Key Takeaways:
- GSAM introduces a biodiversity-focused bond fund aligned with UN SDGs, targeting conservation and remediation investments.
- Investments include labeled and unlabeled bonds supporting biodiversity-related projects in both developed and emerging markets.
- The fund will disclose under Article 9 of SFDR, reinforcing its commitment to sustainable finance transparency.
GSAM’s Biodiversity Investment Approach
Goldman Sachs Asset Management (GSAM) has launched the Goldman Sachs Biodiversity Bond Fund, designed to invest in bonds that contribute to UN Sustainable Development Goals (SDGs) focused on biodiversity conservation and remediation.
Bram Bos, Global Head of Green, Social, and Impact Bonds at Goldman Sachs AM, highlighted the increasing investor interest in biodiversity alongside climate goals:
“A growing focus amongst investors to consider not just pure climate targets but also maintaining and improving biodiversity.”
A Diversified Sustainable Bond Strategy
The fund will allocate capital across:
- Labeled green, social, and sustainability bonds that directly fund biodiversity projects.
- Unlabeled bonds from companies generating revenues aligned with biodiversity-related SDGs.
Key SDGs targeted include:
- SDG 6: Clean Water and Sanitation
- SDG 12: Responsible Consumption and Production
- SDG 14: Life Below Water
- SDG 15: Life on Land
Investment Scope and Global Reach
The fund will primarily invest in investment-grade corporate bonds from both developed and emerging markets, offering global exposure and the ability to invest across different currencies.
Bos emphasized:
“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.”
Strengthening GSAM’s Sustainable Bond Offerings
This biodiversity bond fund builds on Goldman Sachs AM’s 2023 launch of green and impact bond funds, further expanding its sustainable investment product lineup.
The fund will adhere to Article 9 of the Sustainable Finance Disclosure Regulation (SFDR), ensuring a high level of sustainability-focused disclosures.
Related Article: Do Investors Care about Biodiversity?
