Surety Green2Green, a circular solution that fuels investments in sustainable projects Qorus-NTT DATA Innovation in Insurance Awards 2025

- Concepts and objectives: Surety Green2Green is designed to catalyze the transition to a sustainable, low-carbon economy. Allianz Trade empowers clients to participate in renewable energy projects and low-carbon technologies, which are critical for the transition across sectors such as energy, fuel or transport, by issuing surety bonds and guarantees that ensure their successful execution and maintenance. Our objective is to provide a financial solution that not only supports these critical projects but also guarantees the regular injection of funds in the green finance ecosystem. What sets this product apart is its circular investment solution: the premiums collected are held as investments in certified green bonds (bonds consistent with Green Bond Principles from the International Capital Markets Association or any other green investments framework depending on the evolving regulation over time). Once a project aligned with our low-carbon technology standards is identified, it goes through a rigorous assessment led by our sustainability experts. The project and its stakeholders are assessed in terms of ESG risks to ensure that the project does not harm any other ESG objectives. 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 that perpetuates sustainability progress: we issue bonds that ensure the success of low-carbon projects, and we fuel the sustainable transition of the overall economy. Furthermore, Surety Green2Green is certified by the Allianz Group’s Sustainable Solutions framework. This 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. With this framework, we can label insurance products as sustainable by meeting certain criteria, even for products like specialty credit that aren’t covered by the EU's regulations. Allianz Trade envisions Surety Green2Green as a catalyst for supporting and securing the technologies and infrastructures essential for a sustainable future. Moreover, it contributes to the green finance ecosystem, reinforcing our dedication to responsible and sustainable business practices. This forward-thinking approach is part of Allianz Trade's ongoing commitment to sustainability and may soon be expanded to other business lines. - Reasons behind the innovation: The shift towards a net-zero economy is imperative, and low-carbon technologies are at the forefront of this transition. However, current public investment plans are insufficient to achieve the strategic rebalancing toward climate-friendly infrastructure, leaving significant investment gaps, particularly in electricity and networks across Europe. Greater private sector participation is crucial to overcoming these public sector funding constraints. Transforming the financial sector to better align with the financing needs of the economy and the investment goals of long-term investors is essential. This transformation involves fully integrating sustainability considerations, including comprehensive disclosure of climate change externalities, and facilitating the allocation of savings to productive capital that directly supports sustainable growth and resilient societies. Allianz Trade recognized the need for financial instruments that provide confidence and security to stakeholders involved in such projects. Surety Green2Green is designed to bridge these gaps, creating financial instruments that provide stakeholders with the confidence and security necessary for success. A surety bond supports and secures the contractual obligations a company has entered with a customer, supplier, or public organization. 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 might not come to life. Our approach fosters a financial environment favorable to sustainable infrastructure development. From renewable energy power and heat generation to carbon removal and green buildings, Allianz Trade’s surety bonds were already making an impact. Recognizing the potential to go further, we launched Surety Green2Green to enhance our capabilities to support such projects. - State of competition: Other financial institutions offer green bonds or invest in low-carbon technologies and renewable projects. Allianz Trade’s Surety Green2Green differentiates itself through its circular investment solution: it is the only surety product that not only supports individual projects but also reinforces the green finance ecosystem, offering a comprehensive solution that competitors cannot match. - Sources of inspiration: The success of our specialty credit solution, Specialty Credit Green2Green, launched in 2020, inspired the development of Surety Green2Green. This earlier initiative provided specific coverage for approximately 50 projects worldwide, including the construction of France's first large offshore wind farm. This project alone will generate enough power to supply energy to 400,000 homes , demonstrating the viability and impact of targeted financial support for sustainable initiatives. - Departments involved: Surety, Sustainability Office, Legal, Commercial, Finance, Asset Management, Credit Intelligence, Marketing, Communications, Allianz Group Global Sustainability and Global P&C. - Main results: Since the launch of Surety Green2Green in October 2024, we have made significant strides by already signing six policies. Although it's early days, this promising start reflects our commitment to sustainable solutions and the positive reception from our clients. We are excited about the potential impact and future growth of this initiative. Furthermore, Surety Green2Green is certified by the Allianz Group’s Sustainable Solutions framework, as it is an insurance product that substantially contributes to one or more environmental, social or governance objectives, without doing significant harm to any of the other objectives.