Goldman Sachs ESG Enhanced Global Multi-Asset Balanced Portfolio
SRI Style:
Unclassified
SDR Labelling:
Not eligible to use label
Product:
SICAV/Offshore
Fund Region:
Global
Fund Asset Type:
Mixed Asset
Launch Date:
30/06/2014
Last Amended:
Oct 2024
Dialshifter (
):
Fund Size:
£165.70m
(as at: 30/04/2024)
Total Responsible Ownership Assets:
£197907.75m
(as at: 31/12/2023)
Total Assets Under Management:
£1565876.88m
(as at: 31/03/2024)
ISIN:
LU1057462290, LU1057462530
Contact Us:
Objectives:
The Portfolio seeks total returns[1] consisting of income and capital appreciation by investing primarily in global equity and fixed income securities. As part of its investment process, certain directly held transferable securities are excluded from the Portfolio based on the application of certain ESG criteria.
[1] There is no guarantee that objectives will be met.
Sustainable, Responsible
&/or ESG Overview:
The Portfolio is classified as an Article 8 Fund under SFDR and harnesses our full ESG-Enhanced Multi-Asset framework, founded upon:
- Diversification[1] globally across traditional and alternative asset classes, combining fundamental and quantitative investment approaches and including Impact Equities and Green, Social & Sustainability Bonds to seek positive outcomes;
- Integration of full breadth of Goldman Sachs Asset Management’s proprietary ESG Security Selection processes through customized ESG-Enhanced active direct investments;
- Alignment to ESG goals by implementing a range of screens for revenue and product-based factors, carbon emissions, and governance[2];
Engagement by combining Goldman Sachs Asset Management’s Global Stewardship effort with ongoing bottom-up company engagement.
[1] Diversification does not protect an investor from market risk and does not ensure a profit.
[2] Screens are applied to active, direct investments only.
Primary fund last amended:
Oct 2024
Information directly from fund manager.
Fund Filters
Sustainability - General
A core element of these funds aim to encourage higher sustainability standards across business practices through responsible ownership / stewardship / engagement / voting activity
Find funds that use the UN Global Compact to inform or help direct where they can or cannot invest and will typically not invest in companies with significant breaches (low standards) - although strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/
Environmental - General
Funds that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change. Funds vary - some funds may be 'underweight' in this area which means they may have some investment in highly carbon intensive areas. Funds of this kind may choose companies they consider to be 'best in sector' and encourage ever higher standards. Strategies vary. See fund information for further details.
Nature & Biodiversity
Find funds that have policies in place designed to ensure they do not invest in companies that are significantly involved in deforestation. This typically relates to palm oil plantations where biodiversity loss is a major concern (as well as other issues). Strategies vary. See fund information for further detail.
Fund has a responsible palm oil policy which is likely to focus on the producers of palm oil and deforestation issues with a view to informing investment decisions (and / or engagement) to support and encourage high standards.
Climate Change & Energy
Funds that avoid investing in major coal, oil and/or gas (extraction) companies. Funds vary: some may exclude all companies that extract oil. Others may have exposure to oil extraction via more diversified energy companies. See fund literature to confirm details.
Funds that avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary. See fund information for further information.
Funds that avoid companies that are involved in extracting oil from the Arctic regions. See fund literature for further details.
A core element of these funds will aim to encourage the transition to lower carbon activities through responsible ownership / stewardship / engagement / voting activity
Funds that hold companies in the clean energy and renewable energy sectors (at the time research was supplied). Fund strategies vary, in particular the proportion of investment in these areas may vary significantly. Check fund literature for details.
Find funds that have policies which say they avoid or limit their investment in the nuclear industry. Strategies vary. See fund information for further detail.
Social / Employment
Find funds that have policies which set out their approach to social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact). Funds with social policies typically avoid companies with low standards or work to encourage higher standards. See fund information for detail.
Ethical Values Led Exclusions
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details.
Find funds with a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.
Find funds that avoid companies with significant involvement in the gambling industry. Some funds may allow a small proportion of profits to come from this area. See fund policy for further details.
Find funds that avoid companies that derive significant income from pornography and related areas. Strategies vary. See fund details for further information.
Banking & Financials
Fund excludes financial services companies with widely criticised, aggressive lending practices where interest rates are typically very high, includes ‘doorstep lending’)
Governance & Management
Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information.
Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list
Fund managers encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Fund Governance
Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.
Asset Size
Find funds that invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
Find a fund that invests in a combination of small, medium and larger (potentially multinational)companies.
Find funds that have SRI strategies and focus their investment stock selection on larger companies. (e.g. over circa £5-£10bn)
Impact Methodologies
Funds that aim to help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary. See fund literature for further information.
How The Fund Works
Find funds where their main 'ethical approach' is to avoid companies by using negative screening criteria. Read fund literature for further information.
Find funds that invest more heavily in those that have higher ESG ratings/standards or scores and less heavily in companies with lower ESG ratings. Where this is central to a fund's strategy you should expect it to invest in most sectors. Strategies vary.
Find funds that consider both the 'positive' and 'negative' aspects of company behaviour and make balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
Find funds that use internationally agreed standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact, UN Sustainable Development Goals). Read fund literature for further information.
Find funds that have published explanations of their ethical, social and/or environmental policies online (i.e. fund decision making strategies/ buy/sell &/or asset management strategies).
Intended Clients & Product Options
Finds funds designed to meet the needs of individual investors with an interest in sustainability issues.
Labels & Accreditations
Finds funds classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics with high governance also. These rules do not currently apply to UK funds so many managers may leave this field blank.
Fund Management Company Information
About The Business
Finds fund management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Find fund managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)
Find fund management companies that aim to align all their investments (across all funds) to help meet the aims of the UN Sustainable Development Goals.
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Find fund management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).
Collaborations & Affiliations
Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Resources
Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Find a fund management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types)
Accreditations
Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave like responsible, typically longer term 'company owners'.
Engagement Approach
Find fund management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Find fund management companies that are working with the companies they invest in to encourage more responsible corporate taxation.
Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.
Asset manager has stewardship /responsible ownership strategy with involves encouraging investee asset to reduce plastic waste and pollution.
Asset manager has a stewardship / responsible ownership policy that means they are working to encourage more responsible mining practices - where environmental and social issues are properly dealt with by the companies they invest in.
The asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/
Asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)
Asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.
Fund managers have stewardship strategies in place that focus on improving governance standards across investee assets
Asset manager has stewardship strategy in place which involves discussing mental health issues with investee companies - with the aim of raising standards
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards
Working to address sustainability, ESG and related concerns around artificial intelligence.
Climate & Net Zero Transition
Fund manager AGM / EGM voting strategy has processes in place that mean they will normally be expected to vote in a way that will encourage the transition to net zero greenhouse gas emissions.
This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Find fund management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
Finds organisations / fund managers that have a company wide carbon transition plan - meaning that they have plotted a path to how they will move away from activities that produce or use carbon based energy sources (that emit greenhouse gases) towards clean, alternative, renewable energy sources.
Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.
Find fund management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'.
See https://sciencebasedtargets.org/
Transparency
Find fund management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Find companies that publish information about their sustainable and responsible investment strategies on their company website.
Find fund management companies that will supply information about their sustainable and responsible investment activity on request.
Fund management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.
This asset management company has published a plan that explains how they are to become a sustainable business - without significant negative environmental or social impacts.
This asset management company has published a plan that explains how they will align to the climate change commitments made at the Paris Climate Talks, COP21.
This asset management company has published a plan that explains how they are going to achieve net zero greenhouse gas / CO2e emissions.
Find fund management companies that have supplied Dialshifter information. See Dialshifter tab within record for more information.
Comments
PLEASE NOTE:
- Coal, oil and / or gas majors excluded:
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from-
- Thermal Coal Extraction is more than 1% (THERMAL_COAL_MAX_REV_PCT >=1)
- Thermal Coal Generation is more than 25% (GENERAT_MAX_REV_THERMAL_COAL >=25)
- Arctic Oil is more than 0% (ARCTIC_OIL_MAX_REV_PCT>0)
- Arctic Gas is more than 0% (ARCTIC_GAS_MAX_REV_PCT>0)
- Oil Sands extraction is more than 5% (OIL_SANDS_MAX_REV_PCT>=5)
- Palm Oil is more than 5% (PALM_PROD_MAX_REV_PCT>=5)
We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
- Fracking & tar sands excluded:
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Oil Sands extraction is more than 5% (OIL_SANDS_MAX_REV_PCT>=5). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
- Arctic drilling exclusion:
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from-
- Arctic Oil is more than 0% (ARCTIC_OIL_MAX_REV_PCT>0)
- Arctic Gas is more than 0% (ARCTIC_GAS_MAX_REV_PCT>0)
- Limits exposure to carbon intensive industries:
Implemented using exclusionary MSCI screen with the following criteria: exclude if carbon emissions are higher than 10000 f (tCO2/mm$ sales). (CARBON_EMISSIONS_SCOPE_12_INTEN >10000). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
- UN Global Compact linked exclusion policy
Implemented using exclusionary MSCI screen with the following criteria: exclude if fails to comply with UNGC (UNGC_COMPLIANCE=Fail). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
- Nuclear exclusion policy
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Nuclear Weapons is more than 5% (WEAP_NUC_MAX_REV_PCT>=5). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
- Deforestation / palm oil policy
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Palm Oil is more than 5% (PALM_PROD_MAX_REV_PCT>=5). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
- Responsible Palm Oil policy
Implemented using exclusionary MSCI screen with the following criteria: exclude if f percentage revenue generated from Palm Oil production is greater than or equal to 5% (PALM_PROD_MAX_REV_PCT)
- Social policy
Implemented using exclusionary MSCI screen with the following criteria: exclude if f percentage revenue generated from Predatory Lending is more than 1% (PRED_LEND_MAX_REV_PCT>=1%) or For-Profit Prisons is more than 0 (FOR_PROFIT_PRISONS_MAX_REV_PCT>0). This is in addition to the screens applied on Adult Entertainment, Gambling, Tobacco Production and Civilian Firearms. We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
- Tobacco and related product manufacturers excluded
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Tobacco production or Tobacco Retail is more than 10% (TOB_PROD_MAX_REV_PCT>=10 or TOB_RET_MAX_REV_PCT>=10). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
- Armaments manufacturers avoided
Implemented using exclusionary MSCI screen with the following criteria: exclude if there is any tie with Controversial Weapons Production including Biological/Chemical, Cluster Munitions, Blinding Laser, Depleted Uranium, Incendiary, Landmines, Non-detectable Fragments (CWEAP_TIE = True). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
- Civilian firearms production excluded
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Civilian Firearms production is more than 0 or if Civilian Firearms retail is more than 5%. (FIREARM_PROD_MAX_REV_PCT>0) or (FIREARM_RET_MAX_REV_PCT>=5). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
- Gambling avoidance policy
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Gambling is more than 5% (GAM_MAX_REV_PCT>=5). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
- Pornography avoidance policy
[1] Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Adult Entertainment production is more than 1% or if retail or distribution is more than 10% (AE_PROD_MAX_REV_PCT>=1 or AE_MAX_REV_PCT>=10 or AE_DIST_MAX_REV_PCT>=10). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Sustainable, Responsible &/or ESG Policy:
The Portfolio is classified as an Article 8 Fund under the Sustainable Finance Disclosure Regulation (those seeking to promote environmental or social characteristics) . The Portfolio harnesses our full ESG-Enhanced Multi-Asset framework, founded upon four key pillars:
1. Diversification: Maintain Robust Diversification whilst Seeking Positive ESG Outcomes
We believe ESG-Enhanced solutions should not sacrifice diversification through significantly limiting the breadth of asset classes and strategies incorporated, but instead focus upon thoughtful integration of ESG considerations through the selection of and engagement with companies . The Portfolio invests on a truly global basis across a broad range of traditional and alternative asset classes and fundamental and quantitative investment approaches, including Impact Equities and Green, Social & Sustainability Bonds to seek positive outcomes.
2. Integration: Harness Goldman Sachs Asset Management’s Proprietary ESG-Integrated Investment Processes
The Portfolio is 90% invested in actively-managed Goldman Sachs Asset Management strategies, harnessing the proprietary ESG-integrated investment processes and insights of Goldman Sachs Asset Management’s 1,000+ security selection experts, recognising different asset classes have unique characteristics and ESG considerations and require specialist expertise to identify alpha opportunities and mitigate ESG risks
ESG-integrated security selection is undertaken through:
- Quantitative Equity: Implement climate-aware strategies which aim to capture a company’s climate change risks through an integrated quantitative framework which utilizes current Scope 1 and 2 emissions as well as components of Scope 3 emissions (within company supply chains) and future potential company emissions (using fossil fuel reserves).
- Fundamental Equity: Investor-led bottom-up analysis seeking quality companies at a substantial discount to intrinsic value, recognizing sound ESG practices drive value creation and long term performance. Utilizing a proprietary ESG assessment framework and Scorecards to assess a company’s ESG characteristics relative to peers, identify material risks, and enhance valuation analysis.
- Fixed Income: Integrated analysis of ESG factors, assessment of ESG momentum and harnessing proprietary ESG ratings across sovereigns and corporates, with a focus on analyzing downside risks.
3. Alignment: Exclusionary Screens Align Portfolio Holdings to our Goals and Seek to Mitigate Negative Social Impacts
We are committed to aligning with Goldman Sachs’ Firmwide Sustainability goals of Accelerating the Climate Transition and Advancing Inclusive Growth. We implement exclusionary screens across a broad range of factors which we see as inconsistent with the objectives of our ESG-Enhanced Portfolio. This includes revenue and product-based factors, carbon emissions and governance assessments, excluding companies deemed to be ‘Laggards’ on ESG within their industries or which have violated one or more of the United Nations Global Compact Principles (UNGC).
We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio. This issuer-level information is integrated within our portfolio management systems and our proprietary pre- and post-trade compliance system.
4. Engagement: Robust Engagement to Seek to Drive Positive Change
We seek to use our voice as a large, active, manager to drive change. We have a robust, global engagement effort that marries the vision of our dedicated Global Stewardship Team with the expertise of our investment teams:
- Top-down: The Global Stewardship Team focuses on proactive, top-down engagements on our strategic ESG priorities. The Global Stewardship Team holds, tracks, and reports on hundreds of meetings annually. Through these engagements, the Global Stewardship Team aims to promote best practices in ESG, aligned with the three areas of our Focus List:
- Accelerating the Climate Transition
- Driving Inclusive Growth
- Promoting Strong Corporate Governance
- Bottom-up: Our Fundamental Equity and Fixed Income investment specialists conduct bottom-up engagements as part of ongoing company due-diligence, which helps inform valuation analysis and investment decisions as well as seeking to unlock stakeholder value. The Teams regularly engage ~2,000 companies over 10,000+ meetings annually.
We believe diverse teams have the potential to outperform and we expect our portfolio companies to demonstrate diversity at the board-level. We have prioritized diversity in our stewardship efforts, voting against the entire nominating committees of any public company board, globally, with no women.
Process:
Please refer to the Policy section for the ESG process adopted by this fund.
The Framework was established collaboratively by Goldman Sachs Asset Management’s Multi-Asset, Fundamental Equity, Fixed Income and Quantitative Investment Strategies Teams, recognizing certain ESG screens have a more meaningful impact on some asset classes than others given their unique characteristics.
We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio. This issuer-level information is integrated within our portfolio management systems and our proprietary pre- and post-trade compliance system.
Resources, Affiliations & Corporate Strategies:
Governance
At Goldman Sachs Asset Management, the Asset and Wealth Management (AWM) Sustainable Investing (SI) Executive Group leverages the expertise of senior business leaders responsible for global business and investment functions and oversees the overall AWM sustainability strategy and seeks to ensure consistency between public markets, private markets and our wealth management business[1].
With respect to our public markets investment businesses, the Sustainable Investing Oversight Group is responsible for providing oversight of SI methodologies and frameworks, various SI commitments and AWM Public SI policies. In addition, the Public Market Sustainable Investing Leadership Council brings together sustainable investing experts and practitioners to guide implementation of sustainable investing within the investment teams as relevant. The Proxy Voting Council oversees the Public Markets Investing Global Proxy Voting Policy, including sustainable investing-related sections. The Asset Management Public Risk Working Group assesses and proposes mitigation measures for risks related to business activities in Public Markets Investing.
For further details on our management oversight bodies, see our Goldman Sachs Asset and Wealth Management 2022 TCFD report.
Research
Within Goldman Sachs Asset Management, most investment personnel conducting sustainable investment research, focusing on ESG factors in portfolio construction, and driving our stewardship and engagement efforts sit within each of our investment teams. We devote considerable resources to sustainable and impact investing and have over 200 professionals who spend the majority of their time on sustainability related research, portfolio management, stewardship, engineering, and risk management[2].
The Sustainability and Impact Solutions is a dedicated team within Asset and Wealth Management that mobilizes the full range of insights, advisory services, and investment solutions across our client segments.
In Public Markets Investing business, sustainable investment professionals are supported by the Sustainable Investing & Innovation Platform (“SIIP”). Some of the areas of focus of SIIP include enhancing and developing sustainable investing data, tools and analytics, enhancing ESG integration within investment strategies and reporting. Additionally, Public Markets Investing has appointed ESG Leads who are embedded within our asset classes – Equities, Fixed Income, Multi-Asset Solutions, and the External Investing Group.
In Private Markets Investing, the Sustainability & Impact team leads the sustainability strategy for the business. The ESG business leads embedded in the Private Equity, Infrastructure, Private Credit, Real Estate, and Sustainable Investment Group (SIG) businesses are responsible for integrating and implementing, where applicable, sustainability best practices and climate strategy into the investment process for their business unit.
In addition to our efforts within Goldman Sachs Asset Management, within the Executive Office, our Sustainable Finance Group (SFG) serves as the centralized group that drives climate strategy and sustainability efforts across Goldman Sachs. This includes commercial efforts alongside the firm’s businesses — all with the goal of advancing the success of our clients and promoting sustainable, inclusive growth and advancing the climate transition. SFG also engages with our stakeholders to stay abreast of and assist with environmental and social risk management and related guidelines.
Affiliations / Memberships
Goldman Sachs and Goldman Sachs Asset Management seek to build industry influence and promote best practices in ESG and stewardship through various memberships and affiliations. Below, find a select list of our affiliations/memberships:
Goldman Sachs:
- UN PRB – Goldman Sachs has been a signatory to the UN Principles for Responsible Banking (UNPRB) since 2021. UN Principles for Responsible Banking is a platform for partnering with the financial sector to deliver on the Paris Agreement goals. As a member, Goldman Sachs acknowledges the broad, collaborative industry effort required to address climate change. Using this platform to collaborate with our clients, peers, and broader stakeholders, we are committed to setting business-related climate goals.
- NZBA/ GFANZ – Goldman Sachs has been a signatory to the Net Zero Banking Alliance (and GFANZ) since 2021. As an alliance member, Goldman Sachs remains committed to partnering with our clients, industry peers, and policymakers to deliver in the transition to net zero.
- Taskforce on Climate-Related Financial Disclosures (TCFD) – Goldman Sachs has been a supporter of the TCFD since 2018 and published its first report in 2019.
- OS-Climate – In 2021, Goldman Sachs joined as the founding US bank of OS-Climate, a cross-industry coalition and open-source platform for climate data and analytical tools that will be critical for clients to achieve their net zero ambitions.
- CDP – Goldman Sachs has been a signatory to the CDP climate change survey since 2006 and has made our climate change-related disclosures publicly available since 2010. In 2021, to facilitate dialogue with our vendors around their own emissions management programs, we joined CDP Supply Chain as a lead member.
- The Climate Group (RE100, EV100, EP100) – As part of our commitment to advancing renewable energy markets, we were the first US corporate to sign onto all three of The Climate Group’s RE100, EV100 and EP100 programs. These initiatives are focused on, respectively: 100% procurement of electricity from renewables; electric transport; and energy productivity. Additionally, we set a firmwide target of sourcing 100% renewable electricity, which we achieved in 2020.
- WRI Corporate Consultative Group – Since 2014, we have been members of the advisory board for the World Resources Institute’s Corporate Consultative Group
- Climate Finance Leadership Initiative (CFLI) – Goldman Sachs joined the Climate Finance Leadership Initiative as one of the founding member institutions in 2019. CFLI convenes leading companies to mobilize and scale private capital for climate solutions.
Goldman Sachs Asset Management:
- PRI – Goldman Sachs Asset Management has been a signatory to the United Nations Principles of Responsible Investment (UNPRI) since 2011.
- Climate Bonds Initiative – Goldman Sachs Asset Management became a Climate Bonds Initiative Partner in 2015.
- One Planet Sovereign Wealth Fund Framework – Goldman Sachs Asset Management became a member of the Asset Manager Working group within the One Planet Sovereign Wealth Fund Framework in 2018.
- International Capital Market Association (ICMA) – Goldman Sachs Asset Management joined ICMA’s Green, Social & Sustainability Bond Committees in 2019.
- United Nations Development Programme (UNDP) – Goldman Sachs Asset Management joined the UNDP SDG Financing Technical Committee in 2019.
- European Fund and Asset Management Association (EFAMA) – In 2019, Goldman Sachs Asset Management joined the ESG Investment Steering Committee of EFAMA.
- Institutional Investors Group on Climate Change (IIGCC) – Goldman Sachs Asset Management has been a member of the IIGCC since 2019.
- Sustainability Accounting Standards Board (SASB) – Goldman Sachs Asset Management has been a member of SASB since 2018.
- Japan Stewardship Code – Goldman Sachs Asset Management has been a signatory since 2014.
- Singapore Stewardship Principles – Goldman Sachs Asset Management has been a supporter of the Singapore Stewardship Principles since 2016.
- Investor Stewardship Group (ISG) – Goldman Sachs Asset Management became a signatory of the ISG in 2018.
- 30% Club Japan – Goldman Sachs Asset Management became a member of the 30% Club’s Japan Investors Group in February 2020.
- Climate Action 100+ – Goldman Sachs Asset Management became a member of Climate Action 100+ in 2021.
- UK Stewardship Code – Signatory to the 2020 UK Stewardship Code, previously a signatory to the 2012 code.
- Asia Corporate Governance Association (ACGA) – Goldman Sachs Asset Management joined the ACGA in 2022 and is a member of the China Working Group.
- Council of Institutional Investors – We have been a member since 2017 and hold a seat on their Corporate Governance Advisory Council
- ESG Disclosure Study Group – We became a founding member of the EDSG in June 2020. EDSG is a Japan-based organization focused on carrying out research related to ESG information disclosure best practices to enhance corporate value and growth as well as the sustainable development of society.
- International Corporate Governance Network (ICGN) – We became a member of the ICGN in January 2020. Established in 1995 as an investor-led organization, the ICGN’s mission is to promote effective standards of corporate governance and investor stewardship to advance efficient markets and sustainable economies worldwide.
- Japan Stewardship Initiative – We are part of the steering committee.
- EDCI: Goldman Sachs Asset Management signed onto the Institutional Limited Partners Association (ILPA) ESG Data Convergence Project in 2021, which convenes leading GPs and LPs in an effort to standardize ESG data collection in the private equity sector.
- GRESB: The Goldman Sachs Asset Management Infrastructure team has worked with some of our portfolio companies to submit a report to GRESB in 2023.
Key Sustainability Individuals:
- John Goldstein, Global Head of Sustainability and Impact Solutions, Client Solutions Group
- Valentijn van Nieuwenhuijzen, Global Head of Sustainability for Public Investing and Co-Head of Multi-Asset Solutions
- Letitia Webster, Global Head of Sustainability for Private Investing
The Global Stewardship Team is led by Catherine Winner and has an additional 10 members located in New York, Tokyo, and London[3]. The team is further supported by the broader Goldman Sachs Asset Management platform, that includes coordination among legal, compliance, and operations.
[1] For illustrative purposes only. ESG information, whether from an external and/or internal source, is, by nature and in many instances, based on a qualitative and subjective assessment. An element of subjectivity and discretion is therefore inherent to the interpretation and use of ESG data. The relevance and weightings of specific ESG factors to or within the investment process vary across asset classes, sectors and strategies and no one factor or consideration is determinative. Goldman Sachs Asset Management in its sole discretion and without notice may periodically update or change the process for conducting its ESG assessments and implementation of its ESG views in portfolios, including the format and content of such analysis and the tools and/or data used to perform such analysis.
[2] As of 31 December 2023. This figure is at a point in time and is subject to change over time. Figures are related to Goldman Sachs’ professionals at the organizational level and include individuals deemed to spend approximately 80% or more of their time on sustainability related research, portfolio management, stewardship, engineering, and/or risk management. The majority of professionals are not dedicated to nor support any specific investment team or product.
[3]As of December 2023, and subject to change at any time.
Dialshifter
This fund is helping to ‘shift the dial from brown to green’ by…
… The GS Global Multi-Asset ESG Enhanced Balanced Portfolio aligns with the key criteria for the search. Namely the fund seeks to deliver[1] strong long-term risk adjusted returns by investing across a broad range of liquid traditional and alternative asset classes within a risk budget of between 8-9% volatility. The fund is primarily directly invested into individual securities and has strong ESG integration throughout the process.
The Portfolio applies a unified, consistent framework implementing the same ESG exclusions across all active direct investments in the Portfolio, providing transparency to investors. The thresholds have been developed through close collaboration across asset class specialist teams to ensure that they are thoughtfully designed to both align closely to our ESG beliefs whilst seeking to mitigate structural biases, such as sector concentrations, or significantly impairing our opportunity to generate security selection alpha.
[1] There is no guarantee that objectives will be met.
Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by...
Goldman Sachs remains committed to support the goals of the Paris Agreement, which includes aligning our business with a net zero by 2050 pathway. In 2009, we established a commitment to achieve carbon neutrality in our operations by 2020, which we achieved in 2015 and maintained annual since. Beyond this, Goldman Sachs also continues to manage its operations according to our Environmental Policy Framework, working toward a set of ambitious 2025 operational targets. These targets range from reducing energy intensity by 20% (2017 baseline) for offices under operational control, to reducing internal paper use per capita by 30% (2017 baseline), to achieving a 20% reduction in water use for all new construction and major renovation projects[1]. Please refer to our Goldman Sachs Sustainability Report for additional information.
In 2019, Goldman Sachs announced the 10-year, $750 billion sustainable finance commitment to support the increasing demand for sustainable finance solutions across our financing, investing, and advisory work with clients. We took this step because we saw that climate transition and inclusive growth were increasingly central issues for markets and economies. Since setting this 10-year goal, we’ve achieved approximately $425 billion[1] in commercial activity, including $215 billion in climate transition, $67 billion in inclusive growth and the remainder in multiple themes.[2]
In Goldman Sachs 2021 TCFD report, we shared an initial set of targets for 2030 for three sectors: Energy, Power and Auto Manufacturing. These sectors reflected where we saw the greatest opportunity to proactively engage with our clients, deploy capital required for the transition, and invest in new commercial solutions to support transition to the low-carbon economy. The Goldman Sachs 2023 TCFD Report provides an update on our 2030 sectoral targets. The table below shows the intensities of our 2021 financing portfolios. We are reporting 2021 data as that is the most current year of data that exists for company-reported intensities, vendor production data, and vendor estimates of company emissions. In 2024, we plan to provide another update on progress toward our 2030 sectoral targets as well as assess and set targets for additional carbon-intensive sectors. We also plan to provide other disclosures as related regulatory guidance is finalized.
[1] As of 12/31/22
[2] Multi-theme includes activity relating to both Climate Transition and Inclusive Growth
[1] The track record information and operational commitments on this page also relate to Goldman Sachs’s sustainability practices and track record at an organizational and investment team level, which may not be reflected in the portfolio of the product(s). Firmwide sustainability goals are not binding characteristics of specific products. There is no guarantee that any particular ESG objective will be pursued or met with respect to any particular product.
SDR Labelling: Not eligible to use label
Key Performance Indicators:
While the portfolio does not have as its objective[1] a sustainable investment, the portfolio commits to a minimum of 5% in sustainable investments, and currently is exceeding 20%. Under normal circumstances it is generally expected that the asset allocation planned for this Portfolio may have 70% of net assets which is aligned (through the adoption of a framework on such allocations) to the environmental and/or social characteristics promoted by this Portfolio, as noted above, and up to 30% of net assets may be held in other investments including securities, financial derivative instruments (such as equity and bond futures, currency forwards, options), exchange traded funds and other mutual funds which do not apply environmental, social and governance considerations as part of their investment policy.
[1] There is no guarantee that objectives will be met.
Voting Record
| Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
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Goldman Sachs ESG Enhanced Global Multi-Asset Balanced Portfolio |
Unclassified | Not eligible to use label | SICAV/Offshore | Global | Mixed Asset | 30/06/2014 | Oct 2024 | |
ObjectivesThe Portfolio seeks total returns[1] consisting of income and capital appreciation by investing primarily in global equity and fixed income securities. As part of its investment process, certain directly held transferable securities are excluded from the Portfolio based on the application of certain ESG criteria.
[1] There is no guarantee that objectives will be met.
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Fund Size: £165.70m (as at: 30/04/2024) Total Responsible Ownership Assets: £197907.75m (as at: 31/12/2023) Total Assets Under Management: £1565876.88m (as at: 31/03/2024) ISIN: LU1057462290, LU1057462530 Contact Us: Alexander.mcsorley@gs.com |
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Sustainable, Responsible &/or ESG OverviewThe Portfolio is classified as an Article 8 Fund under SFDR and harnesses our full ESG-Enhanced Multi-Asset framework, founded upon:
Engagement by combining Goldman Sachs Asset Management’s Global Stewardship effort with ongoing bottom-up company engagement.
[1] Diversification does not protect an investor from market risk and does not ensure a profit. [2] Screens are applied to active, direct investments only.
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Primary fund last amended: Oct 2024 |
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Information received directly from Fund Manager |
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Fund FiltersSustainability - General
Encourage more sustainable practices through stewardship
A core element of these funds aim to encourage higher sustainability standards across business practices through responsible ownership / stewardship / engagement / voting activity
UN Global Compact linked exclusion policy
Find funds that use the UN Global Compact to inform or help direct where they can or cannot invest and will typically not invest in companies with significant breaches (low standards) - although strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/ Environmental - General
Limits exposure to carbon intensive industries
Funds that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change. Funds vary - some funds may be 'underweight' in this area which means they may have some investment in highly carbon intensive areas. Funds of this kind may choose companies they consider to be 'best in sector' and encourage ever higher standards. Strategies vary. See fund information for further details. Nature & Biodiversity
Deforestation / palm oil policy
Find funds that have policies in place designed to ensure they do not invest in companies that are significantly involved in deforestation. This typically relates to palm oil plantations where biodiversity loss is a major concern (as well as other issues). Strategies vary. See fund information for further detail.
Responsible palm oil policy
Fund has a responsible palm oil policy which is likely to focus on the producers of palm oil and deforestation issues with a view to informing investment decisions (and / or engagement) to support and encourage high standards. Climate Change & Energy
Coal, oil & / or gas majors excluded
Funds that avoid investing in major coal, oil and/or gas (extraction) companies. Funds vary: some may exclude all companies that extract oil. Others may have exposure to oil extraction via more diversified energy companies. See fund literature to confirm details.
Fracking and tar sands excluded
Funds that avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary. See fund information for further information.
Arctic drilling exclusion
Funds that avoid companies that are involved in extracting oil from the Arctic regions. See fund literature for further details.
Encourage transition to low carbon through stewardship activity
A core element of these funds will aim to encourage the transition to lower carbon activities through responsible ownership / stewardship / engagement / voting activity
Invests in clean energy / renewables
Funds that hold companies in the clean energy and renewable energy sectors (at the time research was supplied). Fund strategies vary, in particular the proportion of investment in these areas may vary significantly. Check fund literature for details.
Nuclear exclusion policy
Find funds that have policies which say they avoid or limit their investment in the nuclear industry. Strategies vary. See fund information for further detail. Social / Employment
Social policy
Find funds that have policies which set out their approach to social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact). Funds with social policies typically avoid companies with low standards or work to encourage higher standards. See fund information for detail. Ethical Values Led Exclusions
Tobacco and related product manufacturers excluded
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Armaments manufacturers avoided
Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details.
Civilian firearms production exclusion
Find funds with a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.
Gambling avoidance policy
Find funds that avoid companies with significant involvement in the gambling industry. Some funds may allow a small proportion of profits to come from this area. See fund policy for further details.
Pornography avoidance policy
Find funds that avoid companies that derive significant income from pornography and related areas. Strategies vary. See fund details for further information. Banking & Financials
Predatory lending exclusion
Fund excludes financial services companies with widely criticised, aggressive lending practices where interest rates are typically very high, includes ‘doorstep lending’) Governance & Management
Governance policy
Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information.
UN sanctions exclusion
Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list
Encourage board diversity e.g. gender
Fund managers encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Encourage higher ESG standards through stewardship activity
A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity Fund Governance
ESG integration strategy
Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature. Asset Size
Over 50% large cap companies
Find funds that invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
Invests in small, mid and large cap companies / assets
Find a fund that invests in a combination of small, medium and larger (potentially multinational)companies.
Invests mostly in large cap companies / assets
Find funds that have SRI strategies and focus their investment stock selection on larger companies. (e.g. over circa £5-£10bn) Impact Methodologies
Aims to generate positive impacts (or 'outcomes')
Funds that aim to help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary. See fund literature for further information. How The Fund Works
Negative selection bias
Find funds where their main 'ethical approach' is to avoid companies by using negative screening criteria. Read fund literature for further information.
ESG weighted / tilt
Find funds that invest more heavily in those that have higher ESG ratings/standards or scores and less heavily in companies with lower ESG ratings. Where this is central to a fund's strategy you should expect it to invest in most sectors. Strategies vary.
Balances company 'pros and cons' / best in sector
Find funds that consider both the 'positive' and 'negative' aspects of company behaviour and make balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
Norms focus
Find funds that use internationally agreed standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact, UN Sustainable Development Goals). Read fund literature for further information.
SRI / ESG / Ethical policies explained on website
Find funds that have published explanations of their ethical, social and/or environmental policies online (i.e. fund decision making strategies/ buy/sell &/or asset management strategies). Intended Clients & Product Options
Intended for investors interested in sustainability
Finds funds designed to meet the needs of individual investors with an interest in sustainability issues. Labels & Accreditations
SFDR Article 8 fund / product (EU)
Finds funds classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics with high governance also. These rules do not currently apply to UK funds so many managers may leave this field blank. Fund Management Company InformationAbout The Business
Responsible ownership / stewardship policy or strategy (AFM company wide)
Finds fund management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
ESG / SRI engagement (AFM company wide)
Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Vote all* shares at AGMs / EGMs (AFM company wide)
Find fund managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)
SDG aligned aims / objectives (AFM company wide)
Find fund management companies that aim to align all their investments (across all funds) to help meet the aims of the UN Sustainable Development Goals.
In-house diversity improvement programme (AFM company wide)
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Diversity, equality & inclusion engagement policy (AFM company wide)
Find fund management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide). Collaborations & Affiliations
PRI signatory
Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'. Resources
In-house responsible ownership / voting expertise
Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Employ specialist ESG / SRI / sustainability researchers
Find a fund management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Use specialist ESG / SRI / sustainability research companies
Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
ESG specialists on all investment desks (AFM company wide)
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types) Accreditations
UK Stewardship Code signatory (AFM company wide)
Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave like responsible, typically longer term 'company owners'. Engagement Approach
Regularly lead collaborative ESG initiatives (AFM company wide)
Find fund management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Encourage responsible corporate taxation (AFM company wide)
Find fund management companies that are working with the companies they invest in to encourage more responsible corporate taxation.
Engaging on climate change issues
Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Engaging with fossil fuel companies on climate change
Asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.
Engaging to reduce plastics pollution / waste
Asset manager has stewardship /responsible ownership strategy with involves encouraging investee asset to reduce plastic waste and pollution.
Engaging to encourage responsible mining practices
Asset manager has a stewardship / responsible ownership policy that means they are working to encourage more responsible mining practices - where environmental and social issues are properly dealt with by the companies they invest in.
Engaging on biodiversity / nature issues
The asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Engaging to encourage a Just Transition
Asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/
Engaging on human rights issues
Asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Engaging on labour / employment issues
Asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)
Engaging on diversity, equality and / or inclusion issues
Asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
Engaging to stop modern slavery
working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.
Engaging on governance issues
Fund managers have stewardship strategies in place that focus on improving governance standards across investee assets
Engaging on mental health issues
Asset manager has stewardship strategy in place which involves discussing mental health issues with investee companies - with the aim of raising standards
Engaging on responsible supply chain issues
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards
Engaging on the responsible use of AI
Working to address sustainability, ESG and related concerns around artificial intelligence. Climate & Net Zero Transition
Voting policy includes net zero targets (AFM company wide)
Fund manager AGM / EGM voting strategy has processes in place that mean they will normally be expected to vote in a way that will encourage the transition to net zero greenhouse gas emissions.
Net Zero - have set a Net Zero target date (AFM company wide)
This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Encourage carbon / greenhouse gas reduction (AFM company wide)
Find fund management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
Carbon transition plan published (AFM company wide)
Finds organisations / fund managers that have a company wide carbon transition plan - meaning that they have plotted a path to how they will move away from activities that produce or use carbon based energy sources (that emit greenhouse gases) towards clean, alternative, renewable energy sources.
‘Forward Looking Climate Metrics’ published / ITR (AFM company wide)
Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.
In-house carbon / GHG reduction policy (AFM company wide)
Find fund management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.
Working towards a ‘Net Zero’ commitment (AFM company wide)
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'.
Committed to SBTi / Science Based Targets Initiative
See https://sciencebasedtargets.org/ Transparency
Publish responsible ownership / stewardship report (AFM company wide)
Find fund management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Full SRI / responsible ownership policy information on company website
Find companies that publish information about their sustainable and responsible investment strategies on their company website.
Full SRI / responsible ownership policy information available on request
Find fund management companies that will supply information about their sustainable and responsible investment activity on request.
Publish full voting record (AFM company wide)
Fund management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.
Sustainability transition plan publicly available (AFM company wide)
This asset management company has published a plan that explains how they are to become a sustainable business - without significant negative environmental or social impacts.
Paris Alignment plan publicly available (AFM company wide)
This asset management company has published a plan that explains how they will align to the climate change commitments made at the Paris Climate Talks, COP21.
Net Zero transition plan publicly available (AFM company wide)
This asset management company has published a plan that explains how they are going to achieve net zero greenhouse gas / CO2e emissions.
Dialshifter statement
Find fund management companies that have supplied Dialshifter information. See Dialshifter tab within record for more information. CommentsPLEASE NOTE:
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from-
We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Oil Sands extraction is more than 5% (OIL_SANDS_MAX_REV_PCT>=5). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from-
Implemented using exclusionary MSCI screen with the following criteria: exclude if carbon emissions are higher than 10000 f (tCO2/mm$ sales). (CARBON_EMISSIONS_SCOPE_12_INTEN >10000). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Implemented using exclusionary MSCI screen with the following criteria: exclude if fails to comply with UNGC (UNGC_COMPLIANCE=Fail). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Nuclear Weapons is more than 5% (WEAP_NUC_MAX_REV_PCT>=5). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Palm Oil is more than 5% (PALM_PROD_MAX_REV_PCT>=5). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Implemented using exclusionary MSCI screen with the following criteria: exclude if f percentage revenue generated from Palm Oil production is greater than or equal to 5% (PALM_PROD_MAX_REV_PCT)
Implemented using exclusionary MSCI screen with the following criteria: exclude if f percentage revenue generated from Predatory Lending is more than 1% (PRED_LEND_MAX_REV_PCT>=1%) or For-Profit Prisons is more than 0 (FOR_PROFIT_PRISONS_MAX_REV_PCT>0). This is in addition to the screens applied on Adult Entertainment, Gambling, Tobacco Production and Civilian Firearms. We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Tobacco production or Tobacco Retail is more than 10% (TOB_PROD_MAX_REV_PCT>=10 or TOB_RET_MAX_REV_PCT>=10). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Implemented using exclusionary MSCI screen with the following criteria: exclude if there is any tie with Controversial Weapons Production including Biological/Chemical, Cluster Munitions, Blinding Laser, Depleted Uranium, Incendiary, Landmines, Non-detectable Fragments (CWEAP_TIE = True). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Civilian Firearms production is more than 0 or if Civilian Firearms retail is more than 5%. (FIREARM_PROD_MAX_REV_PCT>0) or (FIREARM_RET_MAX_REV_PCT>=5). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Gambling is more than 5% (GAM_MAX_REV_PCT>=5). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
[1] Implemented using exclusionary MSCI screen with the following criteria: exclude if percentage revenue generated from Adult Entertainment production is more than 1% or if retail or distribution is more than 10% (AE_PROD_MAX_REV_PCT>=1 or AE_MAX_REV_PCT>=10 or AE_DIST_MAX_REV_PCT>=10). We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio.
Sustainable, Responsible &/or ESG Policy:The Portfolio is classified as an Article 8 Fund under the Sustainable Finance Disclosure Regulation (those seeking to promote environmental or social characteristics) . The Portfolio harnesses our full ESG-Enhanced Multi-Asset framework, founded upon four key pillars:
We believe ESG-Enhanced solutions should not sacrifice diversification through significantly limiting the breadth of asset classes and strategies incorporated, but instead focus upon thoughtful integration of ESG considerations through the selection of and engagement with companies . The Portfolio invests on a truly global basis across a broad range of traditional and alternative asset classes and fundamental and quantitative investment approaches, including Impact Equities and Green, Social & Sustainability Bonds to seek positive outcomes.
The Portfolio is 90% invested in actively-managed Goldman Sachs Asset Management strategies, harnessing the proprietary ESG-integrated investment processes and insights of Goldman Sachs Asset Management’s 1,000+ security selection experts, recognising different asset classes have unique characteristics and ESG considerations and require specialist expertise to identify alpha opportunities and mitigate ESG risks ESG-integrated security selection is undertaken through:
We are committed to aligning with Goldman Sachs’ Firmwide Sustainability goals of Accelerating the Climate Transition and Advancing Inclusive Growth. We implement exclusionary screens across a broad range of factors which we see as inconsistent with the objectives of our ESG-Enhanced Portfolio. This includes revenue and product-based factors, carbon emissions and governance assessments, excluding companies deemed to be ‘Laggards’ on ESG within their industries or which have violated one or more of the United Nations Global Compact Principles (UNGC).
4. Engagement: Robust Engagement to Seek to Drive Positive Change We seek to use our voice as a large, active, manager to drive change. We have a robust, global engagement effort that marries the vision of our dedicated Global Stewardship Team with the expertise of our investment teams:
We believe diverse teams have the potential to outperform and we expect our portfolio companies to demonstrate diversity at the board-level. We have prioritized diversity in our stewardship efforts, voting against the entire nominating committees of any public company board, globally, with no women. Process:Please refer to the Policy section for the ESG process adopted by this fund. The Framework was established collaboratively by Goldman Sachs Asset Management’s Multi-Asset, Fundamental Equity, Fixed Income and Quantitative Investment Strategies Teams, recognizing certain ESG screens have a more meaningful impact on some asset classes than others given their unique characteristics. We use MSCI Third Party Data to apply the screens consistently across all active directly held transferable securities in the Portfolio. This issuer-level information is integrated within our portfolio management systems and our proprietary pre- and post-trade compliance system. Resources, Affiliations & Corporate Strategies:Governance At Goldman Sachs Asset Management, the Asset and Wealth Management (AWM) Sustainable Investing (SI) Executive Group leverages the expertise of senior business leaders responsible for global business and investment functions and oversees the overall AWM sustainability strategy and seeks to ensure consistency between public markets, private markets and our wealth management business[1].
With respect to our public markets investment businesses, the Sustainable Investing Oversight Group is responsible for providing oversight of SI methodologies and frameworks, various SI commitments and AWM Public SI policies. In addition, the Public Market Sustainable Investing Leadership Council brings together sustainable investing experts and practitioners to guide implementation of sustainable investing within the investment teams as relevant. The Proxy Voting Council oversees the Public Markets Investing Global Proxy Voting Policy, including sustainable investing-related sections. The Asset Management Public Risk Working Group assesses and proposes mitigation measures for risks related to business activities in Public Markets Investing.
For further details on our management oversight bodies, see our Goldman Sachs Asset and Wealth Management 2022 TCFD report.
Research Within Goldman Sachs Asset Management, most investment personnel conducting sustainable investment research, focusing on ESG factors in portfolio construction, and driving our stewardship and engagement efforts sit within each of our investment teams. We devote considerable resources to sustainable and impact investing and have over 200 professionals who spend the majority of their time on sustainability related research, portfolio management, stewardship, engineering, and risk management[2].
The Sustainability and Impact Solutions is a dedicated team within Asset and Wealth Management that mobilizes the full range of insights, advisory services, and investment solutions across our client segments.
In Public Markets Investing business, sustainable investment professionals are supported by the Sustainable Investing & Innovation Platform (“SIIP”). Some of the areas of focus of SIIP include enhancing and developing sustainable investing data, tools and analytics, enhancing ESG integration within investment strategies and reporting. Additionally, Public Markets Investing has appointed ESG Leads who are embedded within our asset classes – Equities, Fixed Income, Multi-Asset Solutions, and the External Investing Group.
In Private Markets Investing, the Sustainability & Impact team leads the sustainability strategy for the business. The ESG business leads embedded in the Private Equity, Infrastructure, Private Credit, Real Estate, and Sustainable Investment Group (SIG) businesses are responsible for integrating and implementing, where applicable, sustainability best practices and climate strategy into the investment process for their business unit.
In addition to our efforts within Goldman Sachs Asset Management, within the Executive Office, our Sustainable Finance Group (SFG) serves as the centralized group that drives climate strategy and sustainability efforts across Goldman Sachs. This includes commercial efforts alongside the firm’s businesses — all with the goal of advancing the success of our clients and promoting sustainable, inclusive growth and advancing the climate transition. SFG also engages with our stakeholders to stay abreast of and assist with environmental and social risk management and related guidelines.
Affiliations / Memberships Goldman Sachs and Goldman Sachs Asset Management seek to build industry influence and promote best practices in ESG and stewardship through various memberships and affiliations. Below, find a select list of our affiliations/memberships:
Goldman Sachs:
Goldman Sachs Asset Management:
Key Sustainability Individuals:
The Global Stewardship Team is led by Catherine Winner and has an additional 10 members located in New York, Tokyo, and London[3]. The team is further supported by the broader Goldman Sachs Asset Management platform, that includes coordination among legal, compliance, and operations.
[1] For illustrative purposes only. ESG information, whether from an external and/or internal source, is, by nature and in many instances, based on a qualitative and subjective assessment. An element of subjectivity and discretion is therefore inherent to the interpretation and use of ESG data. The relevance and weightings of specific ESG factors to or within the investment process vary across asset classes, sectors and strategies and no one factor or consideration is determinative. Goldman Sachs Asset Management in its sole discretion and without notice may periodically update or change the process for conducting its ESG assessments and implementation of its ESG views in portfolios, including the format and content of such analysis and the tools and/or data used to perform such analysis. [2] As of 31 December 2023. This figure is at a point in time and is subject to change over time. Figures are related to Goldman Sachs’ professionals at the organizational level and include individuals deemed to spend approximately 80% or more of their time on sustainability related research, portfolio management, stewardship, engineering, and/or risk management. The majority of professionals are not dedicated to nor support any specific investment team or product. [3]As of December 2023, and subject to change at any time. DialshifterThis fund is helping to ‘shift the dial from brown to green’ by… … The GS Global Multi-Asset ESG Enhanced Balanced Portfolio aligns with the key criteria for the search. Namely the fund seeks to deliver[1] strong long-term risk adjusted returns by investing across a broad range of liquid traditional and alternative asset classes within a risk budget of between 8-9% volatility. The fund is primarily directly invested into individual securities and has strong ESG integration throughout the process. The Portfolio applies a unified, consistent framework implementing the same ESG exclusions across all active direct investments in the Portfolio, providing transparency to investors. The thresholds have been developed through close collaboration across asset class specialist teams to ensure that they are thoughtfully designed to both align closely to our ESG beliefs whilst seeking to mitigate structural biases, such as sector concentrations, or significantly impairing our opportunity to generate security selection alpha.
[1] There is no guarantee that objectives will be met.
Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by... Goldman Sachs remains committed to support the goals of the Paris Agreement, which includes aligning our business with a net zero by 2050 pathway. In 2009, we established a commitment to achieve carbon neutrality in our operations by 2020, which we achieved in 2015 and maintained annual since. Beyond this, Goldman Sachs also continues to manage its operations according to our Environmental Policy Framework, working toward a set of ambitious 2025 operational targets. These targets range from reducing energy intensity by 20% (2017 baseline) for offices under operational control, to reducing internal paper use per capita by 30% (2017 baseline), to achieving a 20% reduction in water use for all new construction and major renovation projects[1]. Please refer to our Goldman Sachs Sustainability Report for additional information. In 2019, Goldman Sachs announced the 10-year, $750 billion sustainable finance commitment to support the increasing demand for sustainable finance solutions across our financing, investing, and advisory work with clients. We took this step because we saw that climate transition and inclusive growth were increasingly central issues for markets and economies. Since setting this 10-year goal, we’ve achieved approximately $425 billion[1] in commercial activity, including $215 billion in climate transition, $67 billion in inclusive growth and the remainder in multiple themes.[2] In Goldman Sachs 2021 TCFD report, we shared an initial set of targets for 2030 for three sectors: Energy, Power and Auto Manufacturing. These sectors reflected where we saw the greatest opportunity to proactively engage with our clients, deploy capital required for the transition, and invest in new commercial solutions to support transition to the low-carbon economy. The Goldman Sachs 2023 TCFD Report provides an update on our 2030 sectoral targets. The table below shows the intensities of our 2021 financing portfolios. We are reporting 2021 data as that is the most current year of data that exists for company-reported intensities, vendor production data, and vendor estimates of company emissions. In 2024, we plan to provide another update on progress toward our 2030 sectoral targets as well as assess and set targets for additional carbon-intensive sectors. We also plan to provide other disclosures as related regulatory guidance is finalized.
[1] As of 12/31/22 [2] Multi-theme includes activity relating to both Climate Transition and Inclusive Growth [1] The track record information and operational commitments on this page also relate to Goldman Sachs’s sustainability practices and track record at an organizational and investment team level, which may not be reflected in the portfolio of the product(s). Firmwide sustainability goals are not binding characteristics of specific products. There is no guarantee that any particular ESG objective will be pursued or met with respect to any particular product. SDR Labelling: Not eligible to use label Key Performance Indicators: While the portfolio does not have as its objective[1] a sustainable investment, the portfolio commits to a minimum of 5% in sustainable investments, and currently is exceeding 20%. Under normal circumstances it is generally expected that the asset allocation planned for this Portfolio may have 70% of net assets which is aligned (through the adoption of a framework on such allocations) to the environmental and/or social characteristics promoted by this Portfolio, as noted above, and up to 30% of net assets may be held in other investments including securities, financial derivative instruments (such as equity and bond futures, currency forwards, options), exchange traded funds and other mutual funds which do not apply environmental, social and governance considerations as part of their investment policy.
[1] There is no guarantee that objectives will be met. Voting Record |
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