Coface Boosts ESG Project Support with Single Risk Solutions
Coface has decided to increase its support for the financing and implementation of long-term ESG projects by providing Single Risk insurance solutions more widely. Concretely, Coface will double the envelope dedicated to ESG projects worldwide by 2025 (vs. 2022).
Single Risk insurance protects project owners, developers, or funders against commercial and political risks in the long term. This decision covers projects brought by corporations, banks, or multilateral institutions that comply with precise ESG criteria in sectors such as renewable energy, energy efficiency, transportation, water treatment, health, education, or microfinance.
This shows Coface’s commitment to increasingly supporting initiatives that have a positive environmental or social impact on economies through financing solutions.
This new objective comes on top of current commercial exclusion policies that are continuously strengthened to avoid supporting non-responsible business activities or activities significantly contributing to climate change. For instance, Coface has made several commitments to withdraw from the thermal coal sector: it does not provide single-risk credit insurance policies or sureties bonds for thermal coal extraction or thermal coal generation projects, and it does not issue policies to insure sales of thermal coal by commodity traders.
“Coface wishes to reinforce its voluntarist CSR strategy by increasing its support for institutions or corporations that develop responsible ESG projects in key sectors of our economies. More than ever, we want to use our business to contribute positively to the world and enable the emergence of new drivers of sustainable growth. This ambition to double our single-risk engagement towards ESG deals reflects our choice to embed CSR in our daily operations with concrete and specific targets,” said Carole Lytton, General Secretary at Coface.
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