Goldman Sachs 

The financial institution publishes an engagement report on sustainability impact topics and has a publicly available policy statement requiring suppliers to respect ILO core labour rights. It discloses its approach to lobbying and political engagement, with decision-making and oversight for its sustainability strategy assigned to the highest governance body. Implementation responsibility is delegated to various functions, teams, or committees. It has a stewardship policy that outlines criteria for successful outcomes, escalation routes for unsuccessful engagements, and escalation conditions.

Key sectors, clients, and investees for climate issues and nature-related impacts are transparently identified, with engagement aimed at influencing strategies for nature protection and restoration. The institution monitors its Scope 1-2 emissions and has interim targets aligned with a 1.5C trajectory for 2025 and 2030. It discloses monetary amounts or shares of products, services, and capital provided to women-owned businesses, usually excluded groups, and small- and medium-sized enterprises.

The financial institution commits to respecting the ILO’s fundamental rights at work but could strengthen this commitment by formalising it in a policy document. It has the opportunity to clarify how it determines a living wage in its operational regions and to link senior executive remuneration to sustainability targets. While a stewardship policy supports environmental transitions and social best practices, alignment with the sustainability strategy is recommended.

The institution provides a partial list of trade associations and has measurable targets for sustainable financing but should specify the share allocated to climate solutions. Although it offers products and services for climate adaptation, intentionality in these provisions should be disclosed. Monitoring of scope 3 emissions is in place, yet additional categories could be included with justifications for exclusions. The methodology for carbon footprint calculations is partially detailed, and a comprehensive breakdown of emissions coverage, data types, and sources is suggested.

Recommendations include disclosing client breakdowns by income group, processes to avoid divestment from low-income countries, and risk assessments related to ILO rights. Additionally, it should outline processes for mitigating identified risks and identifying social risks linked to the net zero transition, along with examples of actions taken regarding salient human rights issues in the past three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.