NEW YORK & RYE BROOK, NY, September 20, 2021– (BUSINESS WIRE) – Goldman Sachs Transaction Banking Services has launched a new ESG (environment, social and governance) linked sight deposit account with global water technology company Xylem (NYSE: XYL), as main customer, the two companies announced today.
The new Goldman Sachs Transaction Banking (TxB) product links the return clients earn on their deposits to the achievement of their own ESG goals. ESG-focused companies like Xylem are expected to generate higher returns as they implement their sustainability strategies. The product is structured as a demand deposit account, so customers can access cash when they need it.
Xylem, recognized as a leader in sustainable development, adds the ESG deposit account to its suite of green financing tools. In 2019, Xylem executed an $ 800 million revolving credit facility with a sustainability pricing mechanism, the first of its kind in the U.S. general industrial sector. In 2020, it finalized a $ 1 billion green bond offering, the proceeds of which were allocated to projects that improve water security and advance sustainability.
“This ESG-linked account is strongly aligned with our view that sustainability should be at the heart of our business strategy and our funding approach,” said Sandy Rowland, CFO of Xylem. “Our company innovates in technologies that deliver more sustainable results for our customers and other stakeholders. Banking products that recognize and reward ESG achievements are a welcome step forward in managing finance and sustainability in an interdependent way. This account does that while providing the flexibility we need to manage cash and payments.
John Goldstein, Director of Goldman Sachs Sustainable Finance Group, added: “We are proud to partner with Xylem to provide a leading ESG solution, which supports the sustainability goals of our two companies. TxB’s ESG sight deposit product is an innovative product to complement our existing range of ESG financing solutions, reinforcing our commitment to climate transition and inclusive growth. “
The new offering aligns with nine investment themes that underpin Goldman Sachs’ sustainability framework: clean energy, sustainable transportation, sustainable food and agriculture, waste and materials, ecosystem services, accessible and innovative healthcare, education accessible and affordable, financial inclusion and communities. Goldman Sachs’ commitment to sustainable finance includes a deployment target of $ 750 billion for climate transition and inclusive growth by 2030.
Xylem’s sustainability goals for 2025 include:
Enabling its customers to save more than 16.5 billion cubic meters of water through the use of advanced technologies;
Help clients prevent more than 7 billion cubic meters of polluted water from flooding communities or entering local waterways;
Reduce the CO2 footprint linked to the water cycle by more than 2.8 million tonnes
Provide access to safe drinking water and sanitation solutions for at least 20 million people living at the base of the global economic pyramid; and
Using 100% renewable energy and 100% recycling of process water in its main facilities.
Xylem’s 2020 sustainability report is available here.
Xylem (XYL) is a leading global water technology company committed to solving critical water and infrastructure issues through innovation. Our more than 16,000 diverse employees generated sales of $ 4.88 billion in 2020. We are creating a more sustainable world by enabling our customers to optimize water and resource management, and by helping communities in over 150 countries to secure water. Join us at www.xylem.com.
About Goldman Sachs
The Goldman Sachs Group, Inc. is a global leader in investment banking, securities and investment management providing a broad range of financial services to a substantial and diverse clientele including corporations, financial institutions, governments and individuals. Founded in 1869, the company is headquartered in New York City and has offices in all of the major financial centers around the world.
About Goldman Sachs Transactional Banking
Goldman Sachs Transaction Banking, through Goldman Sachs Bank USA, is building a modern, digital, cloud-based business to help clients build the future of their cash flow. The company combines the strength, heritage and expertise of a 150-year-old company with the agility and entrepreneurship of a technology start-up.
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