How Allianz Trade Uses AI to Transform ESG Risk in Finserv

Sustainability is becoming increasingly integral to the functioning of global trade, influencing risk management practices, investment priorities and long-term growth planning.

Allianz Trade's Sustainability Handbook 2025 details how digital tools and data analytics are being deployed to measure climate risk and ESG performance across its operations.

The company operates as part of the Allianz Group and is working toward net zero targets while providing businesses with digital risk assessment tools that address environmental and social challenges through automated data processing.

From supply chains to AI and technology, the company illustrates how sustainability can be integrated effectively across value chains.

Approaching sustainability and materiality 

At Allianz Trade, sustainability forms a core part of corporate governance, product development and operational decision-making.

ESG factors are integrated throughout the business, shaping underwriting processes, investment activity and credit risk analysis so that environmental and social considerations are assessed alongside financial performance.

Through its Sustainable Solutions framework, the company supports projects designed to create tangible social benefits.

Initiatives such as Social2Social help mobilise funding for areas including affordable housing and essential infrastructure.

As a member of Allianz SE and the wider Allianz Group, Allianz Trade’s sustainability strategy is aligned with international priorities including the United Nations Sustainable Development Goals and the group-wide objective of achieving net zero emissions by 2050.

The business also partners with Allianz Risk Consulting on initiatives such as the CAReS platform, a tool designed to help companies evaluate climate exposure and improve long-term resilience.

“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.”

Overall, sustainability is positioned as more than a regulatory obligation at Allianz Trade, serving instead as a long-term value driver that contributes to a more resilient, inclusive and lower-carbon global economy.

The company’s progress in sustainability, governance and ESG performance has been recognised by EcoVadis, which awarded Allianz Trade a Gold Medal in 2025, placing it among the top 5% of companies assessed globally.

With an overall score of 81 out of 100, the company also ranks within the top 2% worldwide for ESG performance.

Supply chain and procurement strategies

Allianz Trade emphasises that sustainability has become a central consideration in modern supply chains and procurement strategies. 

Findings from its 2025 Global Survey, which gathered insights from 4,500 companies, show that ESG considerations are now viewed as just as important as cost and operational efficiency.

According to the survey, 81% of respondents identified ESG performance as the leading factor when selecting suppliers or determining production locations.

The research also identified ESG-related risks as one of the primary challenges affecting offshore manufacturing and supply chain resilience, underlining the growing importance of transparency, accountability and stronger governance throughout global value chains.

Within its own operations, Allianz Trade embeds sustainability and human rights standards into procurement practices by requiring suppliers to comply with the Allianz Vendor Code of Conduct.

The company also carries out due diligence procedures in line with regulatory frameworks including the German Supply Chain Due Diligence Act.

To strengthen oversight, Allianz Trade conducts risk assessments across its operations and supply networks, using measures such as labour rights indicators and ESG scoring to identify potential areas of exposure and vulnerability.

“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,” the report says.

Allianz also promotes sustainable procurement practices throughout its organisational culture.

This approach helps ensure sustainability is embedded not only as a strategic objective, but also within day-to-day supplier selection, oversight and engagement processes.

“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 and energy 

Energy transition and decarbonisation remain central pillars of Allianz Trade’s sustainability agenda, shaping both its internal operations and the solutions it provides to clients.

The company has committed to lowering greenhouse gas emissions and has already reduced emissions per employee by 65% compared with its 2019 baseline.

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

In addition to reducing its own environmental footprint, Allianz Trade supports wider energy transition efforts through initiatives such as Green2Green, which offers insurance and guarantee solutions for low-carbon technologies including renewable energy, biofuels and electric mobility.

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

“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 also reinvest premiums into certified green bonds, creating a circular model that reinforces sustainable energy investment.

Technology and AI use

Technology, and especially AI, is increasingly central to advancing sustainability at Allianz Trade.

In collaboration with the Allianz Trade Data Lab, AI is applied to enhance the detection and analysis of ESG-related risks, allowing for quicker and more precise identification of vulnerabilities across companies and sectors.

These tools equip commercial teams with the most pertinent sustainability insights, strengthening both decision-making and risk management processes.

“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.”

AI is further used in tools such as the ReLoC model, which combines large language models with external data to categorise companies according to their engagement in low-carbon technologies.

This approach supports underwriting, product development and regulatory reporting, while boosting the scalability and reliability of sustainability-related data.

Moreover, collaborations with organisations like ECOFACT strengthen ESG integration in credit assessments by providing sector-specific regulatory insights, helping anticipate transition risks and aligning business strategies with evolving sustainability standards.