The Creon Energy Fund does not invest in upstream hydrocarbons projects or contribute to increased emissions of fossil fuel gases (negative screening). The focus of our investments is on projects in the fields of environmental technology, renewable energies and the promotion of alternative energies and raw material sources such as hydrogen, recycling, biomass. Investments in industrial projects using fossil raw materials, such as LNG or methanol, must aim to contribute to a net reduction in greenhouse gas emissions. Creon Capital is pursuing a best-in-class screening regarding environmental management, as well as social and corporate governance.
As a private equity fund, our involvement usually begins with scaling up a company in which we invest. In this phase, a detailed audit of internal processes takes place, which must then be rescheduled and adapted in accordance with business plan and growth strategy. In this phase, as an active manager, we insist on comprehensive ESG integration. The aim here is to create a management culture that is as inclusive as possible, social responsibility and maximum transparency, while leaving zero tolerance for corruption and violation of compliance standards. The latter must be clearly in line with ALFI standards, to which Creon Capital is committed.
Creon Capital fund managers are no silent observers, but active partners seeking to impact businesses. In collaboration with Creon Group specialists, they contribute to the value development of an asset by deploying its expertise in project management, marketing, and its network. Stewardship of Creon Capital fund managers spans the entire investment phase. Fund specialists observe trends in ESG integration and assist the management of asset companies in implementation and ongoing improvements. In the parallel, all assets are regularly subjected to internal audits, which help us to understand the degree of implementation of ESG standards. At the same time, second party opinions are collected, for example as part of preparations to issue green bonds.
In terms of ESG performance the objective is the Creon Energy Fund investment having an impact: A company closed to leave our portfolio should be more sustainable than when involvement started, notably greener, social, more transparent. KPI, shareholder action and joint add-value measures should have ensured this prior to an asset entering the exit phase. Before exiting, Creon Capital evaluates the ESG impact its engagement had.