Sustainability

Financing Renewable Energy Production Through Fixed Income Allocation

The Challenge

The Client

A European private bank with a longstanding commitment to sustainability and social inclusion is looking to support the climate transition while reducing the CO2 footprint of their investment portfolio.

The Objective

Recommend ways to enhance sustainability and impact credentials of the Fixed Income parts of their discretionary portfolios.

Our Assignment
  • Deliver an investment solution that supports the transition to a low-carbon economy and limits emissions of greenhouse gas.
  • Identify specific strategies for financing renewable energy production through fixed income allocation.
Our Solution

End-to-End Portfolio Solution to Support Climate Transition

We provided bespoke education and strategic advice on investing in the climate transition, with specific focus on the role of green bonds in financing renewable energy.

The Outcome

Provided Research and Education on The Role of Finance In the Climate Transition

We provided analysis and education around three main areas:

  • The investment needed to advance energy transition and build sustainable economies.
  • The role of fixed income and particularly green bonds in financing the transition.
  • Comparison of investment characteristics of conventional bonds and green bonds.
Delivered Strategic Advice on Allocation to Green Bonds to Achieve Client Goals

We presented the strategic plan along with potential action steps to their investment board:

  • How allocation to green bond strategies potentially generate positive returns as well as environmental impact.
  • The role of green bonds in their existing portfolio constructions.
  • An outlook on how the green bond market is expected to develop and what this means for the client.
This Solution Addressed the Challenge By:
  • Identifying levers to invest in the energy transition.
  • Exploring targeted increases to climate thematic products.
  • Assessing opportunities to gain exposure to specific solutions that address the challenge of transitioning to a low-carbon economy.
  • An allocation towards dedicated green bond strategies in line with the client’s investment objectives.

The cited case studies represent examples of how we have partnered with various institutional clients on a broad range of services and offerings. The experiences outlined in the case studies may not be representative of the experience of other clients. The case studies have not been selected based on portfolio performance and are not indicative of future performance or success. This is not a testimonial for Goldman Sachs Asset Management’s advisory services.