| www2.goldmansachs.com |
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| Share Price (3/15/07): | $200.89 |
| OVERVIEW: | |
| Market Value (3/15/07): | $83.0 BIL |
| Revenue (2006): | $69.4 BIL |
| Employees: | 26,467 |
| Return on Equity 2006: | 21.5% |
| HIP PRACTICES: | |
| Vision: | Leading the investment-banking industry in client work, internal operations and investment research related to environmental issues and carbon emissions risks and pricing. |
| Metrics: | Contracted with external firm to track 250 economic, environmental, social and governance measures of public company equities. From 2005 baseline of 200,000 metric tons, firm committed to reduce GHG by 7% in 2012. |
| Financials: | Risking $1.5 billion in clean-tech and alternative-energy deals globally like ethanol, wind turbines and solar power. |
| Accountability: | Former CEO (now US Treasury Secretary) Hank Paulson drove green screening into market making, research, investments and procurement. Minority investment in the Chicago Climate Exchange (CCX) and European Climate Exchange (ECX). |
| Decision-Making: | Investment Research group evaluates ESG (environmental, social, governance) risks of companies and sectors. Each office worldwide now integrating environmental goals into how clients and operations are managed. |
| HIP OUTCOMES: | |
| Health: |
Positive health benefits likely from emissions reductions and environmental improvements, but not yet captured in impact metrics. |
| Wealth: |
Average compensation per employee = $521,000, driven by year-end bonuses, supplemented with generous benefits related to health and wellness and investments. Hedge emission price risk for clients to reduce liabilities and exposure. |
| Earth: |
Rehabbing global offices to be LEED-certified, including global HQ opening in 2009, saving energy costs and carbon emissions. 100% of wood in 30 Hudson building (New York) is certified (Forest Stewardship Council), and water usage is 20% lower due to efficiency systems. |
| Equality: |
Women and ethnicity vastly underrepresented on Board and Executive team. Executive pay in reasonable range, relative to market-value-per-employee measure. Supplier diversity encouraged but not fully mandated. |
| WHAT'S NEXT: | |
| Practices: | Integrating the Equator Principles beyond just project finance, and replicating the TXU (Texas Utilities) intermediary role for environmental impact, could reshape the entire investment-banking sector. |
| Outcomes: | Increasing deal-flow in both public and private markets for clean-tech and alternative energy could yield outsize investment returns, now the majority of the firm's revenues and profits. |
| OTHER RATINGS: | |
| KLD: Companies are rated from negative (0) to positive (6) in seven areas. | Community: 6.0 Governance: 1.8 Diversity: 4.8 Employees: 4.8 Environment: 4.0 Human Rights: 0.0 Product: 0.3 Included in KLD Indices for: Broad Market Social Index, Large Cap Social Index |
| Calvert Rating: Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior). | Environment: 3 Workplace: 4 Business Practices: 3 Human Rights: 4 Community Relations: 5 Included in Calvert funds: Yes |
| RESOURCES: | |
| Sustainability or CSR Report: | Environmental Policy |
| Annual Report: | Goldman Sachs 2006 Annual Report |
--Ruthie Ackerman and R. Paul Herman
