Are the folks at Goldman Sachs closet tree-huggers?

By Mark Kneubuhl –

(May 24, 2012)  For some time headlines have rotated between Wall Street and the mega-Investment Bankers and a variety of equally depressing environmental stories, with no apparent relationship.  But these two orbiting subjects collided yesterday in the announcement by Goldman Sachs that it plans to channel $40 billion in investments over the next decade into renewable energy projects.

But don’t mistake this bold move as a sudden change of conscience, G.S. execs said earlier week that ‘demand for alternative energy will grow with global demand, while big manufacturing countries set more aggressive targets for reducing emissions.’  In other words, it’s a good investment strategy!  And even the greenest of environmentalists will take that.

Tomorrow at its annual meeting, Goldman plans to announce the new plan.

But wait a minute:  In 2011, GS financed $4.8 billion in clean technology companies and to date the global investment firm has dropped a cool $24-billion in total investments, which on average works out to about the same annual spending as the “new” proposed earmark.

This had led some analysts to label the upcoming “initiative” as a “Charm offensive,” citing to “score public relations points for a relatively small investment.”

But most agree that investing in clean energy is the Dot.com of the future, but unlike the financial rollercoaster of the Dot.com era, the demand for cleaner energy alternative will grow strong and steady.

All of this while many researchers agree with super-computer model scenarios that point to economic collapse and a massive drop in human population in this century, as a result of climate change and several related factors.

Last year, and for the first time in history, global investment in renewable energy surpassed investment in fossil fuels.

Read more on the topic…

Photo: Pedestrians passing Goldman Sachs New York headquarters.

 


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Posted by at May 24, 2012
Filed in category: Economy, Environment, Politics, and tagged with: ,

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