Euler Hermes announces first green2green single risk policy

Euler Hermes, the world's leading trade credit insurer, and NORD/LB, a state-owned German commercial bank based in Hanover, have announced 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 Euler Hermes 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 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 Euler Hermes Asset Management issuing a certificate of investment ensuring the full traceability of the invested premium throughout the tenor of the transaction.

Mr Christophe White, Euler Hermes' global head of transactional cover, says that the pioneer product reaffirms Euler Hermes' investment and commitment in building up its environmental, social and governance (ESG) expertise, an area that it has been actively pursuing in recent years. He said, “Euler Hermes was the first credit insurer to integrate ESG into credit risk rating system in January 2020 and obviously, our journey did not stop there.”

Mr Matthieu Le Bret, head of asset distribution at NORD/LB Asia Pacific, said, “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.”

Source: Asia Insurance Review