CLIMATE TRANSITION In addition to supporting the health of communities with the Conservation Fund. We recognize the importance of and the planet, nature and biodiversity have signi昀椀cant critical natural habitats that have high biodiversity value and economic value and are important to driving include areas that are under legal or proposed government sustainable growth: protection. We have established related environmental and social risk guidelines as part of our 昀椀rmwide transactional • According to the World Economic Forum, more than half of due diligence process, and we have committed to forgo the world’s GDP, $44 trillion of economic value generation, 昀椀nancing any projects or initiating loans where proceeds is highly or moderately dependent on nature. would signi昀椀cantly convert or degrade a critical natural habitat. • The World Economic Forum also reports that, together, the three largest sectors that are highly dependent on nature Goldman Sachs is also a member of the forum for the generate close to $8 trillion of gross value added (GVA): Taskforce on Nature-related Financial Disclosures (TNFD), construction ($4 trillion), agriculture ($2.5 trillion), and food a new market-led initiative that aims to develop a risk and beverages ($1.4 trillion)1. management and disclosure framework for organizations to report and act on evolving nature-related risks and help For these reasons, Goldman Sachs remains committed to shift global 昀椀nancial 昀氀ows toward nature-positive outcomes. the global e昀昀ort to protect the world’s forests and oceans Building on the momentum of the Taskforce on Climate- and seeks to act responsibly when 昀椀nancing or investing in Related Financial Disclosures (TCFD) framework, we believe companies or projects in sectors that have potential impact that quality, reliable information on biodiversity and nature- on nature and biodiversity across both terrestrial and marine related impacts, facilitated by better disclosure, will allow ecosystems. corporations and 昀椀nancial institutions to better understand Goldman Sachs has a long history of protecting nature and and measure nature-related impacts and ultimately biodiversity, from our conservation e昀昀orts establishing the incorporate nature-related risks and opportunities into Karukinka preserve in Tierra del Fuego to our recent work strategic planning and risk management. 1—World Economic Forum: “Nature Risk Rising: Why the Crisis Engul昀椀ng Nature Matters for Business and the Economy,” January 2020. Sustainability Report 2021 Climate Transition | Looking Ahead 47