Client LoginRequest an Introduction
About UsWhat We OfferClient StoriesInsightsLocationsIn the Lead
Request an IntroductionClient Login

About Us

Influential people and institutions across the globe rely on Goldman Sachs to support them in all they do. Learn more about us, our purpose and our commitment to clients.

We look forward to beginning a conversation to help you achieve your objectives and make the impact you desire.

The following questions will help us determine the right team for you.

0

Something went wrong, please try again later.

The Science of Sustainability: ESG’s $12 Trillion Opportunity

2 min read

As the profiles of social and environmental causes continue to rise in the public sphere, so have demands for private industry to get involved. A new study by Goldman Sachs’ equity research team found that constituents are voicing demands that companies be held accountable for their impact on sustainability, inclusion, health, and climate change.

The study found that asset managers, too, feel pressure from their clients to hold their portfolio companies to a higher standard.

Factors related to the COVID-19 pandemic have brought existing social issues into stark relief, such as healthcare inequality and opportunities for environmental improvements as governments begin to reopen. The study confirms that such standards fall along generational lines. In fact, two-thirds of millennials say ESG principles influence their investing decisions.

The United Nations General Assembly issued 17 “Sustainable Development Goals” or SDGs. “The 17 Goals,” as they’re known by, represent a global agenda. Adopted by all UN member states, they serve as a common framework for sustainability standards for corporate, regulatory, and investment sectors over the coming decade.

“The 17 Goals”
  1. No Poverty
  2. Zero Hunger
  3. Good Health and Well-Being
  4. Quality Education
  5. Gender Equality
  6. Clean Water and Sanitation
  7. Affordable and Clean Energy
  8. Decent Work and Economic Growth
  9. Industry, Innovation, and Infrastructure
  10. Reducing Inequality
  11. Sustainable Cities and Communities
  12. Responsible Consumption and Production
  13. Climate Action
  14. Life Below Water
  15. Life on Land
  16. Peace, Justice, Strong Institutions
  17. Partnerships for the Goals.

Based on studies that factor SDG efforts over the course of the next decade, achieving the goals outlined by the UN's 2030 agenda could generate as much as $12 trillion in market opportunities. It's possible the estimate could be a conservative one, too, as the market could realize additional direct and indirect benefits from SDGs, such as expanding education and achieving gender parity.

The report also found that corporations progressively leverage SDGs to frame sustainability reporting, financial results, and outlooks. In response, GS SUSTAIN created a metric to assess companies’ alignment with these goals.

Leveraging the Bloomberg Industry Classification Standard (BICS), the GS SUSTAIN metric maps more than 1,700 unique industry revenue segments to one or more SDGs. If eligibility is confirmed, additional filters are incrementally applied, including product impact metrics from the SUSTAIN ESG framework, business description language, and more. Out of a universe of over 6,500 companies, this process brings into focus those most likely to be SDG-aligned.

The result also identifies those companies best positioned to take advantage of the potential $12 trillion in ESG opportunities that lay ahead.

To learn more about the SDG screening tool and read the report, click the button below:
Download Investing in the Sustainable Development Goals

Explore Related Insights

This material is intended for educational purposes only and is provided solely on the basis that it will not constitute investment advice and will not form a primary basis for any personal or plan’s investment decisions. While it is based on information believed to be reliable, no warranty is given as to its accuracy or completeness and it should not be relied upon as such. Goldman Sachs is not a fiduciary with respect to any person or plan by reason of providing the material herein, information and opinions expressed by individuals other than Goldman Sachs employees do not necessarily reflect the view of Goldman Sachs. This material may not, without Goldman Sachs’ prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient. This material is not an offer or solicitation with respect to the purchase or sale of any security in any jurisdiction. Investing involves risk, including the potential loss of money invested. Past performance does not guarantee future results. Neither asset diversification or investment in a continuous or periodic investment plan guarantees a profit or protects against a loss. Information and opinions provided herein are as of the date of this material only and are subject to change without notice.

© 2023 The Goldman Sachs Group, Inc. All rights reserved.

Goldman Sachs & Co. LLC is registered with the Securities and Exchange Commission (“SEC”) as both a broker-dealer and an investment adviser and is a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”).

© 2025 Goldman Sachs. All rights reserved.