The fund will give investors exposure to issuers that are having a positive impact on biodiversity, at a time of increasing awareness of the potential for impact and returns in nature-based investments.
Goldman Sachs Asset Management (GSAM) is launching a biodiversity impact bond fund which aims to channel capital to issuers which are having a positive impact on nature.
The Goldman Sachs Biodiversity Bond fund, which aims to align with SFDR Article 9 regulation, aims to give investors exposure to biodiversity conservation and restoration.
Bram Bos, global head of green, social, and impact bonds at Goldman Sachs Asset Management (GSAM), emphasised the increasing investor interest in biodiversity alongside climate considerations.
“In recent years, there has been a growing focus amongst investors to consider not just pure climate targets but also maintaining and improving biodiversity,” said Bos.
“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 fund will primarily invest in investment-grade corporate bonds across both developed and emerging markets and will align with biodiversity-linked UN Sustainable Development Goals (UN SDGs). These include SDG 6: Clean Water and Sanitation, SDG 12: Responsible Consumption and Production, SDG 14: Life Below Water, and SDG 15: Life on Land.
Institutional interest
The fund launch comes at a time when awareness among investors about the investment opportunity in preserving and restoring nature is growing.
Currently, over 50% of global GDP depends on nature and its services, with natural ecosystem degradation costing the global economy a staggering $5trn (€4.7trn), as highlighted by Anna Väänänen, head of listed impact equity at AXA Investment Managers at last year’s Impact Investor Conference.
Furthermore, labelled bonds included in the fund’s portfolio will adhere to the International Capital Market Association’s Green, Social, and Sustainability (GSS) Bond Principles, according to GSAM.
