GOVERNANCE Policy, Process, and Key Groups Risk management is critical to the way we run our business, and it is deeply ingrained in our culture and business practices. For environmental and social risk, we proactively and publicly manage and report the material impacts of sustainability-related risks to our firm — a business that spans an array of sectors and regions. Policy Our policies on sustainability are informed by perspectives of our stakeholders, including investors, non-governmental organizations, and regulators — and they help us to better advise our clients in terms of how to improve environmental and social practices. Examples of our firm’s policies include our Environmental Policy Framework, Code of Business Conduct and Ethics, the Goldman Sachs Statement on Key Groups Human Rights, and the Goldman Sachs Vendor Code of Within our Executive Office, our Sustainable Finance Group Conduct. Notably, our Environmental Policy Framework (SFG) serves as the centralized group that drives climate (EPF) guides our overall approach to sustainability issues strategy and sustainability efforts across our firm, including — including management of environmental and social risk commercial efforts alongside the firm’s businesses — all across a broad scope of sectors and products. with the goal of advancing the success of our clients and promoting sustainable, inclusive growth and accelerating Process the climate transition. The SFG also engages with our Our advisory, financing, and direct investing teams include stakeholders to stay abreast of and assist with environmental environmental and social due diligence as integral parts of their and social risk management and related guidelines. process. Transactions that may have significant environmental In addition, teams within our Legal and Compliance or social risks, including reputational risks, are elevated for divisions broadly examine legal, regulatory, reputational, enhanced review and business selection discussion. environmental, social, and governance risks, and review potential transactions through a risk-management lens. At an operational level, in-house specialist teams within our Risk division guide environmental, health, and safety standards for our investing activities. The teams also perform EHS due diligence on proposed investment transactions, helping business teams identify and mitigate potential risk. With respect to climate risk specifically, the Risk division is responsible for the development of the firm’s climate risk program, including setting and evaluating risk appetite, assessing climate risk, and integrating that risk into business and risk management practices. Sustainability Report 2021 Governance 89