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

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.

Sustainability

Clarifications on the ESAs’ draft RTS under SFDR

Sustainability

ESAs provide clarifications on key areas of the RTS under SFDR

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) today published a statement providing clarifications on the draft regulatory technical standards (RTS) issued under the Sustainable Finance Disclosure Regulation (SFDR), which include the financial product disclosures under the...
Sustainability

EIOPA assesses European insurers’ exposure to physical climate change risks

The report presents the first results based on a large data collection exercise from the industry. It focuses on property, content and business interruption insurance against windstorm, wildfire, river flood and coastal flood risks. These risks have been identified as the most relevant and...
Sustainability

Discussion paper on physical climate change risks

Building on its ambitious agenda for sustainable finance, and in particular on the sensitivity analysis of asset-side transition risks published in 2020, EIOPA launched a follow-up exercise on physical risks in the second half of 2021. This discussion paper presents the first results of this...
Regulation | Sustainability

Consultation on sustainability disclosures for Simple, Transparent and Standardised securitisations

The European Supervisory Authorities (EBA, EIOPA and ESMA) published a Consultation Paper seeking input on draft Regulatory Technical Standards (RTS) on the content, methodologies and presentation of information in respect of the sustainability indicators for Simple, Transparent and Standardised (...
Regulation | Sustainability

ESAs consult on sustainability disclosures for Simple, Transparent and Standardised securitisations

Today the European Supervisory Authorities (EBA, EIOPA and ESMA) published a Consultation Paper seeking input on draft Regulatory Technical Standards (RTS) on the content, methodologies and presentation of information in respect of the sustainability indicators for Simple, Transparent and...
Risk assessment

ESAs see recovery stalling amid existing and new risks

The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) issued today their first joint risk assessment report for 2022. The report highlights the increasing vulnerabilities across the financial sector as well as the rise of environmental and cyber risks. Russia’s invasion of Ukraine...
Risk assessment

Joint Committee Report on risks and vulnerabilities in the EU financial system - Spring 2022

The report highlights the increasing vulnerabilities across the financial sector as well as the rise of environmental and cyber risks. It also includes a preliminary assessment of the consequences of Russia's invasion of Ukraine.
Stress test | Disclosure

Opinion to institutions of the European Union on individual disclosures in the context of EU-wide stress test exercises

The present Opinion calls for a consistent and disciplined communication of individual stress test results to enhance market discipline, increase stress test participants’ commitment and contribute to a level playing field among insurers and across the financial sector.
Sustainability | IDD

EIOPA consults on draft Guidelines on integrating the customer’s sustainability preferences in the suitability assessment under the IDD

The European Insurance and Occupational Pensions Authority (EIOPA) has launched today a public consultation on draft Guidelines on integrating the customer’s sustainability preferences in the suitability assessment under the IDD. The Guidelines stem from Commission Delegated Regulation (EU) 2021/...
Sustainability | IDD

Public consultation on draft Guidelines on integrating the customer’s sustainability preferences in the suitability assessment under the IDD

EIOPA’s draft Guidelines provide guidance on: How to help customers better understand the concept of “sustainability preferences” and their investment choices; The collection of information on sustainability preferences from customers; How to match customer preferences with products, based on the...
Stress test | Disclosure

EIOPA calls for changes to stress test disclosure regime

The European Insurance and Occupational Pensions Authority (EIOPA) has published today an Opinion on the disclosure of individual results in the context of insurance stress tests. EIOPA conducts Union-wide stress test exercises to assess the resilience of the European insurance industry and has...
Sustainability

Workshop on Data Collection on the Prudential Treatment of Climate-Related Adaptation Measures in Non-Life Insurance

Following EIOPA’s recent pilot exercise on climate change adaptation in non-life underwriting and pricing, EIOPA has launched a data collection to assess the potential for a dedicated Pillar 1 treatment of climate-related adaptation measures in Solvency II’s standard formula for non-life...
Stress test | Sustainability | IORP

Climate stress test for the occupational pensions sector 2022

In 2022, the European Insurance and Occupational Pensions Authority (EIOPA) carries out its first climate stress test to gain insights into the effects of environmental risks on the European occupational pension sector. Sustainability and the management of environmental risks have become key...
ORSA

Workshops on climate change scenarios in the ORSA

EIOPA organizes two workshops as a follow-up of the public consultation on the Application guidance for the inclusion of climate risk scenarios in the ORSA ended 10th February 2022. The workshops will take place on: 28 April 2022 for Non Life insurers 13 May 2022 for Life insurers The main goals of...
Reporting | Disclosure

Draft Amended Implementing Technical Standards (ITS) on supervisory reporting and disclosure

The amendments have been publicly consulted in 2021 and based on the feedback received further reviewed and in many cases changes introduced in line with the comments received. The current draft is considered by EIOPA balanced and is expected to bring several benefits, which will ultimately lead to...
Reporting | Solvency requirements | Disclosure

EIOPA submits the draft amendments of supervisory reporting and disclosure requirements

Today, the European Insurance and Occupational Pensions Authority (EIOPA) submitted to the European Commission the draft amendments of regulations (Implementing Technical Standards - ITS) laying down supervisory reporting and disclosure requirements under Solvency II. The draft amendments of ITS as...
Reporting | Solvency requirements | Disclosure

EIOPA submits the draft amendments of supervisory reporting and disclosure requirements

Today, the European Insurance and Occupational Pensions Authority (EIOPA) submitted to the European Commission the draft amendments of regulations (Implementing Technical Standards - ITS) laying down supervisory reporting and disclosure requirements under Solvency II. The draft amendments of ITS as...
Sustainability | Disclosure

ESAs issue updated supervisory statement on the application of the Sustainable Finance Disclosure Regulation

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have today updated their joint supervisory statement on the application of the Sustainable Finance Disclosure Regulation (SFDR). This includes a new timeline, expectations about the explicit quantification of the product...
Sustainability | Disclosure

ESAs issue updated supervisory statement on the application of the Sustainable Finance Disclosure Regulation

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have today updated their joint supervisory statement on the application of the Sustainable Finance Disclosure Regulation (SFDR). This includes a new timeline, expectations about the explicit quantification of the product...
XBRL | Taxonomy

Taxonomy meets the market workshop

In this workshop, EIOPA will present and discuss with the National Competent Authorities (NCAs), insurance undertakings and software providers the new developments on regulatory reporting in insurance and pensions in the context of the 2.7.0 and 2.8.0 taxonomy releases. Participants are advised to...
ORSA

IRSG advice on climate scenarios in ORSA

Risk assessment | Stress test

EIOPA publishes third paper on methodological principles of insurance stress testing climate risks

The European Insurance and Occupational Pensions Authority (EIOPA) published today its third paper in a series of papers on the methodological principles of insurance stress testing. The methodological paper focuses on the climate change component and is a further step in enhancing EIOPA’s stress...
Risk assessment | Stress test

Methodological principles of insurance stress testing - climate change component

The methodological paper focuses on the climate change component and is a further step in enhancing EIOPA’s stress testing framework. In particular, the paper sets out methodological principles that can be used to design bottom-up stress test exercises that aim to assess the vulnerability of...
Sustainability

Call for experts to join EIOPA’s Technical Expert Network on Catastrophe Risks

The European Insurance and Occupational Pensions Authority (EIOPA) issued today a call for experts to join its Technical Expert Network on Catastrophe Risk. The network has been in place since 2019 and is tasked with contributing to EIOPA’s initiatives on the modelling and mitigation of (natural)...
ORSA

EIOPA consults on the application guidance on climate change risk scenarios in the ORSA

Today, the European Insurance and Occupational Pension Authority (EIOPA) launched a consultation on the application guidance on running climate change materiality assessment and using climate change scenarios in the Own Risk and Solvency Assessment (ORSA). The application guidance provides a...