorporated
into our core sustainability reporting.

Goldman Sachs undertakes a robust review process to assess environmental and social
considerations, as well as related risks including credit, operational, regulatory, or reputational risks,
in our transaction due diligence processes. The firm equips business teams with environmental andsocial due diligence guidelines for key sectors, as well as guidelines for certain cross-sector issues.
Advisory, financing, and direct investing teams seek to integrate environmental and social due
diligence as part of their normal course, risk-based due diligence requirement, where relevant.
While there are some activities Goldman Sachs generally will forgo due to the risks they present,
the firm makes decisions, including for any such activities, on a case-by-case basis considering,
among other things, all applicable laws as well as credit, operational, regulatory, and reputationalrisks. The following is a non-exhaustive list of such activities that the firm will generally forgo.
• Financing of any potential transactions where there is credible
evidence of child labor, forced labor or human trafficking.
• Financing of any projects or initiation of loans where thespecified use of proceeds would significantly convert ordegrade a critical natural habitat.
• Financing of extractive projects, commercial logging or otherenvironmentally sensitive projects in prescribed UNESCOWorld Heritage sites.
• Financing of projects that contravene any relevantinternational environmental agreement which has beenenacted into the law of, or otherwise has the force of law in,
the country in which the project is located.

• Financing of companies or projects that collude with, or are
engaged in, illegal logging or utilize illegal or uncontrolled fire
for forestry (including logging and primary processing of forest
products) or palm oil transactions.
• Financing that directly¹ supports the development of newcoal fired power generation unless it has carbon captureand storage or equivalent carbon emissions reduction
technology (“CCS”).
• Financing that directly supports new thermal coal minedevelopment or any mountaintop removal mining.
• Financing that directly supports new upstream Arctic oil
exploration or development.

1 “Directly” is defined as project specific financings or general corporate financings where there is dedicated capital expenditure that is specified in the use of proceeds for the activity.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT81

06 | Appendix

Additional Sector Guidelines
In addition, we apply enhanced due diligence to transactions in
the following sectors.

quality due to issues such as improper sewage discharge or
reduced access to water resulting from diverted uses.

Chemicals

Additionally, for transactions where potentially significant
effects on local communities are identified, we will examine
our clients’ stakeholder engagement process. In cases where
there is large-scale resettlement, we will closely evaluate thestakeholder engagement process and, if appropriate, work withthe client to improve aspects such as compensation measures
and/or community engagement.

As part of our enhanced due diligence for transactions where
the use of proceeds is related to new production, transport orstorage of chemicals, we will conduct a review of the type ofchemical and potential risks and the company’s environmental,
health and safety track record. In addition to standard due
diligence items, we will examine whether the company’s
production process requires the use, handling, transport,
storage or disposal of hazardous chemical materials. We will
also consider the company’s policies and procedures in place
to prevent exposure to hazardous chemicals in addition to
emergency preparedness and response plans in the event ofsignificant fire, explosion or spills. We will review the company’s
impact on resources, including energy and water. In addition,
we will consider whether the company’s production process
generates significant air emissions (e.g., sulfur dioxide, nitrogenoxide, PM10, volatile organic compounds, etc.) or emissions withsignificant cumulative impacts on local air quality.
Infrastructure & Transportation
As part of our enhanced due diligence for financing transactions
relating to transportation and infrastructure projects, including
the development and expansion of roads and railways, ports,
harbors and airports, we consider the environmental andsocial impacts.
For transactions where potentially significant effects on
local communities are identified, we will examine ourclients’ engagement process. In cases where there is largescale resettlement, we will closely evaluate the stakeholder
engagement process and, if appropriate, work with the client
to improve aspects such as compensation measures and/or
community engagement.
Water
As part of our enhanced due diligence for new water andwastewater infrastructure projects, we expect companies tohave conducted a comprehensive environmental and social
impact assessment, addressed potential multi-national concerns
and conflicts on a regional or international level and have acommitment to mitigate significant impacts to those who may
be adversely affected. We will also consider companies’ plans to
mitigate ecological and social impacts if water and wastewater
treatment projects potentially impact fisheries, water flow and

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT

Forestry
As part of our enhanced due diligence for transactions related
to forestry, we examine whether clients that process, purchase,or trade wood products from particularly high risk countries
have systems in place to assess whether the wood they process,purchase or trade comes from legal sources. This includes
understanding clients’ supply chain monitoring systems andchain of custody certification.
We require clients to obtain or be working towards Forest
Stewardship Council or a comparable certification when wefinance forestry projects that impact high conservation value
forests to promote the preservation of crucial forest ecosystems.
For operations that are not already certified, we will introduce
our clients to, or suggest to them, experts who can help
establish a rigorous, time-bound, step-wise commitment toachieve certification within three years.
Palm OilAs part of our enhanced due diligence for transactions related
to palm oil, we require clients’ compliance with all legal
requirements, including in the case of Indonesia, the Indonesian
Sustainable Palm Oil (ISPO) system.
We also require clients to obtain Roundtable on Sustainable
Palm Oil (RSPO), or a comparable, certification. For operations
that are not already certified, we will introduce our clients to,or suggest to them, experts who can help establish a rigorous,
time-bound, step-wise commitment to achieve certification
within three years.
Furthermore, we require clients to have a commitment to no net
deforestation, no peatland development and no human rights
violations. Where this is not in place, we will introduce our clients
to, or suggest to them, experts who can help establish such acommitment. Clients should have a plan in place to demonstratecompliance with this commitment.

82

06 | Appendix

BiofuelsUnconventional Oil & Gas

As part of our enhanced due diligence for financing transactions
related to biofuels, considerations include but are not limited
to: type of feedstock; forest and natural habitat conversion
and impacts to High Conservation Value Forests; illegal logging;illegal and uncontrolled fire; impacts to communities andindigenous peoples; unacceptable labor practices that disregard
international regulations; and lifecycle greenhouse gas emissionsof a biofuels project.

As part of our enhanced due diligence for financings that canfacilitate the development of new unconventional oil & gas
and hydraulic fracturing, considerations include but are notlimited to: companies’ care taken on location and site selection;
well construction method, including integrity of casing andcementing; management of ongoing operations, including wellflow and pressure monitoring; integrated water management,
including groundwater testing, water withdrawal, wastewater
management; fracking fluid usage and disclosure; air emissions
management, including fugitive methane emissions and useof flaring and venting; engagement with and mitigation of
impacts on the local community; and companies’ strategies andcommitments to reducing overall GHG emissions.

Mining, Coal & MTR
As part of our enhanced due diligence for financing transactions
that directly pertain to the development of new mine resources,
we will review the company’s compliance with all local laws andpermitting, environmental and social impact assessment andmanagement plan, use of freshwater resources and community
impacts. Where appropriate, we will encourage our clients tofollow best practice guidelines, such as the principles developedby the International Council on Mining and Metals (ICMM).
For transactions involving coal mining globally, we apply
enhanced due diligence, including consideration of the following
factors: companies’ environmental, health and safety (EHS) trackrecords; siting and ecological impacts; regulatory complianceand ability to meet international best practices where local
regulation is lagging; litigation, violations, and citations;
remediation methods; impact on water quality; and local
community and human rights issues.
For financings involving any companies that derive a significant
portion of their revenue from thermal coal mining production,
we will engage with them to understand their strategy todiversify away from thermal coal mining and reduce overall
carbon emissions from their operations and products.
Companies’ diversification strategy and carbon emissions
reduction initiatives will be a key consideration in our evaluationof future financings with the goal of helping their transition
strategy. We will phase out our financing of thermal coal mining
companies that do not have a diversification strategy within areasonable timeframe.
Conventional Oil & Gas
As part of our enhanced due diligence for financings thatcan facilitate the development of new conventional oil & gas
reserves or related infrastructure, considerations include but
are not limited to: pollution (potential for releases of petroleum,
wastewater or hazardous substances); risks related to deep
water drilling operations; EHS track record and experience of theoperator; governance (including the ways in which beneficiary
governments utilize oil revenues); ecological and social impacts;
potential impacts on indigenous peoples; and companies’
strategies and commitments to reducing overall greenhouse gas(GHG) emissions.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORTOil Sands
As part of our enhanced due diligence for transactions relating
to oil sands, considerations include but are not limited to:energy use and greenhouse gas emissions; environmental
impacts related to integrated water and waste management;
forest and biodiversity preservation; potential local community
impacts, including in Canada those relating to Canada’s First
Nations people; and companies’ strategies and commitments to
reducing overall GHG emissions.
Arctic Oil
As part of our enhanced due diligence for transactions relating
to Arctic oil, considerations include but are not limited to: energy
use and GHG emissions; environmental impacts; emergency
management plans; forest and biodiversity preservation;
endangered species protection and management plans;potential local community impacts, including those relating to
Indigenous Peoples and subsistence resources; and companies’
strategies and commitments to reducing overall GHG emissions.
Coal Fired Power Generation
As part of our enhanced due diligence for financings involving
power sector companies that derive a significant portion of
their generation from coal, we will engage with the companies tounderstand their strategy to diversify away from coal and reduceoverall carbon emissions, with the goal of supporting their low
carbon transition.

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06 | Appendix

Gas Fired Power Generation
As part of our enhanced due diligence for financing
opportunities for new natural gas-fired power generation,
considerations include but are not limited to: possible
community health, safety and environmental considerations that
could result from combustion, ecological and social sensitivities
pertaining to development; community impacts and siting; andwater used for cooling and discharge associated with natural gas
boilers and combined cycle systems.
Hydroelectric PowerAs part of our enhanced due diligence for financings that pertain
to new large-scale hydropower, we will review the project’s
environmental and social impact assessment to understandwhether the new development occurs in a responsible andsustainable manner. If appropriate, we will also refer our clientsto best practice guidelines such as the International Hydropower
Association (IHA)’s Sustainability Assessment Protocol. For

certain transactions where there could be material effects on
local communities, we expect our clients to demonstrate an
appropriate stakeholder engagement process. In cases where
there is large-scale resettlement, we will closely evaluate thestakeholder engagement process and, if appropriate, workwith the company to improve aspects such as compensation
measures and/or community engagement.
Nuclear
As part of our enhanced due diligence for financings relating to
new nuclear power, considerations include but are not limited
to: EHS track record and governance; procedures around safe
waste management practices; the secure transport, storage andhandling of nuclear material; the host country’s legal, regulatory
and safety framework; risks around terrorism and proliferationof nuclear weapons; proximity to seismic zones; fuel supply
and water usage; and any possible community impacts
and opposition.

Cross-Sector Guidelines
Human Rights and Indigenous Peoples
We recognize that environmental and social issues are often linked. We have a responsibility to help protect, preserve and promote
human rights around the world. Our Business Principles and our Code of Business Conduct and Ethics also play an important role indetermining our responsibilities as corporate citizens, and help to inform our business selection process and guide our businessdecisions and judgments. See the Goldman Sachs Statement on Human Rights and the latest Goldman Sachs Statement on Modern
Slavery and Human Trafficking.
As part of our enhanced due diligence for transactions where the use of proceeds may have the potential to directly impact
indigenous peoples, we expect our clients to demonstrate alignment with the objectives and requirements of IFC PerformanceStandard 7 on Indigenous Peoples, including free, prior and informed consent. We also expect our clients to demonstrate an
appropriate stakeholder engagement process for certain transactions where potentially significant effects on local communities
are identified. In cases where there is large-scale resettlement, we will closely evaluate the stakeholder engagement process and,if appropriate, work with the company to improve aspects such as compensation measures and/or community engagement.  
Considerations include but are not limited to: companies’ human rights and indigenous peoples policies; avoidance of relocation
or impacts on traditional lands, food security, water and other essential resources, and/or sites with significant cultural or spiritual
importance (in cases where avoidance is not feasible, mutually agreed remediation actions and compensation); stakeholder
engagement processes and management plans (e.g., stakeholder mapping, consultation with sufficient time for decision making,communication in a culturally appropriate manner, adequate representation of vulnerable groups within impacted communities);and operational grievance and monitoring mechanisms.

The Environmental & Social Due Diligence Guidelines reflect Goldman Sachs’ independent approach to certain transactions that have been
identified as high risk, presenting significant environmental and social concerns, as well as risks including credit, operational, regulatory,
and/or reputational risk, as of June 28, 2024. This document provides general information regarding a number of policies, procedures, andpositions and is subject to change without notice. The firm does not undertake to update any such information.

GOLDMAN SACHS 2023 SUSTAINABILITY REPORT84

Sustainability
Issuance Report2023

Contents
87

Introduction

89

Sustainability Issuance Framework

92

Sustainability Issuances

97

Featured Investments

100

Report of Independent Accountants

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT86

SECTION 01

Introduction

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT87

01 | Introduction

Over the past two decades, sustainable finance has become increasingly important to ourfirm’s business strategy of creating long-term value for our clients, our firm and our shareholders.
As part of this strategy, we announced our firmwide 10-year, $750 billion sustainable financecommitment in 2019 to support client demand for sustainable finance solutions across ourfinancing, investing and advisory work with clients.
We’ve continued to advance our commitment to enhance and expand sustainable financeexpertise across our business segments, and launched our inaugural Sustainability Bond andGoldman Sachs Sustainability Issuance Framework in 2021. This year, we are providing an update
on our comprehensive 2023 sustainability issuances.
Our strategy is organized around two sustainability themes — Climate Transition and Inclusive Growth. Through these two key
themes and nine underlying sub-themes, we expect to facilitate the greatest impact through our commercial work with clientsand strategic partners. Our Sustainability Bonds and Goldman Sachs Sustainability Issuance Framework are aligned with thesesame themes. The framework expands upon our firmwide commercial model of facilitating capital movement and supporting
innovation that encourages progress on climate transition and inclusive growth, and it builds upon years of experience designingand helping clients issue Green, Social, and Sustainability financial products.
As an advisor, financier, and investor, we leverage the full range of our expertise and services as we look to help our clientsdevelop innovative sustainability solutions. From supporting sustainable infrastructure projects to investing in companies helping
to power critical innovation in clean energy and in underserved communities, we continue to remain focused on our ability tohelp deploy capital. With a keen eye toward achieving a more sustainable future, we seek to help create a thriving future for ourclients, our firm and our communities.

Overview of Sub-Themes
Climate Transition

Inclusive Growth

Clean Energy
Enable renewable energy generation, energy efficiency, and grid services.

Accessible and Innovative Healthcare
Enable the use of digital technology, advanced devices, and diagnostics
for better outcomes.

Sustainable Transport
Shift modes of transit through electric vehicles, connected services,autonomous driving, and public transportation development.
Sustainable Food and Agriculture
Enable green agricultural production, storage, processing, anddistribution to feed the world.
Waste and Materials
Promote sustainable production and consumption, along withresponsible waste management.
Ecosystem Services
Contribute to the sustainable management of natural resources andmonetize the value of forests, water, and biodiversity.

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT

Financial Inclusion
Advance financial inclusion for all, including underserved populations,by promoting access to capital, financial technology, and productsthat increase access, support financial health, and drive more equitableeconomic growth.
Accessible and Affordable Education
Enable greater access to education, improve learning outcomes, andhelp close opportunity gaps for learners of all ages.
Communities
Enable infrastructure development, affordable housing, and livelihood
advancement.

88

SECTION 02

Sustainability
Issuance
Framework

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT89

02 | Sustainability Issuance Framework

Governance

Reporting

As a baseline, all projects and assets under consideration for
financing must meet the standards set by our environmental andsocial risk management procedures, including the Goldman Sachs
Environmental Policy Framework, which provides guidance on
financing in certain environmentally and socially sensitive sectors.
The firm’s risk management covers broader risk factors such as
potential legal and regulatory risks.

For our sustainability-related commitments, we are committed
to measuring and providing transparency on our progress.
Annual updates on the allocation of the proceeds under theGoldman Sachs Sustainability Issuance Framework will include
details on the expected and realized qualitative — ​and, where
possible — q​ uantitative environmental and social impacts.
Reports will continue to be published on our website annually
until the proceeds of all outstanding sustainable instruments
are fully allocated to eligible assets.

The Sustainable Asset Working Group consists of senior crossdivisional stakeholders from the Sustainable Finance Group, Investor
Relations, Corporate Treasury, Legal, Controllers, Compliance, andrelevant business teams. This group reviews and confirms eligible
projects and assets for funding with proceeds from Green, Social
or Sustainability issuances. It also serves as an internal control
group to help ensure accuracy and accountability for our firmwide$750 billion sustainable finance commitment.
Proceeds from our Green, Social, or Sustainability issuances areused to finance new projects or assets that meet the criteria of therespective type of issuance, and we aim to allocate all proceeds
within two years following the issuance. Additionally, loans andinvestments made up to one year prior to the issuance that qualify
under the relevant criteria are also eligible for refinancing with
its proceeds.

External AssuranceGoldman Sachs engaged an independent accountant to provide
external assurance on the total net proceeds of $537,181,760, thetotal gross issuance amount of $543,286,810, and the total allocatedfunds of $578,259,084. The Report of Independent Accountants is
included herein.

For further information on eligibility and exclusion criteria for
our Green, Social, and Sustainability issuances, please refer to ourGoldman Sachs Sustainability Issuance Framework.

The total allocated funds of approximately $578 million exceed both the gross issuance size of approximately $543 million and thegross issuance size net of underwriting fees of approximately $537 million to ensure issuance proceeds are fully allocated.

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT90

02 | Sustainability Issuance Framework

By the Numbers
Progress Related to 2023 Issuances

2023 Allocation of Funds by Region
Geography

2023 Allocation of Funds by Impact Theme
Amount ($M)

Impact Theme

Amount ($M)

Americas$563

Communities

$563

EMEA1

$15

Clean Energy$5

Total2$578

Sustainable Transport

$10

Total

$578

KPI Reporting3

8~$543Msustainability issuancesof sustainability issuances4

Clean Energy

Communities~1M MWh~10,700of annual targeted renewable
fuel capacity in development5

affordable housing units built
or rehabilitated6, 7Communities~$200Mof small/midsized businesses
loan funding8

1 EMEA represents Europe, Middle East and Africa.
2 The total allocated funds of approximately $578 million exceed both the gross issuance size of approximately $543 million and the gross issuance size net of underwriting feesof approximately $537 million to ensure issuance proceeds are fully allocated.
3 Key performance indicators (KPIs), as provided directly by the relevant companies, represent aggregate metrics across the newly allocated investments and loans where data was available and singularmetrics where aggregation was not possible or practicable. KPIs are provided where possible based on information access depending on deal structure as well as confidentiality considerations.
4 Represents gross issuance size. Issuance size net of underwriting fees results in net proceeds of approximately $537 million.
5 Represents a projection for the expected amount of energy to be produced (MWh). “MWh” represents megawatt-hours.
6 Affordable housing is defined in this context as housing that is affordable to tenants earning up to 80% of the area median income.
7 Represents the number of affordable housing units that Goldman Sachs provided financing for the construction and/or rehabilitation of and may still be under development.
8 Small/midsized businesses are defined as businesses having approximately between five and 25 employees.
For additional details on eligibility criteria associated with relevant green and social project categories, please refer to our Sustainability Issuance Framework.
The distribution of impact themes, regional footprint, and supporting KPIs are dependent on investment activity in the given year(s) from which on-balance-sheet investments are selected forallocation toward the issuance. Therefore, these attributes may change meaningfully from year to year.

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT91

SECTION 03

Sustainability
Issuances

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT92

03 | Sustainability Issuances

Sustainability Issuances1,2
Throughout 2023, Goldman Sachs issued the equivalent of approximately $543 millionof sustainability issuances, with proceeds fully allocated to new investments and loans.
Eligible categories are based on our nine key impact themes that are the foundation to
our overarching 10-year, $750 billion sustainable finance commitment.
Total Breakdown
Over the course of 2023, and as of December 31, 2023, Goldman Sachs has issued the equivalent of $543,286,810
in sustainability issuances ($537,181,760 net of underwriting fees).
Funding Allocation
Currency

Issuance Size

Issuance Size
USD Equivalence3

Maturity Date

ISIN

Jan 6, 2023

EUR

150,000,000$159,000,000

Jun 10, 2033

FR001400DM05

Mar 14, 2023

EUR

1,483,000$1,586,810

Apr 21, 2031

XS2423171904

May 5, 2023

EUR

220,000,000$242,000,000

Aug 10, 2028

FR001400G529

May 26, 2023

EUR

50,000,000$53,500,000

Oct 6, 2033

FR1459AB0027

Jul 27, 2023

EUR

30,000,000$33,000,000

Nov 7, 2033

FR1459AB0084

Aug 22, 2023

MXN

200,000,000$12,000,000

Aug 13, 2030

XS2671188840

Oct 9, 2023

EUR

30,000,000$31,500,000

Dec 28, 2033

FR1459AB1439

Nov 8, 2023

EUR

10,000,000$10,700,000

Oct 16, 2026

XS2692315133

Issuance Date

Total Gross Issuance$543,286,810

Total of Net Proceeds$537,181,760

1 All $ figures on the remaining pages of this section are in millions unless otherwise noted.
2 To ensure issuance proceeds are fully allocated, the total amount of investments and loans allocated funding exceeds the total amount raised through each issuance. $543,286,810 represents gross issuancesize. Gross issuance size net of underwriting fees is $537,181,760; however, proceeds have been allocated by the firm to investments and loans based on gross issuance size.
3 USD equivalent amount uses spot foreign exchange rate on issuance date.

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT93

03 | Sustainability IssuancesFirst Sustainability Issuance
On January 6, 2023, Goldman Sachs issued €150 million ($159 million) 10NC4 autocallable notes.
Funding has been allocated to $164.6 million of eligible investments and loans.
Impact Theme

Americas

EMEA

Total

Communities$164.6$164.6$164.6$164.6

Related to:• Affordable, multifamily residential, and mixed-use developments1
Total

Second Sustainability Issuance
On March 14, 2023, Goldman Sachs issued €1.5 million ($1.6 million) 8yr1m capped participation certificates.
Funding has been allocated to $8.7 million of eligible investments and loans.
Impact Theme

Americas

EMEA

Total

Communities

$8.7

$8.7

$8.7

$8.7

Related to:• Affordable, multifamily residential, and mixed-use developments1
Total

Third Sustainability Issuance
On May 5, 2023, Goldman Sachs issued €220 million ($242 million) 5yr phoenix coupon notes.
Funding has been allocated to $242.3 million of eligible investments and loans.
Impact Theme

AmericasCommunities$227.3

EMEA

Total$227.3

Related to:• Affordable, multifamily residential, and mixed-use developments1

Sustainable Transport

$10.1

$10.1

$4.9

$4.9

$15.0

$242.3

Related to:• Manufacturer of electric vehicle technology

Clean Energy
Related to:• Biomethane plants in Europe
Total$227.3

1 “Affordable housing” is defined in this context as housing that is affordable to tenants earning up to 80% of the area median income.

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT94

03 | Sustainability Issuances

Fourth Sustainability Issuance
On May 26, 2023, Goldman Sachs issued €50 million ($53.5 million) 10NC1yr autocallable notes.
Funding has been allocated to $69.2 million of eligible investments and loans.
Impact Theme

Americas

EMEA

Total

Communities

$69.2

$69.2

$69.2

$69.2

Related to:• Affordable, multifamily residential, and mixed-use developments1
Total

Fifth Sustainability Issuance
On July 27, 2023, Goldman Sachs issued €30 million ($33 million) 10NC2yr autocallable notes.
Funding has been allocated to $33.2 million of eligible investments and loans.
Impact Theme

Americas

EMEA

Total

Communities

$33.2

$33.2

$33.2

$33.2

Related to:• Affordable, multifamily residential, and mixed-use developments1
Total

Sixth Sustainability Issuance
On August 22, 2023, Goldman Sachs issued Mex$200 million ($12 million) 7yr fixed rate notes.
Funding has been allocated to $17.3 million of eligible investments and loans.
Impact Theme

Americas

EMEA

Total

Communities

$17.3

$17.3

$17.3

$17.3

Related to:• Affordable, multifamily residential, and mixed-use developments1
Total

1 “Affordable housing” is defined in this context as housing that is affordable to tenants earning up to 80% of the area median income.

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT95

03 | Sustainability Issuances

Seventh Sustainability Issuance
On October 9, 2023, Goldman Sachs issued €30 million ($31.5 million) 10.25NC1yr memory phoenix autocallable notes.
Funding has been allocated to $31.8 million of eligible investments and loans.
Impact Theme

Americas

EMEA

Total

Communities

$31.8

$31.8

$31.8

$31.8

Related to:• Affordable, multifamily residential, and mixed-use developments1• Small/midsized businesses loan funding2
Total

Eighth Sustainability Issuance
On November 8, 2023, Goldman Sachs issued €10 million ($10.7 million) 3yr forward bond to maturity note.
Funding has been allocated to $11.2 million of eligible investments and loans.
Impact Theme

Americas

EMEA

Total

Communities

$11.2

$11.2

$11.2

$11.2

Related to:• Affordable, multifamily residential, and mixed-use developments1
Total

1 “Affordable housing” is defined in this context as housing that is affordable to tenants earning up to 80% of the area median income.
2 “Small/midsized businesses” are defined as businesses having approximately between five and 25 employees.

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT

96

SECTION 04

FeaturedInvestments

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT97

04 | Featured Investments

Climate Transition
At Goldman Sachs, we are committed to aligning our business with a net zero by 2050
pathway, and we seek to drive decarbonization in the real economy in partnership withour clients and companies that we invest in. Preventing negative impacts of climate change
will require capital, innovation, and coordination across both the public and private sector
as businesses across regions and sectors seek to implement low-carbon solutions — ​and communities everywhere adapt to an increasingly warming world.

CASE STUDY

Verdalia Bioenergy
Expanding European Biomethane Capacity
Goldman Sachs invested in Verdalia Bioenergy, which was established in 2023, as a new
business focused on developing, acquiring, building, and operating biomethane plants acrossEurope with the aim of deploying at least €1 billion by the end of 2026. The company has aportfolio of development-stage biomethane projects in Spain with a total capacity of ~1 TWh/year (equivalent to ~3.4 million MMBtu),1 with a strong pipeline of incremental opportunities.
In addition, Verdalia has also expanded into Italy as a second country.
As part of the ongoing transformation of the global energy supply, alternative fuels suchas biomethane — ​a negative or low-carbon natural gas produced through the anaerobic
digestion of organic waste — ​can serve an important role. Biomethane is particularly relevant
for Europe’s decarbonization and energy security plans, given it provides the benefits offossil fuel natural gas with lower-lifecycle carbon emissions, while being produced domesticallyand leveraging the large gas infrastructure already in place. The environmental benefits ofbiomethane are also amplified, as it prevents methane emissions that could otherwise be
released into the atmosphere from the decomposition of organic waste.

CASE STUDY

Rimac Group
Building Efficient Batteries for Performance EVs
The Rimac Group manages the European Rimac companies that provide premium andluxury technology solutions in the mobility and energy sector. The Rimac Group owns
100% of Rimac Technology, which is a majority shareholder of the hypercar manufacturer
Bugatti Rimac, and is invested in P3 Mobility. Rimac Technology is focused on the development
and manufacturing of high-performance mobility battery systems, eAxles, and electricalcontrol units that push boundaries in efficiency and performance for EVs, as well as batteryenergy storage systems. In cooperation with premium original equipment manufacturers,
such as BMW, Rimac Technology is embarking on the next stage of development by deliveringlarger volumes of advanced battery systems. Our investment in Rimac Group centers on the
secular tailwinds related to the mega-trend of EV adoption in Europe, coupled with a sizable,higher-margin market in the supply of critical components to premium and high-performancepassenger vehicles.

1 “TWh” represents terawatt-hours and “Btu” represents British thermal units.

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT98

04 | Featured Investments

Inclusive Growth
We recognize that growth must be inclusive to be sustainable. As with the complexityof a transition to a low-carbon economy, the inclusive growth challenge is far from simple
and cannot be solved by a single financial institution. Our approach combines over two
decades of experience investing in underserved communities, on-the-ground knowledge
from connecting with and listening to diverse communities, and partnerships to help
drive solutions that can improve affordability, access and quality of life.

CASE STUDY

NOWAccount®
Helping Small Businesses Manage Short-Term Liquidity
Goldman Sachs provided, as part of our One Million Black Women1 initiative, a $200 million
loan facility to Now, an innovative payment solutions business that helps small B2B
companies get paid immediately via their NowAccount®, so they can increase cash flow
while eliminating the risk of late payments and nonpayment of invoices. Through thisinvestment, Now aims to accelerate invoice payments to help small and often underresourced
businesses such as Black women–owned businesses optimize their short-term liquidity needs
so they can grow sustainably.
Now has formed strategic partnerships with organizations — ​including Initiative for aCompetitive Inner City, Georgia Minority Supplier Development Council, Black Directory andCulture Genesis, among others — ​to increase its reach among Black women entrepreneurs.

CASE STUDY

Clarkson Estates
Meeting Community Needs in Brooklyn, New YorkIn December 2023, CAMBA Housing Ventures, a New York City–based affordable andsupportive housing developer, broke ground on a 328-unit affordable housing developmentin Prospect Lefferts Gardens in Brooklyn. The development includes 29,000 square feetof community facility space to host programming focused on economic development,
including workforce training and childcare. The project was made possible by financing from
Goldman Sachs, CAMBA, CREA, the Federal Home Loan Bank of New York, the New York State
Division of Homes and Community Renewal, and the New York State Office of Temporary andDisability Assistance.
In early 2023, Goldman Sachs committed $219.5 million as part of our One Million Black Women
initiative to finance the project, which will set aside half of its units to house formerly homelesspopulations. The project is also part of New York State’s Vital Brooklyn Initiative, a statewide
program that aims to provide a holistic approach to community development for underserved
communities in central Brooklyn.

1 Goldman Sachs One Million Black Women is a $10 billion investment strategy designed to help narrow opportunity gaps facing Black women across education, healthcare, housing and more.

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT

99

SECTION 05

Report ofIndependent
Accountants

GOLDMAN SACHS 2023 SUSTAINABILITY ISSUANCE REPORT100

05 | Report of Independent Accountants

Report of Independent Accountants
To the Management of The Goldman Sachs Group, Inc.
We have examined the management assertion of The Goldman Sachs Group, Inc. that the total net proceeds of$537,181,760, from the total gross issuance of $543,286,810, consisting of the net proceeds from:(i)
the January 2023 EUR 150.0 million ($159.0 million) autocallable notes due 2033;(ii)
the March 2023 EUR 1.5 million ($1.6 million) capped participation certificates due 2031;(iii)
the May 2023 EUR 220.0 million ($242.0 million) phoenix coupon notes due 2028;(iv)
the May 2023 EUR 50.0 million ($53.5 million) autocallable notes due 2033;(v)
the July 2023 EUR 30.0 million ($33.0 million) autocallable notes due 2033;(vi)
the August 2023 MXN 200.0 million ($12.0 million) fixed rate notes due 2030;(vii)
the October 2023 EUR 30.0 million ($31.5 million) memory phoenix autocallable notes due 2033;
and(viii)
the November 2023 EUR 10.0 million ($10.7 million) forward bond to maturity note due 2026,
were used to finance or refinance, in whole or in part, investments made and loans entered into in relation to eligible
green and social projects to which there were total allocated funds of $578,259,084 during the period from within one
year prior to each issuance through December 31, 2023, based on the assessment criteria described in the Section ofthis Sustainability Issuance Report 2023 entitled Sustainability Issuances. The Goldman Sachs Group, Inc.’smanagement is responsible for its assertion. Our responsibility is to express an opinion on management’s assertion
based on our examination.
Our examination was conducted in accordance with attestation standards established by the American Institute ofCertified Public Accountants (AICPA). Those standards require that we plan and perform the examination to obtainreasonable assurance about whether management’s assertion is fairly stated, in all material respects. An examination
involves performing procedures to obtain evidence about management’s assertion. The nature, timing, and extent of
the procedures selected depend on our judgment, including an assessment of the risks of material misstatement ofmanagement’s assertion, whether due to fraud or error. We believe that the evidence we obtained is sufficient andappropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethicalrequirements related to the engagement.
Only the total net proceeds of $537,181,760, total gross issuance of $543,286,810, total allocated funds of$578,259,084 and the related criteria described in the Section of this Sustainability Issuance Report 2023 entitledSustainability Issuances is part of the management assertion of The Goldman Sachs Group, Inc. and our examination
engagement. The other information in the Sustainability Issuance Report 2023 and Goldman Sachs 2023
Sustainability Report has not been subjected to the procedures applied in our examination engagement, andaccordingly, we make no comment as to its completeness and accuracy and do not express an opinion or provide any
assurance on such information.
In our opinion, management’s assertion is fairly stated, in all material respects.

New York, New York
April 26, 2024
PricewaterhouseCoopers LLP, 300 Madison Ave, New York, NY
T: 646-471-3000, www.pwc.com/us

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Disclaimer
This document has been prepared by Goldman Sachs and is not a product of Goldman Sachs Global Investment Research. This document,
which has not been externally audited/assured except where otherwise indicated, does not assess the merits of trading in any of the securities
or loans of the companies named herein and should not be relied on as a basis for any such transaction or for any other investment decision.
This document does not constitute an offer to sell the securities or loans of the companies named herein or a solicitation of proxies or votes
and should not be construed as consisting of investment advice. This material is not intended to be used as a general guide to investing, or
as a source of any specific investment recommendations. Goldman Sachs is not providing any financial, economic, legal, accounting, or tax
advice or recommendations. All investments involve risk, and past results do not guarantee future returns. Goldman Sachs encourages you
to consult with your advisors on whether environmental, social and governance (ESG) investing is appropriate with your holistic investment
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