Letter to Our Shareholders INTRODUCTION Fellow Shareholders: As a 昀椀nancial institution, we work hard every day to help our clients take on their biggest challenges. Their success is essential to our growth. And in 2021, David Solomon as supply chain disruptions spread, geopolitical Chairman and tensions rose, and in昀氀ation took o昀昀, we strengthened Chief Executive O昀케cer our focus on helping our clients achieve their sustainability objectives. Our focus may be straightforward, but the sustainability Beyond targets and plans, clients need capital and tools to transition itself is complex. If the world is to achieve net zero help them align their sustainability goals with their 昀椀nancial emissions by 2050, 昀椀nancial institutions like ours will need well-being, and as a trusted advisor, we are well-positioned to partner with clients to reimagine not just how they power to provide them the commercial solutions they need, their businesses, but also the entire energy ecosystem, whether it’s an ESG-linked Transaction Banking account or a ranging from long-duration storage to carbon capture clean energy-themed ETF. technology. Our own Carbonomics research indicates that $56 trillion of investment in green infrastructure is needed to But commercial solutions on their own won’t solve reach the goals of the Paris Agreement. everything. Not enough private capital will 昀氀ow to green infrastructure projects unless public policy creates the right And in the near term, we won’t be able to rely on renewables incentives. Our economists estimate that the energy sector alone. The current energy crisis has only underscored how will need an additional $1.5 trillion in capital expenditures important it is to maintain access to reliable and a昀昀ordable per year by 2032 to ensure a smooth transition to a low- energy, and to do so we will need to use all the tools at our carbon economy, and the economic rami昀椀cations of the disposal. At Goldman Sachs, we will continue providing war in Ukraine have only added to the sense of urgency. For support, capital, and advice to traditional energy producers its part, the US Congress could help by passing the Build both in the near team, as they supply energy, and in the long Back Better Act’s energy provisions, which include support term, as they decarbonize their businesses. for greater investment in renewables and electric vehicles, methane restrictions, and carbon capture tax credits. Sustainability Report 2021 Introduction 4