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Allianz Trade Launches Surety Green2Green
Global Banking & Finance Review®
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Allianz Trade powers the future of low-carbon technologies and renewables with Surety Green2Green
Allianz Trade powers the future of low-carbon technologies and renewables with Surety Green2Green
Allianz Trade introduces Surety Green2Green, a bold new solution aimed at accelerating the sustainable transition of the global economy. Through this product, Allianz Trade enables its clients to engage in low-carbon technologies and renewables projects through issuance of surety bonds and guarantees securing their proper completion. But the company takes it one step further: the amount of premiums received are then held as investments in certified green bonds, creating a circular model that continually fuels sustainability progress.
A step forward in Allianz Trade’s sustainability journey
Building on years of commitment to sustainability, Surety Green2Green is a testament to Allianz Trade’s leadership in driving the transition. Aligned with its parent company, Allianz Group, the company has made sustainability a core component of its business strategy and operations. The launch of this product marks another milestone in Allianz Trade’s efforts to align financial security with sustainability principles.
“As an insurer and global trade enabler, we are uniquely positioned to help companies and the overall economy to grow in a more sustainable way. This is why we aim to lead by example and reduce the carbon footprint of our own operations. This is why we aim to infuse a sustainable mindset at all stages of our organization. This is why we aim to steer the decarbonization of our portfolios. And eventually, this is why we aim to launch innovative and sustainable solutions that foster a low-carbon transition”, describes Piril Kadibesegil Yasar, Head of Sustainability at Allianz Trade.
Supporting the breakthrough of low-carbon technologies and renewables
A surety bond supports and secures the contractual obligations a company has entered into with a customer, supplier, or public organisation. Therefore, as a surety specialist, Allianz Trade financially protects its clients’ business partners against any loss occurring due to late or incomplete performance of obligations. Surety Green2Green follows the same logic: without surety bonds, many sustainable projects would face significant financial risks and legal barriers, and even not come to life.
“The process is straightforward. Once a project aligned with our low-carbon technology standards is identified, it goes through a rigorous assessment led by our sustainability experts. If it meets our criteria, the premiums we earn from this transaction are then held as investments in certified green bonds. This way, we create a full-circle benefit: we issue bonds that ensure low-carbon project’s success, and we fuel the sustainable transition of the overall economy. Our parent company, Allianz Group, has certified this solution as a sustainable one, demonstrating its expected positive impact”, explains Soenke Schottmayer, Head of Commercial – Global Surety at Allianz Trade.
From renewable energy power and heat generation to carbon removal and green buildings, Allianz Trade’s surety bonds are already making an impact. In Germany, they support a major power line project poised to deliver energy to over two million people. With the launch of Surety Green2Green, Allianz Trade aims to duplicate this approach and enhance its capabilities to support such projects.
Allianz Trade scales its expertise to shape a more sustainable future
Allianz Trade’s vision for Surety Green2Green is clear: support and secure the technologies and infrastructures necessary for a sustainable future while contributing to the green finance ecosystem. This approach is nothing new for Allianz Trade and might soon be scaled on other business lines.
“With Surety Green2Green, we scale our knowledge, and we leverage on our expertise. This solution follows in the footsteps of our similar solution in specialty credit, launched in 2020 and granting specific coverage for around 50 projects all around the world. I am convinced that both of these will prove their value for the sustainable transition in the years to come. We also shape a more sustainable economic growth. What we do in this matter, as an insurer, is crucial: by providing insurance and bonds for technologies which are critical for the transition and decarbonization of our economy, we offer the confidence and support necessary for these initiatives to succeed”, concludes Aylin Somersan Coqui, CEO of Allianz Trade.
(1) Bonds consistent with Green Bond Principles from ICMA (International Capital Markets Association) or any other green investments framework depending on the evolving regulation over time.
(2) The Allianz Group’s Sustainable Solutions framework is based on objectives and product elements derived from the EU’s taxonomy and the United Nations Sustainable Development Goals. A Sustainable Solution certified under the Allianz Group’s framework is an insurance product or service that substantially contributes to one or more environmental, social or governance objectives, without doing significant harm to any of the other objectives.
Green bonds are fixed-income financial instruments specifically earmarked to raise money for climate and environmental projects, promoting sustainability and low-carbon technologies.
Allianz Trade plays a crucial role in sustainable finance by providing surety bonds that support low-carbon projects, ensuring their successful completion and promoting green investments.
The Allianz Group's sustainability framework aligns its business practices with environmental, social, and governance objectives, ensuring that its operations contribute positively to sustainable development.
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