As the ESG scam continues to reveal itself before our very eyes (just yesterday, for example, we noted the SEC fining a Deutsche subsidiary $25 million for, among other things, lies about being 'ESG'), Goldman Sachs - with its earnings closely under the microscope after last quarter - isn't waiting to pull the ripcord and step away from the trend.
David Solomon, the CEO of Goldman Sachs Group Inc., has stood firm in his support for maintaining relationships with fossil fuel companies, according to a new writeup from Energy World.
Solomon said this week: “Traditional energy companies are hugely important to the global economy, they are hugely important to Goldman Sachs. We are all going to continue to finance traditional companies for a long time."
“We recognize there needs to be a transition over time but that transition is going to take time," he added.
His statements reflect the sentiments of other titans in the financial industry, who are pushing back against increasing pressure from environmental advocates calling for banks to rapidly divest from fossil fuel enterprises.
This has led to disturbances at banking functions and demonstrations outside corporate offices. Earlier in the year, a faction of investors petitioned the six largest U.S. banks to halt their financial backing of oil and gas projects, albeit without success.
Solomon's views also resonate with his earlier communication to students at his alma mater, Hamilton College. An anonymous op-ed submitted to the college newspaper cited Solomon advising students to understand how the world "really worked" as a justification for his stance.
“Candidly, with what’s going on geopolitically, we are in a better position to have a more rational, honest conversation now," he said on Monday. Otherwise, he said, "society won't function."
"There's no easy answer to the journey we are on," Solomon added.