Goldman Sachs moves away from financing coal and Arctic oil
A Mendeleev Prospect oil tanker. Photo: Alexander Ryumin/TASS via Getty Images
Goldman Sachs says it won't directly finance Arctic oil-and-gas exploration, new coal-fired power plants (unless they trap carbon), or new mines for coal used in electricity.
The big picture: Those are three big pieces of the banking giant's revised climate policies unveiled over the weekend.
- The company, via a Financial Times op-ed, also said it's aiming for $750 billion in financing, investment and advisory work over the next 10 years focused on "climate transition and inclusive growth."
Why it matters: The fossil fuel-related policies expand on Goldman's prior stance in several ways, according to environmentalists who track the banking sector.
- For instance, restrictions on new coal-fired plants previously did not apply to developing countries, which is where planned new coal plant construction is centered.
What they're saying: The Sierra Club and the Rainforest Action Network said the policy is the strongest among major U.S.-based banks
- However, they said it lags behind some European banks and "remains far from alignment with what is needed to limit climate change to 1.5 degrees Celsius."
- In analysis circulated to reporters, the groups pointed to various ways in which the policy still allows finance for oil and coal-related projects and companies.