Sustainable Finance: How do Morgan Stanley's risk-based approach and Goldman Sachs's $750B financing goal shape their climate strategies?

Morgan Stanley's climate strategy is fundamentally shaped by a risk-management perspective. Its top-level strategic goal is to "Address Climate-Related Risks," which it supports through initiatives like "Integrate Climate Risk Management" into its governance structures and "Develop [a] Climate Risk Assessment Framework." This approach treats climate change as a core enterprise risk to be measured, monitored, and mitigated, positioning the firm to build long-term resilience against physical and transition risks.

Goldman Sachs, on the other hand, approaches sustainability with a more commercial and market-facing strategy. Its primary goal is to "Advance Sustainability" by delivering solutions for its clients, underscored by its headline-grabbing commitment to "Deploy $750 Billion in Sustainable Financing, Investing and Advisory Activity" by 2030. While also managing its own risk, Goldman's strategy is distinctly offensive, positioning sustainability as a major commercial opportunity and a key service offering to help clients achieve their own climate objectives, contrasting with Morgan Stanley's more defensive, risk-centric posture.