In helping our clients navigate complexity, we focus on the how. How we balance short-term needs with long-term ambitions. How we help address challenges, close gaps and unlock opportunities to advance climate transition and drive inclusive growth. It’s how we manage risk and create value for our clients, our firm, our shareholders and other stakeholders, moving forward. The macro environment of 2022 laid bare the challenges of navigating the climate transition. Energy prices rose suddenly when Russia launched its invasion of Ukraine, and though prices later fell toward their pre-war levels, the lesson was clear: Low investment in energy infrastructure has left regions like Western Europe vulnerable to supply shocks. The war has focused the attention of governments and businesses alike on the need to balance short-term energy demands with long-term sustainability goals. At the same time, an increase in inflation triggering a tightening of monetary policy has made business leaders more cautious in general. The economic outlook is still unclear, and in such a complicated environment, our clients are facing new questions about how to achieve their sustainability goals. But that’s no reason to change course. At Goldman Sachs, we’ve long believed the transition to a more sustainable economy would be a decades-long effort; to advance that transition, more risk capital must be invested in developing new, clean technologies, especially for the highest-emitting sectors; and in solving such a complex problem lies enormous opportunity for our clients. For example, our Carbonomics research team estimates that, to provide affordable energy while also pursuing decarbonization, the energy industry will need $1 trillion more in annual capital expenditures through 2026, compared to what it spent during the final years of the past decade.