Goldman Sachs launches new carbon footprint analytics application

Clients will now be able to analyse their carbon footprint across key carbon metrics including scope 1 and 2 carbon emissions, carbon intensity levels and net zero commitments.

Goldman Sachs has launched a carbon footprint analytics application that will enable clients to measure and manage the carbon emissions exposure in their public equity and corporate bond portfolios.

The new application is now available on Goldman Sachs’ digital marketplace for institutional investors – Marquee – which offers research, data and analytics, trade execution, index solution and prime services.

The carbon footprint of Goldman Sachs’ clients’ portfolios can now be analysed across key carbon metrics including scope 1 and 2 carbon emissions, carbon intensity levels and net zero commitments.

According to Goldman Sachs, the analytics have been defined in line with global standards such as Task Force on Climate-Related Financial Disclosures (TCFD) and the EU’s Sustainable Finance Disclosure Regulation (SFDR).

The analytics are also said to continue to evolve with industry development.

Alongside providing data related to carbon emissions, Marquee’s Carbon Portfolio Analytics offering provides tools and analytics that will enable clients to understand, from a carbon perspective, their portfolio risks and opportunities.

These insights will help clients make informed investment decisions that work toward achieving their de-carbonisation goals or net zero objectives.

“The path to de-carbonisation requires not just the right intentions, but good data and analytics to help manage and measure progress,” said Sarah Lawlor, chief operating officer of Goldman Sachs’ global markets sustainable solutions council.

“Many of our clients have made commitments to transition their investment portfolios to net zero emissions over time. To deliver positive results for investors and the planet, and manage risk appropriately, Goldman Sachs’ Global Markets Division is equipping their clients with relevant insights, analytics and solutions.”

By using Goldman Sachs’ carbon solution, institutional investors will also be able to compare carbon emissions against a chosen benchmark, giving insight into the main contributors by sector, industry and region.

In addition, carbon intensity levels of different companies will be able to be compared.

“Both GS and many of our clients strongly believe that the financial services industry must play a pivotal role in building a sustainable future”, said Anne Marie Darling, head of Marquee Distribution.

“Enabling our clients to make more environmentally accountable decisions, and commit capital accordingly, is an essential and urgently required next step in the global response. Marquee empowers our clients with robust analytics to measure and manage their risk. Through Carbon Portfolio Analytics we now allow clients to access these analytics through the critical lens of the carbon footprint.”