A Report on Sustainability Implementation at Goldman Sachs

This report provides an in-depth analysis of sustainability within the context of business, focusing specifically on Goldman Sachs. It explores the importance of sustainability for organizational success, including competitive advantage, cost reduction, and improved reputation. The report discusses key concepts such as the triple bottom line, cradle-to-cradle design, and Sustainable Development Goals (SDGs). It identifies barriers to achieving sustainability, such as lack of experience, insufficient resources, divergent priorities, and failures in technology innovation. Furthermore, the report outlines sustainability strategies for Goldman Sachs, including addressing climate change, utilizing green bonds, and creating circular business models. It also touches upon the Osterwalder business canvas model. The conclusion emphasizes the importance of sustainability for businesses to improve operating outcomes and create a positive societal impact, suggesting that companies should train their employees to understand and contribute to organizational sustainability.

Sustainability in business

Table of content
INTRODUCTION
MAIN BODY
Key findings
CONCLUSION
REFERENCES
APPENDIX

In organisation, management is mainly concerned with
the sustainability that help them to prioritize
resources allocation and set goals. Sustainability
within private enterprise level ca first be thought of
the primarily in term of the financial sustainability-
which is ability of these private companies to
generate cash flow and profit in order to sustain the
business operation. Sustainable organisations strive
to enhance their net social contribution by managing
environmental and social risk.
INTRODUCTION

Suppliers of the Goldman Sachs include small
and diverse vendor at world wide as it
purchase the goods and services worth around
$265 million from these diverse and small
businesses. As part of company's overall
sustainability program, their vendor diversity
program breaks down the barriers to market
access for diverse and small enterprise to
unlock the commercial opportunities with the
Goldman Sachs.
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Ethical initiatives- They have applied
highest ethical standards to their wok.
Their reputation and future of firm,
rely on their collective commitment to
create value and driving result very
honestly along with integrity.
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Goldman Sachs is an American
multinational financial service
company and investment bank. Its
headquarter is situated in the New
York city. This company was founded
by the Marcus Goldman and Samuel
Sachs. Since respective firm has
began in the 1869 as a family
business, it become leader within the
field of the investing.
Background of chosen business and
importance of the sustainability

According to R Lozano - 2018, Beyond helping the
curb global challenges, the sustainability can
drive success of a business. Nowadays, mostly
investors uses the social, environmental,, and
governance metrics in order to analyze the
organizational sustainable practices (Telford,
2019). Therefore, in relation to the Goldman
Sachs, there are some importance of the
sustainability which are mentioned here,
Importance of the sustainability

 Provide competitive advantage- The sustainability does not detract from
organizational objectives and infusing a company with the purpose that
can help in attract a skilled and motivated workforce that drive the
financial success.
 Reduce cost- Greening a business taken initial investment, but after,
company will save money by prioritizing the sustainability.
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 Improve business reputation- In a
business, reputation management is related
to the Establishment of good image by
aligning messages with the actions. Among
various reputable organizations for the
corporate social responsibility, Goldman
Sachs also come in this list as it is also
practice to bring sustainability in its
organization.
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This concept posits firms must commit to
measuring their environmental and social
impact-in addition to company's financial
performance- rather than a solely
focusing on making profit and standard
bottom line. This can be broken down
into three Ps which are mentioned below:
◦ Profit
◦ People
◦ Planet
Triple bottom line

C2C is about seeing the garbage as eternal resources and doing right things from
beginning. It require the product to be designed that ensure that all the material
can be classified into one of the two cyclical system which are mentioned below;
 Biological cycle
 Technology cycle
In relation to Goldman Sachs, its cradle to cradle goals include
 Material re utilization
 Water efficiency
 Social
 responsibilities
Cradle to Cradle

 It is defined as Sustainable Development Goals, these are a universe call to action
to end the poverty, save the planet and also ensure that people enjoy prosperity and
peace (Georgopoulos and Kaldis, 2019). In relation to Goldman Sachs,
sustainable finance is a process of taking the social and environmental governance
considerations into account when making the investment decision within financial
sectors, leading to a more long term investment in a sustainable economic project
and activities.
SDG's

Though the sustainability has various
positive impact on a business, it can
ale be very challenging for business
to actually implement all the
changes. Therefore, there are certain
biggest barriers that Goldman Sachs
faces when trying to become
sustainable. These barriers are
mentioned here,
Outline the main barriers to achieving
the sustainability

Lack of experience- Main barrier to
implementing the sustainable
practices businesses face is that
several individuals lack necessary
confidence and experience to act as
a champion of the sustainable
practices.
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Insufficient resources- Business
need resources namely money, time
, machine and other thing in order
to effectively and properly
implement the sustainability
strategies.
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Divergent priorities- In organization,
every department has their own
priorities. it is very essential to have a
corporation among various teams as
by working together, sustainability can
be implementing with more
effectiveness.
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Failure in Technology innovation- By using
latest technology a company can implement
effective sustainability at workplace as
technology has power to increase efficiency,
productivity and reduce product waste, cost
saving, analyses and track measure progress all
of which can aid minimize impact on the
environment.
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◦ Lack of motivation- The employer
strive to keep employees at workplace
motivated, involved and for good
reason. Lock of motivation at
workplace present incredible challenges
for organization to implement
sustainability. In relation Goldman
Sachs, it must be key focus for them
looking to enhance employee's
involvement in the sustainability.
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Goldman Sachs believe that healthy environment is very significant for the
well being of people, society and their business and is foundation for a
strong and sustainable economy. They recognized that healthy natural
resources- oceans, fresh water, forests, agro system, and grasslands are
critical elements of the economy and society (Hajizadeh, 2019).
Outline sustainability strategy for
organization

Climate changes- The Goldman Sachs
acknowledges scientific consensus that
led by Intergovernmental Panel on the
climate changes, climate changes so
consider as reality and which human
practices are liable to increase a
concentration of the greenhouse gases in
earth’s atmosphere.
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Green bonds and impact investigation-
The green bond are fixed income toll
in which capital raised is utilized for
the environmentally beneficial
purpose. The Goldman Sachs was a
part of initial group of the bank that
provide a input to and help the Green
Bond Principle, that are voluntary set
of the guidelines.
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Making environmental commodities- As
the market mechanisms is emerging to aid
address carbon and the other climate
related commodities, Goldman Sachs
will also look for the ways to play
constructive role in facilitating an
efficient development of such market.
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Therefore, it is analyzed that the climate
changes in an effective strategy for the
Goldman Sachs to overcome form the
barriers of implementation sustainability.
This strategy is very beneficial for the
company and environment as in this it will
expand their clean energy target to around
$150 billion in investment and financing by
2025 in order to facilitate a transition to low
carbon economy.
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Circular business model
Creating a circular business model is very challenging And also taking
wrong approach can be costly. This model articulate logic of how
organisations offer, create AND deliver the value to their broader range of
the stakeholders when minimising social and ecological costs. This model
contains three strategies for circularity. In relation to the Goldman Sachs
these three strategies are mentioned below:
Circular business model

Retain product ownership- In classic version of
RPO approach, producer leases or rents its
product to customer rather than merchandising
it. Hence, producer is responsible for the
product when customers have completed with
them.
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Product life extension- Organizations
implement this strategy by focus on
designing the product to last longer,
that may open up the possibilities
for a market in utilized products.
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Design for recycling- Organizations
applying DFR strategy to redesign
their services, product and other
manufacturing process in order to
recover ability of material
included for utilize in the new
products.
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A business model canvas is one of the most widely used models which helps highlight
and identify all the key strategic areas of the business along with all the major
information regarding its operational areas. Some major information which this model
can be applied to identify includes the customer segments which the company in
question caters to, the type of diverse service mix that the company provides to its
customers and its various channels through which its goods and services reach the
final consumer to name a few (Bogage, 2020)
Osterwalder business canvas model

 Key value proposition and services
 Key partners and revenue streams
Key findings

From the above report it is analysed that large, small, mature or new can
implement an aspect of the sustainability reporting into their business to
attain improved operating outcomes when minimizing the negative societal
effects and emphasizing positive societal influence. Sustainability is very
important for the business organisation as it help them to create a reputed
image with marketplace. A business by fulfilling their responsibilities
towards the environment, customer and society can establish sustainability.
CONCLUSION

Firstly to implement sustainability, it require knowledge and experience
about sustainability, therefore company should train their employees so
that they can understand actual meaning of the organisational sustainability
and become able to make a contribution to establish sustainability.
Goldman Sachs has continuously shown their disregard for their client's
good interest and has also gone to the virtually any length required in order
to make profit for the company.
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Therefore, from the above discussion it is find out that it is very significant
for every business organization to practise n order to remain sustainable.
Company can attain the sustainability by fulfilling their corporate social
responsibilities, concern toward their clients and make effective practise to
protect the environment form harmful practise.
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 Avelar, A.B.A., da Silva-Oliveira, K.D. and da Silva Pereira, R., 2019. Education
for advancing the implementation of the Sustainable Development Goals: A
systematic approach. The International Journal of Management Education, 17(3),
p.100322.
 Birkel, H. and Müller, J.M., 2021. Potentials of industry 4.0 for supply chain
management within the triple bottom line of sustainability–A systematic literature
review. Journal of Cleaner Production, 289, p.125612.
 Bogage, J., 2020. Goldman Sachs fined record $2.9 billion to resolve 1MDB
bribery scheme. The Washington Post.
REFERENCES

APPENDIX