GSAM is committed to helping our clients deploy their capital in a manner that prudently integrates environmental, social, and governance (ESG) considerations and seeks to have positive impact on environmental and social issues, while helping our clients preserve and grow their financial assets. The Statement outlines GSAM’s approach to ESG and impact investing, our investment rationale for ESG integration across asset classes and investment strategies, and our capabilities for clients wishing to invest with a more targeted focus on these strategies.
Please see the GSAM Statement on ESG and Impact Investing.
In December 2011, GSAM became a signatory to the UN PRI. The UN PRI is a global, collaborative network of investors established in 2006 in recognition of the increasing relevance of ESG issues within the investment process. The Principles set forth by the UN PRI are a set of best practices for incorporating ESG issues into investment decision-making where consistent with fiduciary responsibilities. As a signatory, GSAM has committed to considering the investment implications of ESG issues within our portfolio management and investment decision-making processes.
We report annually to the UN PRI. Please see our most recent UN PRI Transparency Report.
CDP, formally the Carbon Disclosure Project, is an organization dedicated to motivating companies and cities to disclose their environmental impacts, giving decision makers more robust data on key climate related metrics. Goldman Sachs acknowledges the scientific consensus, led by the Intergovernmental Panel on Climate Change, that climate change is a reality and that human activities contribute to increasing concentrations of greenhouse gases in the earth’s atmosphere. As an institution that brings providers and users of capital together, we believe that capital markets can and should play an important role in addressing environmental challenges including climate change. To that end, we are committed to catalyzing innovative financial solutions and potential market opportunities to help address climate change, and as such, GSAM is an investor signatory to the CDP. Please visit our Environmental Stewardship Page for more information about our focus on climate change and environmental initiatives across the firm.
At Goldman Sachs Asset Management, we believe stewardship, active engagement, and integration of environmental, social, and governance (ESG) factors play an important role in active investment management.
We are active participants in various ESG industry efforts, and strive to balance the depth and quality of our contribtuions, as well as be transparent and collaborative in our approach. This page outlines how we evidence our commitments to various industry collaborations around the globe.
At GSAM, we also demonstrate responsible ownership through our global proxy voting policy, which is updated annually to incorporate current beliefs on key governance and ESG topics. We regularly engage company management teams throughout the year, as well.
In 2012, GSAM became a signatory to the UK Stewardship Code. The UK Stewardship Code aims to enhance the quality of engagement between investors and companies to help improve long-term risk-adjusted returns to shareholders. In 2016, the Financial Reporting Council, which is responsible for the UK Stewardship Code, rated signatories to the Code based on the quality of their statements. Goldman Sachs Asset Management was awarded a Tier 1 classification, the highest possible score, which we believe reflects our efforts to strive for a high level of quality and transparency in both our stewardship work and our corresponding statement on that work.
Please see GSAM’s UK Stewardship Code Statement.
Goldman Sachs Asset Management is one of 214 institutional investors who have signed the Principles for Responsible Institutional Investors, or Japan’s Stewardship Code. GSAM became a signatory to the Japan Stewardship Code in 2014. The principles of the Code are designed “to promote sustainable growth of companies through investment and dialogue,” a stance which GSAM is highly supportive of.
Please see GSAM's Japan Stewardship Code Statement.
In December, 2016 GSAM became a signatory to The Singapore Stewardship Principles for Responsible Investors. We recognize that this initiative will reinforce the positive environment in Singapore, encourage development of good stewardship and governance among investors, and create an industry-led channel for mutual sharing.
Please see GSAM’s Singapore Stewardship Principles for Responsible Investors Statement.