Goldman Sachs launches Article 9 green bond ETF

Aims to track global G10 green bond issuance

Goldman Sachs Asset Management (GSAM) has launched an Article 9 green bond ETF.

The Goldman Sachs Global Green Bond UCITS ETF fund aims to track global G10 green bond issuance and offers access to bonds that meet certain sustainable investment screens, including controversy exclusion, project and sector exclusions and an analysis of issuers’ climate transition policies.

GSAM has partnered with index provider Solactive to develop the Solactive Global Green Bond Select Index, which the new fund will track.

See also: – Goldman Sachs AM Q&A: Charting our water future

Bram Bos, global head of green, social & impact bonds at Goldman Sachs Asset Management, said: “Green bonds are an important source of investment to drive the climate transition, reflected in record issuance last year.

“The widening range of issuers include companies and governments around the world, seeking investment to drive their plans to reduce greenhouse gas emissions and guard against physical climate risks.”

Hilary Lopez, head of EMEA third party wealth at Goldman Sachs Asset Management, added: “The global green bond market is an increasing source of opportunity for investors as they look to complement their fixed income exposure with dedicated green, social and impact bonds.”

“We plan to continue expanding our product range to support our clients’ investment and sustainability objectives,” she added.

GSAM recently passed $10bn (£8bn) in dedicated green, social and impact bonds assets under supervision, of which $5.5bn is in open-ended funds.

This article first appeared on ESG Clarity’s sister title Portfolio Adviser.