Allianz Trade has launched Surety Green2Green, a surety solution aimed at supporting low-carbon technology and renewable energy projects.
The product enables clients to secure project completion through surety bonds and guarantees while directing collected premiums toward certified green bond investments.
This dual approach seeks to create a funding loop that actively invests in sustainable projects, contributing to Allianz Trade’s overall commitment to sustainability.
The product launch represents a step forward in Allianz Trade’s environmental strategy, aligning with Allianz Group’s broader focus on sustainable development.
Allianz Trade’s sustainability lead, Piril Kadibesegil Yasar, commented on the product’s role in helping companies and economies adopt greener practices.
“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,” she said.
She emphasised Allianz Trade’s goal to embed sustainability across its operations and reduce its carbon footprint.
“[We] aim to lead by example and reduce the carbon footprint of our own operations. [We] aim to infuse a sustainable mindset at all stages of our organisation. [We] aim to steer the decarbonisation of our portfolios. And eventually, [we] aim to launch innovative and sustainable solutions that foster a low-carbon transition,” she said.
Surety Green2Green’s design leverages the traditional role of surety bonds, which provide financial protection to a company’s partners by ensuring the completion of projects and shielding against potential losses.
By structuring this product specifically for low-carbon initiatives, Allianz Trade aims to address financial and operational risks that might otherwise hinder these projects.
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Soenke Schottmayer, head of commercial – global surety at Allianz Trade, highlighted the project’s straightforward process.
“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,” he said.
The company has already provided similar surety bonds for infrastructure projects focused on renewable energy, carbon reduction, and green building. It is currently involved in a German power line initiative anticipated to supply energy to around two million people.
Through Surety Green2Green, Allianz Trade aims to expand its capacity to back similar low-carbon projects.
Surety Green2Green adds to Allianz Trade’s line of sustainable financial products, which includes a specialty credit offering launched in 2020 to support renewable projects.
Allianz Trade CEO Aylin Somersan Coqui highlighted the importance of such products in building a greener economy.
“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,” she said.
