Portrait of David Solomon
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David Solomon on De-risking

Cautious engagement (moderate)

TL;DR

David Solomon advocates for a global approach that balances current energy needs with policies promoting new technology and orderly transition.

Key Points

  • He stated that achieving an orderly transition requires thoughtful public policy that balances current energy capabilities with support for new technology.

  • Goldman Sachs, under his leadership, launched a Climate Innovation Fund to provide de-risking capital for low-carbon economic development in South and Southeast Asia.

  • Solomon emphasizes a global solutions approach, noting that financial institutions must direct capital to sustainable solutions, especially in emerging markets.

Summary

David Solomon, in his capacity as Goldman Sachs CEO, has addressed the need for a balanced approach to global transitions, which implicitly relates to de-risking by focusing on an orderly shift in economic structures. He has emphasized that building a more sustainable planet requires global solutions and a collaborative effort between the public and private sectors. Specifically, he noted that supportive public policy and technological advancement are critical for financial institutions to effectively engage corporates in sectors undergoing transition and to invest in new solutions. The CEO stated that the climate transition is inherently a transition that will take time, suggesting a pragmatic, rather than abrupt, approach to structural economic changes.

His firm's strategy involves mobilizing commercial capabilities to support clients in managing climate-related risks and accelerating their decarbonization efforts. This strategic focus involves directing capital to sustainable solutions, particularly in emerging markets, where the journey toward transition is more challenging. Solomon highlighted a partnership that included a Climate Innovation Fund to encourage investment in clean energy projects across South and Southeast Asia, specifically mentioning the fund’s role in providing de-risking capital for low-carbon economic development. This suggests an understanding that global supply chain re-evaluation—a core component of de-risking—requires carefully managed capital deployment to facilitate orderly economic shifts.

Key Quotes

...favored East-West "de-risking" rather than decoupling...

Frequently Asked Questions

David Solomon's public statements, primarily concerning the climate transition, suggest a nuanced, pragmatic approach to major economic shifts, aligning with the concept of de-risking. He favors an orderly transition supported by global collaboration between the public and private sectors. He supports policies that balance existing energy needs with the acceleration of new technologies.

While David Solomon has traveled to China, he has been noted for being low-key in public engagements during those trips. His known discussions were in closed-door meetings with regulators and partners, in contrast to his more public forum participation in previous years.

David Solomon, while in China, followed a trend of other Western CEOs in maintaining a low public profile due to U.S.-Sino tensions. It is noted that other executives, like the head of JPMorgan, favored 'de-risking' over a full decoupling of the U.S. and China economies.