Investor Day, Fireside Chat
Sustainability - Goldman Sachs 2020 Investor Day
- Goldman Sachs aims to deploy $750 billion over the next decade to support sustainable economic growth, positioning this capital allocation as central to the firm's next 150 years.
- The firm identifies inclusive growth and climate transition as two primary secular themes expected to drive future economic, market, and client dynamics.
- Goldman Sachs anticipates a rising demand from clients for expertise in affordable housing, ESG storytelling, and supply chain renewables, while seeking advice on the firm's internal sustainability journey.
- Business growth is expected to be driven by the "One Goldman Sachs" strategy, leveraging investment bankers, asset managers, and research teams to mobilize capabilities across core areas aligned with diversity and sustainability.
- The firm intends to help clients transition from non-leaders to leaders in sustainability while anticipating that asset owners will require navigation of new risks and opportunities in the changing investing environment.
- Private capital flows into inclusive growth and climate transition sectors are forecast to expand, creating new investment options as public sector and philanthropic funding alone cannot address the full capital need.
- Goldman Sachs expects market evolution driven by shifting consumer preferences, supply chain inquiries, and investor demands, necessitating a focus on better data standards for fewer, more critical metrics.
- In response to a low-unemployment environment, the firm notes that businesses will increasingly prioritize meaningful work for employees to attract talent.
- The firm plans to leverage the 10,000 Women and 10,000 Small Businesses programs as core identity components, targeting a cumulative reach of 100,000 women small business owners through the former.
- Urban Investment Group investment volume is projected to continue growing, having shifted from a historical range of $10–$20 million annually to exceeding $1.2 billion in the most recent year.
- The firm financed, invested in, or owned over one gigawatt of clean energy in the previous year and expects business growth to persist in this sector.
- The firm plans to innovate with partners to solve complex issues in distressed communities, such as Newark, while maintaining a rigorous focus on risk management.
- Goldman Sachs intends to use its full organizational weight to advance industry-wide data standards and provide more opportunities to people in disadvantaged communities globally.