Whereas: Environmental justice examines disparities in how people are exposed to
environmental benefits and harms, which can have material implications for investors.
The United Nations has recognized that all people have a right to a clean, healthy and
sustainable environment.1 Fossil fuel development poses substantial risks to this and other
human rights, and has been linked to significantly elevated rates of cancers, and air, soil, and
water contamination for nearby residents.2 These outcomes disproportionately affect children,
workers, and people who are Black, Indigenous, have low income, or live in the Global South.3
Meanwhile, a disproportionate portion of the 17 million Americans exposed to the negative
consequences of fossil fuel production are Black.4 Since 2016, Goldman Sachs has provided
over $143 billion in financing to fossil fuel companies.5
Goldman Sachs has also developed a framework to “put climate transition and inclusive growth
at the forefront of” its work with clients.6 However, this transition carries several workforce7 and
environmental justice risks. Research has found that economic and workforce benefits of the
energy transition accrue unequally along lines of race and ethnicity, regardless of income or
education.8 Most minerals required for electric vehicle, wind turbine, and battery production are
concentrated in the Global South, where local people bear environmental harms associated with
minerals extraction, and where climate change threatens production collapse.

9 Resultant civic
unrest, loss of social license, legislative or regulatory actions, and systemic risk of global failure
of a transition can lead to stranded assets and reputational harm.
These environmental justice risks are not effectively addressed or managed in Goldman Sachs’
policies and reporting. Rigorous assessment and disclosure of these risks would enhance the
bank’s risk management framework, improve its reputation, and advance its stated goals.
In recent years, Goldman Sachs has faced regulatory action and public scrutiny regarding its
sustainability practices and disclosures. In 2022, the bank’s asset management subsidiary
incurred a $4 million penalty to settle SEC charges for sustainability-related policies and
procedures failures.10 The bank has committed to help reduce racial disparities,11 to “protect, preserve and promote human rights around the world,”12 and shared its view that “companies' management of environmental and related social risks and opportunities may affect long-term corporate performance.”13 By implementing this proposal, the bank can advance its commitments and deliver value to shareholders.

1 https://news.un.org/en/story/2022/07/1123482
2 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6344296/
3 https://www.sciencedirect.com/science/article/pii/S2214629623001640
4 https://www.nature.com/articles/s41370-022-00434-9
5 https://www.ran.org/wp-content/uploads/2023/04/BOCC_2023_vF.pdf
6 https://www.goldmansachs.com/media-relations/press-releases/2021/announcement-04-mar-2021.html
7 https://www.nber.org/papers/w31539
8 https://www.liebertpub.com/doi/10.1089/scc.2022.0112;
https://www.scientificamerican.com/article/solar-powers-benefits-dont-shine-equally-on-everyone/

9 https://media.business-
humanrights.org/media/documents/2023_Transition_Minerals_Tracker_JX5pGvf.pdf;

https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-
52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf

10 https://www.sec.gov/news/press-release/2022-209
11 https://www.goldmansachs.com/our-commitments/diversity-and-inclusion/racial-equity/