34 Sustainability Report 2021 Climate Transition | Mobilizing Capital Carbonomics To guide clients through their transition to a net zero economy, we need to understand the economics that shape it. Carbonomics is Goldman Sachs’ GIR’s flagship research series that focuses on the economics of decarbonization and sustainable growth. Carbonomics’s — “Introducing the GS Net Zero Carbon Models and Sector Frameworks” • A global transition to net zero will require decarbonization across multiple industries and sectors, with existing and emerging clean technologies playing a critical role in driving the pace of decarbonization. In this report, Goldman Sachs Research presents modeling for two paths to net zero carbon, with two global models of decarbonization by sector and technology, leveraging the team’s proprietary Carbonomics cost curve. The report finds a wide range of investment opportunities associated with what GIR believes are the key infrastructure milestones required to achieve net zero emissions by 2050, with an expectation for a cumulative $56 trillion of green infrastructure investments to reach net zero, encompassing >2% of GDP by 2032. • GIR also translates its global net zero models into pathways for emission intensity reduction for 30 key emitting corporate industries, providing alternative energy transition scenarios for investors and corporates to leverage. Carbonomics’s — The Clean Hydrogen Revolution • GIR believes it is now time to revisit the clean hydrogen theme as policy, affordability, and scalability seem to be converging to create unprecedented momentum for the clean hydrogen economy. In this report, GIR analyzes this critical pillar to any aspiring net zero path, aiding the decarbonization of around 15% of global GHG emissions, with an estimated $5.0 trillion worth of cumulative investments required in the clean hydrogen supply chain. The report highlights that clean hydrogen can develop into a major global market, impacting geopolitical patterns in energy supply, and examines the case for international trade, concluding that 30% of global hydrogen volumes CLIMATE TRANSITION have the potential to be involved in cross-border transport, with the total addressable market for hydrogen generation alone having the potential to double to around $250 billion by 2030 and reach over $1 trillion by 2050. On November 16, 2021, we hosted our second Carbonomics: The Green Engine of Economic Recovery Conference virtually from London. With more than 6,000 registered attendees, the conference provided a platform for 40 CEOs of leading corporates as well as key policymakers to speak on their strategies for delivering sustainable growth across key global industries. Marquee Access to data is critical for investors to make sustainable investment decisions. Marquee — Goldman Sachs’ digital marketplace for our institutional investor clients — delivers unparalleled, cross-asset access to global markets. The platform allows us to share the analytics, data, and tools that we use internally with our clients. With the Marquee ESG client portal, our clients gain access to a range of ESG capabilities, tools, and resources — including ESG commentary, thought leadership pieces across asset classes, ESG fund flow analytics, ESG thematic baskets, and ESG datasets. In addition, when equity or corporate credit clients use our pre-trade analytics within Marquee, they can compare the Environmental & Social (E&S) and Governance (G) rating of their portfolio to a benchmark using Goldman Sachs’ proprietary SUSTAIN methodology, which covers more than 7,000 companies and 52 sectors. Carbon Portfolio Analytics on Marquee We recently announced the launch of Carbon Portfolio Analytics on Marquee, which allows clients to analyze their portfolios through a carbon lens. Housed within Marquee’s portfolio analytics ecosystem, Carbon Portfolio Analytics helps clients measure and manage their carbon footprint. Beyond providing carbon data, this new offering provides tools and analytics designed to empower clients to better understand their portfolio risks and opportunities from a carbon perspective — and can even inform their investment decisions.