Environment

Principal Investments
As a part of our Environmental Policy Framework, Goldman Sachs committed to make available up to $1 billion for investments in renewable energy and energy efficiency projects. By the end of 2007, we had surpassed this goal and had invested over $2 billion in alternative energy projects in the US, Europe and Asia.

Some of the sectors that Goldman Sachs has invested in include:

Trading and Capital Markets
Goldman Sachs is active in the markets for carbon emissions, SOx, Renewable Energy Credits and weather derivatives, among other climate related commodities. Additionally, we have created new financial products to help our clients manage the risks posed by climate change.

In September 2006, we made a minority equity investment in Climate Exchange PLC, which owns several European and US trading platforms that facilitate trading in environmental financial instruments: the European Climate Exchange (ECX), the Chicago Climate Exchange (CCX) and the newly created California Climate Exchange (CaCX).

Global Investment Research
Our Global Investment Research teams integrate environmental, social and governance issues into their analysis of companies and sectors. Three research teams with a particular focus on environmental issues include:

• GS SUSTAIN integrates objective, quantifiable metrics to measure corporate performance on environmental, social and governance issues; the implications of structural change in industries; and returns-based valuation methodologies to highlight long-term investment ideas.
• The Alternative Energy Research team covers over 70 alternative energy companies globally, including producers of wind, solar, biofuels, geothermal and fuel cell technologies, and over 35 environmental technology companies.
• The Global Economic Research team explores the global macroeconomic and market research on such environmental themes as the impact of climate change, energy efficiency and energy policy, the challenges of balancing environmental protection and economic growth in the BRICs as well as demographic themes.

Investment Banking
Goldman Sachs believes that it is important to take into consideration the environmental impact and practices of our clients and potential clients when we make business selection decisions. As an advisor, we help our clients to develop business strategies that mitigate risks and take advantage of opportunities associated with environmental and social issues. We also apply the guidelines from our Environmental Policy Framework to all transactions in which we are involved and have developed specific due diligence guidance for transactions in sensitive sectors.

Direct Impact
Goldman Sachs has committed to reducing indirect greenhouse gas emissions from its leased and owned offices by 7% by 2012, using 2005 as the baseline. As a part of this commitment, we have developed green building standards for use in all new construction and major renovation projects in our facilities around the world.

• Our new global headquarters at 200 West Street in New York City, scheduled to open in 2009, will be LEED Gold certified.
• Existing LEED certified green buildings that we occupy and/or own include 30 Hudson, in Jersey City, and 71 South Wacker, in Chicago.

We are also reducing our environmental footprint through the implementation of environmentally responsible products and practices. We have established environmentally responsible procurement practices for our products and services and have increased our use of recycled and environmentally certified wood, paper and print products, energy efficient equipment, and organic and sustainably harvested products and supplies.