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According to Denis Lyons, the fund in partnership with ILIM will receive an initial €330m investment from The Aon Ireland MasterTrust pension scheme.
Professional services firm Aon has teamed up with Irish Life Investment Managers (ILIM) to launch a €500m climate transition fund.
Announced today (8 April), the new fund will be aimed at companies that are working to achieve the UN sustainable development goals, or SDGs, relating to climate action, resource scarcity, healthy ecosystems and basic social needs.
Aon said that the fund has a rules-based investment strategy that uses environmental data and aims to decarbonise over time in line with the Intergovernmental Panel on Climate Change (IPCC) 1.5 degrees Celsius warming limit and reaching net zero emissions globally by 2050.
“Increasingly investors want to support the transition to a low-carbon economy and make a positive social impact. Responsible investments can help play a critical role in addressing global challenges including climate change and the pressing challenges facing our society,” said Denis Lyons, head of investment at Aon Ireland.
According to Lyons, the Climate Transition Equity Fund will receive an initial €330m investment from The Aon Ireland MasterTrust, a professionally managed pension scheme in Ireland.
“Through the creation of the new fund, we can create new growth opportunities by investing in companies and stocks that accelerate the move to a more sustainable future,” he added.
The news comes just months after The Aon Ireland MasterTrust surpassed €2.5bn in total assets under management at the end of 2023. A further €200m was onboarded by the end of February 2024, Aon revealed, with more than 39,000 members – making Aon one of the largest players in the workplace pensions market in Ireland.
“This was a great opportunity to develop a unique solution with Aon for their clients,” added Colin Cunningham, head of global corporate and institutional distribution at ILIM. “Our local and international partners continue to leverage our capabilities to build products aligned with their specific ESG policies and objectives.”
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