CLIMATE TRANSITION Carbonomics To guide clients through their transition to a net zero have the potential to be involved in cross-border transport, economy, we need to understand the economics that shape with the total addressable market for hydrogen generation it. Carbonomics is Goldman Sachs’ GIR’s flagship research alone having the potential to double to around $250 billion series that focuses on the economics of decarbonization by 2030 and reach over $1 trillion by 2050. and sustainable growth. Carbonomics’s — “Introducing the GS Net Zero Carbon On November 16, 2021, we hosted our second Carbonomics: Models and Sector Frameworks” The Green Engine of Economic Recovery Conference virtually from London. With more than 6,000 registered • A global transition to net zero will require decarbonization attendees, the conference provided a platform for 40 CEOs of leading corporates as well as key policymakers to speak across multiple industries and sectors, with existing on their strategies for delivering sustainable growth across and emerging clean technologies playing a critical role key global industries. in driving the pace of decarbonization. In this report, Goldman Sachs Research presents modeling for two paths to net zero carbon, with two global models of Marquee decarbonization by sector and technology, leveraging the team’s proprietary Carbonomics cost curve. The report Access to data is critical for investors to make sustainable finds a wide range of investment opportunities associated investment decisions. Marquee — Goldman Sachs’ digital with what GIR believes are the key infrastructure marketplace for our institutional investor clients — delivers milestones required to achieve net zero emissions by unparalleled, cross-asset access to global markets. The 2050, with an expectation for a cumulative $56 trillion platform allows us to share the analytics, data, and tools of green infrastructure investments to reach net zero, that we use internally with our clients. With the Marquee encompassing >2% of GDP by 2032. ESG client portal, our clients gain access to a range of ESG capabilities, tools, and resources — including ESG • GIR also translates its global net zero models into pathways commentary, thought leadership pieces across asset for emission intensity reduction for 30 key emitting classes, ESG fund flow analytics, ESG thematic baskets, and corporate industries, providing alternative energy transition ESG datasets. In addition, when equity or corporate credit scenarios for investors and corporates to leverage. clients use our pre-trade analytics within Marquee, they can compare the Environmental & Social (E&S) and Governance Carbonomics’s — The Clean Hydrogen Revolution (G) rating of their portfolio to a benchmark using Goldman • GIR believes it is now time to revisit the clean hydrogen Sachs’ proprietary SUSTAIN methodology, which covers theme as policy, affordability, and scalability seem to be more than 7,000 companies and 52 sectors. converging to create unprecedented momentum for the Carbon Portfolio Analytics on Marquee clean hydrogen economy. In this report, GIR analyzes We recently announced the launch of Carbon Portfolio this critical pillar to any aspiring net zero path, aiding the Analytics on Marquee, which allows clients to analyze their decarbonization of around 15% of global GHG emissions, portfolios through a carbon lens. Housed within Marquee’s with an estimated $5.0 trillion worth of cumulative portfolio analytics ecosystem, Carbon Portfolio Analytics investments required in the clean hydrogen supply chain. helps clients measure and manage their carbon footprint. The report highlights that clean hydrogen can develop Beyond providing carbon data, this new offering provides into a major global market, impacting geopolitical patterns tools and analytics designed to empower clients to better in energy supply, and examines the case for international understand their portfolio risks and opportunities from a trade, concluding that 30% of global hydrogen volumes carbon perspective — and can even inform their investment decisions. Sustainability Report 2021 Climate Transition | Mobilizing Capital 34