US investment bank Goldman Sachs said yesterday that it will stop directly financing new thermal coal mine development and mountaintop removal mining.
The Wall Street firm, in announcing changes to its environmental policy framework, will also stop financing new coal-fired power plants in developing nations unless they have carbon capture and storage or equivalent emissions reduction technology. This policy previously only applied to the US and developed countries.
Goldman Sachs added that it will "engage with thermal coal mining companies on their plans to diversify away from the fossil fuel, and phase out financing for any that do not have such strategies ‘within a reasonable timeframe'."
The company's new coal position was included in a broader policy framework under which Goldman Sachs also committed to not finance new upstream Arctic oil exploration.
The Rainforest Action Network and Sierra Club said in a joint statement on the policy revisions that Goldman Sachs now has the strongest coal policy among the six largest US banks. It also is the most significant new policy by any major US bank since 2016, the groups said.
But Goldman Sachs still lags other major global banks in taking climate action, the environmental groups said.
The bank's announcement comes three weeks after a coalition of investors filed climate-focused resolutions with the company and four other US banks. The resolutions aimed at getting the banks to play a greater role in reducing GHG emissions by cutting their fossil fuel lending.
The coalition, led by shareholder advocate As You Sow, said it had asked Goldman Sachs to issue reports on whether, how and when they will begin measuring and disclosing the GHG effect of their lending activities.
It is unclear if the resolutions had any bearing on Goldman Sachs' decision to revise its policy framework. The company could not be immediately reached for comment.
By Nick Georgiou
