Goldman Sachs Asset Management has rolled out an enhanced income ESG bonds portfolio that will exclude tobacco and other sectors.
Bond are selected based on fundamental research that integrates ESG analysis to arrive at sector and company exclusions.
The process involves analsing individual company revenue streams that are screened for negative social and environmental factors. As an example, the fund manager states that a utility company would be excluded if more than a quarter of its revenue is derived from thermal coal generation.
Ashish Shah, co-chief investment officer of global fixed income, said: “ESG analysis is critical for identifying 21st century business risks and ESG integration."
The Luxembourg-domiciled GS Global ESG Enhanced Income Bond Portfolio is available to both institutional and retail investors.
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