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Goldman Sachs GS SUSTAIN: ESG of the Future Putting corporate emissions in context: Highly concentrated but minority of total emissions The seven sectors comprised in our analysis account for almost 90% of corporate Scope 1 emissions within GS SUSTAIN coverage. Corporate-level Scope 1 emissions are highly concentrated in a handful of sectors, which largely represent our focus for forecasts. The seven sectors we consider are: Airlines, Chemicals, Construction Materials, Mining & Metals, Oil & Gas (separated in Oil & Gas Producers and Oil Refiners), Steel and Utilities (broken down into Electric Utilities, Gas Utilities, Multi-Utilities and Water Utilities). Among those sectors, publicly listed companies from the corporate universe covered by GS SUSTAIN (about 7,000 publicly listed companies globally) account for 8.4 bn tons of CO -eq in 2019, 2 representing 89% of emissions from publicly listed companies in GS SUSTAIN coverage. Importantly, however, reported corporate Scope 1 emissions only account for 18% of total global GHG emissions. Global GHG emissions in 2019 — including land-use change and forestry — were about 51 bn tons of CO -equivalent — 2 calculated from 2018 global total GHG emissions from Emissions Database for Global Atmospheric Research (EDGAR), to which we apply the 2010-2018 average p.p. contribution of CO to total GHG to derive total global GHG emissions in 2019. 2 We estimate that disclosed Scope 1 emissions from the corporate universe covered by GS SUSTAIN accounted for 18% of those GHG emissions in 2019 — or about 9.4 bn tons of CO -eq, of which as mentioned above almost 90% come from the 2 seven sectors of our focus. We see companies focused on electricity/heat generation, transportation and buildings as the areas accounting for the highest share of emissions not captured by GS SUSTAIN coverage, per sector breakdown as reported by Climate Watch. Our equity research teams cover 70% of total Scope 1 disclosed emissions from the seven key sectors. Companies covered by our Global Investment Research teams account for about 6 bn tons of CO -eq in 2019, corresponding to 70% of 2 total emissions from publicly listed corporates in GS SUSTAIN coverage in the seven key sectors, or 11% of global total GHG emissions. The remaining portion of emissions from corporates in the seven key sectors (5% of total global GHG emissions) come from companies not covered by our equity research teams.

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