Goldman Sachs Group drafted plans on Monday to put money and advice toward ventures that fight climate change or help financially backward people, with executives arguing it isn’t only the right thing to do, however, it can generate income.
The Wall Street bank set a lofty-sounding target of $750 billion. The figure is a blend of loans, underwriting, advisory services, and investments related to tasks Goldman expects to be involved with by 2030.
It reflects the overall size of loans, offers, and other arrangements Goldman expects to carry out as a bank or middleman with companies and ventures targeted on renewable energy, sustainable transportation, affordable schooling, and several different areas, the bank stated.
Goldman further implemented an official ban on financing specific drilling and coal activities.
The moves come as pressure from activists and a few traders have increased globally on banks’ activities financing fossil fuels or other sectors that have come into the political crosshairs, like gun makers. Banks have further confronted more scrutiny over their role in increasing economic disparity by catering to wealthy clients while ignoring patrons who need access to financial services to improve their lives.
Goldman catered virtually entirely to the elite until it was forced to rethink its enterprise model in the aftereffects of the great depression of 2008. In recent times, management determined to launch a retail bank and has tried to spruce up Goldman’s image among Main Street consumers.
On a call with reporters, Goldman personnel declined to break down specifics about the $750 billion target in terms of revenue or the bank’s exposure. They stated it is going to be dependent on market forces, making it arduous to predict.