(Boursier.com) — Goldman Sachs Asset Management announces that it has recently launched its Goldman Sachs Global Environmental Transition Equity fund. The fund seeks to generate returns for investors by seizing investment opportunities in companies with a high environmental footprint that aim to improve their business models and take steps to reduce their ecological impact.
The fund leverages Goldman Sachs Asset Management’s proprietary internal tools and processes to qualitatively and quantitatively assess the environmental impact and transition plans of the companies in which it invests. This approach will be accompanied by monitoring and a policy of ongoing shareholder engagement which will make it possible to evaluate the progress made and promote sustainable and shareholder-friendly practices.
The fund focuses on 5 key themes: extraction, power generation, manufacturing, transport and consumption – and aims to invest in a wide range of sectors, notably in quality, mature and oriented companies “value” stocks, which boast strong free cash flow returns and potentially attractive valuations.
As such, the strategy can help balance broader sustainable equity allocations – often “growth” oriented – and meet the needs of investors seeking to reduce the environmental impact of their investment portfolio.
Alexis Deladerrière, Head of International Developed Markets Equities at Goldman Sachs Asset Management, said: “Companies that have a strong environmental footprint today will play a critical role in achieving carbon neutrality and all environmental goals. We believe that There are significant benefits for investors in gaining exposure to companies with strong value characteristics that enhance their sustainability profile. The strategy is designed to enable investors to access attractive opportunities within a broad investment universe and which we believe are compatible with a Net Zero investment portfolio by 2050. We believe the fund meets the needs of investors seeking a balanced approach in their allocation to sustainable equities.”
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