In July, Goldman Sachs formed a Sustainable Finance Group, a much-hailed project that CEO David Solomon in a letter called a “significant, long-term” priority that is increasingly a “strategic growth opportunity and competitive necessity for our firm and our clients.”
Goldman and other banks have for years been researching and investing the topic, which has morphed into projects and financing that is now known as ESG — or environmental, social, and corporate governance.
This year has been critical.
“Now, more and more often, clients are coming to us for advice on how to tackle climate change,” John Goldstein head of Goldman’s Sustainable Finance Group, said in an interview with Markets Insider. “At the end of the day, people want to make money. And, say — take a pension fund, people need to get their money in 20 or 30 years, climate change poses a question of, will people get that money then? And how will the fund be affected?”
Goldman last month released a 34-page report, which analyzed the impact of climate change on cities. The results were terrifying. Read more about it here.