Allianz Trade and NORD/LB announce first Green2Green Single Risk policy in Asia Pacific reaffirming their vision and commitment towards ESG

Hong Kong, 29 June 2021 – Allianz Trade, the world’s leading trade credit insurer, and NORD/LB, a state-owned German commercial bank based in Hanover, are pleased to announce the closing of Asia Pacific’s first Green2Green Single Risk credit insurance policy, a pioneering product designed to help tackle climate change by insuring green transactions and investing the premium in certified green bonds.

Launched in November 2020 by Allianz Trade Transactional Cover Unit (TCU), the Green2Green Single Risk solution focuses on providing insurance to green transactions, which will be eligible based on a bespoke environmental evaluation. The initial sectors in scope are renewable energy, energy efficiency, recycling, water treatment and mass public transportation.

Green2Green Single Risk insurance is particularly innovative and unique as it implements a virtuous “green cycle” with 100% of the generated investable premium invested back into the green economy. This investment comes in the form of certified green bonds, supporting new green projects and completing a green economic cycle. This approach is fully transparent with Allianz Trade Asset Management issuing a certificate of investment ensuring the full traceability of the invested premium throughout the tenor of the transaction.

Commenting on the first Green2Green Single Risk policy in Asia Pacific, Christophe White, Allianz Trade Global Head of Transactional Cover, says, “We are very excited and proud to have launched such a socially responsible product and to have so quickly identified partners that share a similar mindset. This is to reaffirm our investment and commitment in building up our environmental, social and governance (ESG) expertise, an area that we have been actively pursuing in recent years. Allianz Trade was the first credit insurer to integrate ESG into credit risk rating system in January 2020 and obviously, our journey did not stop there.”

Régis Roche, Regional Head of TCU at Allianz Trade Asia Pacific, says, “Fossil fuel remains the main source of energy used in Asia Pacific and in turn, the sheer amount of carbon dioxide emissions it gives out became the biggest contributor to climate change. With our very first Green2Green Single Risk policy, I am proud that Allianz Trade and its partners, namely NORD/LB and broker Willis Towers Watson here, are doing our share to pave the way for the credit insurance industry and lend a helping hand to combating climate change and related challenges.”

Matthieu Le Bret, Head of Asset Distribution at NORD/LB Asia Pacific, says, “As a global leader in renewable energy project finance, NORD/LB is constantly looking for ways, together with the project sponsors and credit investors, to contribute to the much needed energy transition. We are delighted to close this seminal Green2Green Single Risk policy in Asia Pacific with our long-time partners and friends at Allianz Trade and Willis Towers Watson. I am proud of the joint achievement in this landmark transaction and am looking forward to many more successes in the very near future.”

The Organisation for Economic Co-operation and Development (OCED) estimated that EUR6.35 trillion of new investments will be required each year to meet the goals of the Paris Climate Agreement by 2030. The participation of the financial sector is crucial, as public sector resources alone will not be sufficient to meet these goals.