Goldman Sachs Asset Management has launched a new biodiversity bond fund, offering investors a way to support global conservation and restoration efforts through fixed-income investments. This EU-listed fund allows investors to back bonds where proceeds fund biodiversity-focused projects or are issued by companies generating revenue from ecological restoration. With sustainability at its core, the fund aligns with several of the United Nations’ Sustainable Development Goals, including water conservation, responsible consumption, and reversing biodiversity loss. According to the firm’s February 26 disclosures, at least 90% of its investments will be sustainable, while the remaining 10% will not fall under that classification.
Complying with the EU’s Sustainable Finance Disclosure Regulation (SFDR) article 9, the fund will provide transparent updates on how it achieves its investment goals. While it does not currently align with the EU Taxonomy for environmentally sustainable activities, Goldman Sachs has integrated its biodiversity investment strategy into the selection process. The firm uses a mix of third-party data, industry initiatives, and internal biodiversity assessments to ensure investments align with sustainability goals. Companies involved in controversial industries such as fossil fuel extraction, coal mining, and arctic oil and gas production are excluded from the fund.
As one of the first biodiversity-focused fixed-income funds, this initiative responds to the growing investor demand for sustainability beyond climate change. While biodiversity funds have traditionally been limited to equity markets, Goldman Sachs’ launch brings a new approach to fixed-income investing. The fund, domiciled in Luxembourg, is part of Goldman Sachs’ broader green finance strategy and is the firm’s fifth green bond fund. With quarterly reviews to ensure sustainability compliance, the fund aims to drive long-term impact in biodiversity conservation while providing investment opportunities aligned with environmental responsibility.
