Goldman Sachs Group Inc said it would work with clients in three areas to reduce carbon emissions substantially by 2030, as it revealed new details about its approach to countering climate change in a report released on Thursday.
The bank said it would initially focus on oil and gas, power and auto manufacturing, aiming to reduce emissions in those high-emissions sectors by 2030. Starting with a baseline of 2019 levels, it said it would help oil and gas clients reduce emissions by 17-22%, power by 48-65% and autos by 49-54%.
Goldman said it would consider the use of carbon credits when it can verify that they are of high quality to achieve those goals. Other banks including JPMorgan Chase & Co and Morgan Stanley have set similar targets.
The targets are a sign of how banks are ramping up pressure on clients to reduce emissions as the industry comes under increasing pressure globally to cut off financing for industries such as coal that harm the environment.
“As a financial institution, we believe the most meaningful role we can play in the global climate transition is to drive decarbonization in the real economy in partnership with our clients,” Chief Executive David Solomon said in the report.
