Governance at Our Firm GOVERNANCE At Goldman Sachs, the way we do business is informed by our purpose: to advance sustainable economic growth and financial opportunity. This purpose applies to our entire firm — from our work with clients and partners to how we manage environmental and social risk. We seek to responsibly manage our business and fulfill our Senior Management commitments to do what is best for the firm, our people, and the global community. This work is supported by strong Various committees and groups oversee our transaction governance structures, from our board of directors at the selection decisions and risk management processes. highest level and throughout our management structure. With respect to risk management, for example, we have By integrating risk oversight into our centralized governance a Firmwide Reputational Risk Committee (FRRC), with structures, we’re able to manage a broad spectrum of financial Management Committee-level representation, which and nonfinancial risks across our businesses. Throughout all is responsible for assessing reputational risks arising levels of the firm, we recognize that responsibly managing from transactions that have been identified as having our business is paramount, and that our people are critical to potential heightened reputational risk pursuant to the that effort. We focus on providing our people with the tools criteria established by the Firmwide Reputational Risk and resources they need to effectively identify and escalate Committee and as determined by committee leadership. potential risks in their day-to-day activities, which includes Our Physical Commodities Review Group ensures that we training with respect to environmental and social risk. maintain a consistent approach to evaluating and managing environmental, health, and safety (EHS) risks associated with engaging in, investing in, or financing physical commodity- Board of Directors related activities. Our board and its committees are responsible for overseeing On a larger scale, our Firmwide Climate Steering Group, the management of the firm’s most significant risks, with a which convenes key senior stakeholders, including those strong focus on reputational risk and long-term operations. from the Executive Office, Risk, Controllers, Investment Oversight of sustainability, climate-related risks, and social Banking, Asset Management, and Global Markets risks are interdisciplinary by nature, and as such, the board divisions, provides oversight for key climate-related risk carries out its oversight directly, at the full board level, and opportunity decisions, including the interim goal- as well as through its committees, including its Public setting needed to achieve our net zero by 2050 pathway Responsibilities and Risk Committees. commitment. This Steering Group also reviews progress and provides feedback on climate strategy, risk management, integration, and capabilities on a broad level. This includes oversight of climate-related targets and climate reporting, related commercial engagement and integration strategy, and updates on climate risk management frameworks and capabilities. Sustainability Report 2021 Governance 88