Allianz Trade: Embedding ESG into Supply Chain Decisions

Global trade now operates with sustainability as a core component of risk management and investment strategy. Allianz Trade has published its Sustainability Handbook 2025, detailing how the company applies ESG analytics to underwriting and credit assessments.

The trade credit insurer is part of the Allianz Group and works to support businesses managing environmental and social risks. Its approach covers supply chain operations, technology applications and decarbonisation targets aligned with the net zero goal for 2050.

The handbook represents a comprehensive framework that demonstrates how sustainability principles translate into operational practice across multiple business functions and geographical markets.

How ESG informs underwriting

Allianz Trade incorporates ESG considerations into governance, products and daily operations. Environmental and social risks are evaluated systematically within underwriting and investment decisions and credit risk assessments include sustainability factors.

The company operates a Sustainable Solutions framework that includes Social2Social. This channels capital into projects such as affordable housing and infrastructure, with measurable social impact as a requirement.

Allianz Trade aligns with the UN Sustainable Development Goals and collaborates with Allianz Risk Consultancy on tools like CAReS. The platform helps businesses assess climate risks and build resilience across their operations and value chains.

"Sustainability is not just an ambition: It is a responsibility," says Aylin Somersan Coqui, Chief Executive Officer at Allianz Trade.

"Sustainability has steadily become part of how we operate and how we support our clients and partners."

The company received a Gold Medal from EcoVadis in 2025, placing it in the top 5% of assessed organisations. Its overall score of 81 out of 100 ranks it in the top 2% globally.

Procurement and supplier oversight

According to the Allianz Trade 2025 Global Survey of 4,500 companies, 81% state ESG is the most important factor when selecting suppliers or production locations. ESG risks rank among the top threats to offshore production and supply chain stability.

Allianz Trade requires suppliers to adhere to the Allianz Vendor Code of Conduct. The company conducts due diligence aligned with the German Supply Chain Due Diligence Act and performs risk analyses across operations and supply chains using indicators such as labour rights and ESG scores.

"From export growth, sustainability transition and supply chain resilience to investment priorities and AI adoption, the survey helped us design solutions that address companies' most urgent needs," says the report.

Allianz also ensures sustainable procurement practices throughout its culture. This approach operationalises sustainability in supplier selection, monitoring and engagement across all operational levels.

"The idea behind this plan is to turn our colleagues into sustainability ambassadors so that, ultimately, we can spread a more sustainable mindset across the entire trade finance ecosystem," says Piril Kadibesegil Yasar, Head of Sustainability at Allianz Trade.

"We train and empower our people to integrate sustainable thinking into all business areas, thereby creating a ripple effect that reaches our clients, brokers and partners.

"We are convinced that this is the best way to drive meaningful change within the industry."

Decarbonisation targets and renewables

Energy transition and decarbonisation form part of Allianz Trade's sustainability strategy in both internal operations and client support. The company has reduced GHG emissions by 65% per employee compared to its 2019 baseline.

Operational measures include 100% renewable electricity usage, electrification of the vehicle fleet and energy-efficient building management systems. Allianz Trade supports energy transition projects through Green2Green, which provides insurance and guarantees for low-carbon technologies including renewable energy, biofuels and electric transportation.

"Since the launch of our Green2Green offering, 98 policies have been issued across 16 countries and 3 continents," says Piril.

"From biogas plants and solar parks to energy highways and decarbonisation projects, we cover a wide range of sectors and initiatives at global scale.

"And with the recent launch of Social2Social Specialty Credit, we are now going beyond climate goals to include social responsibility in our sustainability commitments."

Projects supported include the NeXtWind wind energy expansion in Germany alongside Lazard and renewable developments by ONDE S.A. in Poland. These initiatives reinvest premiums into certified green bonds, creating a circular model that reinforces clean energy investment.

The integration of financial instruments with environmental outcomes demonstrates how insurance products can accelerate the transition to renewable energy infrastructure while managing associated risks.

AI and data analytics

Artificial intelligence plays a significant role in sustainability operations at Allianz Trade. Through collaboration with Allianz Trade Data Lab, AI is used to detect and analyse ESG-related risks, enabling faster identification of vulnerabilities across companies and sectors.

These tools allow commercial teams to focus on relevant sustainability insights and inform decision-making and risk assessment. AI is applied in tools like the ReLoC model, which uses large language models and external data to classify companies based on involvement in low-carbon technologies.

"In 2025, we strengthened the design of our sustainability-related insights and tools," says Florence, Group Board Member in charge of Sustainability, Data Analytics & AI, Human Resources, Compliance and Communications at Allianz Trade.

"For instance, we equipped our analysts with enhanced sector outlooks and practical tools for more forward-looking, regulation-aware assessment of transition and physical risks."

"This helps us provide clearer perspectives to clients and better integrate sustainability considerations into our commercial and risk activities.

"We are accelerating the integration of sustainability into every dimension of our business.

"Our ambition is clear: to lead with responsibility, empower our clients through change and contribute to a more resilient and equitable global economy."

This supports underwriting, product innovation and regulatory reporting while improving the scalability and reliability of sustainability data. Partnerships with organisations such as ECOFACT enhance ESG integration in credit assessments and provide sector-specific regulatory insights that help anticipate transition risks.