Goldman Sachs Launches SDG-focused Biodiversity Bond Fund
Goldman Sachs Asset Management (GSAM) announced the launch of the Goldman Sachs Biodiversity Bond fund, aimed at investing in a global portfolio of bonds contributing to UN Sustainable Development Goals (SDGs) supporting biodiversity conservation and remediation.
According to Bram Bos, Global Head of Green, Social and Impact Bonds at Goldman Sachs Asset Management, the launch of the new fund comes amidst “a growing focus amongst investors to consider not just pure climate targets but also maintaining and improving biodiversity.” GSAM added that the fund is one of the first fixed income funds available for providing investors with exposure to biodiversity conservation and remediation investment themes.
The new fund will invest both in labelled green, social and sustainability bonds with alignment to UN Sustainable Development Goals (SDGs) with proceeds to be used for biodiversity-related projects or activities, as well as in unlabelled bonds issued by companies with revenues contributing to biodiversity-related SDGs. Specific SDGs targeted by the fund include SDG 6 (Clean water and Sanitation), SDG 12 (Responsible consumption and Production), SDG 14 (Life below water) and SDG 15 (Life on Land).
The fund will invest primarily in investment-grade corporate bonds from both developed and emerging markets issuers, and will provide investors with global exposure, and the ability to invest across currencies, according to GSAM.
Bos added:
“This fund seeks to provide fixed income investors with exposure to issuers that are having a positive impact on biodiversity. The wide spectrum of the fund’s investment universe enables us to identify promising opportunities for investors.”
The new fund expands Goldman Sachs’ portfolio of sustainable bond fund offerings, following the launch by the firm in 2023 of green and impact bonds funds.
The new biodiversity fund will make disclosures under Article 9 of the Sustainable Finance Disclosure Regulation (SFDR).
Source: esgtoday.com
