A new €500m Climate Transition Equity Fund is being launched by Aon and Irish Life Investment Managers (ILIM).
The fund is planning to invest in companies and stocks that are aligned with UN Sustainable Development Goals.
In particular it is planning to focus on investments connected to climate action, resource scarcity, healthy ecosystems and basic social needs.
It will deploy a rules-based investment strategy that uses environmental data and aims to decarbonize over time in line with the Intergovernmental Panel on Climate Change's 1.5°C warming limit and reaching net zero CO2 emissions globally around 2050.
"Increasingly investors want to support the transition to a low-carbon economy and make a positive social impact," Denis Lyons, Head of Investment, Aon Ireland.
"Responsible investments can help play a critical role in addressing global challenges including climate change and the pressing challenges facing our society."
€330m will initially be invested by The Aon Ireland MasterTrust, which has assets under management of over €2.5 billion and over 39,000 members.
"Utilising our responsible investing expertise, proprietary quantitative research modelling framework and highly rated fund management capabilities, we are proud to collaborate with Aon on the development of this customised fund," said Alan Duffy, ILIM’s Head of Sustainable Integration and Solutions.
"The solution allows investors to harness the opportunities that moving to a more sustainable future brings and enables its evolution over time."
