Allianz Trade: Driving ESG Across its Supply Chains

Allianz Trade has published its Sustainability Handbook 2025, detailing how the company embeds environmental, social and governance considerations into procurement processes and supply chain management.

The trade credit insurer, part of the Allianz Group, uses its position in global trade finance to address ESG risks across value chains while supporting clients in managing complex supplier networks.

According to Allianz Trade's 2025 Global Survey of 4,500 companies, 81% of businesses now consider ESG the most important factor when selecting suppliers or production locations.

This data point shows that procurement decisions are no longer driven solely by cost and efficiency but increasingly by sustainability criteria. The company has embedded these principles into its own vendor management systems and risk assessment frameworks, demonstrating how financial services firms can operationalise sustainability beyond compliance requirements.

Procurement and vendor oversight

Allianz Trade requires suppliers to comply with the Allianz Vendor Code of Conduct and conducts due diligence aligned with the German Supply Chain Due Diligence Act.

This legislation, in force since 1 January 2023, mandates that companies with at least 1,000 employees identify and mitigate human rights and environmental violations across their supply chains. According to Norton Rose Fulbright, non-compliance can result in fines up to €8m (US$9.4m) or 2% of annual turnover.

The company performs risk analyses using indicators such as labour rights and ESG scores to identify vulnerabilities in operations and supply chains. This approach operationalises sustainability in supplier selection, ongoing monitoring and engagement rather than treating it as a compliance exercise.

Allianz Trade integrates ESG considerations into underwriting, investment decisions and credit risk assessments to ensure environmental and social risks are systematically evaluated across all commercial activities.

"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.

The company's Sustainable Solutions framework includes initiatives like Social2Social, which channels capital into projects delivering measurable social impact such as affordable housing and essential infrastructure.

Allianz Trade received a Gold Medal from EcoVadis in 2025, placing the company among the top 5% assessed. The company achieved a score of 81 out of 100, ranking it in the top 2% globally across all industries and company sizes evaluated.

As part of Allianz SE and the broader Allianz Group, Allianz Trade aligns with global frameworks such as the UN Sustainable Development Goals and the net zero target for 2050.

Value chain risk management

ESG risks are ranked among the top threats to offshore production and supply chain stability, according to Allianz Trade's survey data. This clearly means that companies are reassessing their global value chains and applying stronger oversight to mitigate exposure.

The company works with partners like Allianz Risk Consultancy to develop tools such as the CAReS platform, which helps businesses assess climate risks and build resilience across operations and supplier networks.

"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."

Piril Kadibesegil Yasar, Head of Sustainability at Allianz Trade, explains: "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.

"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."

This training approach shows that Allianz Trade views cultural change as necessary for embedding sustainability across value chains. The company positions its workforce as intermediaries who can influence procurement behaviour and supplier practices throughout the trade finance ecosystem, extending sustainability principles beyond direct operations.

Decarbonisation across operations

Energy transition is integrated into Allianz Trade's sustainability strategy, both in its own operations and through client support. According to the company, it has achieved a 65% reduction in emissions per employee compared to its 2019 baseline.

Its operational strategy includes 100% renewable electricity usage, electrification of its vehicle fleet and energy-efficient building management systems across offices.

Allianz Trade supports energy transition projects through solutions such as 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 three 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 like the NeXtWind wind energy expansion in Germany, supported alongside Lazard, and renewable developments by ONDE S.A. in Poland demonstrate how financial services can accelerate clean energy infrastructure.

These initiatives reinvest premiums into certified green bonds, creating a circular model that reinforces sustainable energy investment. This structure means that insurance products can function as financing mechanisms for decarbonisation across supply chains and production networks, linking risk management directly to climate transition objectives.

"In 2025, we strengthened the design of our sustainability-related insights and tools," says Florence Lecoutre, 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."

Allianz Trade uses artificial intelligence to improve detection and analysis of ESG-related risks across companies and sectors. Through collaboration with Allianz Trade Data Lab, AI enables faster and more accurate identification of vulnerabilities in global supply chains.

These tools allow commercial teams to focus on relevant sustainability insights, enhancing decision-making and risk assessment in procurement contexts.

AI is applied in tools like the ReLoC model, which uses large language models and external data to classify companies based on their involvement in low-carbon technologies.

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, providing sector-specific regulatory insights that help anticipate transition risks and align business strategies with evolving sustainability requirements.

According to Allianz Research and BloombergNEF, projected development in electric vehicle sales shows shifts in transportation supply chains. Florence notes that the company's analytical tools help clients navigate these transitions by identifying risks and opportunities in evolving value chains.

This capability means that financial intermediaries can function as information providers for companies restructuring procurement networks around decarbonisation goals.