CLIMATE TRANSITION ActiveBeta® Paris-Aligned US Large Cap Equity Strategy NN Investment Partners Goldman Sachs Asset Management has launched a Paris- Goldman Sachs announced the completion of the aligned investment strategy that seeks to align with the goals acquisition of NN Investment Partners from NN Group N.V. of the Paris Climate Agreement to combat climate change for €1.7 billion. With a heritage dating back almost 175 years, and its effects. The purpose of our Paris-aligned investment NN Investment Partners is a leading sustainable investment approach is to decarbonize public equity investment manager in Europe. NN Investment Partners will be integrated portfolios and increase investment in climate solutions in into Goldman Sachs Asset Management with the company’s a way that is consistent with a 1.5°C net zero emissions more than 900 professionals joining the Goldman Sachs future, in line with the stated goals of the Paris Agreement. family. The Netherlands is now an important location in The strategy supports many investors’ growing desire to Goldman Sachs’ European business and a center of reduce carbon emissions and more deliberately manage the excellence for sustainability in public markets investing. The transition to a low-carbon economy through our rules-based acquisition brings Goldman Sachs’ assets under supervision and transparent approach. to approximately $2.8 trillion1 and affirms its position as a top five active asset manager globally with leading franchises in Just Climate fixed income, liquidity, equities, alternatives and insurance In October 2021, Goldman Sachs Asset Management asset management. NN Investment Partners has been Imprint (“Imprint”) announced its strategic partnership with successful in incorporating Environmental, Social and Generation IM in the foundation of Just Climate. The mission Governance (ESG) factors across its product range, with ESG of Just Climate is to limit the global temperature rise to 1.5°C criteria integrated into approximately 90% of assets under by catalyzing and scaling capital toward the most impactful 2. Over time, Goldman Sachs Asset Management supervision climate solutions. Our Asset Management group served intends to leverage the expertise of NN Investment Partners as a founding strategic partner in Just Climate alongside to complement its existing investment processes, helping the Microsoft Climate Innovation and Development Fund, Ireland firm to deepen ESG integration across its product range and Strategic Investment Fund (ISIF), IMAS Foundation, and deliver on clients’ sustainable investing priorities. Harvard Management Company. 1—All data as of December 2021. Structured Notes Issuance 2—NN Group: “N.V. Annual Report 2021.” Our structured note issuance in the sustainable space has risen by more than 50% in the past year, with demand continuing to grow as retail investors become increasingly concerned with integrating ESG into their financial “This acquisition advances our investments on indices that can filter and reflect ESG considerations. French accounts led the European demand commitment to put sustainability at the for products linked to third-party ESG indices, and we’re heart of our investment platform. We starting to gauge growing interest from the APAC region. are excited to welcome the talented While sector exclusions and absolute scores remain popular, team at NN Investment Partners, a there has been a wider variety of approaches used by center of excellence in sustainable clients as they seek out improvers in this space. To help meet the increasing demand for environmental and climate- investing, to Goldman Sachs and related products, S&P launched a range of indices that together we will focus on delivering were exclusive to Goldman Sachs and designed to meet long-term value to our clients and Paris Aligned Benchmark and Climate Aligned Benchmark shareholders.” requirements. DAVID SOLOMON Sustainability Report 2021 Chairman and Chief Executive Officer, Climate Transition | Mobilizing Capital Goldman Sachs 36