Professional services firm Aon and pensions company Irish Life Investment Managers (ILIM) are to launch a €260 million climate transition fund in Ireland.
The Aon Emerging Markets Climate Transition Fund will help Irish investors to support the transition to a low-carbon economy within emerging markets across the globe, providing a “modern alternative to traditional passive emerging market equity investments”.
It focuses on investing in companies and stocks that contribute to climate action and other United Nations Sustainable Development Goals relating to resource scarcity, health ecosystems and basic social needs.
The fund’s investment strategy uses environmental data to reduce carbon emissions over time, aligning with global targets to limit global warming to 1.5 degrees and achieve net zero carbon-dioxide emissions by 2050.
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Its strategy excludes certain types of investments, including companies involved in controversial weapons, tobacco production and thermal coal mining and those that violate the UN Global Compact.
[ Ireland has second highest emissions per head in EU and must do more to reach net zero by 2050 ]
The fund pushes total assets invested across Aon Ireland’s bespoke climate transition strategies past €1 billion.
Denis Lyons, head of investment at Aon Ireland, said responsible investing was “no longer niche”, but now “mainstream”, with the market growing strongly in recent years.
“That momentum is now being felt here in Ireland,” he said. “Despite global volatility, investors want to make a positive impact on the planet and society while also achieving sustainable, long-term returns.”
It emerged last month that a key plan for cutting the State’s greenhouse gas emissions has been delayed for the second year.
The Climate Action Plan will not be published before April, with no firm date provided for when it is likely to appear after that.
The delay comes despite emissions in the State falling much more slowly than required and despite time running out to meet the legally binding target of halving them by 2030.
The Department of Climate has defended the delay, saying that when the plan was published it would be a “more focused plan, identifying strategic, realistic, high-impact actions”.
However, Green Party leader Roderic O’Gorman has said the Government showed a lack of urgency despite Minister for Climate Darragh O’Brien admitting that only half the required emissions cuts would be achieved under the current plan.
