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Solomon emphasized that the financial backing of traditional energy companies will continue for a considerable time. He acknowledged the recognized need for a transition towards renewable energy sources but pointed out that such a shift will take time. He noted that fossil fuels still provided the majority of the world’s energy last year, leading to an increase in emissions.
This stance is consistent with other Wall Street leaders who have resisted pressure from climate activists to rapidly withdraw financial support from fossil-fuel companies. This resistance has sparked disruptions at banking events and protests outside company headquarters.
Earlier this year, shareholders from the six largest US banks requested a phase-out of funding oil and gas exploration and development. However, these proposals have not yet been successful.
During a discussion with students at Hamilton College, Solomon reiterated these sentiments. The conversation sparked controversy among some students who later anonymously penned a letter to the college newspaper, claiming Solomon dismissed the fossil-fuel divestment movement as misguided. He reportedly suggested students visit countries like China, India, and Cambodia to understand how the world “really functions.” A Goldman spokesperson clarified that Solomon did not intend to offend the students with his comments.
In his Monday address, the 61-year-old CEO cited geopolitical developments as a catalyst for more honest conversations about energy. He stressed that without secure energy at an appropriate price, society could not function properly.
Solomon concluded by acknowledging the complexity of the path towards sustainable energy and emphasized the importance of providing appropriate support throughout this journey.
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