ESG

We are committed to a better tomorrow

As a fund management company, Creon Capital pursues a distinctive sustainable investment approach. This means that all Creon Energy Fund S.C.A. Sicav-SIF investments are evaluated according to the so-called ESG standards – environmental, social and governance factors. We use our influence as a shareholder as well as our role as an active investor to create add-value through steady improvements in terms of environmental management, social responsibility, corporate governance.

 ESG compliance is becoming an imperative for investment activities in western countries . We facilitate the according standards and implement ESG-integration to our investments. We reckon increasement of ESG performance as a process applicable also to our investments and business partnerships in emerging markets. In Eurasia, the level of ESG responsibility may lay behind the EU average yet, though we see a growing willingness to make substantial improvements. In addition to our fund’s investment activities, Creon Capital provides consulting services to decision-makers, seeking to improve their ESG policy. This includes strategic management advisory, our assistance in issuing green bonds in Luxembourg, value and appraisal work in difficult markets, and financial structuring solutions.



Environmental

Dealing with climate change, biodiversity, sustainable treatment of environment, renewable energy, recycling.

Social

Focused on the labor issues including salary equality, data security, integration of employers in governance.

Goverment

Highlights good corporate governance, focused on board quality and inclusive decision-making.


“Sustainable Financing” matters

In Europe, more than half of the assets under management are subject to ESG integration. Awareness of the necessity and importance of an ESG policy is notably growing in the Middle East region and in the countries of Eurasia as well. Creon Capital actively encourages joint ventures to continuously improve their ESG practice and co-invests solely with partners, who share our sophisticated sustainable investment approach. Our approach derived from Principles of Responsible Investing (PRI) as initiated by the United Nations and encompass the following activities and strategies along a four-phase investment process, replicating the categorization of the Global Sustainable Investment Alliance.

Deal SourcingImplementationRunning phaseExit phase
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.

How we advise others in terms of ESG performance

Licensed as a management consulting, Creon Capital supports companies in Eurasia and Middle East countries to improve ESG performance. Creon specialists conduct audits of ESG policies, recommend “green frameworks” and eventually assist in issuing green bonds.

In the parallel, our partner Creon Group conducts since 2014 together with WWF Russia a rating of environmental transparency of Russian oil and gas companies. As it turns out, the sensitiveness of Eurasian companies in terms of environmental protection grows constantly. The Creon team collaborates with partners and clients to shape this trend.

Creon team proposes ESG-related investment advisory services, dedicated to companies seeking to improve their performance in terms of environmental responsibility.