1Source: Swiss Re Institute. As of October 7, 2022. A recent estimate by analysts at the Swiss Re Institute put the average annual investment needed to achieve a net zero global economy by 2050 at $9.4 trillion.”
2 Source: Goldman Sachs Asset Management, Bloomberg. As of December 31, 2021.
3 Source: Goldman Sachs Asset Management and Bloomberg. Estimate of €600 billion of green bond issuance in 2023 —potentially taking the market to more than €2 trillion — as sovereigns and corporates remain committed to environmental ambitions. This forecast assumes lower market volatility in 2023 and incorporates our estimate of postponed issuance from 2022.
4 This conclusion is based on a comparison of the Bloomberg MSCI Euro Green Bond Total Return Index with the Bloomberg MSCI EuroAgg Total Return Index. We have chosen to use euro-based indices to make our comparisons because the multi-currency nature of global green bond indices and their non-green counterparts makes any comparison very difficult. Prior to 2016, the green bond market was not sufficiently developed to allow for a meaningful comparison.
5 In 2022, the Bloomberg MSCI Euro Green Bond Index fell by nearly 18% as of December 6, 2022 while the Bloomberg MSCI EuroAgg Total Return Index declined by 14%, according to Bloomberg data.
6 Source: Goldman Sachs Asset Management and Bloomberg. As of December 6, 2022.
7 Source: Goldman Sachs Asset Management and Bloomberg. As of December 6, 2022.
8 Breakdown based on the Bloomberg Global Aggregate Total Return Index as of December 6, 2022.
9 Breakdown based on the Bloomberg MSCI Global Green Bond Index as of December 6, 2022.
10 Composition based on the Bloomberg Global Aggregate Corporate Total Return Index as of December 6, 2022.
11 Composition based on the Bloomberg MSCI Global Green Bond Corporate 5% Issuer Cap Index as of December 6, 2022.
12 The Paris Agreement, signed in 2015, is an international treaty that aims to cut greenhouse gas emissions and limit global warming this century to well below 2°C compared with pre-industrial levels.
13 The Sustainable Development Goals, adopted by the UN in 2015, are a 15-year action plan for protecting the environment, ending poverty and reducing inequality.
14 Source: Association for Financial Markets in Europe, “Q1 2021 ESG Finance Report.” As of March 31, 2021.
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Environmental, Social and Governance (“ESG”) strategies may take risks or eliminate exposures found in other strategies or broad market benchmarks that may cause performance to diverge from the performance of these other strategies or market benchmarks. ESG strategies will be subject to the risks associated with their underlying investments’ asset classes. Further, the demand within certain markets or sectors that an ESG strategy targets may not develop as forecasted or may develop more slowly than anticipated.
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Date of First Use: February 7, 2023 305096-OTU-1736393
