Goldman Sachs AM launches a biodiversity-focused bond fund
27 FEB, 2025
By Jose Luis Palmer from RankiaPro Europe
Goldman Sachs Asset Management has announced the launch of the Goldman Sachs Biodiversity Bond Fund, one of the first fixed income funds designed for investors interested in biodiversity conservation and restoration.
A sustainable approach to fixed income
The new fund primarily invests in investment-grade corporate bonds across developed and emerging markets. In line with its sustainability commitment, it will make disclosures under Article 9 of the SFDR. Its strategy includes both labeled bonds, where proceeds are directed towards biodiversity-related projects, and unlabeled bonds issued by companies generating revenue aligned with biodiversity conservation and restoration.
Bond selection will be based on proprietary analysis and Goldman Sachs AM’s sustainable investing framework. Additionally, bonds will be aligned with specific United Nations Sustainable Development Goals (SDGs), particularly SDG 6, 12, 14, and 15. Labeled bonds will adhere to the International Capital Market Association’s GSS Bond Principles.
Expansion of Goldman Sachs AM’s sustainable offering
This new fund expands Goldman Sachs AM’s already robust range of green, social, and impact investing bond funds. Its existing lineup includes the Goldman Sachs Impact Corporate Bond Fund, the Goldman Sachs Social Bond Fund, and the Goldman Sachs Global Green Bond UCITS ETF, launched in 2023.
The fund offers global exposure and currency diversification, including euro, dollar, and British pound. It is domiciled in Luxembourg and will be available to eligible investors in selected jurisdictions.
In recent years, there has been a growing focus amongst investors to consider not just pure climate targets but also maintaining and improving biodiversity. 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.
Bram Bos, Global Head of Green, Social and Impact Bonds at Goldman Sachs Asset Management
Goldman Sachs AM manages over $1.75 trillion in assets and has a fixed income team of more than 370 professionalswith expertise across various regions and sectors.
