As ESG criteria and sustainability commitments reshape markets, guarantee requirements are evolving — particularly in energy-intensive sectors such as construction and infrastructure.
Why Surety Bonds Are Essential for Companies Committed to ESG and Sustainability
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Key insights
- While bank financing remains a key source of funding for sustainable projects, surety bonds issued by insurers offer a reliable alternative.
- They allow companies to preserve their liquidity with banks and can be tailored to the specific requirements of each project.
- Our Green2Green solution supports the carbon transition: it secures sustainable projects and invests premiums in certified green bonds.
A strategic financial lever
Although bank financing is still a mainstay for sustainable projects, surety bonds issued by insurers provide a dependable alternative. They help preserve bank credit lines, secure projects, and offer the flexibility needed to meet regulatory and technical requirements.
At Allianz Trade, our global presence and local expertise enable us to tailor each bond to the project, sector, and regulatory framework, while integrating ESG considerations into our assessment.
ESG: a driver of transformation
Climate regulations, the growing demand for green infrastructure, and investor expectations are amplifying the importance of ESG. According to BloombergNEF, investments in low-carbon projects are expected to reach USD 2.2 trillion in 2025 — double the amount allocated to fossil fuels.
Companies that fully integrate ESG principles gain easier access to financing, win more contracts, and often improve their financial performance.
Green2Green: a circular model
Our Green2Green solution combines financial security with sustainable impact. When a project meets our low-carbon criteria, we issue a surety bond to guarantee its completion, then invest an amount equal to or greater than the premium into certified green bonds.
This model delivers a double sustainable impact. As explained by Soenke Schottmayer, our Global Head of Commercial Surety: “We create a virtuous cycle. We issue bonds to secure low-carbon projects, and in doing so, we help finance the sustainable transition of the entire economy.”
To date, we have supported 25 Green2Green projects, such as the construction in Germany of a 300-km “energy highway” delivering renewable power to 2 million people.
A trusted partner for the transition
With an AA+ rating and an experienced international team, Allianz Trade offers more than a guarantee: we provide strategic support to secure and grow your sustainable projects.
As Sean McGroarty, our Global Head of Surety, puts it: “Surety is about relationships. You need to know the market, respect local regulations, and deliver practical solutions. Our clients value our global reputation and our expertise.”