c

  

   
 2008

 2



‡Investment banking

‡Investment management

‡Trading and Principal Investments

‡Mergers and acquisitions advice

‡Financial services with institutional clients

‡Asset Management and Securities Services

  




Providing value-added management solutions

for GS clients¶ investment



Extend the range of GS professional

competencies to reflect the demands of a
more diversified service and to support speed
and flexibility of response

Learning organization by bringing all the GS

disciplines together to create the best possible
solutions
  

‡ Our client¶s interests come first
‡ We stress teamwork in
‡ Our assets are our people, everything we do
capital and reputation
‡ We consider our size an asset
‡ Our goal is to provide superior that we try hard to preserve
returns to our shareholders
‡ Integrity and honesty are at the
‡ We take great pride in the heart of our business
professional quality of our work
‡ Receive confidential
‡ We stress creativity and information as part of our
imagination in everything we normal client relationships
do
  


‡ Identify and recruit the very best person for every job

‡ Offer GS people the opportunity to move ahead more rapidly than is

possible at most other firms

‡ The dedication of GS people to the firm and the intense effort they
give their jobs are greater than one finds in most other organizations

‡ Anticipate the rapidly changing needs of our clients and to develop

new services to meet those needs

‡ Aggressively seek to expand client relationships

 ï


Goldman Sachs is the 9th best company to work for
(fortune.com)


‡14,088 in U.S.
‡12,568 outside U.S.
‡Minorities 36%
‡Women 37%

Pays over 14 billion US$ in taxes each year

 




‡climate change is one of the greatest
environmental challenges of the 21st
century

‡voluntary action alone cannot solve

the climate change problem

‡capital markets can and should play

an important role in creating
opportunities to address today¶s
environmental challenges

‡government can help the markets by

establishing a strong policy framework
 




Minimizing the impact of Goldman Sachs
own operations

Training stuff

Supporting the development of market-

making and investment opportunities in
environmental markets such as:

‡ emissions trading, renewable energy credits

and other climate-related commodities
‡renewable energy, alternative fuels and
energy efficiency
‡natural resource and ecosystem
management and services
‡other innovative, environmentally friendly
technologies
 (




•
 
‡Establishing the Goldman Sachs Center for Environmental Markets

‡More than $2 billion in (2005-2008)

‡Began integrating green building standards into new construction

and renovation of Goldman Sachs facilities worldwide

‡Renewed the alliance with the Wildlife Conservation Society and

continued our support for the conservation and preservation of native
ecosystems in Karukinka on the island of Tierra del Fuego, Chile
2008








 


Make available up to $1 billion for
renewable energy and energy
efficiency investments


 

At year-end, Goldman Sachs¶
investments in clean technology and
sustainable development totaled more
than $2.5 billion since the adoption of
The Framework
 







 


To seek to create new business opportunities that benefit the
environment, create long-term value for our shareholders and serving the
long-term interests of our clients.


 

In September 2008, Goldman Sachs Asset Management (GSAM)
launched the Goldman Sachs Sustain Portfolio, an innovative global
equity fund based on the 2ï focus list. The fund provides
investors with access to fundamental investment opportunities ensuing
from the structural changes reshaping the world economy.
 2ï 

 



 






 

 
 2



 


To act as a market maker in emissions trading, weather derivatives,
renewable energy credits and other climate-related commodities, and
look for ways to promote the development of these markets.


  

We continue to strengthen our leadership position in the carbon markets
through strategic alliances with carbon offset companies Blue Source
and E+Co. During 2008, we also placed more than $1.4 billion in
catastrophe-linked securities to address risks of hurricanes and other
natural catastrophes.
 å
 

  


We recognize that an effective environmental policy begins with
minimizing the impact of our own operations. Accordingly, we are
committed to adopting leading-edge environmental safeguards
throughout our facilities and business practices.


 

We continued to implement initiatives under our global carbon
emissions reduction framework and to purchase direct renewable
energy as appropriate to help mitigate the carbon footprint of our
operations. From 2006 to 2007 we reduced the firm¶s emissions by
2.2% despite the firm¶s overall expansion in its real estate portfolio and
data-processing capacity.
 2ï 


GS SUSTAIN research identifies the
implications to
investors of the key structural trends
facing the global
economy, environment, societies and
industries

The GS SUSTAIN framework applies

objective measures to identify
companies well-placed to sustain
competitive advantage
and superior returns on capital over the
long term (3-5
years)
 ( !
‡Population growth and economic
development are resulting in increasing
pressure on the environment and climate

‡Requires a significant change in operating

performance and investment strategies across
industries

‡GS believe 

  that fail in
implementing emission reductions will receive
penalties

‡This will lead to a redistribution of value

between a

 and "
placed companies
 (  

!
‡Goldman Sachs have assessed the
performances of ~800global
companies

‡Goldman Sachs highlight leaders in

three groups:

‡Abatement Leaders in carbon

intensive industries
‡Adjustment Leaders in less
intensive industries
‡Solutions Providers exposed to
growth opportunities

‡The impacts of climate change will also vary substantially across

sectors
  
" 
#



% of emissions of listed companies: $$%&

2

% of emissions of listed companies: 2%2&


% of emissions of listed companies: 278&




% of emissions of listed companies: 2'$&

(



% of emissions of listed companies: 005&
 
)a




68% of companies have

acknowledged the
importance rising carbon
cost emissions through
public reporting of
performance

60% of companies have

also assigned
responsibility for climate
change performance to
members of their Board or
senior management
 a




a






the key element to sustaining competitive advantage

*
a
+






strong dependence but in less direct ways



" 
)




some impact
 a

2

The introduction of carbon emissions trading, initially in Europe and more
recently in other regions, has provided investors with a basis for assessment of
the impacts of climate change on financial performance in carbon-intensive
industries.


!!!!
 2ï 2

‡The GS SUSTAIN framework

has not yet been applied to all
companies assessed in this
report

‡From 110 climate change

leaders, 23 are amongst GS
SUSTAIN mature industry
leaders (42% of the total)