Creating Impact Through Our Investment in Innovation and Sustainability

There are significant opportunities to invest in innovation and drive investment returns and create impact, even in uncertain and volatile markets. Across our private investing teams at Goldman Sachs Asset Management , we aim to invest in industries with strong secular growth drivers that perform well in challenging economic environments.

Our private sustainability investing business focuses on underinvested environmental opportunities and areas for improvement in the energy, commodities and industrial sectors. We actively collaborate with companies to develop, fund and scale innovative and cost-effective solutions to meet their sustainability goals.

We target sustainability-focused businesses with high growth potential that can earn attractive rates of return with diversified risk, such as sustainable packaging, agriculture and battery storage. We also develop frameworks to help these companies assess and measure their impact.

Accelerated by the passage of the Inflation Reduction Act, investments aimed at driving the clean energy transition and companies’ net-zero goals should experience major tailwinds. This trend is happening across asset classes.

For example, infrastructure is growing beyond transport and utilities to include clean energy sector areas. The drive to net zero and a circular economy requires significant capital expenditure investments, particularly in energy transition, transport and logistics. Sustainability and the climate transition are globally reshaping real estate, making these assets a rising priority for regulators, institutions, pension funds and other clients. According to the World Green Building Council, the real estate industry, as the world’s largest carbon producer today, is responsible for ~40% of global emissions and uses ~30% of the world’s energy, which means that a move toward sustainable real estate will have a significant impact.

To enhance net zero and sustainability efforts, we can also leverage the Goldman Sachs Value Accelerator, which helps CEOs and founders accelerate outcomes and create value in our portfolio companies by combining the expertise of GS investors with the operating experience of outside advisors. Our Value Accelerator focuses on excellence in the following areas: digital transformation; risk optimization; operations; scaling revenue; talent management; finance and strategy; and, of course, sustainability.