Green guarantees
Green guarantees function similarly to conventional guarantees in that they are designed to ensure that specific obligations are met between a seller and a buyer through collateral, typically upon the completion of a project or the fulfilment of a contract. However, green guarantees stand out because they must support activities that are drivers to foster the desired development in society to earn the "green" designation.The issuance of a green guarantee allows an organisation to set and transparently communicate targets for the proportion of green guarantees within their overall guarantee portfolio.
The "green" label can be applied to various types of guarantees, including payment guarantees, contractual guarantees, advance payment guarantees, and maintenance bonds, broadening the scope of their application while reinforcing environmental sustainability.
Eligibility
The criteria for activities to potentially be labelled green are outlined in Danske Bank's Green Finance Framework. Eligible initiatives for such projects include promoting clean transportation and green building projects, developing energy-efficient and low-emission products, adopting sustainable manufacturing processes, and responsibly managing natural resources and land, among others.
In any case, our Sustainable Finance experts will review the guarantee thoroughly to ensure it meets our stringent standards, thereby maintaining compliance and upholding the integrity of the green guarantee.
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Gateway
Solutions
Guarantees
A bank guarantee is a contractual agreement mitigating risk and reducing the loss if things do not go as planned, allowing you and your international trading partner do business more safely.
Solutions
Letter of credit
Documentary credits – or letters of credit - are a payment method to ensure that an exporter receives payment against presentation of credit conform documents.
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Export Finance
For suppliers, the up-front cost of the manufacture, shipping and delivery of such goods is substantial, and whereas a seller typically wants early payment, the buyer generally wants to delay payment as long as possible to maintain strong cash flows.
