Foundation News

For Immediate Release:

February 6, 2024 

Contact: Courtney Farrell, cfarrell@rabengroup.com

Sierra Club Foundation Files Shareholder Resolution Asking Goldman Sachs to Disclose Financial Risks of its Energy Financing

Today, the Sierra Club Foundation (SCF) announced the filing of a shareholder resolution at Goldman Sachs, requesting that the financial institution conduct a rigorous assessment of the material risks of its energy financing activities on its business. 

Not only do oil and gas projects pose health and environmental risks, they come with serious financial risks that threaten shareholder value. Most materials required for clean energy are concentrated in the Global South, where local people bear environmental harms associated with minerals extraction, and where climate change threatens production collapse. Companies that don’t manage these risks as lenders or operators threaten the environment, society, and shareholder value. As a leading financial institution with extensive interests in energy, Goldman Sachs is exposed to these risks, and, at the same time, has the unique opportunity to support companies to act more responsibly. 

“Goldman Sachs has publicly acknowledged that a healthy environment is necessary for the well-being of its business, of society, and is the foundation for a sustainable and strong economy. But all of that is threatened when a risk this large goes unmanaged,” said Pedro Henriques da Silva, Director of the Shifting Trillions Initiative at the Sierra Club Foundation. “Goldman Sachs cannot simultaneously claim it’s protecting our interests, as shareholders, while ignoring risks like these in their policies and procedures. These are very real risks that ought to be understood, disclosed, and mitigated just like any other threats to business performance. Ultimately, we believe taking the steps outlined in this proposal will benefit the bank and its shareholders.”

The shareholder resolution emphasizes that Goldman Sachs' existing policies and reporting inadequately address and manage environmental justice risks. A rigorous assessment and disclosure of these risks, as proposed by the Sierra Club Foundation’s resolution, are seen as crucial steps to enhance the bank's risk management framework, improve its reputation, and align with its stated goals.

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