Atradius N.V.

Company name
Quick Facts
Type	Public
sector	Financial Services
Headquarters (Benelux Organization)	Amsterdam, the Netherlands
Year of Origin	2004
Emissions (All Scopes)	XXX Megatons of CO2 (2020)
Total Revenue	EUR 2.15 billion (2021)
Stock Exchange	shares are not traded
Key People	David Capdevila(CEO) Claus Gramlich-Eicher (CFO) Xavier Freixes (Chairman)
Number of Employees	3,647
Subsidiaries	Atradius Dutch State Business; Atradius Insurance Holding N.V.; Atradius Collections B.V.; Atradius Credit Insurance N.V.; Atradius Credit Management Services B.V.; Atradius Information Services B.V.

Atradius provides trade credit insurance, surety and collections services worldwide through a presence in more than 50 countries around the globe. It is the credit insurance arm of Grupo Catalana Occidente (GCO.MC). The Atradius Group today is the amalgamation of a number of international trade credit insurers and affiliated organizations from around the world. Although now Spanish owned, the holding company Atradius N.V. and its headquarters remain in Amsterdam, The Netherlands. Additionally, Atradius DSB is the official Export Credit Agency in the Netherlands. In 2021 the company had a revenue of 2.15 billion euros. The company employs 3,647 people. The company is rated ‘A (excellent) outlook stable’ by AM Best and ' A2 outlook stable’ by Moody's.

Company Structure

The now international group was renamed Atradius in 2004. In 2008 the group merged with the Spanish credit insurer Crédito y Caución, founded in 1929, and subsequently gained an additional foothold in the Spanish speaking world. Atradius is part of Grupo Catalana Occidente (GCO.MC), one of the leading insurers in Spain and worldwide in credit insurance. Grupo Catalana Occidente holds 36% of Atradius' shares directly, and 64% indirectly through its subsidiary Grupo Compania Espanola de Credito y Caucion. This means Atradius-shares are not traded on a stock exchange.

Management Board

Management Board

Name	Function
David Capdevila	CEO
Andreas Tesch	Market Officer
Christian van Lint	Risk Officer
Claus Gramlich-Eicher	CFO
Marc Henstridge	Insurance Operations

The total remuneration in 2020 amounted to 3.3 million euros. There were no further details available on the division of this amount amongst the board members.

In 2021, the remunerations increased to 3.775 million euro, divided amongst just 5 members.

Supervisory Board

Supervisory Board

Name	Function
Xavier Freixes	Chairman
Francisco Arregui	Vice-Chairman
Désirée van Gorp	Member
Juan Ignacio Guerrero	Member
Carlos Halpern	Member
John Hourican	Member
Bernd H. Meyer	Member
Hugo Serra	Member
José María Sunyer	Member

Amongst the nine of them, the Supervisory Board members received a total of 585 thousand euros in short-term employee benefits, which includes salaries, housing, social security, medical expenses, lease cars, and more. Unlike the management board members, the supervisory board does not receive long-term employee benefits or post-term employee benefits.

Accountant

The General Meeting appointed PricewaterhouseCoopers Accountants N.V. as the Company’s external auditor for the financial year 2021.

Main Activities

Atradius provides trade credit insurance, surety and collections services worldwide through a presence in more than 50 countries around the globe.

On top of that, Atradius DSB (Dutch State Business) is the official Export Credit Agency in the Netherlands. This entails that Atradius is responsible for aiding Dutch companies with their export contract insurance. According to Atradius themselves, they "provide these coverages on behalf of the Dutch State. Hence, they work closely together with the Dutch government. Especially during the Corona-crisis, during which the Dutch export of capital goods and services was in jeopardy, Atradius DSB collaborated with the Dutch government to set up a secure package of measurements.

Government

Atradius did not receive NOW support from the Dutch government. The company does not have royal status. However, Atradius has worked closely together with the Dutch government since 1932 to provide insurance to Dutch companies.

Shareholdings

• Grupo Catalana Occidente, S.A. (35.77%)
• Grupo Compañía Española de Crédito y Caución, S.L. (64.23%)

Paris Agreement until Today

2016

According to Atradius themselves, their environmental impact is relatively small compared to other industries. Despite that, they state that they are looking at opportunities to make efficient and sustainable use of natural resources, as is expected by their customers, stakeholders, and others. As a result, they have introduced a multitude of initiatives concerning energy use, recycling and waste disposal, transportation and procurement. Additionally, they are a member of the United Nationals Global Compact (UNGC), whose principles they strive to commit to. According to a research study conducted by EcoVadis, companies committed to the UN Global Compact principles have on average better sustainability performance.. The published results put Atradius in the upper half of all rated companies.

2020

In 2020, Atradius changed the title of the Corporate Social Responsibility chapter to Environmental, Social and Governance (ESG) Sustainability to reflect their renewed ambition. Additionally, they established the Group Sustainability Committee, whose job it is to consult and decision-make regarding sustainability duties.

their Sustainability Master Plan goals were, amongst others, to:

1. Offer a common working framework in the sustainability area for the entities that are part of Grupo Catalana Occidente, including Atradius.
2. Establish a work agenda to continue to promote sustainability for the period 2020-2023 and define responsibilities.

A few examples of ESG Sustainability initiatives that Atradius has undertaken are; creation of a ‘Group HR Policy’ and a ‘Group Human Rights Policy’, the Corporate Social Responsibility Tribe to increase awareness within the organization through engagement and webinars, and an investigation of whether there is a need/demand from our customers for a ‘sustainable’ product.

In their annual report, Atradius failed to include their entire CO2 footprint. Instead, they only focused on the CO2 output of energy consumption of travel, both of which went down most likely as a direct result of the COVID-pandemic.

Financial Results since 2015

Financial situation

Year	Revenue	Profit	Dividend
2015	1.76 billion EUR	0.17 billion EUR	64.9 million EUR
2016	1.71 billion EUR	0.21 billion EUR	71.2 million EUR
2017	1.83 billion EUR	0.18 billion EUR	76.7 million EUR
2018	1.89 billion EUR	0.20 billion EUR	83.9 million EUR
2019	2.01 billion EUR	0.22 billion EUR	91.8 million EUR
2020	1.97 billion EUR	0.04 billion EUR	102.9 million EUR
2021	2.15 billion EUR	0.24 billion EUR	91 million EUR

Scandals and Controversies

Atradius DSB potentially finances tax havens

According to a 2013 report published by Both ENDS, a Dutch environmental protection agency, Atradius DSB regularly involve parties registered in tax havens. As a result, these multi-national enterprises (MNE's) were able to adopt aggressive tax avoidance positions that undermine the ability of countries to effectively collect tax.

Between 2002 and 2012, Atradius DSB underwrote a number of transactions with a higher risk of money laundering, tax avoidance and/or evasion, and a lack of transparency and accountability. Three case studies displayed the fact that Atradius DSB has indeed i) provided cover for a company facing allegations of tax evasion, ii) provided cover for Dutch companies registered abroad ad iii) provided cover for beneficial owners in tax havens.

In a follow-up report, published in 2015, BOTH Ends once more established that Atradius DSB continues to engage in the previously criticized practices. As of that moment, Atradius DSB failed to introduce effective screening to exclude export transactions that have a high probability of including tax evasion and money laundering from its insurance services.

Atradius DSB finances Russian oligarch Gennadi Timtsjenko

Gennadi Timtsjenko is a Russian oligarch and a close friend of Putin's. According to research conducted by Platform Investico and published by Trouw and De Groene Amsterdammer Atradius financed multiple companies who collaborates with Gennadi Timtsjenko. Between 2014 and 2020 the amount of money in question is a total of 30 million. Experts mainly criticize Atradius' actions because of the fact that Gennadi has been on the American sanction list since 2014. It is thus quite questionable for the Dutch government to have continued funding such projects. According to Joseph Wilde-Ramsing, senior researcher at SOMO, these actions go against the anti-corruption guidelines that Atradius is supposed to follow.

Atradius DSB finances fossil fuels in Africa

Despite the climate crisis already disproportionately affecting African countries, the continent is host to numerous fossil fuel developments. In short, actions taken by commercial banks, development finance institutions and Expert Credit Agencies (ECA's), amongst which Atradius DSB belongs, allow the fossil fuel industry to grow. As a result, there is a growing concern that African countries are locked out of a Just Transition. Focusing on the fossil fuel industry instead of centering on green energy undermines the enormous potential of Africa's renewables.

Atradius was amongst the nine Export Credit Agencies (ECAs) backing fossil fuel projects. By providing the guarantee to repay the investment in case it fails, it allows companies to operate in 'risky' circumstances, as is the case with the fossil fuel industry. In total, Atradius covered 1,065 million US dollars worth of investments.

Current Emissions

Environmental Key Performance Indicators

Item	2019	2020	2021
Electricity usage kWh	9.911.723	6.911.448	7.576.044
Gas usage m^3	401.971	281.909	302.454
Employee air travel km	15.050.653	2.321.249	815.182
Employee rail travel km	2.648.104	711.238	450.240
Company lease car travel	9.168.351	6.331.731	5.662.071
Tonnes CO2 of energy+travel	13.868	6.642	6.927
Waste (tonnes)	693,7	560,4	814

Source: All items show a significant improvement. This could be largely related to the COVID-situation. In 2021 there was an increase in the use of energy and a large increase in waste.

Total emissions tonnes of CO2 for the Grupo Catalana Occidente

Year	Scope 1	Scope 2	Scope 3
2020	135 tonnes of CO2	2477 tonnes of CO2	unknown tonnes of CO2
2021	119 tonnes	1994 tonnes	1433 tonnes

In 2021, the scope-3 emissions were partly calculated. The numbers are totals for the GCO-group, not just for Atradius.

Climate Policy and Plans

Citation from the Annual Report 2020:

In 2020, we also established the Group Sustainability Committee to guide and support our ambitions on a senior level. The Sustainability Committee has consulting and decision-making duties in relation to the development of sustainability and embedding it in the group’s strategy. The Sustainability Master Plan goals are:

1. Offer a common working framework in the sustainability area for the entities that are part of Grupo Catalana Occidente, including Atradius.
2. Establish a work agenda to continue to promote sustainability for the period 2020-2023 and define responsibilities.

A few examples of ESG Sustainability initiatives that Atradius has undertaken are:

1. creation of a ‘Group HR Policy’ and a ‘Group Human Rights Policy’,
2. the Corporate Social Responsibility Tribe to increase awareness within the organisation through engagement and webinars,
3. an investigation of whether there is a need/demand from our customers for a ‘sustainable’ product.

2021

The Annual Report 2021, page 48, describes their environmental responsibility as follows: As a worldwide operating company, we are aware of our responsibility to do business in a way that is ethically and environmentally sound. Environmental, Social and Governance topics are more important than ever, as the urgency of taking care of our planet for future generations and ourselves has further grown. We take up our responsibility as a global organisation. We work together with our stakeholders, with a goal of maximising the sustainable social value and minimising the negative impacts on social and environmental matters arising from our activities. Environmental, Social and Governance Sustainability is embedded in our culture and a key driver in our day-to-day operations. It is our objective to do this jointly with our customers in a transparent and ethical manner, allowing both parties to grow sustainably. We place particular emphasis on the identification of risks and opportunities related to ESG parameters and criteria and embed them in our underwriting strategy. We are persistently improving and promoting the development of sustainable products and services that contribute to protection of the environment. We expect the same approach by our suppliers, which is hard-coded in our procurement policy. Within the Atradius culture, a key building block is the encouragement of efficient and responsible use of resources, as well as behaviour supporting its responsible use.

And on page 49: To connect with the international ESG standards in our commitments and ambitions, we have subscribed to the ten principles of the United Nations Global Compact (UNGC) on human rights, labour conditions, the environment and anti-corruption. Every year we provide an update on the progress we have made. We provide transparency about our ESG-commitments via various channels. In 2021, we subscribed the Atradius Group to the Dutch government’s biannual Transparency Benchmark study of the 200 largest companies in the Netherlands. Atradius was awarded 9th place for clarity in ESG-reporting. We also had the quality of our sustainability management system measured by EcoVadis (Business Sustainability Rating Agent, Barcelona). Our policies, actions and results were assessed on 21 sustainability criteria, ranging from environment, labour and human rights, to ethics and sustainable procurement. The resulting scorecard puts Atradius in the upper half of all rated companies.

Our ambitions for the future

The ESG Sustainability Policy of Atradius is closely aligned with the ESG Sustainability Plan of GCO, our parent company. Key areas to be mentioned are our efforts in dealing with climate change and sustainability, human rights and diversity. All relevant units in Atradius and GCO are brought together to contribute to our ESG ambitions, providing a scope and ambition that has been generated in the form of a three-year Master Plan (2020-2023). The progress we have made, especially around our ESG programs, practices and policies, has been recognised by Sustainalytics, a Global leader in ESG research with almost 30 years of experience around sustainability, which has in December 2021 significantly improved GCO’s ESG rating. Grupo Catalana Occidente S.A. is now 12th out of 300 insurance companies evaluated.

Grupo Catalana Occidente

The Sustainability Master Plan is the main tool through which Grupo Catalana Occidente develops and implements its sustainability strategy. A new Sustainability Master Plan for the 2021-2023 period has been updated on the basis of a materiality study carried out in 2020.

Grupo Catalana Occidente supports the Paris Agreement and is working to be an active part of the climate change solution. To do this, it focuses its strategy on gradually reducing its greenhouse gas emissions.

In 2021, the Group has joined the Net-Zero Insurance Alliance (NZIA), which aims to achieve neutral greenhouse gas emissions by 2050 and thus contribute to limiting the global temperature increase to 1.5°C above pre-industrial levels, in the year 2100. To achieve this commitment, Grupo Catalana Occidente will establish gradual, science-based intermediate targets that will allow it to contribute to climate neutrality and balance scientific ambition, risk profiles and the world economy’s decarbonisation trends as well as possible. It will also report annually on the progress achieved in relation to the targets adopted.

Due Diligence

Keep the broader context in mind. Is the company integer when it comes to deforestation, palm oil, biodiversity, human rights etc etc? Be critical in the sources used here.

Conclusion

Although there are no SMART objectives in the annual report, and no reference is made to the Paris 2015 climate agreement, Atradius has itself assessed externally in the field of sustainability. Furthermore, Atradius cooperates with the sustainability policy of the parent company GCO. The Master Plan (2020-2023) of GCO can probably be considered as a climate plan. The Master Plan refers to the Paris-2015 agreement and sets a goal to be carbonneutral by 2050, in order to obtain the max. + 1,5 degree objective. In 2021, the GCO-group for the first time tried to establish their scope-3 pollution.

Atradius cooperates with the sustainability policy of the parent company GCO. The Master Plan (2020-2023) of GCO can probably be considered as a climate plan. The Master Plan refers to the Paris-2015 agreement and sets a goal to be carbonneutral by 2050, in order to obtain the max. + 1,5 degree objective. In 2021, the GCO-group for the first time tried to establish their scope-3 pollution.