Goldman Sachs, Xylem Launch First ESG-linked Demand Deposit Account
September 20 2021 - 8:00AM
Business Wire
Goldman Sachs Transaction Banking Services has launched a new
ESG (Environmental, Social and Governance) linked demand deposit
account, with global water technology company, Xylem (NYSE:XYL), as
its anchor client, the two companies announced today.
The new Goldman Sachs Transaction Banking (TxB) product links
the yield clients earn on their deposits to the achievement of
their own ESG targets. ESG-focused companies, like Xylem, stand to
earn higher yields as they deliver on their sustainability
strategies. The product is structured as a demand deposit account,
so clients can access liquidity whenever they need it.
Xylem, recognized as a leader in sustainability, is adding the
ESG-linked deposit account to its suite of green financing tools.
In 2019, Xylem executed an $800 million revolving credit facility
with a sustainability-linked pricing mechanism, the first of its
kind in the US General Industrial Sector. In 2020, it completed 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 both our business strategy
and our financing approach,” said Sandy Rowland, Xylem’s Chief
Financial Officer. “Our business is innovating in technologies that
deliver more sustainable outcomes for our customers and other
stakeholders. Banking products that recognize and reward ESG
achievement are a welcome step forward in managing financing and
sustainability interdependently. This account does that while
delivering the flexibility we need to manage liquidity and
payments.”
John Goldstein, Head of Goldman Sachs Sustainable Finance Group,
added, “We’re proud to partner with Xylem to deliver a
market-leading ESG solution, which supports the sustainability
objectives of both of our companies. TxB’s ESG demand deposit
product is an innovative complement to our existing suite of ESG
finance solutions, enhancing 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 transport, sustainable food and agriculture, waste and
materials, ecosystem services, accessible and innovative
healthcare, accessible and affordable education, financial
inclusion, and communities. Goldman Sachs’ sustainable finance
commitment includes a target to deploy $750 billion across climate
transition and inclusive growth by 2030.
Xylem’s 2025 sustainability goals include:
- Enabling its customers to save more than 16.5 billion cubic
meters of water through the use of advanced technologies;
- Supporting its customers in preventing over 7 billion cubic
meters of polluted water from flooding communities or entering
local waterways;
- Reducing the CO2 footprint associated with the water cycle by
over 2.8 million metric tons
- Providing access to clean 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% process water recycling at
its major facilities.
Xylem’s 2020 Sustainability Report is available here.
About Xylem
Xylem (XYL) is a leading global water technology company
committed to solving critical water and infrastructure challenges
with innovation. Our more than 16,000 diverse employees delivered
revenue of $4.88 billion in 2020. We are creating a more
sustainable world by enabling our customers to optimize water and
resource management, and helping communities in more than 150
countries become water-secure. Join us at www.xylem.com.
About Goldman Sachs
The Goldman Sachs Group, Inc. is a leading global investment
banking, securities and investment management firm that provides a
wide range of financial services to a substantial and diversified
client base that includes corporations, financial institutions,
governments and individuals. Founded in 1869, the firm is
headquartered in New York and maintains offices in all major
financial centers around the world.
About Goldman Sachs Transaction Banking
Goldman Sachs Transaction Banking, through Goldman Sachs Bank
USA, is building a modern, digital-first, and cloud-based business
to help clients build the future of their Treasury. The business
combines the strength, heritage, and expertise of a 150-year-old
firm with the agility and entrepreneurial spirit of a tech
start-up.
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version on businesswire.com: https://www.businesswire.com/news/home/20210920005502/en/
Xylem Houston Spencer +1 (914) 240-3046
Houston.Spencer@xyleminc.com
Goldman Sachs Andrew Williams +1 (212) 902-5400
Andrew.Williams@gs.com
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