The OECD estimates that EUR 6.35 trillion of new investment will be required each year to meet the Paris Climate Agreement goals by 2030. The participation of the financial sector is crucial, as public sector resources alone will not be sufficient to meet these goals.
Over the last few years, Euler Hermes has developed a strong in-house ESG expertise and a comprehensive approach to start the integration of environmental issues throughout its activities. The Group is now increasing these efforts with the Green2Green Single Risk insurance product’s unique approach in supporting TCU’s clients’ growing needs in the green finance sector.
Supporting the energy transition through insurance for green transactions
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.
The Green2Green Single Risk solution is available to all TCU clients (being either banks, multilaterals or corporates).
Isabelle Girardet, Global Head of Transactional Cover & Investment Solutions stated: “The opportunity to play a role in reaching our global climate objectives is an achievement for us and for our first two participating partners, Natixis and La Banque Postale. The reinvestment of premiums into green bonds provides our clients with recognition for contributing to the green economy, as well as tangible results for each party involved. We look forward to welcoming more bank partners and TCU clients on board.”
Establishing a virtuous “green cycle”
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 a certificate of investment issued by Euler Hermes Asset Management, ensuring the full traceability of the invested premium throughout the transaction tenor.
This product perfectly aligns with Euler Hermes’ ESG philosophy as we believe that creating a green economic ecosystem is a particularly effective way of driving the energy transition, while ensuring that each player can contribute to the fight against climate change.
“Most national governments have made strong commitments to transition to low carbon economies, and companies have a key role to play if we wish to meet the Paris agreements goals. Euler Hermes leads the way with a new pioneering approach thanks to the Green2Green Single Risk solution that establishes a virtuous green cycle. We believe that enabling a green value chain is a particularly effective way of supporting the green economy and accelerating the energy transition”, stated Florence Lecoutre, Member of the Board Management, in charge of Digital Transformation, Human Resources & ESG.
Euler Hermes TCU Green Credit Insurance: Enabling an entirely green value chain