Goldman Sachs launches "GS Sustain" -- list of 44 firms it believes will outperform for environmental/social reasons

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5 July 2007

U.N. group discusses groundbreaking Goldman Sachs study on green business

Author: Nathanial Gronewold, Greenwire

Companies with solid environmental, social and governance (ESG) performance indicators are the best long-term investment choices, according to a Goldman Sachs study released this week...On Tuesday, Goldman Sachs launched “GS Sustain,” a new list of companies they believe will be the top corporate performers over the coming decades as determined primarily by how well they integrate SRI into their businesses...The list of 44 companies includes such household names as Kellogg, PepsiCo, Bristol-Myers Squibb and Roche. Some less familiar U.S. companies included are solar power producer SunPower Corp., geothermal technology manufacturer Ormat Technologies, and environmental tech manufacturers LKQ Corp. and Pentair Inc...Goldman Sachs’ hyping of alternative energy and green industries is further accentuated by the complete absence of some of the best-known oil companies from the GS Sustain list. Brazil’s Petroleo Brasileiro [Petrobras] and Norway’s Statoil are included, but Exxon Mobil Corp. and BP are not.

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22 June 2007

[PDF] full report: "GS Sustain"

Author: Goldman Sachs

The GS SUSTAIN focus list is aimed at long-term, long only performance, with a low turnover of ideas. It incorporates 21 identified winners from mature industries, which are set to undergo structural change or maintain a leadership position, and 23 attractively valued winners from emergent industries...Our proprietary ESG framework...incorporates corporate governance, social issues with regard to leadership, employees and wider stakeholders, and environmental management...We incorporate the ten principles of the UN Global Compact covering human rights, labour standards, environment and anti-corruption into our ESG framework to the extent possible in every sector and believe that leadership on these issues is crucial. [the focus list, on page 11 of the report, lists the following 44 companies by sector: MATURE INDUSTRIES - ENERGY: BG Group, ENI, Petroleo Brasileiro, Statoil; MINING & STEEL: BHP Billiton, POSCO, Rio Tinto, Voestalpine; EUROPEAN MEDIA: British Sky Broadcasting, Reed Elsevier (UK), WPP Group, Vivendi; FOOD & BEVERAGES: Danone, Diageo, Kellogg, Nestle, PepsiCo; PHARMACEUTICALS: Bristol-Myers Squibb, Merck, Novo Nordisk (part of Novo Group), Roche - EMERGING INDUSTRIES - ALTERNATIVE ENERGY: Centrosolar, D1 Oils, Ersol Solar Energy, Ormat Technologies, Phoenix Solar AG, Solar Millennium, SunPower Corp, Suntech Power, Sunways AG, Vestas Wind Systems; ENVIRONMENTAL TECHNOLOGY: FP, LKQ Corp, Pentair, Shanks Group, Sinomem Technology, Tomra Systems; BIOTECHNOLOGY: Actelion, Amylin Pharmaceuticals, Elan, Intercell, Genentech, Genmab, Gilead Sciences]

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