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European Insurance and Occupational Pensions Authority

Improving transparency and fostering sustainable behaviour

 EIOPAs activities to prevent greenwashing and foster sustainable behaviour:

  1. Introducing transparency requirements: EIOPA is actively introducing transparency requirements and monitoring potential greenwashing risks in the market.
  2. Ensuring convergent implementation of sustainability reporting: EIOPA focuses on ensuring consistent implementation of sustainability reporting across the industry.
  3. Addressing demand for catastrophe risk coverage: efforts are made to remove obstacles to the demand for cat risk coverage, incorporating sustainability features in product design and distribution.

Preventing greenwashing through the disclosures of the Sustainable Finance Disclosure Regulation (SFDR)

SFDR, aimed at combatting greenwashing, requires insurers and pension funds to disclose sustainability-related information. This includes:

  • providing annual overviews of the negative impact of the investments on the environment and society
  • disclosing sustainability features of financial products, such as insurance-based investment products and pension schemes.

EIOPA, in collaboration with ESMA and EBA, has proposed Regulatory Technical Standards under the SFDR. These standards were adopted and are applicable under the SFDR Delegated Regulation

In November 2023, the European Supervisory Authorities proposed amendments to review the SFDR Delegated Regulation.

Annually the European Supervisory Authorities release reports on the extent of voluntary disclosure of Principal Adverse Impacts (PAIs) under SFDR: 2023 Report2022 Report

Integrating customer sustainability preferences

EIOPA has provided Guidance on integrating customer sustainability preferences in the Insurance Distribution Directive (IDD) suitability assessment. This aims to help insurance distributors align policyholders' preferences with the financial products offered.

EIOPA’s advice on greenwashing

Corporate sustainability reporting

EIOPA actively contributes to Corporate Sustainability Reporting requirements, aiming to strengthen social and environmental reporting by companies, including insurers. These requirements ensure that investors and other stakeholders have access to the information they need to assess the impact of companies on people and the environment, as well as evaluating financial risks and opportunities related to sustainability.

Learn more:

Addressing demand for catastrophe risk coverage

In addition to these measures, EIOPA has issued a supervisory statement on exclusions in insurance products arising from systemic events and measures to address the demand-side aspects of the natural catastrophe protection gap, further safeguarding consumers from systemic risks.

Consumer-focused factsheet

The three European Supervisory Authorities (EBA, EIOPA and ESMA) have created a factsheet addressing consumers’ frequently asked questions about sustainable finance. The factsheet offers valuable tips to consumers considering to buy financial products with sustainability features, covering loans, savings, investments, insurances and pensions.

Read the factsheet