Goldman Sachs CEO David Solomon has argued against the divestment of fossil fuel companies in a recent speech at the American Energy Security Summit.
Solomon pointed to a need to support traditional energy companies, describing them as “hugely important to the global economy,” and to Goldman Sachs.
“We are all going to continue to finance traditional companies for a long time,” he stressed.
Solomon recognized the need for a transition but said that it “is going to take time,” and that “society won’t function” in the absence of secure energy at an appropriate price.
“There’s no easy answer to the journey we are on,” he said. “But I think it is hugely important that we provide the appropriate support.”
In April this year, shareholder advocacy group As You Sow secured support from almost a third of shareholders at Goldman Sachs for a proposal which demanded that it align its financing activities with the Paris Agreement’s net-zero goal.
Last year, Goldman was included on West Virginia’s restricted financial institution list, making it ineligible for state banking contracts due to its alleged “boycotting” of fossil fuels. BlackRock, JP Morgan Chase, Morgan Stanley and Wells Fargo were also included on the list.
“As treasurer, I have a duty to act in the best interests of the State’s Treasury and our people when choosing financial services for West Virginia,” Treasurer Riley Moore said in a July 2022 press release. “Any institution with policies aimed at weakening our energy industries, tax base and job market has a clear conflict of interest in handling taxpayer dollars.”