Aon has joined forces with Irish Life Investment Managers (ILIM) to launch Aon Emerging Markets Climate Transition Fund in Ireland.
The fund launches with an initial allocation of €260m and will be integrated into the Aon multi-asset fund range and enable 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.
Building on Aon’s long-term partnership with ILIM, the fund focuses on investing in companies and stocks that contribute to climate action and other UN Sustainable Development Goals relating to resource scarcity, health ecosystems and basic social needs, while integrating ESG principles throughout the investment process.
ILIM collaborated with Aon in the design and development of the solution that meets the specific needs of Aon’s clients.
Aon said that ILIM’s investment approach combined proprietary quantitative modelling with enhanced sustainability factors to deliver the flexible, low tracking error approach suited to the complexities of emerging markets.
It added that the fund’s investment strategy uses environmental data to reduce carbon emissions over time, aligning with global targets to limit warming to 1.5°C and achieve net zero CO2 emissions by 2050. The strategy excludes certain types of investments, including companies involved in controversial weapons, tobacco production, thermal coal mining, and those that violate the UN Global Compact.
With this launch, total assets invested across Aon Ireland’s bespoke climate transition strategies have now surpassed €1bn. This milestone follows the successful introduction of Aon’s initial Developed Markets Climate Transition Fund in 2024.
Denis Lyons, 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. 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.
Brian Morrissey, head of European partnerships at ILIM, added: “Our flexible partnership approach 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.”
