Investment for energy-transition technology companies
Emerald’s Global Energy Transformation Fund invests in early and expanding energy-technology businesses, mainly through equity and sometimes through securities that can become equity. It screens the business’s commercial potential, environmental and social risks, and governance.
The Emerald Global Energy Transformation Fund (Ireland) backs unlisted companies developing energy and energy-related technologies. Early-stage companies are developing their business; expansion-stage companies are scaling it. The fund mainly provides equity—capital in return for an ownership stake—and may use securities that can convert into that ownership. The investment terms go through negotiation and approval.
Its strategy seeks transformative products, better performance, greater efficiency or significant cost savings in energy technology. The climate-relevant investments enable other companies to reduce greenhouse-gas emissions; those customers may include fossil-fuel producers. Examples in the fund’s disclosure include renewable-energy production and new energy technologies supporting the transition to a greener economy.
The fund promotes environmental and social characteristics under Article 8 of the EU sustainability disclosure rules. At least 80% of its investments are allocated to those characteristics; this is a portfolio allocation, not a percentage of an applicant’s costs paid by the fund. It does not commit to the separate legal category of sustainable investments.
Eligibility
The named fund targets early and expansion-stage energy and energy-related technology companies. Emerald’s general entrepreneur criteria call for an experienced management team, a clear route to commercialisation in a large or fast-growing market, a scalable business model, and a product or service with a lasting competitive advantage and a compelling benefit for customers.
All proposed investments undergo exclusion screening and environmental, social and governance (ESG) due diligence. Published exclusions include controversial-weapons activities, tobacco cultivation and production, and companies found to violate UN Global Compact principles or OECD Guidelines for Multinational Enterprises. These are responsible-business standards: for example, the UN Global Compact covers respect for human rights, labour rights, environmental protection and prevention of corruption. An investment that falls within the fund’s exclusion list is rejected.
The governance review examines how the business is organised and managed, employee relations and pay, supply chains, financial statements, tax compliance, insurance, regulatory matters and litigation. Higher-risk issues, such as human-rights risks in the supply chain, can lead to further checks or investment conditions.
Investee companies must complete an annual ESG questionnaire. It covers matters such as greenhouse-gas emissions, renewable-energy use, pay and gender representation, board independence and company policies. The fund recognises startups’ limited data capacity and supports improvement in measurement and ESG practices.
Minimum ESG requirements and reporting obligations must be recorded in the investment documents. When the fund leads—takes the main role in arranging the investment—they are included in the term sheet, which sets out the proposed investment terms. When another investor leads, the commitments are recorded in a side letter, a separate agreement documenting additional commitments, or an equivalent agreement. The ESG and reporting requirements apply in either case. Board representation and continuing engagement are part of its approach in most cases.
How to apply
- Status
- Dates not announced
Start through Emerald’s contact form, which its entrepreneur page directs founders to use. Explain your company and proposed energy-transition investment; the form allows a message of up to 3,000 characters and an attachment up to 4 MB.
The fund first screens exclusions and major ESG risks, then carries out more detailed business and ESG due diligence. The team may request further checks or impose conditions. In the final phase it negotiates the investment terms, including ESG and reporting commitments, and arranges participation by other investors—a process called syndication.
The investment committee can reject a proposal at any decision stage. A proposal it approves is then submitted to the alternative investment fund manager for a separate approval or rejection.