The aim of this comparative case study is to explain and understand the view on management by objectives, that is held by the municipalities of Copenhagen and Malmo when it comes to SDG 13, climate action. A content analysis of green steering documents from each of the municipalities was chosen for comparison, Miljöprogram för Malmö stad 2021-2030 and Fællesskab København. To assist the content analysis two different categories or types of goalsetting are presented, these categories were then applied to each goal in the steering documents. The case study found that the goals in Malmö overall had a more informal articulation, but to some extent many of the goals had a more visionary green goalsetting which correlates with Suchman's thoughts on moral legitimacy. Whereas the goals in Copenhagen to a higher extent were categorized as formal, concrete and measurable. Copenhagen's goal setting also measures citizen perception of the progress (which Malmo does not do), this correlates with Suchmans thoughts on pragmatic legitimacy. The paper furthermore discusses advantages and disadvantages regarding formulating informal and formal goals, from two other perspectives of legitimacy, outflow legitimacy and throughflow legitimacy. The conclusion is made that the different municipalities' approach to green investment strategies differs a lot. Copenhagen has a principle of active ownership, if there is a suspicion that a company does not live up to the policy for responsible investments, a dialogue is entered into and, as a final step, cooperation is terminated if they do not comply with the municipality's green investment policy. Here the argument can be made that smaller municipalities such as Malmö lose outflow legitimacy because they only provide inspiration and support in this work. However, each individual company works with the target on the basis of the company's own operations.