Goldman Sachs Asset Management has launched the Global Green Bond UCITS exchange-traded fund (ETF).

The fund provides exposure to the Solactive Global Green Bond Select Index, which seeks to include companies with a lower climate risk than comparable passive benchmarks. It will make disclosures under Article 9 of the Sustainable Finance Disclosure Regulation.

The ETF aims to track global G10 green bond issuance and enables investors to replace a portion of their existing global fixed income portfolios with bonds that meet certain sustainable investment screens, including controversy exclusion, project and sector exclusions, and an analysis of issuers’ climate transition policies.

The fund forms part of Goldman Sachs  AM's global fixed income and liquidity solutions offering, which represents over US$822 billion in assets under supervision as of December 29 2023. The firm recently surpassed US$10 billion in dedicated green, social and impact bonds assets under supervision, from which US$5.5 billion is in open-ended funds.

“Green bonds are an important source of investment to drive the climate transition, as reflected in record issuance last year. The widening range of issuers includes companies and governments seeking investment to drive their plans to reduce greenhouse gas emissions and guard against physical climate risks,” says Bram Bos, global head of green, social and impact bonds at Goldman Sachs AM.