The latest developments in the ESG space.

Goldman Sachs Asset Management has just launched the Goldman Sachs Biodiversity Bond Fund, a fixed income fund available to investors seeking exposure to the thematic of biodiversity conservation and remediation. The fund is authorised for sale in a number of European countries, such as the UK, Switzerland, France, and Italy.

The fund, which invests mainly in investment-grade corporate bonds across developed and emerging markets, will make disclosures pursuant to Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR). It will allow clients to invest in both labelled bonds, where the proceeds of the bonds are applied towards biodiversity-related projects or activities, as well as unlabelled bonds issued by companies with revenues supporting biodiversity conservation and remediation.

Bonds will be selected for the fund based on proprietary analysis and Goldman Sachs Asset Management’s sustainable investing framework, the firm said in a statement. In addition, they will be aligned with some UN Sustainable Development Goals (SDGs) relating to biodiversity. The labelled bonds will be aligned with the International Capital Market Association’s GSS Bond Principles for labelled bonds.

The fund builds on the firm’s existing sustainable bond offering which includes its broad green bond fund range, consisting of five dedicated green bond funds, including the Goldman Sachs Impact Corporate Bond fund, the Goldman Sachs Social Bond fund and the Goldman Sachs Global Green Bond UCITS ETF, which were launched last year.

The fund provides investors with global exposure and the ability to invest across currencies, including the euro, dollar, and sterling. It is domiciled in Luxembourg and open to eligible investors in a number of 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,” Bram Bos, global head of green, social and impact bonds at Goldman Sachs Asset Management, said.