Goldman Sachs Joins Peers With Net-Zero Climate Goal

Goldman Sachs today announced that it is joining the ranks of other major U.S. banks in committing to align its financing activities with a net-zero pathway by 2050, set interim targets by the end of 2021, and measure and disclose its progress in meeting those goals.

Goldman Sachs is the fifth of the six largest U.S. banks to make a long-term commitment to align financing activities with the goals of the Paris Agreement. Investors have been asking for such commitments, including through shareholders resolutions like the resolution filed by As You Sow with Goldman Sachs last fall. In the last few weeks both Bank of America and Citigroup have joined JPMorgan Chase and Morgan Stanley in adopting net-zero goals.

Investors also seek nearer-term, interim targets and disclosure of financed emissions in order to assess progress on this urgent issue. Banks are at various stages in the process of disclosing such information and targets. JPMorgan, for example, has committed to disclose its interim targets this spring.

Danielle Fugere, president of As You Sow, had this to say about the announcement:

"This welcome announcement from Goldman Sachs underscores a strong momentum in the financial arena to ensure that global financing streams are tied to time-bound, science-based climate progress. Every bank that makes a net zero commitment, and then moves on to the hard work of demonstrating how it will meet those goals, brings us a step closer to avoiding the most catastrophic impacts of climate change. We look forward to seeing Goldman's next steps on this critical pathway."

Lila Holzman, senior energy program manager of As You Sow, had this to say about the announcement:

"We are pleased that Goldman is joining its peers in committing to a net-zero goal. We understand that such goals must be accompanied by transparent disclosure of concrete plans and emissions data in order to assess progress. The time is now for all banks to step up and demonstrate responsibility for their financing activities, and do their part to avoid the climate crisis that threatens our economy and our world."

Net-zero commitments from banks are critical. Financing of fossil fuels by four out of six of the largest U.S. banks increased in 2019. Only JPMorgan Chase and Wells Fargo reduced fossil fuel financing in 2019, but still remain two of the top financiers.

To learn more about As You Sow's work on climate change, click here.