Professional services firm Aon Ireland and asset management company Irish Life Investment Managers (ILIM) have launched a new €260m climate transition fund.
The Emerging Markets Climate Transition Fund will be integrated into the Aon Multi-Asset fund range.
It will enable Irish investors to "support the transition to a low-carbon economy" within emerging markets across the globe.
The firms say the product will provide "a modern alternative to traditional passive emerging market equity investments."
The fund focuses on investing in companies and stocks that contribute to climate action and other UN Sustainable Development Goals.
Aon and ILIM said the companies and stocks relate to "resource scarcity, health ecosystems and basic social needs, while integrating environmental, social and governance principles throughout the investment process."
The fund's investment strategy uses "environmental data to reduce carbon emissions over time, aligning with global targets to limit warming to 1.5C and achieve net zero CO2 emissions by 2050."
It excludes certain types of investments, including companies involved in controversial weapons, tobacco production, thermal coal mining, and those that violate the UN Global Compact.
It takes the total level of assets invested across Aon Ireland's climate transition strategies to more than €1 billion.
The Head of Investment at Aon Ireland said responsible investing "is no longer a niche, it's mainstream, with the market growing strongly in recent years".
Denis Lyons said that momentum is "now being felt here in Ireland".
"Despite global volatility, investors want to make a positive impact on the planet and society while also achieving sustainable, long-term returns," he added.
"Our new Emerging Markets Climate Transition Fund provides a practical way for investors to participate in the global transition to a low-carbon economy," said Mr Lyons.
The Head of European Partnerships at ILIM said Irish Life Investment Managers is "delighted to deepen our partnership with Aon through the development of this bespoke Emerging Market equity solution".
Brian Morrissey said the flexible partnership approach between the two firms "enables us to collaborate closely with both local and international partners, leveraging our responsible investment and fund management expertise to deliver tailored solutions that align with each client's specific objectives."
