Sustainable finance

Sustainability issues pose risks and opportunities to the insurance and pension sectors

Climate change, environmental and social risks can have an important impact on human, social and economic life. If not managed properly, they can pose material risks to the assets and liabilities of insurers and pension providers.

At the same time, the insurance and pensions sector can play an important role in the mitigation and adaptation to climate change or sustainability risks, through their investments, products and services. Given their role as society’s risk managers and important long-term investors, insurers and pension funds have a unique opportunity and responsibility to address sustainability-related challenges and facilitate the transition to a more sustainable and resilient economy.

What are EIOPA’s main areas of activity?

Through its work on sustainable finance, EIOPA aims to ensure that (re)insurers and occupational pension funds integrate sustainability risks in their risk management to protect consumers and secure financial stability. In doing so, EIOPA aims to ensure that insurers and pension funds can continue to offer relevant and affordable risk management solutions against natural catastrophes or old age poverty.

EIOPA’s activities on sustainable finance reflect the need for global action to enable decisive progress on the transition to a more sustainable economy. Sustainable finance is a strategic priority area in EIOPA’s work programme 2022-2024, and the Commission’s Strategy for financing the transition to a sustainable economy encapsulates work by EIOPA in delivering on the Green Deal.

In line with EIOPA’s founding regulation and sectoral regulation on insurance and occupation pensions,  EIOPA’s 7 key areas of activity on sustainable finance for 2022-2024 are the following:

  1. Integrate ESG risks in the prudential framework of insurers and pension funds
  2. Consolidate the macro/microprudential risk assessment of ESG risks
  3. Promote sustainability disclosures and a sustainable conduct of business framework
  4. Support supervision of ESG risks and supervisory convergence in the EU
  5. Address protection gaps
  6. Promote the use of open source modelling and data in relation to climate change risks
  7. Contribute to international convergence for the assessment and management of sustainability risks

Download the sustainable finance activities 2022-2024

Tackling greenwashing

The increase in consumers’ demand for investments with sustainability-related features was followed by an increase in offerings with sustainability-related features, giving rise to the risk of greenwashing. EIOPA, in its 2021 Consumer Trends Report, had already warned about a possible increase of greenwashing related risks, and highlighted the need to monitor and mitigate it.

EIOPA as well as the other European Supervisory Authorities (ESAs) have received a request for input from the European Commission on greenwashing risks in relation to sustainability claims and the supervision of sustainable finance policies. The request addresses three main areas: understanding and better monitoring greenwashing and related financial risks; taking stock of the implementation and supervision of sustainable finance policies aimed at preventing/addressing greenwashing; and assessing the supervisory and enforcement response. 

How to stay informed about our work?

EIOPA organizes regular Roundtables on Sustainable Finance to discuss past and upcoming work and the vital role that insurance and pensions play in strengthening society’s resilience to sustainability risks.

Our roundtables gather participants from Stakeholder Groups, the European Commission, representatives of the insurance and pensions, asset management and rating industries, and representatives of consumers associations and civil society.

Roundtables are public events and registrations are open to everyone.

Check  the events calendar 

Cooperation on sustainable finance

Climate change does not stop at borders. As a member of the Network for Greening the Financial System (NGFS), the Sustainable Insurance Forum (SIF) and the International Association of Insurance Supervisors (IAIS), EIOPA cooperates with European and international supervisory and standard-setting bodies to establish convergent supervisory practices for  sustainability risks in the financial services sector.

EIOPA’s deliverables on sustainable finance

Find out more about our work in this area. Here below search for news, reports, consultations, as well as speeches, interviews and events in the area of sustainable finance.

Reporting | Sustainability

EIOPA issues its opinion on draft standards governing corporate sustainability disclosures

The European Insurance and Occupational Pensions Authority (EIOPA) has published today its Opinion on the European Financial Reporting Advisory Group’s technical advice concerning European Sustainability Reporting Standards (ESRS) following the request of the European Commission. In this first...
Reporting | Sustainability

EIOPA's Opinion to the European Commission on EFRAG's technical advice on ESRS

EIOPA's Opinion focuses on assessing whether the European Sustainability Reporting Standards (ESRS) developed by the European Financial Reporting Advisory Group (EFRAG) promote disclosure of material sustainability information of high quality, are consistent and interoperable with other EU...
Taxonomy

Workshop: taxonomy meets the market

In this workshop, EIOPA will present and discuss with the National Competent Authorities (NCAs), insurance undertakings and software providers the 2.8.0 taxonomy release and new developments on regulatory reporting. Participants are advised to familiarise themselves with the latest updates...
Stress test | Sustainability | IORP

2022 IORP Climate Stress Test Report

The European Insurance and Occupational Pensions Authority (EIOPA) has carried out its first climate stress test for the Institutions for Occupational Retirement Provisions (IORPs) sector in the European Economic Area (EEA) to gain insights into the effects of environmental risks on the...
Stress test | Sustainability | IORP

EIOPA’s first IORPs climate stress test shows material exposure to transition risks

The European Insurance and Occupational Pensions Authority (EIOPA) published today the results of its climate stress test of European Institutions for Occupational Retirement Provisions (IORPs) . In the first climate stress test of the sector, EIOPA set out to assess the resilience of IORPs against...
Sustainability

Time to adapt

Good morning and thank you for joining EIOPA Sustainable Finance Conference. It my pleasure to welcome you today and deliver this keynote speech. It is heartening to see so many of you joining us virtually for such an important topic for the future. Today, I will briefly introduce the main theme of...
Protection gap | Sustainability

EIOPA’s dashboard identifies the European natural catastrophe insurance protection gap

The European Insurance and Occupational Pensions Authority (EIOPA) released today its dashboard, which depicts the insurance protection gap for natural catastrophes across Europe. This tool is the first dashboard which presents the drivers of a climate-related insurance protection gap to identify...
Protection gap | Sustainability

EIOPA’s dashboard identifies the European natural catastrophe insurance protection gap

The European Insurance and Occupational Pensions Authority (EIOPA) released today its dashboard, which depicts the insurance protection gap for natural catastrophes across Europe. This tool is the first dashboard which presents the drivers of a climate-related insurance protection gap to identify...
Solvency II | Sustainability

EIOPA outlines approaches to assess the prudential treatment of insurers’ sustainable assets and activities

The European Insurance and Occupational Pensions Authority (EIOPA) published today its Discussion paper on the Prudential Treatment of Sustainability Risks and is now seeking comments by stakeholders on the approaches presented. As long-term investors and society’s risk managers, insurance...
Solvency II | Sustainability

Discussion paper on the Prudential Treatment of Sustainability Risks

EIOPA welcomes comments on the Discussion paper on the Prudential Treatment of Sustainability Risks until 5 March 2023. Stakeholders are invited to provide their feedback by responding to the questions in the online survey below.
Sustainability

Dashboard on insurance protection gap for natural catastrophes

The first European dashboard depicts the insurance protection gap for natural catastrophes. The aim of the dashboard is to present the drivers of a climate-related insurance protection gap in order to identify measures that will help in decreasing society’s losses in the event of natural...
Sustainability

EIOPA underlines its commitment to supporting the insurance and pensions sectors in tackling climate change

As the 2022 United Nations Climate Change Conference (COP27) draws to a close, the European Insurance and Occupational Pensions Authority underlines its commitment to supporting the insurance and pensions sectors in tackling climate change. Greening the economy will not happen overnight, but every...
Risk assessment | Financial stability

Trying times and their effect on insurers

Dear ladies and gentlemen, It’s a pleasure to be speaking at S&P Global Ratings’ European Insurance Conference – thank you, Mark Nicholson and Volker Kudszus, for your invitation to today’s event. I’m pleased to see a growing interest from different parts of the financial world in insurers,...
Sustainability

Call for evidence on the European Commission mandate regarding greenwashing

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) are publishing a Call for Evidence on greenwashing to gather input from stakeholders on how to understand the key features, drivers and risks associated with greenwashing and to collect examples of potential greenwashing...
Sustainability

ESAs launch joint Call for Evidence on greenwashing

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) today published a Call for Evidence on greenwashing to gather input from stakeholders on how to understand the key features, drivers and risks associated with greenwashing and to collect examples of potential greenwashing...
Sustainability

Speakers at the Sustainable finance conference

pic-2022-sufi_speaker-david-bresch-150x200.jpg Prof. Dr. David N. Bresch Professor for Weather and Climate Risks at ETH Zürich / MeteoSwiss since 2016. 2000-2016, roles at Swiss Re included Head Business Development, Global Head Sustainability, Head Atmospheric Perils Group and Chief modeler for...
Sustainability

Nachhaltigkeit: ein zentrales Thema für EIOPA

Sehr geehrte Damen und Herren, zunächst möchte ich mich bei Ihnen, Herr Grund, Frank, für die Einladung bedanken. Mein Dank gilt auch allen Kolleginnen und Kollegen der BaFin, die diese Veranstaltung möglich gemacht haben. Es ist mir eine Freude, heute hier zu sein. Die vergangenen zwei Jahre haben...
Protection gap | Sustainability | Financial stability

Interview with Bankovnictví conducted by Martina Sobková, Deputy Editor in Chief and Tomáš Houdek, Editor in Chief

One of the biggest worldwide problems in insurance is the question of lacking coverage. How is the situation in the EU and what is EIOPA doing to close protection gaps? Indeed, protection gaps can be observed in multiple segments of the insurance world, such as in cyber, pandemic, or natural...
Protection gap | Sustainability | Financial stability

Interview with Bankovnictví conducted by Martina Sobková, Deputy Editor in Chief and Tomáš Houdek, Editor in Chief

One of the biggest worldwide problems in insurance is the question of lacking coverage. How is the situation in the EU and what is EIOPA doing to close protection gaps? Indeed, protection gaps can be observed in multiple segments of the insurance world, such as in cyber, pandemic, or natural...
Sustainability | Disclosure

ESAs propose disclosures for fossil gas and nuclear energy investments

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have today delivered to the European Commission (EC) their Final Report with draft Regulatory Technical Standards (RTS) regarding the disclosure of financial products’ exposure to investments in fossil gas and nuclear energy...
Sustainability | Disclosure

ESAs propose disclosures for fossil gas and nuclear energy investments

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have today delivered to the European Commission (EC) their Final Report with draft Regulatory Technical Standards (RTS) regarding the disclosure of financial products’ exposure to investments in fossil gas and nuclear energy...
Sustainability | Disclosure

ESAs Final Report on disclosures for fossil gas and nuclear energy investments under SFDR

The European Supervisory Authorities (ESAs) have developed through the Joint Committee (JC) draft Regulatory Technical Standards (RTS) with regard to the content and presentation of information to be provided in pre-contractual documents, on websites, and in periodic reports about the exposure of...
Sustainability | Disclosure

ESAs Final Report on disclosures for fossil gas and nuclear energy investments under SFDR

The European Supervisory Authorities (ESAs) have developed through the Joint Committee (JC) draft Regulatory Technical Standards (RTS) with regard to the content and presentation of information to be provided in pre-contractual documents, on websites, and in periodic reports about the exposure of...
Sustainability

Sustainable Finance Conference

LIVE STREAMING Join the discussion with SLIDO Go to Slido.com and enter the event code #EIOPA About the conference Our society is increasingly vulnerable to losses and damage from climate change. Innovation and cooperation are needed to adapt to highly disruptive systemic events, such as pandemics...
Sustainability

NGFS European Plenary Outreach Speech

Good evening and thank you very much for inviting me as keynote speaker to this NGFS European Plenary Outreach. In my remarks today, I would like to concentrate on the insurance sector and its role in addressing climate-related risks. I will briefly discuss climate-related risks (in particular...