The Future of Sustainable Finance

Goldman Sachs 2018 Sustainability Report

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Goldman Sachs 2018 Sustainability Report

03 INTRODUCTORY LETTER

04 MAKING SUSTAINABILITY OUR BUSINESS

08 DRIVING SUSTAINABLE GROWTH

Expanding ESG and
09  11 Integrating ESG 12 Investing in Financing Education
14 
Impact Investing Factors in Analysis a Consumer and Social Progress
Meeting Rising
09  12 Financing Paradigm Shift 14 Fueling Expansion
Demand for New Models Targeting Impact
13  of Colleges and
Sustainable of Sustainable Investments to Fuel Universities
Opportunities Enterprise Local Economies 14 Driving Sustainable
Putting an
10  12 Fueling a Revolution 13 Building Affordable Growth in
Endowment to Work in Footwear Housing Underserved
11 In France, Indexing 13 Supporting a Markets
Sustainability Turnaround

15 INCREASING FINANCIAL EMPOWERMENT

Improving Financial
16  Expanding
16  Closing the Gender
17  Building Connections
19 
Independence Investment Prowess Investment Gap for Small Business
Making Financial
16  Advancing
17  Driving Global
18  Owners
Management Simpler Entrepreneurship Economic
Empowerment

20 ADVANCING ENVIRONMENTAL PROGRESS

Goldman Sachs
21  Advancing
22  Building a Thriving US
24  Saying Goodbye to
26 
Environmental Sustainable Green Bond Market Plastic, Reducing
Progress Technologies Charting the Future
24  Use of Paper
Scaling Clean
21  The Power of
23  of Sustainable Creating a More
26 
Energy Globally Green Bonds Finance Sustainable
A Year of Innovative
23  Minimizing
25  Workplace
Issuances Operational Impacts:
Furthering Our
Commitment

27 INVESTING IN OUR PEOPLE

Diversity and
28  Expectant Parents
30  32 A Service-Oriented 33 Investing in Local
Inclusion Building Greater
31  Culture Partnerships
Holistic Support
30  Resiliency

34 MANAGING RESPONSIBLY
Principles and
35  Managing Risk
36  A More Sustainable
38  39 R
 isk-Centered
Policies Across the Firm and Diverse Supply Governance
Stewarding Client
38  Chain
Investments

40 METRICS

44 RECOGNITION

46 SASB INDEX

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Goldman Sachs 2018 Sustainability Report

INTRODUCTORY
LETTER

(from left to right)

David M. Solomon
Chairman and
Chief Executive Officer
John E. Waldron
President and

FELLOW Chief Operating Officer

Stephen M. Scherr

SHAREHOLDERS
Chief Financial Officer

This has been an important year for Goldman Sachs. We have made tangible progress in our
commitments to becoming a more sustainable company, including by completing many of our
2020 operational impact goals and by surpassing $80 billion in our goal to finance or invest
$150 billion in clean energy by 2025. We also made new commitments to promote the diversity
of our workforce and announced a major initiative to invest in women-led companies.
For us, sustainability is about acknowledging the important role we can play in catalyzing capital to help address issues
facing our society today — from the environment to health care to urban development. If we are serious about delivering
superior long-term shareholder returns, we must continue to focus on managing ourselves responsibly and identifying
opportunities to allocate capital more purposefully across our businesses.

For example, our Urban Investment Group (UIG) has been a major investor in community development projects, committing
more than $7 billion in underserved American markets since 2001. In 2018, UIG continued its long-term support of the
Brooklyn Navy Yard by committing $35 million to renovate Building 127, a 95,000-square-foot manufacturing center that
will drive the creation of approximately 300 quality urban manufacturing jobs.

We recently announced Launch With GS, a $500 million initiative to invest in women-led companies and investment
managers, which represents the firm’s first for-profit program with a gender lens. We are proud of this effort, which is
informed by our 10,000 Women program.

Core to creating long-term shareholder value is having a workforce that allows us to effectively serve a broad and diverse
set of clients. We are undertaking new initiatives aimed at increasing the representation of diverse communities at all
levels across the firm. In this report, we outline our recently announced aspirational goals to increase the representation of
women, Hispanic/Latino professionals and black professionals within our analyst and entry-level associate new joiners —
which represents more than 70 percent of our annual hiring. Fundamental change takes time, but if we’re rigorous in
our execution of incremental change, we will make it happen.

We have also continued the fast-paced growth of our Environmental, Social and Governance (ESG) and impact investing
platform, which reached $17 billion in assets under supervision at the end of 2018. This includes the launch of an ESG-
focused exchange traded fund (ETF) that provides our clients with broad exposure to US large cap companies that rank
favorably based on values identified by the American public.

We view sustainability as core to our mission, and will continue to innovate on behalf of clients, shareholders and the
communities where we live and work.

We look forward to the work ahead.

David M. Solomon John E. Waldron Stephen M. Scherr

Chairman and President and Chief Financial Officer
Chief Executive Officer Chief O
 perating Officer

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Goldman Sachs 2018 Sustainability Report

At Goldman Sachs, sustainability is an important driver of our

engagement with clients and how we conduct our business. We provide
the advice and capital companies need to grow, the expertise needed
to manage risks, and the information and perspectives our clients must
have to make business and investment decisions. Increasingly, all of
these activities demand focus on sustainability issues, from the looming
impacts of climate change, to health- and safety-associated risks, to
credit and investment gaps that limit business opportunities and hamper
economic progress in many parts of the world.

COMMITMENTS & GOALS

$150B $500M 100%

Clean energy financing and Commitment to invest in Renewable power for our
investment target by 2025 women-led businesses global electricity needs by 2020

Achieve representation in hiring analysts and entry-level associates of:

50%
Women globally
11%
Black professionals
14%
Hispanic/Latino professionals
9%
Black professionals
in the Americas in the Americas in the UK

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Goldman Sachs 2018 Sustainability Report

This commitment to sustainability also underscores the responsibility we have to our

stakeholders — our clients, shareholders, people and communities — to build long-term
value by managing our firm in a responsible way. This includes the way we assess risk,
how we train and develop our workforce, and how we engage within the communities
where we live and work.

FOR CLIENTS, BUILDING OPPORTUNITIES

AND MANAGING RISKS
As a financial institution and leader within global capital markets, we enable our
clients to manage their lives and businesses for the long term.

INSTITUTIONAL CORPORATIONS
& GOVERNMENTS INDIVIDUALS
INVESTORS
• Provide suitable and • Provide access to capital, • Enable savings and investment
appropriately priced investment strategic advice and risk for retirement, education and
products management services other goals
• Help manage risks and hedge • Enable companies to scale, • Help expand financial literacy
exposures expand to new markets and • Help individuals gain clarity on
• Identify commercial solutions serve broader stakeholders their financial well-being
to global challenges, thereby • Provide solutions to reduce • Provide access to passive and
creating new investment and volatility in expenses active investment strategies,
risk management opportunities • Help companies meet — and including those incorporating
progress — public commitments ESG factors
to sustainability

2018 MILESTONES

$80B $19B $35B

Progress toward clean energy target Weather-related catastrophe Green, social and sustainability bonds
of $150B since 2012 bonds since 2006 underwritten since 2014

$7B+ $17B
Investments in underserved American AUS in ESG and Impact Investing
communities since 2001 as of 2018 year-end

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Goldman Sachs 2018 Sustainability Report

This report examines how sustainability is integrated across our firm — in the opportunities
we offer, the research we conduct, the advice we provide to our clients, the risks in our own
operations worldwide and how we manage our broader impact.

SUSTAINABILITY IN ACTION
FIVE WAYS WE HAVE IMPACT

“Only by integrating sustainability across our businesses can

we deliver strong, long-term returns for our shareholders.”

David Solomon, Chairman and Chief Executive Officer

Raising capital to support sustainable business models;

creating opportunities for investors; investing directly to
drive growth in underserved communities.

DRIVE
SUSTAINABLE
GROWTH

Running our 01 INCREASE Creating innovative tools

business with a 02EMPOWERMENT
FINANCIAL
and products to help
culture of integrity and consumers take control
accountability; effectively of their financial lives;
managing environmental
and social risks.
MANAGE opening doors globally for
local entrepreneurs.
RESPONSIBLY

ADVANCE
04 ENVIRONMENTAL
PROGRESS

INVEST
IN OUR PEOPLE

Maintaining a workforce that is

Leveraging capital markets
highly engaged in delivering value
to mitigate the impacts of
to clients; creating a workplace
climate change; minimizing
that brings out the best in our
environmental impacts of
people through diversity, inclusion
our own operations.
and holistic support.

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Goldman Sachs 2018 Sustainability Report

In Driving Sustainable Growth, we look at how we deploy capital to support

sustainable new business models and make direct investments in initiatives that drive
growth in underserved communities. We also examine the rapid expansion of our
ESG and impact investing platform, where we provide clients with increasing opportunities
to align portfolios with ESG priorities and manage risks and hedge exposures with
data-driven ESG strategies.

In Increasing Financial Empowerment, we cover our growing emphasis on digital

consumer finance — including tools we are building to help consumers take control of
their financial lives. In addition, we examine how we are driving the empowerment of local
entrepreneurs in both developed and emerging markets.

In Advancing Environmental Progress, we cover our long-standing commitment

to combating climate change through our work with clients and our own determination
to limit our operational impact. In 2018, we surpassed the halfway mark in our goal of
deploying $150 billion in renewable clean energy financings and investments by 2025.
We also look at the innovative approach we are taking to drive the growth of green,
social and sustainability bonds, and our efforts to strengthen the green bond market
in the United States.

In Investing in Our People, we describe our commitment to maintaining a global

workforce that is highly engaged in delivering value to our clients. We note our efforts
to sustain this advantage long-term, through increasing diversity, fostering a workplace
that emphasizes inclusion, and providing holistic support that enables our people, from
analysts to senior managers, to achieve their fullest potential.

Finally, in Managing Responsibly, we describe our focus on responsible governance,

which is key to the sustainability of our business. This includes our risk management
framework, which helps us manage a wide range of risks across the breadth of our
global operations, and our dedication to maintaining a culture of integrity, compliance
and escalation.

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At Goldman Sachs, we view sustainability as fundamental to supporting long-term growth.
We are working across our divisions, and across sectors and geographies to drive sustainable
growth. We do this by harnessing the capital needed to support and scale innovative business models,
integrating ESG data and perspectives into investment research, and partnering with clients and others
to invest in initiatives that advance sustainable development, promote increased resiliency and foster
community progress.

HOW
How WE
We Accelerate
Sustainable
ACCELERATE Growth
SUSTAINABLE
GROWTH
• Expand sustainable investment
• Finance innovative business models
• Invest in communities

181 Mercer Street, New York University

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Goldman Sachs 2018 Sustainability Report

DRIVING
SUSTAINABLE
GROWTH

EXPANDING ESG AND

IMPACT INVESTING
ESG and impact investing have grown rapidly, driven by increasing interest among institutional
and individual investors and the firm’s ability to deliver innovative and differentiated investment
strategies. We are focused on deepening and enhancing the integration of ESG data and analysis
into products, tools and investment strategies for our clients. In our Investment Management
business, ESG and impact investing assets under supervision (AUS) have quadrupled since 2015,
from $4 billion to more than $17 billion.

In 2018, growth continued to accelerate, driven by three key trends:

1 2 3 Growth of Goldman Sachs

ESG AUS since 2015

A growing awareness that a

disciplined approach to ESG data and
A widening spectrum of ESG investment
opportunities, including risk-managed
A growing focus on finding more material
performance-based ESG datasets that
2015
3.8B
$
analysis can offer competitive, long- ESG-aligned passive strategies, ESG- focus on a smaller set of key indicators —
term risk-adjusted returns, while better integrated fundamental strategies and investors are increasingly less interested

6.5B
aligning portfolios with desired social private-market impact investments that in ESG policies, disclosures and scores,
and environmental goals. seek sustained alpha. and are instead focused on how data
2016
$
can help identify material insights into a
company’s performance and trajectory.

11.3B
2017
$
These insights derived from analyzing ESG data help us weigh risks and opportunities across our entire
investment complex and also allow us to offer dedicated ESG and impact investment strategies. By integrating
ESG data into analyses of companies, we gain insights into such intangible factors as corporate culture,

17B
operational excellence and potential environmental risks — all critical to long-term, sustainable performance.
$
2018
With increased disclosure of quantifiable metrics (from energy use and CO2 emissions to employee turnover
and injury rate), ESG data play an increasing role in our investment process, from identifying material credit risks
due to the effects of climate change to employing ESG as an alpha-additive signal in quantitative portfolios.

MEETING RISING ESG investing has been largely the province of institutional investors,
including family offices, endowments, sovereign wealth funds, trusts and
DEMAND FOR pension funds. That, however, is beginning to change as demand and
SUSTAINABLE interest in sustainable investments among individual investors deepens.

OPPORTUNITIES Despite this growing demand, ESG strategies for individuals have posed a
number of challenges: 1) many ESG strategies are extremely narrow and
specifically tailored to niche interests (e.g., fossil fuel-free); 2) more broad-based
ESG strategies have opaque methodologies and are predominantly driven by a
company’s ESG policies and disclosures (not ESG performance); and 3) many
ESG strategies are poorly structured relative to standard market benchmarks,
are very expensive, or both.

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Goldman Sachs 2018 Sustainability Report

DRIVING
SUSTAINABLE
GROWTH

Meeting Rising Demand for Sustainable Opportunities (continued)

In 2018, Goldman Sachs Asset Management (GSAM) launched an ETF

90%
of millennial investors want sustainable
investments in their 401(k).
that seeks to provide our clients with broad exposure to US large cap
companies that rank favorably based on values identified by the American
public, including how companies treat their workers and how they impact
the environment. We saw this as an interesting thesis — if people have
the right information, they will buy from, invest in, work for and otherwise
support companies that align with their values.

In a related 2018 development, a GSAM money market fund invested

in US Government securities broadened its focus to help drive diversity
Expected net worth as high as $24 trillion by 2020
by channeling business to women-, minority- and veteran-owned broker-
dealers. Expanding and executing with these trading partners will benefit
the broker-dealers while providing investors with new, highly capable
trading partners and an added ESG component to their portfolios.

PUTTING AN
ENDOWMENT
TO WORK
Since 1951, The Nature Conservancy (TNC) has worked across the globe
to “conserve the lands and waters on which all life depends.” To further
expand its impact, TNC sought to leverage the potential of its $2 billion
endowment and long-term investment portfolio. Working with Goldman
Sachs, TNC aimed to further amplify the endowment’s impact through
investments that advance its mission while pursuing market rates of return. OUR TEAM DESIGNED
This includes a three-year, $75 million commitment to environmentally- A PORTFOLIO OF
focused private market impact investments. PRIVATE EQUITY,
Working closely with TNC to design a solution, GSAM leveraged experience
PRIVATE CREDIT
in manager selection in private-impact investment themes and extensive
AND REAL ASSETS,
research in conservation- and climate-linked environmental issues. The team
WITH INVESTMENTS
designed a portfolio of private equity, private credit and real assets; themes
RANGING FROM
ranged from renewable energy development to urban electric bus fleets aimed
RENEWABLE ENERGY
at replacing high-carbon diesel.
TO ELECTRIC
BUS FLEETS TO
Building the impact portfolio is the latest chapter in a long relationship with REPLACE DIESEL.
TNC, as the nonprofit has grown and expanded the environmental programs
for which it is known worldwide. As an example, The Goldman Sachs Center
for Environmental Markets partnered with TNC’s Center for Sustainable
Hydropower to explore innovative financial structures that have better
impacts on the environment.

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Goldman Sachs 2018 Sustainability Report

DRIVING
SUSTAINABLE
GROWTH

IN FRANCE,
INDEXING
SUSTAINABILITY
In June, Goldman Sachs launched the Euronext CDP Environmental France Index, the first index of its kind. Developed by our Paris-based
Equity team, the index is based on data from the nonprofit CDP (formerly Carbon Disclosure Project), which covers 7,000 companies in the
world’s largest self-reported corporate environmental dataset. CDP’s A-F scores are considered one of the most comprehensive research tools
available for measuring environmental performance — particularly, how well companies manage climate, water and deforestation risks. The
index is built from a universe of the 100 most liquid stocks on France’s SBF120, and selects the 40 best performers from that group in terms of
the three key environmental challenges — climate change, water security and deforestation. The Euronext is the first equity index to base its
selections on CDP Climate change, Water and Forest scores.

The Euronext CDP Environmental France Index is directed to retail and institutional investors, for whom ESG themes are a growing component
of investment analysis. It provides investors with an alternative to traditional structured products to invest in ways that support companies that
are best at managing environmental impacts.

Subsequently, we launched two additional CDP indices: the World Index, comprising European, US and Canadian stocks, and the Eurozone Index.

INTEGRATING
ESG FACTORS
IN ANALYSIS
GS SUSTAIN is our global investment research team that integrates ESG
criteria into analyses of companies worldwide to identify those best prepared
to weather new and emerging risks. GS SUSTAIN covers approximately 4,000
companies within the firm’s global research footprint.

In 2018, GS SUSTAIN released a number of key reports, including Revolution Rising —

Low Chatter to Loud Roar. This report confirmed acceleration in ESG investment
and cited important trends, including soaring assets under management, increased
CEO conversations about ESG topics, and rising ESG-inspired shareholder
activism. In Momentum & Materiality, the team notes that momentum in reaching
ESG FACTORS ARE sustainability objectives is key to analyzing a company’s ESG progress. ESG in
CLEARLY AMONG the Compensation Conversation, meanwhile, cites ESG-targeted management
THE VARIABLES THAT incentives as a signal of better company engagement with ESG risk.
CAN POTENTIALLY
At the core of our research is an acknowledgment that ESG factors are among
DRIVE RETURN AND
the variables that have the potential to drive return and manage risk in active
MANAGE RISK IN
investment strategies. And we leverage our big data capabilities to identify specific
ACTIVE INVESTMENT
ESG data that may be tied to alpha signals in investing. The firm also supports
STRATEGIES.
efforts to bring clarity to specific markets that are heavily impacted by ESG factors.
In November and December, for example, we co-hosted investor launches of
the 2019 Access to Medicine Index, in partnership with the Access to Medicine
Foundation. This annual index ranks pharma companies according to their efforts
to make medicines more available, analyzing company strategy, governance,
research and development, and pricing.

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Goldman Sachs 2018 Sustainability Report

DRIVING
SUSTAINABLE
GROWTH

FINANCING NEW MODELS OF

SUSTAINABLE ENTERPRISE
Supporting innovation is a key component of driving sustainable growth. Goldman Sachs
Investment Partners (GSIP) is dedicated to partnering with entrepreneurs around the world to
help them as they build disruptive businesses, investing more than $4 billion since 2010.

FUELING A
REVOLUTION IN
FOOTWEAR
With an investment in 2018, GSIP partnered with
Rothy’s to support its mission to build sustainability
into every aspect of its business.

Rothy’s makes stylish and comfortable women’s shoes

composed entirely from sustainable materials — uppers
made from 100% post-consumer plastic water bottles,
insoles made of recycled foam, adhesives that are
25M
Rothy’s has diverted 25 million
plastic bottles from landfills
nontoxic and vegan, soles that are carbon-free, and since 2016.
packaging that is biodegradable and made of 85%
post-consumer recycled materials. What’s more, the
company’s processes have cut waste to a minimum —
from 37 percent in traditional shoemaking to less than
six percent. Over the past three years, Rothy’s has
diverted more than 25 million plastic bottles from landfills.
In addition, the company has offset carbon created in
shipping operations by protecting more than 2,000 acres
of Amazon forest to date.

INVESTING IN Another company GSIP has supported is California-based thredUP, the world’s largest online
platform for buying and selling like-new clothing and a prime example of waste reduction via the
A CONSUMER redistribution of used goods. The platform makes it easy for sellers to purge their closets of gently
PARADIGM used garments, buyers to purchase their favorite brands up to 90 percent off and the company to
SHIFT create a virtuous cycle that boosts affordability as it reduces waste. By meeting growing demand
from shoppers — particularly millennials and Gen Z — for value in purchases, it is diverting millions
of garments from landfills, the fate of 85 percent of discarded clothing.

$
24B
The used-clothing market has
GSIP has participated in several rounds of funding, including an investment in 2018, that has enabled
thredUP to expand its operation and distribution network. thredUP is expanding the secondhand apparel
and accessories market that reached $24 billion domestically in 2018; the company reports that 70 percent
of its first-time shoppers have never bought pre-owned clothing before.
high-impact sustainability potential;
in 2018, the market reached
$24 billion domestically and diverted Aside from lowering impacts on landfills, secondhand shopping offers a host of other environmental
millions of garments from landfills. benefits. thredUP calculates that if everyone in the US bought one used item instead of new this year
it would save 25 billion gallons of water, 440 million pounds of textile waste and 5.7 billion pounds of
carbon emissions.

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Goldman Sachs 2018 Sustainability Report

DRIVING
SUSTAINABLE
GROWTH

TARGETING IMPACT
INVESTMENTS TO FUEL
LOCAL ECONOMIES
BUILDING
AFFORDABLE
HOUSING
Goldman Sachs’ Urban Investment Group (UIG) has
long focused on development projects that revitalize
local communities while earning a return. After the
New York City Economic Development Corporation
released the Jamaica Now Action Plan in 2015 to
revive neighborhood development, UIG had a natural
opportunity to become involved.

In 2018, UIG financed the acquisition and development

667
of an underutilized site in Jamaica, Queens, to be created
into a $425 million mixed-use and mixed-income community.
The development features 667 affordable housing units and
18,000 square feet of retail space for community facilities
AFFORDABLE
and 24,969 square feet of commercial space. To ensure the NEW HOUSING
development maintains its commitment to providing mixed- UNITS IN A CITY
income housing, apartments are restricted by formula to WITH RISING
families earning between 50 and 165 percent of median SCARCITY
incomes in the surrounding area.

SUPPORTING A TURNAROUND
Since its days as a shipbuilding and repair facility for the US Navy, the Brooklyn Navy Yard has reemerged as an
urban industrial center and become a model for urban industrial development nationwide. In 2018, Goldman Sachs
continued its long-term support of this turnaround by investing $35 million in its capstone project — the renovation of
Building 127, a 95,000-square-foot manufacturing center.

Building 127 was built in 1904 and its renovation is the Navy Yard’s final adaptive reuse project. It is expected to be
completed in 2020 and generate more than 300 quality urban manufacturing jobs.

In its entirety, the Navy Yard redevelopment has added more than 2 million square feet of commercial space and is
expected to add 10,000 jobs by 2020. This project epitomizes how underutilized space can become a hub for growing
businesses, creating a blueprint for revitalizing urban manufacturing and generating quality jobs.

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Goldman Sachs 2018 Sustainability Report

DRIVING
SUSTAINABLE
GROWTH

FINANCING EDUCATION
AND SOCIAL PROGRESS
FUELING EXPANSION OF
COLLEGES AND UNIVERSITIES
As an advisor and financier, Goldman Sachs helps major educational institutions finance expansion, housing and infrastructure in cities
across the country and in the local New York community. These developments are boons to more than the institutions themselves. Major
expansions help to drive economic activity while creating substantial opportunities to leverage green solutions in construction and
renovation. Most recently, Goldman Sachs led financings for both New York University (NYU) and Columbia University.

Goldman Sachs led an $862 million bond offering to help finance a series of projects at NYU. One project, a major 23-story student hub, will become
the university’s largest classroom building, a student housing complex, and center for athletics, performances and other student activities. The
building will incorporate a wide range of sustainable design features, including low-flow plumbing, and green roofs and terraces with low-irrigation
plantings to help naturally cool the building. Another is the construction of a new
science building that will become a major center of scientific and medical research.
This, too, will incorporate green approaches — both buildings aim to achieve
LEED Gold certification.

The issuance will also fund key upgrades to the university’s cogeneration facility,
which produces electricity, heat and chilled water with a minimum of greenhouse
gas emissions and pollutants. The project will improve the plant’s capacity and
resiliency, as well as connect to more NYU facilities, including the new student hub
on Mercer Street.

The firm also managed a $325 million bond offering for Columbia University,
enabling a range of capital projects in both Morningside Heights and Manhattanville.
The Manhattanville open-campus plan is designed to be pedestrian-friendly and
environmentally sustainable, featuring publicly accessible open spaces, commercial
spaces designed to feature local entrepreneurs to serve local needs and tree-lined
sidewalks to encourage community engagement. The campus is also the nation’s
first to achieve Stage 1 LEED Platinum certification under the US Green Building
Council’s Neighborhood Development pilot rating system.

DRIVING In May, Goldman Sachs served as joint lead

manager on a €1.25 billion social bond for the
In September, Goldman Sachs advised Groupe
BPCE, France’s second-largest banking group,
SUSTAINABLE African Development Bank (AfDB), following to raise €1.25 billion through its inaugural social
GROWTH IN the €500 million inaugural issuance in 2017. bonds; this was the first social bond issued by a
UNDERSERVED The issuance drew more than 50 participating
investors from around the world, attracted by the
bank following the ICMA Social Bond Principles.
Proceeds will fuel an ambitious plan to provide
MARKETS bank’s record of financing programs that have had financing to small businesses and nonprofits
significant impact. Proceeds will be deployed to focused on local economic development in
support AfDB’s five main priorities: infrastructure underserved areas of France. Groupe BPCE
development, regional economic integration, leveraged an innovative identification process
private sector development, skills and technology using a scoring system that used data from
development, and food security. These priorities aim internationally recognized organizations to
to spur inclusive economic and social progress by determine which small and medium businesses
creating jobs and reducing poverty across a variety and nonprofits were best positioned to make the
of demographics and geographies. most impact with the funding.

14
Financial education and empowerment for families and small business owners are crucial to
driving local commercial activity and job creation. These, in turn, create more resilient local economies
and a stronger global economy. Through our businesses and philanthropic engagement, we promote
financial inclusion, increase knowledge and financial skills, expand access to capital, and offer advice
and opportunities that increase financial independence.

INCREASING
FINANCIAL
EMPOWERMENT

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Goldman Sachs 2018 Sustainability Report

INCREASING
FINANCIAL
EMPOWERMENT

IMPROVING
FINANCIAL
INDEPENDENCE
MAKING

2M
FINANCIAL
MANAGEMENT
SIMPLER Clarity Money: more than
2 million users and climbing
In 2018, we expanded our efforts to empower the consumer by
adding Clarity Money to Marcus by Goldman Sachs, the firm’s consumer
digital finance platform, which currently also offers personal loans and savings
products. Clarity Money leverages a user-friendly interface and machine
learning to provide actionable insights to help consumers save and track
their spending. It enables consumers to work toward their financial objectives
knowledgeably and gain a holistic picture of earning and spending.

Clarity Money is a personal financial management tool and is available

through the web and as a mobile app. The tool and app make it easy to
track money flow and map an individual path to financial well-being. Simple
and approachable, the app consolidates accounts and analyzes spending
habits over time. It then suggests simple steps users can take to gain
financial control, including building wealth by opening a savings account,
understanding your credit score and canceling unwanted memberships.

EXPANDING We believe investment literacy and access to

expert advice are crucial to making financial
to take greater control of their financial lives,
with the majority interested in financial
INVESTMENT PROWESS progress, but hard to obtain if investors lack planning and learning more about investing.

E
investing confidence and financial advisors lack In the same way, the nation’s LGBT population
Evaluate your situation awareness of potential client needs. To address has unique circumstances. The community
this, Goldman Sachs Asset Management wants to work with financial advisors —

M
designed GSAM EMPOWER, a new framework studies show that nearly all married same-sex
Manage your finances and comprehensive suite of materials that helps couples said they need assistance with some
financial advisors specifically address the needs

P
type of financial planning — but they want to
of women, millennial and LGBT investors. work with professionals who are familiar with
Plan for your future
Through this program, advisors learn more the financial challenges of changing tax codes,

O about the challenges these groups can face adoption law, and complexities in trust and
Own and protect your assets estate planning.
when investing and enables them to speak
directly to issues that matter most. For example, Through a mnemonic seven-step framework,

W Work with a financial advisor research shows that many women, despite
considerable assets, lack confidence about
the GSAM EMPOWER series aims to address
common investment challenges, highlight

E
investment, yet their need to build wealth is ways to build confidence and identify solutions
Educate yourself especially critical because of their unique set to help investors empower themselves
of circumstances, like longer life spans and financially. We also partner with our third-party

R Review your plan regularly disproportionate responsibility for children and

elders. Studies also show that women seek
advisors to provide training around our GSAM
EMPOWER framework.

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Goldman Sachs 2018 Sustainability Report

INCREASING
FINANCIAL
EMPOWERMENT

ADVANCING
ENTREPRENEURSHIP
CLOSING THE GENDER
INVESTMENT GAP

Although women have made significant strides in creating and growing companies, a gender investment
gap continues to limit the potential of women entrepreneurs — currently, women-owned businesses
attract just 2.2 percent of venture capital funding in the United States and just over five percent of
US private equity firms are owned or managed by women. In 2018, we announced Launch With GS,
Goldman Sachs’ commitment to invest $500 million in women-led companies and investment managers.
Ultimately, we believe investing in diverse teams — diversity of gender, thought and background —
leads to outperformance and will drive growth for our clients, shareholders and communities.

Informed by our long-standing commitment to the economic empowerment of women, including through our
10,000 Women program, Launch With GS identified three opportunities to drive change: investing in women-led
companies through Goldman Sachs’ principal investing business, focusing on later-state growth equity; backing
women-centered investment managers by investing client capital across venture capital, growth equity and
private equity strategies; and building a community of entrepreneurs, investors and other business leaders to
facilitate connections and grow the pipeline of future investment opportunities.

By year-end 2018, we committed more than $100 million to women-led businesses. The initiative received
thousands of inquiries from more than 50 countries and we met with hundreds of women entrepreneurs in
the process of growing their organizations — building teams, launching innovative products and entering new
markets. Investments are being led by world-class investing teams at Goldman Sachs, including women with
more than 200 years of combined investing experience.

17
Goldman Sachs 2018 Sustainability Report

INCREASING
FINANCIAL
EMPOWERMENT

DRIVING GLOBAL
ECONOMIC
EMPOWERMENT

WEOF surpassed $1 billion in investments

to financial institutions in 31 countries.

10,000 Women, one of our signature philanthropic Also in January 2019, Goldman Sachs hosted When Women Lead, a
programs, is an ongoing global initiative to foster reception at the World Economic Forum in Davos, Switzerland, to elevate
economic growth by providing women entrepreneurs and amplify the importance of women in the economy and highlight the
around the world with a business education and access firm’s ongoing commitment to women’s economic empowerment. The
to capital. In 2018, 10,000 Women introduced its curriculum event featured a discussion between CEO David Solomon and Christine
online, enabling women in more corners of the world Lagarde, Managing Director of the International Monetary Fund, and
to access business knowledge. The program provides introduced 10,000 Women alumni from Brazil, India, Egypt and Nigeria.
in-depth learning that guides participants to identify
To address the more than $1.5 trillion gap in financing to women-led,
growth opportunities, gain financial planning and
small and medium-sized enterprises in the developing world, 10,000
resource management skills, and develop their staff
Women and the World Bank Group’s International Finance Corporation
through a business growth plan. In India, where both
(IFC) made meaningful strides on a number of existing programs.
the online course and in-person training are available,
In 2018, the Women Entrepreneurs Opportunity Facility (WEOF) —
10,000 Women partnered with the Indian Institution
launched in 2014 by Goldman Sachs and the IFC as a first-of-its-kind
of Management Bangalore to deliver 15 days of
gender-focused facility — surpassed $1 billion in investments to
entrepreneurship classroom learning. The first cohort
financial institutions in 31 countries. This was more than 60 percent
entered the program in January 2019.
above the original target, and WEOF is well on its way to providing
capital to 100,000 women.

18
Goldman Sachs 2018 Sustainability Report

INCREASING
FINANCIAL
EMPOWERMENT

BUILDING
CONNECTIONS
FOR SMALL
BUSINESS
OWNERS
Small businesses are critical to the US economy: they comprise 99 percent of US employer
firms, employ 58 million people and create 63 percent of all private sector net new jobs.
Helping small businesses scale has been the mission of Goldman Sachs 10,000 Small
Businesses, and 2018 data continued to show the program’s lasting impact on participants
and the communities in which they live and work.

10,000 Small Businesses partners with local colleges and other higher-education institutions to provide
a practical business education to entrepreneurs. Through a curriculum designed with Babson College,
the program has reached 8,200 small business owners across all 50 states, as well as Puerto Rico and
Washington, D.C. In addition, 10,000 Small Businesses creates opportunities to leverage expert advice,
participate in one-on-one mentoring with a robust alumni network, and increase access to capital via
partnerships with Community Development Financial Institutions and local mission-driven community-
based lenders.

47%
of graduates from 10,000
Small Businesses report
new job creation within
six months.

In the 2018 10,000 Small Businesses progress report by Babson College, revenues significantly
increased among program graduates. In all, ~67 percent report revenue increases within six months
of graduation and ~78 percent report increases 30 months out. Job creation has also been strong,
with ~47 percent adding jobs within six months and ~57 percent adding jobs within 30 months.
Both measures are significantly higher than national averages, as measured by the National Small
Business Association in 2016.

At year’s end, 10,000 Small Businesses announced expansion of the program to new business
markets in Iowa and New Hampshire. The classes, started in early 2019, drew small business owners
from both rural and urban communities.

19
 ENVIRONMENTAL
PROGRESS

A sustainable global economy demands global environmental action, from addressing climate
change and the need to shift to a low carbon future, to investing in resilient infrastructure and sustainable
means of production and distribution. As a firm, we have a long-standing commitment to environmental
progress on many fronts and to harnessing innovation and expertise to mitigate the impact of climate
change. In 2018, we continued to deliver on our commitments. We surpassed the halfway point in our goal
to deploy $150 billion in clean energy by 2025, helped clients worldwide leverage green and sustainable
financing to invest in a wide range of sustainability projects, and made significant strides to minimize our
own daily operational impacts by reducing plastic and paper waste, increasing implementation of energy
efficiency measures, and procuring renewable power.

20
Goldman Sachs 2018 Sustainability Report

ADVANCING
ENVIRONMENTAL
PROGRESS

GOLDMAN SACHS ENVIRONMENTAL PROGRESS

Accelerate energy Drive climate adaptation Improve

transition and resiliency operations

• Finance and invest $150 billion • Financed $19 billion • Achieve net carbon neutrality
in clean energy by 2025 of catastrophe bonds (reached in 2015)
since 2006
• Facilitate clean energy access • Meet 100 percent of global energy needs
in underserved markets • Finance and invest in through renewable sources by 2020
sustainable infrastructure
• Promote development of green • Eliminate 85 percent of single-use
finance markets and structures — plastics from operations by 2019
$35 billion in green, social and
• Target $2 billion in green operational
sustainability bonds since 2014
investments by 2020

SCALING One of our most crucial tasks in helping to drive the transition to
a low carbon future is deploying capital to scale renewable energy

CLEAN and other clean technologies that can have real impact. We do this
in a variety of ways, from advising clients and raising capital from

ENERGY
investors to directly investing the firm’s own capital.

Goldman Sachs has been a long-standing advisor and investor in ReNew

GLOBALLY Power, now the largest renewable energy developer and operator in India.
Most recently, the firm was a bookrunner on a $375 million green bond and
advised ReNew Power on its purchase of Ostro Energy in one of India’s largest-
ever renewable energy deals in early 2018. With this acquisition, ReNew
Power’s total clean energy capacity reached 5.6 gigawatts, 65 percent of which
was operational by that year’s end. Earlier, we developed an innovative long-term
purchase agreement to procure the power generated from a 50-megawatt
solar power plant built by ReNew Power; together with existing wind capacity,
this enabled our campus in Bengaluru to meet 70 percent of its energy needs
from renewable sources.

In Japan, following the 2011 East Coast earthquake and the devastating
tsunami at Fukushima, enthusiasm for nuclear power declined considerably.
The firm helped to increase renewable capacity through investments in Japan
Renewable Energy (JRE), now Japan’s leading renewable energy producer, with
more than 260 employees and 41 solar/wind power plants and the prospect of
reaching 1,000 megawatts of capacity by 2020. In a country with few fossil fuel
resources, renewables have become an obvious solution — and scaling solar,
wind and other renewables has become imperative.

JRE commissioned its first commercial solar power plant in Namegata in 2014
and made its first foray into biomass in 2015. The company commissioned its
first greenfield wind power plant, the 16,000-kilowatt Nakakyushu Onitayama
wind farm, in 2016, and its first solar/wind hybrid plant in Hibikinada in 2018.

21
Goldman Sachs 2018 Sustainability Report

ADVANCING
ENVIRONMENTAL
PROGRESS

Scaling Clean Energy Globally (continued)

JRE is now on track to expand capacity over the next two years, including offshore wind power as well as next- Financing Renewable
generation solar. By the end of 2018, it had 38 solar projects and three wind farms on line, and a range of solar, Energy from Distributed
wind and biomass projects under construction. to Utility Scale

In another transaction enabling the scaling of renewables, the firm helped ENGIE North America’s distributed ENGIE, USA
Solar Group, part of the ENGIE S.A. Group, accelerate deployment of distributed solar across the US. Smaller
than utility-scale solar and less dispersed than residential rooftop, distributed solar involves midsize arrays
on sites that range from corporate campuses to box-store rooftops and distribution warehouses. The firm’s
investment is expected to finance a 75-megawatt portfolio that will stretch from California to Massachusetts.
75 MW

Japan Renewable Energy

Projects like these traditionally require up to three separate investments — from tax equity, debt and often
additional sponsor equity investors — but in this case, Goldman Sachs was able to provide all three as a single
source of financing. This enabled ENGIE, as developer, to achieve both the scale and efficiency benefits of a
single source of funding, while creating a replicable, simplified approach to raising long-term capital for the
1K MW

ReNew Power, India

5.6
future development and growth of its distributed solar platform.

The portfolio includes behind-the-meter installations that will provide power to commercial and municipal
GW
customers, and small-scale front-of-the-meter projects with rural electric cooperatives under previously signed
long-term power purchase agreements (PPAs). The investment will be deployed over 12 months, and some
projects will begin providing solar power to the customers who are party to these PPAs immediately.

ADVANCING
SUSTAINABLE
TECHNOLOGIES
In 2018, the firm enabled the development renewable fuels but also helping to
of a wide range of advanced technologies diminish the threat of wildfires by
that address environmental issues. A prime reducing forest residues.
example is Red Rock Biofuels (“Red Rock”),
In another transaction involving the
which is building a biorefinery in southern
advancement of a waste-to-energy company,
Oregon that will convert waste woody
Goldman Sachs, through affiliated funds,
biomass from the surrounding forests into
acquired Restaurant Technologies of
renewable jet, diesel and gasoline
Minneapolis and will work closely with the plastic by inventing green alternatives to both.
blendstock fuels.
company’s management to support its next The company’s Limex “paper,” suitable for
With Goldman Sachs as lead underwriter, a phase of growth. Restaurant Technologies virtually any printing application, requires no
$246 million bond was issued in April 2018. provides a closed-loop cooking oil solution trees or water, both heavily used in traditional
Red Rock’s potential was already endorsed by that is a safer, cleaner and more sustainable papermaking. Instead, it makes paper from
the US Departments of Agriculture, Energy way to manage cooking oil usage and disposal limestone, of which there is a globally plentiful
and Navy, which made a Defense Production in restaurant kitchens. As part of the solution, supply. Its “plastic” pellets, meanwhile,
Act award of $74 million of the project’s total Restaurant Technologies removes used combine limestone and small amounts of
$338 million cost. In addition, Red Rock came cooking oil and sells it to biofuel producers as petroleum-derived resin, which the company
to market with commitments from both a feedstock in the production of biodiesel. plans to replace with materials that are 100%
feedstock suppliers and jet fuel off-takers, The company operates 41 depots throughout biological and biodegradable.
including contracts with FedEx and the US and serves a diverse base of more than
Southwest Airlines. 27,000 customers, from local independent TBM has now begun development of a full
restaurants to nationwide chains. production facility that will be ready to make its
Red Rock commenced construction in the products at scale in 2020. With patents in more
summer of 2018, and the biorefinery is expected In another example of industrial reinvention, than 20 countries, including the United States,
to begin operations in 2020. Importantly, Red Goldman Sachs raised capital and invested Japan and countries in Europe, the company is
Rock is seen as a model that can be replicated in TBM, a Japanese developer of a new also using proceeds to market its products, add
across the western US, not only creating technology that is revolutionizing paper and new people and accelerate expansion overseas.

22
Goldman Sachs 2018 Sustainability Report

ADVANCING
ENVIRONMENTAL
PROGRESS

THE POWER OF
GREEN BONDS
A YEAR OF INNOVATIVE ISSUANCES
Goldman Sachs has been at the forefront of the design and issuance of innovative green, social and sustainable
bonds, raising financing to benefit everything from critical infrastructure projects to initiatives that fuel commercial
activity in local economies. These are among the most notable issuances of 2018:

Long-Standing Partnership on Clean Rivers: Goldman Sachs Green High-Yield Bonds: Goldman Sachs was joint
has been a long-time advisor and financier to the District of global coordinator, bookrunner and structuring advisor in a
Columbia Water and Sewer Authority (DC Water). In 2014, the €550 million green bond for GetLink, operator of Eurotunnel
firm helped DC Water underwrite its inaugural green bond with and Europort. The issuance, one of a few high-yield green
the first-ever 100-year maturity. In subsequent years, Goldman bonds, will finance a range of green assets, primary among
Sachs’ Urban Investment Group worked with DC Water and the them ElecLink, a 1,000-megawatt direct-current interconnector
Calvert Foundation to structure and invest in a first-of-its-kind between France and the United Kingdom capable of carrying
environmental impact bond. In DC Water’s latest green financing enough electricity to power 2 million homes (completion
in 2018, the firm helped raise a $300 million bond that included subject to regulatory approval). The project increases power
$100 million in green bonds. Proceeds from the green bonds will flow between the two countries by 50 percent, and enables
finance a portion of the $2.7 billion Clean Rivers Project, which is France, with its relatively low carbon infrastructure, to send
designed to significantly reduce combined sewer overflows into more power to the UK, which is more reliant on fossil fuels.
District waterways, helping to improve water quality and provide Construction began in 2017 and is expected to last three years,
flood mitigation and waterway restoration. with service scheduled to begin by early 2020.

First-of-Its-Kind Renewable Natural Gas Bond: The firm structured a $61 million green issuance for Equilibrium Capital, a global manager
of sustainable real assets, to build a pioneering renewable natural gas (RNG) project in Arizona. The issuance was the first RNG financing
in the capital markets to finance a refinery capable of turning dairy waste, one of the largest sources of methane emissions, into vehicle
fuel. RNG is fully interchangeable with conventional natural gas, whether compressed or in liquefied form. To serve as vehicle fuel, a likely
application, the raw gas is further processed to standard pipeline purity, removing water, carbon dioxide, hydrogen sulfide and other trace
elements. Environmental benefits of the technology are considerable: from a lifecycle perspective, RNG has very low or even negative carbon
intensity given that the carbon content of RNG is sourced from dairy waste that would otherwise decompose naturally and be released into
the atmosphere.

Greening Telecommunications: In early 2019, the firm helped Verizon issue an inaugural green bond that was the first of its kind for a
US telecom company and tied for the third-largest US corporate green bond issuance ever. The billion-dollar transaction will fund new and
ongoing projects that help to drive Verizon’s sustainability initiatives, including investment in renewable energy, energy efficiency and waste
reduction projects. Verizon has publicly committed to sourcing the equivalent of half of its annual electric power from renewables by 2025.

$ 35B
Green, social and
FROM CLEAN ENERGY TO
RESILIENT INFRASTRUCTURE
TO CORPORATE GREEN
INITIATIVES, INNOVATIVE
sustainability bonds
underwritten since 2014 FINANCING IS INSTRUMENTAL
IN THE DRIVE FOR
SUSTAINABILITY.

23
Goldman Sachs 2018 Sustainability Report

ADVANCING
ENVIRONMENTAL
PROGRESS

CHARTING THE
FUTURE OF
BUILDING A SUSTAINABLE
FINANCE
THRIVING US
GREEN BOND
MARKET
While the market for green bonds is growing
worldwide, the US market has room for expansion, and
closing that gap was the subject of a groundbreaking
report in 2018, with Goldman Sachs Asset Management
as a co-sponsor and lead participant. Published by the
In November, the firm hosted its
Milken Institute, with support from the California State second Sustainable Finance Innovation
Treasurer’s Office, the report, Growing the US Green Bond Forum (SFI), drawing more than 400
Market, takes the discussion of green bonds to a new level participants from leading corporations,
by focusing not only on the challenges these issuances investors, NGOs and public-sector
can help governments and companies address, but on entities, as well as our people. Unfolding
innovative structures and applications that can accelerate against a backdrop of critical events —
the use of green bonds in America. from extreme weather events to the
release of the Intergovernmental Panel
The report notes that updating the nation’s infrastructure on Climate Change report — SFI covered
to mitigate climate change may have a price tag as high key themes shaping markets and
as $4 trillion — well out of the reach of cash-strapped sustainability, including the megatrends
governments. Seen in this light, green bonds are an of population growth, urbanization, the
important tool, attractive to investors seeking long-term rise of the middle class and technology
yields, potential tax advantages and the ability to add innovation.
sustainability to their portfolios.
To kick off SFI, CEO David Solomon
spoke about how sustainability is core to

$4T
our long-term strategy and stressed our
A repaired and resilient US
infrastructure will cost $4 trillion. commitment to advancing capital to drive
A robust green bond market is positive impacts. The day brought together
crucial to meeting the challenge. leading experts to discuss sustainability
trends and the role of financial innovation
and markets. Topics included the industry
As a long-time thought leader and innovator in the green transition across energy, mobility and
bond space, the firm provided research to buttress infrastructure, the role of investment
in bridging the gender gap, technology
concrete recommendations for creating an efficient and
innovation and sustainability. In addition,
scalable green bond market — one that will make it easier
business leaders shared their perspectives
for governments and companies to carry out much-needed
on why sustainability is a strategic agenda
projects, from improving water and wastewater facilities, across the C-suite and the boardroom.
to increasing charging capacity for electric vehicles, to
enhancing infrastructure to better withstand climate-
caused stresses.

24
Goldman Sachs 2018 Sustainability Report

ADVANCING
ENVIRONMENTAL
PROGRESS

MINIMIZING OPERATIONAL
IMPACTS: FURTHERING
OUR COMMITMENT
In 2018, we continued to manage our operations according to our Environmental Policy Framework
and worked toward a set of ambitious 2020 operational targets. These targets range from sourcing
100 percent of global electrical needs from renewable sources, to significantly reducing energy
and resource consumption, to striving for a real estate portfolio that is 70 percent green-building
certified and deploying a sustainable procurement framework across our supply chain.

Goldman Sachs Targets and Milestones

Minimizing our operational impact is a prerequisite of sound environmental policy and a necessary complement to our core business activities.
In all that we do, we strive to find smart, sustainable solutions that make business sense and are environmentally responsible.
Our Environmental Policy Framework articulates our commitment to advancing the environmental stewardship of our operations.
The following are our 2020 goals. Our progress toward achievement can be found on page 43.

0
Net carbon emissions across
100%
Renewable power goal
$
2B
Targeted in green
70%
Real estate
our global operations and business for our global electricity operational investments green-building certified
travel from 2015 onwards needs by 2020 by 2020 by 2020

Carbon and Energy Green Buildings Waste Water Certified Management Supply Chain

• 
100% renewable • 
70% green-building • 
0% business waste • 
5% reduction in • 
100% ISO 14001 • Deploy sustainable
power for global certified real estate to landfill water use certification for procurement
electricity needs • 
20% reduction in environmental framework
• 
Zero net carbon paper use per capita management
emissions across our • 
100% ISO 20121
global operations and certification for
business travel from sustainable events
2015 onwards
• 
10% reduction in
energy use

As 2020 draws near, • 

Carbon Neutrality: Maintain carbon-neutral operations • 
Certified Management Systems: Certify 100 percent
we have furthered of global events, both on and off campus, to ISO 20121
• U
 niversal Green Building Standards: Continue to certify
our commitments event sustainability management
100 percent of all new construction and major renovation
to minimizing our projects to LEED Gold or equivalent • 
Responsible Supply Chain Management: Increase
operational impact spend with diverse vendors by 50 percent from our
with the following • R
 esponsible Resource Consumption: Remove 100 percent
2020 baseline and assess 100 percent of our vendors
2025 targets: plastic bottles and disposables. In addition, achieve
for ESG risks
20 percent reduction in water use for all new construction
and major renovation projects

Learn more at www.goldmansachs.com/environmental-stewardship

25
Goldman Sachs 2018 Sustainability Report

ADVANCING
ENVIRONMENTAL
PROGRESS

SAYING GOODBYE Our goal is to eliminate single-use plastic across our operations, particularly in vending
machines and cafeterias on our campuses, because plastic is difficult to recycle, and much
TO PLASTIC, of it becomes plastic pollution. Plastic bottles, for example, are being replaced by glass,
REDUCING aluminum and cardboard alternatives.

USE OF PAPER Working with our vendors, the firm is on track to remove 85 percent of the plastics we consume by
the end of 2019. In addition to plastic bottles and straws, this effort includes plastic film presentation
covers and bindings. Together, these efforts are expected to eliminate 38 tons of waste per year.

As a firm, we are also decreasing paper use. We recently eliminated paper cups globally;

100%
Eliminating Disposable Plastic:
this shift to nondisposable cups eliminated more than 200 tons of paper cups. We are
also focused on reducing our reliance on printed materials. Each year, Goldman Sachs
mails an estimated 75 million pages to clients. In 2018, we reviewed legal communication
requirements and asked clients to update mailing preferences, resulting in the elimination
85% by 2019, 100% by 2025
of paper communications from thousands of accounts. Internally, we are reducing paper
in favor of digital media to communicate with our people. This creates an opportunity to
eliminate another 10 million pages of output annually.

CREATING A MORE Bengaluru

SUSTAINABLE
WORKPLACE London

In line with our 2020 commitment to certify 70 percent of our real estate to
green building standards, our new campuses in Bengaluru and London feature
smart design and maximize efficiency to mitigate environmental impacts. In
partnership with our vendors, who share our sustainability goals, we have
introduced new programs, processes and policies that extend beyond the walls
of our new buildings and aim to positively impact on-site construction workers,
our employees and the community at large.

In Bengaluru, the new campus consolidates previously dispersed operations into an

interconnected three-building development. The campus incorporated the latest green
features and has achieved LEED Platinum certification. It is also our first building to seek the
WELL Building certification for a healthy workplace. The 1.22 million-square-foot development is powered through a power
purchase agreement for solar and wind that cuts our current carbon footprint in Bengaluru by approximately 50 percent. In Bengaluru:

50%
Green-building features include strategic orientation to maximize daylight, cladding that reduces solar heat gain, lighting
that adapts to natural light and usage, underfloor air conditioning that contributes to air quality and energy savings, systems
that harvest, store and recycle rain and condensation for the building’s use, and technology that maximizes efficiency in A 50% reduction
hot-water generation and cooling. In addition to our environmental efforts, during the construction phase of the building, we in carbon footprint;

0
achieved 18 million safe working hours, offered free health camps and provided English classes to more than 1,000 workers.

In London, our new Plumtree Court office is designed to achieve a BREEAM New Construction rating of “Excellent,”
Zero construction waste to
which will minimize environmental impact while providing an enriching work environment for Goldman Sachs employees.
landfill, and 100% incineration
Among the highlights is a green roof that will feature native plantings, facilities for composting and rainwater harvesting of all hazardous waste
technology for the garden. Plumtree Court will also employ leading-edge heating and cooling technology and 100% LED
lighting to reduce annual CO2 emissions by 25 percent. Kitchen, bathroom and cooling appliances use 40 percent less In London:

25%
water than their standard counterparts.

During the construction and fit-out phases of our Plumtree Court office, we focused our spending on local small and
A 25% reduction
medium-sized enterprises, hired local labor, and provided nearly 200,000 hours of work to apprentices and trainees.
in CO 2 emissions
Our commitment to the on-site workforce centered on fostering a diverse and inclusive work environment with a focus
on health, London living-wage pay as a minimum and engagement in the local community.

26
Goldman Sachs 2018 Sustainability Report

INVESTING
IN OUR
PEOPLE

Above all, Goldman Sachs is a relationship-

driven business. Our most important form of
capital is human, and the quality, engagement
and diversity of our workforce is what
differentiates the firm. Effectively serving a
broad and diverse set of clients means having
an appreciation for their different experiences,
interests and values. That’s why we invest
heavily in recruiting, developing and retaining our
people, and set aspirational goals to improve
the diversity of our workforce.

27
Goldman Sachs 2018 Sustainability Report

INVESTING
IN OUR PEOPLE

By investing in our people, we build a level of support that enables employees to reach
their fullest potential throughout the arc of their careers. We recognize that their dedication
deserves a work/life experience that is continually enriched, whether through valuable learning
opportunities, a strong framework for career advancement, or a health and wellness support
system that makes an optimal work-life balance attainable.

DIVERSITY
AND
INCLUSION

We seek to create an environment where people can reach their To drive progress, we are holding business unit heads accountable for
fullest potential, meet the wide-ranging needs of our clients by working to ensure an inclusive environment. In addition, we have a range
leveraging diverse perspectives, and reflect the diversity of the regions of initiatives in place to increase diverse representation at all levels while
and communities where our clients do business. We view diversity fostering inclusion:
broadly at Goldman Sachs, including with respect to gender, race,
sexual orientation, gender identity, veterans and disability or whatever • Recruiting the best, most diverse talent by leveraging technology and
contributes to who we are. While we have made progress in recent engaging with new media outlets to search for people in new ways. Our
years — we have more diverse representation on our Board of Directors aim is to engage with the broadest possible range of candidates, including
and our most recent partner class had the highest percentage of women pipeline programs designed to attract people who might never otherwise
and black partners in our history — we recognize there is a long way look to pursue a career in financial services
ahead of us and still much work to be done.
• Building and sustaining an inclusive work environment requires building
Our Commitment a common language, skills and accountability. Our diversity and inclusion
Driven by our management team and Global Diversity Committee, we curriculum includes offerings that increase awareness of the diverse
are undertaking new initiatives aimed at increasing the representation backgrounds and experiences of our people. Most recently, we launched
of diverse communities at all levels across the firm. This includes a Identity Matters: Race & Ethnicity in the Workplace, a classroom curriculum
commitment to having women represent 50 percent of our global talent that addresses inclusion barriers with a focus on race and ethnicity
over time. In addition, we are committed to increasing the representation
of our analyst and entry-level associate new joiners — which represents • Enhancing the experience of our diverse professionals at every phase of
more than 70 percent of our annual hiring — to 50 percent women, their career, in all the regions where we do business. Examples include
11 percent black professionals and 14 percent Hispanic/Latino professionals our Women Vice President (VP) Sponsor Programs, which encourage our
in the Americas, and 9 percent black professionals in the UK. highest-performing VPs to assume larger leadership roles, and our Asian
Talent Initiative, which resulted in noticeable increased promotion rates
Experienced lateral hiring has been an important part of the firm’s for our Asian professionals
growth. However, it has also been a significant contributor to the dilution
of our diversity at more senior levels. To expand our sources for diverse • More than 50 percent of our people opt in to one or more of our affinity
talent, we will require businesses to interview two or more qualified networks globally and more than 300 of our senior managers hold network
diverse candidates for each open role. leadership roles

28
Goldman Sachs 2018 Sustainability Report

INVESTING
IN OUR PEOPLE

Advancing Leadership Diversity: Goldman Sachs 2018 Participating Managing Director Class

Advancing Leadership Diversity 2018 More Women and Diverse Professionals**

29% 26% WOMEN

69 Highest Percentage Ever
Millennials
New Partners
20% ASIAN
2016 84
Highest in 8 Years
2014 78
67%
2012

Partnership Size with New Class: 484*

71
6% BLACK
Started at GS Highest Percentage Ever
as Analysts/Associates
Divisional Breakdown

Compliance 1 Diversity of Partnership with New Class

Consumer and 4
Investment Management
28% Women 83 / 17%
Executive Office 1
Finance 1 Black 12 / 2%
Global Investment Research 1 Worked in More
Investment Banking 21 Than One Division Hispanic 9 / 2%
Legal 1
Merchant Banking 6 Asian 74 / 15%
Operations 1 79 Schools
Risk 1 13 Years Average Tenure LGBT 5 / 1%
Securities 28 18 Countries of Citizenship
Technology 3 19 Languages Spoken

*Partnership data includes new class and excludes announced retirements as of November 7. **Based on self-identification information.

Diversity and Inclusion (continued)

In addition, in 2018, we enhanced our efforts to recruit top, diverse second annual Leadership Summit — a three-day event focused on
talent by introducing several new programs and extending proven skills-building, networking and exploring what it means to be a leader.
programs. We launched our inaugural Hispanic/Latino Leadership In addition, we hosted our third annual Women Emerging in Finance
Summit to enhance connectivity with Hispanic/Latino students, program in our Bengaluru office, which provides women a perspective
particularly those attending Hispanic-Serving Institutions. The Summit on career paths across the financial services industry — 96 students
featured career workshops, skills training, networking and on-site from 18 business and engineering schools attended.
interviews for participants. In addition, we launched the Africa Recruiting
Our efforts extend to thought leadership and research with partner
Initiative, which sends Goldman Sachs engineers from New York and
organizations. In 2018, we partnered with Working Mother Media to
London to Lagos, Nigeria, to engage with students over four days
launch the report Uncovering Hidden Potential: Non-Apparent Disabilities
of coding quizzes, mock presentations and technical evaluations.
in the Workplace and hosted the Council of Urban Professionals Fellows
We also expanded our efforts to source black talent from Historically
Program, a one-year leadership development experience for early- to
Black Colleges and Universities (HBCU) and engaged with more than
mid-career black and Hispanic/Latino professionals.
2,500 HBCU students across more than 21 events, including our

29
Goldman Sachs 2018 Sustainability Report

INVESTING
IN OUR PEOPLE

HOLISTIC
SUPPORT
We recognize that for our people to be successful in the workplace, they may need our support
in other aspects of their lives. The firm offers significant resources for all of our people as they
strive to balance work and their personal responsibilities.

EXPECTANT
PARENTS
Expectant parents (and those planning a family) can tap into programs on work/life coordination,
including access to a dedicated expectant-parent coordinator, who can help provide guidance on the firm’s
benefits, facilities and mentoring opportunities for first-time parents. The firm’s healthcare plans include
a healthy-pregnancy program focusing on prenatal care, labor and delivery, and newborn care. Available
to all employees, but especially useful to expectant mothers, are ergonomic services that create a more
comfortable work environment; areas of focus include proper work-station setup and addressing such
potential issues as stiffness, pain, aching and eye discomfort.

Upon returning to work, new parents are supported by a wide range of services, including lactation consultants,
on-site lactation rooms, and on-site and near-site childcare in many locations. Another offering is MilkShip, a breast
milk–shipping program available to mothers who are traveling on Goldman Sachs business. Through MilkShip and
other Goldman Sachs programs, new moms can safely ship breast milk home, using a simple, secure shipping kit
delivered to their destinations overnight, or submit their own shipping expenses for reimbursement.

All Goldman Sachs managers and leaders are encouraged to understand and implement best practices for
supporting mothers and fathers who are starting or growing a family. Through a new eLearning program designed
to better equip leaders to support new parents, managers are guided through the steps of preparing for a
colleague’s parental leave. The steps include encouraging new parents to take advantage of the benefits that are
available to them and recognizing that life events, such as birth, can generate natural anxieties, and that it is often
best to keep people on leave updated on news and team developments at the office.

We also offer robust family resources to all of our people, which includes paid leaves of absence available to new
parents, backup care systems for mildly ill children, and confidential advocacy and healthcare system guidance
when an employee or family member faces a serious medical condition. Other additional resources include high
school curriculum planning and assistance in applying and preparing for college, as well as education on medical,
savings, tax and estate plans.

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Goldman Sachs 2018 Sustainability Report

INVESTING
IN OUR PEOPLE

BUILDING
GREATER
RESILIENCY
At Goldman Sachs, we believe that our
people’s well-being is vital to the firm, and we
seek to help them succeed both personally and
professionally. This includes assisting them with
a wide range of issues, from everyday stress,
to work/life management, to career challenges
or worries at home. The firm supports personal
resilience training through a variety of channels,
from guidance and skill-building workshops,
to discussions on sleep and increasing optimism, to clinical support, if needed, to manage behavioral health
concerns. Additionally, the firm provides training to managers and leaders on how to promote resilience within
their teams, and how to identify when an employee or colleague may need clinical resources and support.

Our programs seek to build resilience across five dimensions:

• State of mind: Taking control of thinking and staying focused on the present

• Physical strength: Increasing energy and stamina for work and life

• Connection: Cultivating positive work and personal relationships

• 
Purpose: Aligning goals and priorities with values, and focusing on the impact
of actions on others

• 
Self-awareness: Developing a clear perception of self, including strengths,
motivations and areas to develop

To aid in this effort, Goldman Sachs adopted a resilience management platform in 2018, offering employees
a mobile-based, clinically validated self-development tool that helps users mitigate stress, achieve emotional
balance and improve work performance. The tool applies proprietary analytics and a 90-question self-assessment,
and then prescribes a customized skills-building plan for each individual.

Easy-to-use tracking tools benchmark progress as new skills are developed, while reminders help to reinforce
key concepts and behaviors. The platform is available to all employees and helps to improve one’s ability to
respond to daily events, understand mood and stress triggers, and gain confidence and build critical skills.

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Goldman Sachs 2018 Sustainability Report

INVESTING
IN OUR PEOPLE

A SERVICE-ORIENTED
CULTURE
A dedication to service has long been a core element of our culture. We seek to support our
people as they actively apply themselves to making contributions to their communities —
particularly through self-generated initiatives in areas that are personally meaningful and
where focus, hard work and expertise can make a significant difference.

Goldman Sachs Gives, a donor-advised fund for our firm’s partners, emphasizes innovative approaches
to philanthropy, programs that solve specific economic and social challenges, and initiatives that enable
progress in underserved communities.

One example is our commitment to providing increased opportunities to access education, in particular
through grants supporting need-based financial aid. In 2018, we contributed $30 million in grants to higher
education, surpassing $350 million in Goldman Sachs Gives grants over the past 10 years to more than
400 colleges and universities in 20 countries. Included among the hundreds of scholarship recipients are
$350M
in need-based scholarships
first-generation students, students from diverse racial and ethnic backgrounds, students suffering from over the past decade
unexpected financial hardship, veterans, and students matriculating at community colleges. Goldman Sachs
Gives’ academic grants provide opportunities for students who might not otherwise be able to afford the
cost of their education. With the expense of higher education
continuing to increase, Goldman Sachs Gives remains committed
to supporting access to academic institutions around the world.

Another 2018 Goldman Sachs Gives initiative was our support

of “Honor Code,” a collaboration between the Navy SEAL
Foundation and EVERFI, the online training platform, to create
a curriculum that takes on bullying. The program, aimed
at empowering students to create positive change in their
school communities, keys off the SEALs’ 10-part ethos:
Integrity, Responsibility, Loyalty, Respect, Teamwork, Discipline,
Selflessness, Leading by Example, Goal Orientation and Standing
Up for Others. By teaching social skills in realistic, scenario-based
modules, the program enables students to counteract bullying
by building courage, resiliency and leadership skills.

Finally, the Goldman Sachs Gives Analyst Impact Fund

offers our analysts the opportunity to collaborate with peers from
across the firm to pitch innovative nonprofits for the chance to
secure a grant from Goldman Sachs Gives. In 2018, the six finalist
teams presented a range of nonprofits working to address global
challenges. The firm judges proposals on criteria, including scalability, uniqueness, and the strength of
an organization’s leadership and partnerships. The top winner: a London-based team representing the
organization Bondh-E-Shams and its Solar Water Project, which uses sustainable energy to address
water crises in under-resourced communities. Other finalists included a nonprofit leveraging 3-D printing
technology to combat homelessness and an initiative to support survivors of human trafficking through
a coding education program.

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Goldman Sachs 2018 Sustainability Report

INVESTING
IN OUR PEOPLE

(continued)

Community TeamWorks (CTW): Through traditional and skills-based volunteering, our people can pursue Community TeamWorks
their desire to do good in ways that maximize their potential for impact. From coaching small business
owners to delivering workshops on career readiness and financial literacy, CTW enables our people to 25
countries
contribute time and effort to high-impact, team-based projects completed in the course of a day. The program,
now in its 23rd year, is open to all employees, from analysts to senior managers. In developing projects,
the firm coordinates with hundreds of nonprofit partner organizations worldwide. In addition, CTW supports 1,300
employee-initiated projects, enabling our people to create programs that are personally meaningful, like projects

building houses and leading outdoor beautification efforts by planting trees and cleaning beaches. In 2018,
more than 20,000 colleagues across 49 offices in 25 countries volunteered through CTW, completing 20,000
volunteers
1,300 projects with nonprofits from Tokyo to London and Mexico City to Chicago.

INVESTING IN LOCAL
PARTNERSHIPS
In addition to the Community TeamWorks program, we also manage stakeholder relationships
in and around our buildings with the goal of being responsive to community needs, on an
ongoing basis, within our operational footprint. Examples include the following:

The Local College Collaborative is a unique leadership program and students receive academic credit and/or a financial stipend from
that brings college students together with Goldman Sachs their respective school for successful completion of the program.
business leaders to develop leadership, career readiness, business
management, analytical, teamwork, networking and presentation Singapore Student Art Project is a partnership with the Autism
skills. The Local College Collaborative is an annual program Resource Centre (ARC-Singapore) and The Art Faculty by Pathlight
that selects 40 high-performing students from four academic School, a local charitable organization providing art programs for
institutions near our Jersey City and New York City offices: Borough differently-abled student artists. In 2018, the firm launched an
of Manhattan Community College, Hudson County Community annual effort, to lease various art pieces created by students to
College, New Jersey City University and Saint Peter’s University. display in a communal area gallery at the firm’s Singapore office.
Over the course of two semesters, students work alongside their Using art created by local youth was a way to decorate our office
peers and Goldman Sachs coaches, forming “school pods.” Each space while also connecting our people with their communities.
pod is assigned a public company to evaluate and is given a series At year-end, and as part of the firm’s Disability Awareness Month
of business case challenges to address. Students also visit a commemoration, the artwork was auctioned off to employees,
corporate campus, where they hear from leaders at their assigned raising nearly $7,000, which was donated to the organization in
partner company. The work culminates in a capstone presentation, support of its programs.

33
At Goldman Sachs, managing our business responsibly means effectively managing risks — for the firm
and for the companies and investors we work with. Mitigating environmental and social risks is fundamental
to all of our businesses. Reputational risk can pose serious threats and must be managed accordingly. For all
of these reasons, the firm prioritizes exemplary corporate governance, including a robust risk management
infrastructure, and principles and processes that govern the way we do business around the world.

MANAGING
RESPONSIBLY

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Goldman Sachs 2018 Sustainability Report

MANAGING
RESPONSIBLY

PRINCIPLES AND POLICIES

Environmental & Social Risk Management Framework

Our Environmental Policy Framework guides our • That we engage clients in identifying significant ESG
overall approach to sustainability issues, including issues, and help them adopt appropriate safeguards
the management of environmental and social risk. and sustainable practices where feasible
This Framework, as well as many of our other
• That we decline assignments when client engagement
sustainability-related policies, was developed with
is not possible, when potential impacts cannot be
the consultation of stakeholders, including investors,
mitigated, and when unacceptable risks conflict with
NGOs and regulators. Our Framework includes a
our environmental and social policy guidelines
number of basic tenets:
Our Framework also helps clients develop
• That we manage environmental and social risks
environmental and social risk disclosures as
with the same care and discipline as we do other
appropriate. In addition, we proactively monitor
business risks
developments — from emerging ESG issues to
• That we weigh environmental and social impacts evolving best practices — and periodically review
in all relevant business selection decisions and update our guidelines to reflect that evolution.

Culture
Our culture has been a cornerstone of our business and performance throughout our 150-year history.
Our 14 Business Principles, which were codified in 1979, outline our commitment to our clients and our
cultural expectations, including how teamwork, excellence, personal initiative and accountability are integral
to our long-term success.

Conduct
Our Code of Business Conduct and Ethics outlines protect our reputation. Facilitated by members of the
our shared responsibility to our clients, our colleagues Management Committee, the training reached more
and our communities. than 2,350 leaders across eight cities globally.

As part of our ongoing commitment to dialogue, In addition, The Control Side Learning Initiative is
education and formal training, the firm offers a range a series of scenario-based learning modules and
of programs focused on our business standards and roundtable discussions which aim to empower
conduct. During 2017 and 2018, our Chairman and all employees at the firm to serve as the first line
CEO hosted The Chairman’s Forum, a mandatory of defense against transactional, operational and
program for partners and managing directors. The reputational risks. Throughout the sessions, participants
Forum leverages an interactive video case study practice exercises in good decision-making and
to reinforce the critical responsibility of those in review how to escalate and challenge actions and
leadership positions to promote good conduct and potential issues.

Climate Risk We continue to engage in climate-related disclosure initiatives across the financial services
Disclosure industry. In 2018 we announced our support for the Task Force on Climate-related Financial
Disclosures (“TCFD”), joining more than 500 other global organizations. We also engaged with a
group of peer banks in the US to develop pilot stress testing for climate-related risk in the oil and
gas sector that forms part of our bank lending portfolios. As part of our ongoing process, we plan
to further enhance our disclosure through a TCFD-aligned report.

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Goldman Sachs 2018 Sustainability Report

MANAGING
RESPONSIBLY

MANAGING RISK
ACROSS THE FIRM
The practice of environmental and social risk management is fundamental to managing
our firm responsibly. Because our employees are the firm’s first line of defense, we train
our people in risk management globally, including with respect to potential sustainability-
related risk. Specialized training is given by sector and industry — for example, in
sectors, such as metals & mining or oil & gas, which we believe have higher potential
for environmental and social risk.

In our advisory, financing and

investing activities, we are highly
focused on transactional risk, and
conduct enhanced review when
transactions involve companies
with the potential for ESG impacts
or vulnerabilities.

Across the firm, our Environmental

Markets Group (EMG), reporting
directly to the Office of the
Chairman, coordinates the firm’s
Environmental Policy Framework
and works closely with our
businesses globally, to both manage
environmental and social risks and
identify market opportunities. In
2018, we reviewed nearly 1,300
transactions for environmental and
social sensitivities.

Our risk management infrastructure is integrated throughout the firm. At the highest level, we broadly
examine legal, regulatory, environmental, social and governance risks, and review potential transactions
through a risk management lens. In addition, at an operational level, in-house teams with strong
technical expertise guide environmental, health and safety (EHS) standards for our investing activities;
they also perform EHS due diligence on proposed investment transactions, helping business teams
identify and remedy potential risk factors. In these direct investments, we closely and continuously
examine potential risks in our portfolio. This includes monitoring portfolio companies and engaging with
their managers as appropriate.

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Goldman Sachs 2018 Sustainability Report

MANAGING
RESPONSIBLY

POTENTIAL TRANSACTIONS REVIEWED

For Environmental and Social Risks

Sector (2018)

Oil & Gas 575

Power Generation 254

1,298
Metals & Mining 205
Transportation 67
Chemicals 65
Other 45
Water 26

Deals Reviewed (2018) Infrastructure 23

Forestry 15
Biofuels 14
Palm Oil 9

Managing Risk Across the Firm (continued)

In 2018, we effectively managed EHS risks in a number of potential transactions and portfolio companies.

For example, when the firm sought to acquire a food ingredient and personal care products distributor,
due diligence identified that the existing EHS programs needed to be further improved. Working with the
Operational Risk Management & Analysis Environmental Specialist Team, we required rotating third-party
EHS audits to be performed annually at critical company locations, and the implementation of a central
EHS data management program to centralize regulatory compliance and permitting activity and to improve
corporate oversight. As a result of the tactical and programmatic improvements, the company’s corporate
culture became more EHS risk–focused.

In another case, when considering a potential financing for a palm oil producer located in Southeast Asia,
the team noted EHS-related concerns associated with the company’s operations, including allegations of
deforestation and peatland clearance. The team also noted a lack of the industry certifications required
by our Environmental Policy Framework for certain of the client’s subsidiaries. Despite additional due
diligence, we were unable to work with the company to develop sufficient measures to address these
concerns and declined to participate in the transaction.

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Goldman Sachs 2018 Sustainability Report

MANAGING
RESPONSIBLY

STEWARDING Managing responsibly also means managing risks in client investments, from
conducting effective due diligence of portfolio companies, to engagement with
CLIENT company management, to exercising proxy votes on our clients’ behalf.

INVESTMENTS GSAM has a diverse group of portfolio managers, but each team operates within an
integrated risk management structure and assumes responsibility for stewardship of
its investments. While these teams differ in ways commensurate with their investment
GSAM IS: themes and philosophies, they partner on key stewardship initiatives.
UN Principles of Responsible Investment signatory GSAM’s fundamental and quantitative equity teams hold companies in which our clients
invest to highly specific performance expectations. The teams work to ensure that these
Carbon Disclosure Project (CDP) investor
signatory expectations are realistic and achievable, but when companies fall short, we meet those
shortfalls with the most appropriate actions, from expressing our views through proxy
Signatory to stewardship codes of the UK, Japan voting to engaging directly with management.
and Singapore
The firm has developed global guidelines to govern execution of GSAM’s proxy voting
Member of the Investor Stewardship Group (ISG)
responsibilities. These guidelines are updated yearly to incorporate emerging issues, as well
Adherent to numerous global corporate governance as our latest views and priorities regarding governance topics, from shareholder voting rights
and stewardship codes and anti-takeover defenses to executive compensation, shareholder proposals, and issues
of corporate and social responsibility. In 2018, GSAM’s Global Stewardship Team and active
equity investors engaged with approximately 2,350 companies to discuss board composition,
governance best practices, executive compensation and shareholder proposals.

Proxy voting, July 1, 2017 – June 30, 2018:

% of votes on
Number of Number of % of votes with % of votes against shareholder
meetings voted votable items management management proposals

10,834 105,968 89% 11% 2%

Learn more at www.gsam.com/stewardship

A MORE SUSTAINABLE AND

DIVERSE SUPPLY CHAIN
In 2018, we reaffirmed our commitment to inclusive and responsible supply chain management and relaunched
the firm’s Sustainable Supply Chain Strategy. We have developed an ESG risk management model that enables
clear assessment of ESG supply chain risks globally and launched an online training course covering modern slavery
risks. The firm also released its Vendor Code of Conduct, clearly outlining the firm’s expectations on sustainability,
with topics ranging from ethical business conduct and human rights protections to responsible sourcing practices
and environmental stewardship. In the next year we will fully embed our ESG risk management model to ensure
100 percent of our vendors are assessed for ESG risks.

Our vendor diversity and inclusion strategy is a key component of this effort and seeks to drive opportunities with small and
minority business owners. We continue to discover and partner with exceptional businesses through the program in our
efforts to achieve a supply chain that reflects the diversity of our people and clients. However, we believe we can always
do better, and have set 2025 targets accordingly, including publicly reporting our spend with certified diverse vendors, and
increasing that spend by 50 percent from our 2020 baseline.

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Goldman Sachs 2018 Sustainability Report

MANAGING
RESPONSIBLY

RISK-CENTERED
GOVERNANCE
Appropriate oversight by our management and
Board of Directors, as well as strong policies and
practices, are key contributors to our ability to
effectively manage a broad spectrum of financial
and nonfinancial risks across our businesses,
including with respect to ESG considerations.

Our Board and each of its committees are responsible for

overseeing the management of the firm’s most significant
risks. Our Board and its committees place significant
focus in their oversight duties on reputational risk and
management’s operation of the firm responsibly for the
long term. The Board’s Public Responsibilities Committee
(PRC) has primary oversight of our firmwide approach to
ESG and related risks, including through the review of
key ESG policies. Our ESG policies and procedures provide transparency into our practices and are generally
developed with the consultation of stakeholders, including regulators and investors.

Oversight of the firm’s culture is an important element of how the Board engages on the firm’s reputation,
particularly because our people are our greatest asset. Our Board sets the “tone at the top,” and holds senior
management accountable for embodying, maintaining and communicating the firm’s culture throughout the firm.
Core to our success is that our focus on risk and reputation extends throughout every level of Goldman Sachs.
To this end, our people are trained on our business standards and culture, underscoring the responsibility of
every employee to uphold our culture of teamwork, excellence, personal initiative and accountability.

At the management level, our firm’s committee structure serves to emphasize these points. The firm has a series
of committees, generally comprised of senior managers from our first and second lines of defense, with specific
risk management mandates that have oversight or decision-making responsibilities for various risk management
activities. For example, our Enterprise Risk Committee is globally responsible for overseeing all of the firm’s risks,
both financial and nonfinancial. In addition, the Firmwide Reputational Risk Committee is accountable for vetting
certain transactions that have the potential for heightened reputational risk.

There are always important lessons to be learned from difficult situations, and as it relates to 1Malaysia
Development Berhad (1MDB), over the past several years, we have looked back and will continue to reflect
on anything else the firm could have done better. It remains a priority for the Board and management that our
culture of integrity, compliance and escalation only improves from this experience. Effective risk management
is demanding and difficult but we are committed to it and believe it is a core competence that helps define
Goldman Sachs.

39
Goldman Sachs 2018 Sustainability Report

METRICS

KEY METRICS
AND INDICATORS
Below we provide an overview of selected key metrics. For a complete list of our ESG-related
resources and disclosures, please visit our Resource Guide.

GOLDMAN SACHS U.S. WORKFORCE DEMOGRAPHICS

Native
American Hawaiian
Black or Indian/ or Other
African Alaskan Hispanic or Two or More Pacific
White Asian American Native Latino Races Islander Females

Exec/Sr. Officials & Managers 78.3% 14.0% 2.7% 0.1% 4.3% 0.8% 0.0% 23.0%

Officials & Managers 59.7% 29.2% 4.8% 0.2% 4.7% 1.4% 0.1% 29.0%

Professionals 54.0% 28.7% 5.6% 0.1% 9.2% 2.3% 0.2% 38.0%

All Others 61.0% 8.0% 13.8% 0.3% 14.5% 2.5% 0.2% 60.3%

Total 57.2% 25.2% 6.2% 0.1% 9.0% 2.1% 0.2% 38.7%

Source: Goldman Sachs 2018 Equal Employment Opportunity (EEO-1) reports. “All Others” is a combination of the following EEO-1 job categories: technicians, sales workers, administrative support, craft
workers (skilled), operatives (semi-skilled), laborers & helpers and service workers. Data as of 11/30/2018 (U.S. Only)

ENVIRONMENTAL INDICATORS
Trend
2017–2018 2018 2017 2016

Organization

Global Facilities Reported 187 178 186

Revenues ($M) $36,616 $32,730 $30,790

Operational Rentable Square Feet (million sq. ft.) 10.6 9.4 9.5

Employees 36,600 33,600 32,400

Certification

◊LEED-Certified Buildings (% of sq. ft.) 1 57% 55% 55%

◊ISO 14001 Certified Operations (% of sq. ft.) 95% 79% 70%

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Goldman Sachs 2018 Sustainability Report

METRICS
Trend
2017–2018 2018 2017 2016

Energy

Global Direct Energy Consumption (MWh) 41,237 41,207 42,283

Natural Gas 91% 90% 88%

Fuel Oil 9% 10% 12%

Global Intermediate Energy Consumption (MWh) 502,790 493,164 502,837

Purchased Electricity 96% 97% 97%

Purchased Steam & Chilled Water 4% 3% 3%

Global Direct and Intermediate Energy Consumption (MWh) 544,027 534,370 545,120

◊Reduction in Global Energy Consumption from Baseline (%) -10% -12% -10%

Global Renewable Energy Consumption (MWh) 463,192 453,518 440,902

◊Percent Renewable Energy 96% 95% 90%

Greenhouse Gas (GHG) Emissions

Scope 1 — Direct (metric tons CO 2 equivalent [tCO 2e]) 11,482 11,147 11,520

Natural Gas 66% 67% 66%

Fuel Oil 8% 9% 11%

HFC Refrigerants 26% 24% 23%

Scope 2 (location) — Indirect (tCO 2e) 184,809 186,991 210,054

Purchased Electricity 98% 99% 99%

Purchased Steam & Chilled Water 2% 1% 1%

Scope 2 (market) — Indirect (tCO 2e) 13,676 15,802 34,179

Purchased Electricity 77% 85% 93%

Purchased Steam & Chilled Water 23% 15% 7%

Scope 3: Category 6 — Business Travel (tCO 2e) 139,893 120,001 102,266

Commercial Air 88% 88% 88%

Other Transport 2 12% 12% 12%

Total Emissions: Scope 1 & 2 (location) (tCO 2e) 196,291 198,138 221,573

Office Scope 1 & 2 53% 53% 54%

Data Center Scope 1 & 2 47% 47% 46%

Total Emissions: Scope 1, 2 (market) (tCO 2e) 25,158 26,949 45,699

Total Emissions: Scope 1, 2 (market), and 3 Category 6 (tCO 2e) 165,051 146,950 147,965

◊Net Emissions: Scope 1, 2 (market), and 3 Category 6 (tCO 2e) 0 0 0

Verified Carbon Offset Emissions Reductions (tCO 2e) 165,051 146,950 147,965

Revenues (tCO 2e/$M) 3 5.4 6.1 7.2

Rentable Square Feet (kgCO 2e/sq. ft.) 3 18.4 21.1 23.3

Full-Time Occupants (tCO 2e/Employee) 3 5.4 5.9 6.8

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Goldman Sachs 2018 Sustainability Report

METRICS
Trend
2017–2018 2018 2017 2016

Water

Global Water Withdrawal (m 3) 1,012,929 979,323 981,060

◊Reduction in Global Water Withdrawal from Baseline (%) -2% -5% -5%

Waste

Global Business Waste (metric tons) 5,920 5,979 6,083

Recycled/Composted Material 61% 57% 51%

◊Landfilled Material 2% 7% 9%

Waste to Energy 37% 36% 40%

Global e-Waste (metric tons) 431 265 138

Recycled Material 100% 100% 100%

Global Construction Waste (metric tons) 6,115 4,171 56,639

Recycled Material 93% 99% 99%

Landfilled/Waste to Energy Material 7% 1% 1%

Paper

Paper Consumption (million sheets) 236 233 258

New Fibers (FSC/SFI) 65% 69% 71%

Post-Consumer Recycled 21% 22% 20%

New Fibers 14% 9% 9%

◊Paper Consumption/Employee (sheets) 6,433 6,944 7,977

CDP

Climate Change Survey: Score A A A

Climate Change Survey: Leadership Recognition A List A List A List

Supply Chain

◊Vendor Code of Conduct 4 100% 100% –

CDP Supply Chain Engagement 4 – – 148/83%

Notes:

Note 1: This symbol ◊ before an indicator denotes an environmental commitment through Goldman Sachs’ 2015 EPF; reductions are from a 2013 baseline.

Note 2: This includes charter air, rail/bus, ferry and car.

Note 3: Metrics are normalized using Scope 1 & Scope 2 (location) emissions.

Note 4: The Supplier Code of Conduct was launched to all active suppliers in 2017, and to all newly onboarded vendors in 2018.
Prior to this, the CDP Supply Chain program was used to engage suppliers on climate, with number of vendors and response rate indicated.

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Goldman Sachs 2018 Sustainability Report

METRICS

PROGRESS TOWARD 2020 GOALS FOR OUR OPERATIONS

Many of the environmental commitments set out in our updated 2015 Environmental Policy Framework have been achieved, and in 2018,
we expanded those commitments to a new set of goals for 2025. We have reached our target of reducing energy use by 10 percent from our
2013 baseline through the rightsizing of our real estate portfolio and migration to newer, certified green-building spaces. In 2018, more than
96 percent of our global electricity needs were met by renewable energy, and we are on track to achieve 100 percent by 2020.

Category Progress to Date1 2020 Goal2

Renewable Energy
Sourcing renewable power to meet our global electricity needs 96% 100%

Energy Efficiency
Reducing absolute energy use across our operationally controlled facilities 10% 10%

Green Buildings
Achieving LEED Gold or equivalent green-building certifications 57% 70%

Business Waste
Diverting business waste from landfill 98% 100%

Paper
Reducing our consumption per capita 26% 20%

Water
Reducing our absolute consumption in operationally controlled facilities 2% 5%

Certified Management Systems

Environmental Management Systems across our operationally controlled facilities 95% 100%

Green Operational Investments

Dedicated budget for investing in green buildings and innovative green technologies $1.2B $2B

As of 2018 year-end. 22020 goals are from a 2013 baseline except for our Green Operational Investments, which includes capital invested since 2015.
1

Met or surpassed goal

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Goldman Sachs 2018 Sustainability Report

RECOGNITION

FEATURED AWARDS
AND RECOGNITION
Each year, Goldman Sachs receives awards across categories including business, employer of choice,
and environmental, social and governance (ESG). Selected awards are shown below. For a complete
list, please visit our Awards page.

ENVIRONMENTAL AWARDS AND RANKINGS:

EPA Green Power Partnership Dow Jones Sustainability Index North America
February 2019 September 2018

National Top 100 ranked #42 Listed

Fortune 500 Partners List ranked #20

The re100: Companies Going 100% Renewable Climate Leadership Awards

January 2019 March 2018

Listed Innovative Partnership Certificate

Carbon Disclosure Project

January 2019

Supplier Engagement Leaderboard

Listed

Climate Change
“A List”

BUSINESS AWARDS AND RANKINGS:

Fast Company: 10 Most Innovative Companies Risk Awards
in Finance November 2018
March 2019
Asset Manager of the Year
Marcus by Goldman Sachs ranked #5

IFR Awards Euromoney Awards for Excellence

December 2018 July 2018

Top Equity House World’s Best Bank for Advisory

Top Loan House Latin America’s Best Bank for Advisory
Top Bank For Financial Sponsors Best Investment Bank in Japan
Asia’s Best Bank for Advisory

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Goldman Sachs 2018 Sustainability Report

RECOGNITION

EMPLOYER OF CHOICE AWARDS AND RANKINGS:

Fortune 100 Best Companies to Work For Universum: World’s Most Attractive Employers
February 2019 September 2018

Ranked #62 Ranked #2 amongst business students

Ranked #21 amongst engineering/IT students

Fortune World’s Most Admired Vault Banking 50

January 2019 August 2018

Ranked #26 Best Banking Firm ranked #1

Most Prestigious Banking Firm ranked #1

Working Mother CR Magazine: 100 Best Corporate Citizens

October 2018 May 2018

Listed Ranked #61

DIVERSITY AWARDS AND RANKINGS:

Human Rights Campaign’s Corporate Equality Index DisabilityIN’s Disability Equality Index Awards
March 2019 July 2018

Rating of 100% Scored 100%

National Association of Female Executives: Asia Society’s Best Asian Pacific American
Top Companies for Executive Women Employer Awards
March 2019 May 2018

Listed Overall Best Employer

Bloomberg Gender-Equality Index Hong Kong Community Business Awards:

March 2019 LGBT Workplace Inclusiveness Index
May 2018
Listed
LGBT+ Mentoring Award

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Goldman Sachs 2018 Sustainability Report

SASB INDEX
This report marks the first time we have reported under the Sustainability Accounting Standards Board (SASB) standards. We have included the
below disclosures related to the three sectors that are most closely aligned to our mix of businesses: Asset Management & Custody Activities,
Investment Banking & Brokerage and Commercial Banks. Disclosures that appeared in more than one of these sector standards are included in
a separate section on this page. 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 these three sectors, but we will continue to evaluate them in the future.
All data is as of or for the year ended December 31, 2018 unless otherwise noted.

Topic Accounting Metric Category Code Response

Disclosures Included in Multiple Sectors’ Standards

Percentage of gender and racial/ethnic

group representation for U.S. Workforce Demographics
Diversity (1) executive management, FN-AC-330a.1 As part of our commitment to improving diversity
Quantitative
& Inclusion (2) non-executive management, FN-IB-330a.1 at the firm we have also published diversity
(3) professionals, and goals here.
(4) all other employees

FN-AC-510a.2 Raising Integrity Concerns

Description of whistleblower Discussion
FN-IB-510a.2
policies and procedures and Analysis Code of Business Conduct and Ethics
FN-CB-510a.2

Total amount of monetary losses as a result

of legal proceedings associated with:
• Marketing and communication of
financial product-related information FN-AC-270a.2
Business Ethics
to new and returning customers; FN-AC-510a.1 During 2018, our total net provisions for all
• Fraud, insider trading, anti-trust,
Quantitative FN-IB-510a.1 litigation and regulatory proceedings were
anti-competitive behavior, market
FN-IB-510b.3 $844M.
manipulation, malpractice, or other
related financial industry laws or FN-CB-510a.1
regulations; and
• Professional integrity, including
duty of care

As a US G-SIB, we are required to calculate

the G-SIB buffer under two methodologies
and are bound by the higher of the two.
“Method 1” is based upon the Basel Committee’s
methodology, which, among other indicators,
relies upon measures of the size, activity and
complexity of each G-SIB. “Method 2” uses
similar inputs, but it includes a measure of
reliance on short-term wholesale funding and
applies only to US G-SIBs. Further information
Global Systemically Important Bank FN-IB-550a.1 about Method 1 can be found on the Bank for
Quantitative
(G-SIB) score, by category FN-CB-550a.1 International Settlement’s website and further
information about Method 2 can be found on
Systemic Risk the Federal Reserve Board’s website.
Management We are bound by Method 2 and our applicable
G-SIB buffer is 2.5%. Please see pages 8–9, 71
and 165–166 of our 2018 Form 10-K for further
information. Further information about the
indicators that factor into the calculation can
be found in our FR Y-15 filing, which can be
accessed here.

We conduct various scenario analyses,

Description of approach to incorporation
including as part of the Comprehensive Capital
of results of mandatory and voluntary
Discussion FN-IB-550a.2 Analysis and Review and Dodd-Frank Act Stress
stress tests into capital adequacy
and Analysis FN-CB-550a.2 Tests, as well as our resolution and recovery
planning, long-term corporate strategy,
planning. Please see pages 10–12 and 69 of
and other business activities
our 2018 Form 10-K.

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Topic Accounting Metric Category Code Response

Asset Management & Custody Activities

We believe our clients are best served by having

a clear understanding of 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,
Transparent we provide Private Wealth Management (PWM)
Information & Description of approach to informing Discussion clients a comprehensive brochure outlining
FN-AC-270a.3 the services we provide and the related
Fair Advice for customers about products and services and Analysis
Customers fee structures, including how their advisor is
compensated for each type of service and fee.
Please also refer to the Business Standards
Committee Impact Report and Code of Business
Conduct and Ethics for additional firmwide
information.

As of December 2018, we had $17B in

dedicated ESG and impact investing assets
Amount of assets under management, by under supervision and $64B in screened
asset class, that employ (1) integration ESG assets under supervision.
of environmental, social and governance Quantitative FN-AC-410a.1 We are working to quantify our assets under
(ESG) issues, (2) sustainability-themed supervision with ESG integration under the
Incorporation investing, and (3) screening definitions proposed by SASB, which will include
of ESG Factors a broader set of products and strategies. See our
in Investment website for further information.
Management
and Advisory
Description of approach to incorporation
of environmental, social and governance Discussion
FN-AC-410a.2 Statement on ESG and Impact Investing
(ESG) factors in investment and/or wealth and Analysis
management processes and strategies

Description of proxy voting and investee Discussion

FN-AC-410a.3 GSAM Stewardship Report
engagement policies and procedures and Analysis

Goldman Sachs Asset Management (GSAM)

oversees liquidity risk management for the funds
and client portfolios for which it serves as fund
manager/investment advisor.
GSAM monitors liquidity risk associated with a
portfolio’s ability to meet potential cash outflows
related to investor redemptions/withdrawals or
Description of approach to incorporation
potential liabilities related to derivative positions
Systemic Risk of liquidity risk management programs Discussion
FN-AC-550a.2 and secured funding trades, as well as changes
Management into portfolio strategy and redemption and Analysis
in the liquidity of positions within the portfolio.
risk management
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.

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Goldman Sachs 2018 Sustainability Report

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Topic Accounting Metric Category Code Response

Asset Management & Custody Activities

As of December 2018, we had $20.98B of credit

Total exposure to securities financing exposure from secured financing transactions.
Quantitative FN-AC-550a.3
transactions Please see page 98 of our 2018 Form 10-K for
further information.

Systemic Risk
Management As of December 2018, written credit derivatives
(continued) had a total gross notional amount of $554.17B
and purchased credit derivatives had a total
Net exposure to written credit derivatives Quantitative FN-AC-550a.4 gross notional amount of $603.00B, for a total net
notional purchased protection of $48.83B. Please
see page 132 of our 2018 Form 10-K for further
information.

Registered Assets $358B

(1) Total registered and Under Supervision
n/a (2) total unregistered assets under Quantitative FN-AC-000.A
management (AUM) Unregistered Assets $1,184B
Under Supervision

Total assets under custody and

n/a Quantitative FN-AC-000.B $1.54T assets under supervision
supervision

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Goldman Sachs 2018 Sustainability Report

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Topic Accounting Metric Category Code Response

Investment Banking & Brokerage

Incorporation
of ESG Factors Description of approach to incorporation
in Investment of environmental, social and governance Discussion
FN-IB-410a.3 Environmental Policy Framework
Banking & (ESG) factors in investment banking and and Analysis
Brokerage brokerage activities
Activities

The firm maintains a Code of Business Conduct

and Ethics and requires employees to annually
Description of approach to ensuring
Professional Discussion certify they have reviewed and will comply
professional integrity, including duty FN-IB-510b.4
Integrity and Analysis with the code. See the Business Standards
of care
Committee Impact Report and our Business
Principles for further information.

MRT is a regulatory term applied in the UK,

but not a concept we apply to our global
workforce. Within our UK workforce only,
Percentage of total remuneration 45% of total remuneration awarded to MRTs
that is variable for Material Risk Quantitative FN-IB-550b.1 for 2017 performance was variable.
Takers (MRTs) Note that we apply a pay-for-performance
philosophy across our organization. Please
see our Compensation Principles for further
information.
Employee
Incentives and
Risk Taking
Percentage of variable remuneration All equity-based awards granted to employees
of Material Risk Takers (MRTs) to are subject to robust forfeiture and clawback
Quantitative FN-IB-550b.2
which malus or clawback provisions provisions. Please see page 53 of our
were applied 2019 Proxy Statement for further information.

Discussion of policies around

supervision, control and validation Discussion
FN-IB-550b.3 Please see pages 48–49 of our 2018 Form 10-K.
of traders’ pricing of Level 3 assets and Analysis
and liabilities

Per Dealogic, our transaction volumes

for 2018 were:

Announced Mergers $1,292B

and Acquisitions

(1) Number and (2) value of Completed Mergers $1,217B

n/a (a) underwriting, (b) advisory and Quantitative FN-IB-000.A and Acquisitions
(c) securitization transactions Equity and Equity-Related $67B
Offerings
Debt Offerings $257B

Please see page 56 of our 2018 Form 10-K

for further information.

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Topic Accounting Metric Category Code Response

Commercial Banks

Description of approach to identifying Discussion

Data Security FN-CB-230a.2 Client Security Statement
and addressing data security risks and Analysis

As of December 2018, our Urban Investment

Group had $1.03B of debt assets outstanding
from 94 transactions and $1.47B of equity assets
outstanding from 142 transactions. See our Urban
Financial (1) Number and (2) amount of loans Investment Group’s website for further information.
Inclusion outstanding qualified to programs Please also refer to our programs 10,000 Small
Quantitative FN-CB-240a.1
& Capacity designed to promote small business and Businesses, which provides entrepreneurs in
Building community development the US and UK access to education, capital and
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.

Credit Exposure from Commercial Loans and

Lending Commitments by Sector:

Consumer, Retail & 16%

Healthcare
Diversified Industrials 16%
Financial Institutions 9%
Funds 4%
Commercial and industrial credit
Quantitative FN-CB-410a.1 Natural Resources & Utilities 15%
exposure, by industry
Incorporation of Real Estate 10%
ESG Factors in
Credit Analysis Technology, Media & 18%
Telecommunications
Other (including Special 12%
Purpose Vehicles)

Please see page 97 of our 2018 Form 10-K

for further information.

Description of approach to incorporation

Discussion
of environmental, social and governance FN-CB-410a.2 Environmental Policy Framework
and Analysis
(ESG) factors in credit analysis

Corporate Loans $40.10B

PWM Loans $24.47B
(1) Number and (2) value of loans by
n/a segment: (a) personal, (b) small business Quantitative FN-CB-000.B Consumer Loans $4.54B
and (c) corporate
Please see page 65 of our 2018 Form 10-K
for further information.

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