Credendo’s commitment to corporate social responsibility (CSR) and environmental and social governance (ESG) is expanding all the time. Here, we look at highlights from the CSR Report 2023 and other ways Credendo is leading by example. 

CSR REPORT 2023

Amid rising geopolitical and environmental tensions worldwide, our priority remains to support clients in their international trade activities and protect their businesses against commercial and political risks.

This is the context behind the CSR Report 2023 and, as a responsible European credit insurer, Credendo likewise remains committed to supporting global initiatives such as the energy transition and the achievement of the United Nations Sustainable Development Goals (SDGs). 

The new report includes an update on our 2022–2024 strategy, Rise, based on the three pillars of growth, sustainability and improvement. Within this short timeframe, the importance of sustainability has increased to become a central but also a transversal theme throughout the entire plan.

One new item of note is the green energy mandate, whereby we invest in companies that implement SDG 7: affordable and clean energy. The report highlights projects that we supported that contribute directly to the achievement of the SDGs, including offshore wind energy in territories ranging from Taiwan to Denmark. 

In 2023, we also celebrated the successful first year of our Credendo Green Package, which further strengthens our commitment to the environment. 

Sustainability is now rooted through all strands of Credendo. For example, in December 2023, we switched to more sustainable, recycled paper for our printing material, which needs less virgin wood pulp thereby reducing CO2 emissions. 

In a preface to the CSR Report 2023, Dirk Terweduwe, CEO of Credendo, said efforts to raise awareness among employees and continue to support ESG initiatives in projects are ongoing. “We will continue to work on ourselves and our impact,” he noted.

CREDENDO – SHORT-TERM NON-EU RISKS INTEGRATES ESG RISK INTO CREDIT ASSESSMENT 

Throughout 2023, Credendo – Short-term Non-EU Risks has been integrating ESG ratings into the credit assessment process.

“Debtors are subject to an ESG assessment based on a cross-check of information from various sources, including external service providers,” says Julien Basini, Risk Underwriting & ESG Teamleader. A solid methodology has been put in place and is reinforced each year.

“This enables us to evaluate and limit the potential reputational and financial risk for our customers, and also to assess the impact of extreme events or climate change on businesses, which we call the physical risk.” 

Extreme weather events, for instance, may lead to business disruption, asset destruction, productivity loss, lower value of stranded assets, or energy prices increases. “Then, ESG risks may have a financial impact on a company’s cash flow and operations,” he adds. 

An operational ESG team has been established, composed of underwriters trained in ESG risk assessment, alongside a teamleader working with the Compliance department. The aim is to evaluate ESG risk and incorporate sustainable best practices throughout the Underwriting department and decision-making process. 

 “At Credendo, we are constantly strengthening our sustainability and risk management tools,” says Basini.  “For instance, we have started cross-departmental projects to be able to monitor these impacts and highlight sectors and regions where there are significant opportunities to develop and do business in a sustainable way.”

CREDENDO GREEN PACKAGE 

Launched in 2022, Credendo – Export Credit Agency offers the Credendo Green Package. This offers incentives to support projects and companies with a positive environmental impact.

If a transaction meets all requirements, it can be offered more beneficial conditions than ‘regular’ transactions, thereby supporting the commitment to a sustainable transition. 

In October 2024, the Credendo Green Package was updated to include a list of social activities eligible for such beneficial conditions, which includes activities in healthcare, education and public infrastructure. 

For more information, please contact your Credendo contact person.

Consolidated results 2023

As we are transitioning towards IFRS 17, we will not publish our annual report 2023 this year.
However, we do not expect the results under IFRS 17 to deviate much from the excellent consolidated results we booked under IFRS 4, the previous accounting standard for insurance contracts still used for Solvency II reporting, and which show a strong profit of EUR 129.8 million for fiscal year 2023. Our total gross written premium went up as well by 19.8% to a record level of EUR 464.7 million.

In August 2024, S&P Global Ratings affirmed the ‘AA’ rating of Credendo – Export Credit Agency with stable outlooks and the ‘A’ financial strength rating of subsidiaries Credendo – Short-Term Non-EU Risks and Credendo Short-Term EU Risks with stable outlooks. The outlook for Credendo – Guarantees & Speciality Risks’ ‘A-‘ rating was revised from stable to positive.