Goldman Sachs GS SUSTAIN: ESG of the Future Implications for overall corporate emissions: Flattish through 2025 vs. 2020 Our work suggests stabilization in absolute emissions across the seven key sectors considered post-2020, still down from pre-pandemic levels. The companies in our analysis accounted for 3.8 billion tons of CO -eq emitted in the 2 atmosphere in 2019, with the Oil & Gas and Utilities sectors representing the majority of the total (39% and 25% of the total, respectively). As we detail in Exhibit 6, COVID-related disruptions resulted in a steep decline in 2020 — down 10% YoY. Our analysts estimates imply a slight pickup in overall Scope 1 emissions from the companies in our analysis in 2021E and 2022E, followed by a modest decline / stabilization in subsequent years, with 2025E down 9% vs. 2019 and up 1% vs. 2020. We note overall Scope 1 emissions for corporates in our survey are estimated to amount to 3.4 billion tons of CO -eq by 2 2025E, implying a 1.6% annualized reduction vs. 2019 levels. Notably, however, to stay on track with Net Zero goals, we would need to see a more meaningful acceleration in the pace of decarbonization post-2025E. Commentary from managements of companies with Net Zero or broader decarbonization goals suggests a more back-end loaded emissions decline, so our results through 2025 does not suggest we are definitively off track. Exhibit 6: We see aggregate Scope 1 emissions from key sectors flattish with 2020 levels through 2025, down vs. pre-pandemic levels Sector breakdown for Scope 1 emissions from corporates included in our analysis. 4.0 Airlines 3.5 Chemicals tted3.0 Utilities eq emi2.5 -2.0 CO2 Oil & Gas 1.5 Metals & Gton of 1.0 Mining Steel 0.5 Construction 0.0 Materials 2019 2020 2021E 2022E 2023E 2024E 2025E As not all analysts model through 2025, 2024E and 2025E reflect the weighted average yoy change for companies where the covering analysts have submitted data. The same applies for 2019 and 2020 weighted average estimates. Sectors as de“ned in our GS SUSTAIN sector classi“cation. Source: Company data, Thomson Reuters, Bloomberg, Goldman Sachs Global Investment Research Among the seven sectors, we see absolute emissions from Steel, Mining & Metals, Oil & Gas and Utilities declining by 2025E vs. 2019. While overall Scope 1 emissions from corporates in our analysis are estimated to decline by 9% by