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Goldman Sachs ESG Em Mkts Eq R6 GEBSX Sustainability

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Sustainability Analysis

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Sustainable Summary

Goldman Sachs ESG Emerging Mkts Eq Fd has a number of positive attributes that a sustainability-focused investor may find appealing.

This fund has relatively low exposure to ESG risk compared with its peers in the Global Emerging Markets Equity category, earning it the second highest Morningstar Sustainability Rating of 4 globes. ESG risk provides investors with a signal that reflects to what degree their investments are exposed to risks related to material ESG issues, such as climate change and inequalities, that are not sufficiently managed. ESG risk differs from impact, which is about seeking positive environmental and social outcomes.

Goldman Sachs ESG Emerging Mkts Eq Fd has a sustainability or ESG-focused mandate. Funds with an ESG-focused mandate are more likely to align with the expectations of an investor who cares about sustainability issues. One key area of strength for Goldman Sachs ESG Emerging Mkts Eq Fd is its low Morningstar Portfolio Carbon Risk Score of 8.03 and very low fossil fuel exposure over the past 12 months, which earns it the Morningstar Low Carbon Designation. Thus, the companies held in the portfolio are in general alignment with the transition to a low-carbon economy. Currently, the fund's involvement in fossil fuels is negligible, and compares favorably with 7.58% for its average peer.

Goldman Sachs Esg Emerging Mkts Eq Fd shows 10.83% involvement in carbon solutions. This percentage surpasses the 7.39% average involvement of its peers in the Diversified Emerging Mkts category. Carbon solutions include products and services related to renewable energy, energy efficiency, green buildings, green transportation, and so on. By prospectus, the fund aims to avoid, or limit its exposure to, companies associated with controversial weapons, tobacco, thermal coal, and small arms. The fund fulfills this goal as its investment exposure to each of these activities is negligible.

The fund exhibits relatively high exposure (9.85%) to companies with high or severe controversies. Companies with high or severe controversies may be involved in incidents such as corruption, employee abuses, environmental incidents, and corporate scandals that pose serious business risks to the company.

ESG Commitment Level Asset Manager

An ESG Commitment Level Asset Manager rating is not assigned to this investment.

Morningstar analysts award an ESG Commitment Level Asset Manager ratings to investments that also receive Morningstar Analyst Ratings. Not all investments currently have Asset Manager rating. Morningstar is expanding its coverage, prioritizing investments that are most relevant to investors.