The Wall Street bank set a lofty-sounding target of $750 billion. The figure is a mix of loans, underwriting, advisory services and investments related to projects Goldman expects to be involved with by 2030
December 17, 2019. By News Bureau
Goldman Sachs Group Inc charted its plans to put money and advice toward projects that fight climate change or help financially disadvantaged people, with executives arguing it is not only the right thing to do but can generate income.
The Wall Street bank set a lofty-sounding target of $750 billion. The figure is a mix of loans, underwriting, advisory services and investments related to projects Goldman expects to be involved with by 2030.
It reflects the total size of loans, deals and other arrangements Goldman expects to perform as a bank or intermediary with companies and projects focused on renewable energy, sustainable transportation, affordable education and several other areas, the bank said.
Goldman also implemented a formal ban on financing certain drilling and coal activities.
The moves come as pressure from activists and some investors has ratcheted up globally on banks' activities financing fossil fuels or other sectors that have come into the political crosshairs, like gun makers. Banks have also faced more scrutiny over their role in increasing economic inequality by catering to wealthy customers while shunning patrons who need access to financial services to better their lives.
Goldman catered almost exclusively to the elite until it was forced to rethink its business model in the aftermath of the 2007-2009 financial crisis. In recent years, management decided to launch a retail bank and has tried to spruce up Goldman's image among Main Street consumers.
Goldman executives declined to break down specifics about the $750 billion target in terms of revenue or the bank's own exposure. They said it will be dependent on market forces, making it hard to predict.
There is "a powerful business and investing case" for working with companies that are taking steps to address climate change and inclusive growth, Goldman Sachs Chief Executive David Solomon said
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