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.

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...
ORSA

Consultation on Application guidance on running climate change materiality assessment and using climate change scenarios in the ORSA

The consultation gives general insights in the ORSA where undertakings have the possibility to address climate change risks and provides examples using both dummy non-life and life companies, which will help to design the steps for the materiality assessment and to run climate change scenarios...
Sustainability

Sustainable finance priorities: A snapshot

Thank you all for joining today’s roundtable on sustainable finance. It is our fifth event and I am pleased that we had so much interest – around 1000 people registered for the event. I think this interest reflects not only the appeal and importance of our work at EIOPA, but more generally the...
Sustainability

Sustainable finance activities 2022-2024

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. The activities reflect the need for global action to enable decisive progress...
Sustainability

Sustainable finance roundtable: EIOPA announces its sustainable finance activities for the coming three years

The European Insurance and Occupational Pensions (EIOPA) is organising today its 5th Sustainable Finance Roundtable which gathers representatives from supervisors, industry, consumer organisations, and academia to discuss society’s resilience to sustainability risks, the role of insurers and...
Sustainability | Impact underwriting

Pilot Exercise on Climate Change Adaptation in Non-Life Underwriting and Pricing

EIOPA launches the voluntary Pilot Exercise to better understand how insurers integrate climate-related adaptation measures in non-life insurance products and to assess the appropriateness of the corresponding prudential treatment of these insurance products. If you are interested in participating...
Sustainability | Impact underwriting

Pilot Exercise on Climate Change Adaptation in Non-Life Underwriting and Pricing

EIOPA launches the voluntary Pilot Exercise to better understand how insurers integrate climate-related adaptation measures in non-life insurance products and to assess the appropriateness of the corresponding prudential treatment of these insurance products. If you are interested in participating...
Sustainability

Speakers at the Sustainable finance roundtable

Ursula Bordas Bordas-ursula-eiopa EIOPA Ursula leads the sustainability-related disclosure work of EIOPA, and as such represents EIOPA in the Joint Committee work on the Regulatory Technical Standards on Sustainable Finance Disclosure Regulation, including amendments from the Taxonomy Regulation...
ORSA | Petra Hielkema | Sustainability

Stress tests and ORSAs are good for climate risk management

Speaking very broadly, insurers have three areas of focus on sustainability and climate: their underwriting; their investments; and their operations. Do all these areas needs oversight from insurance supervisors? If you look at it from a risk perspective, there are sustainability risks in...
ORSA | Petra Hielkema | Sustainability

Stress tests and ORSAs are good for climate risk management

Speaking very broadly, insurers have three areas of focus on sustainability and climate: their underwriting; their investments; and their operations. Do all these areas needs oversight from insurance supervisors? If you look at it from a risk perspective, there are sustainability risks in...
Protection gap | Sustainability

EIOPA commits to support the insurance and pensions sectors’ efforts to tackle climate change

On the occasion of the 2021 United Nations Climate Change Conference (COP26), EIOPA highlights its commitment to support the insurance and pensions sectors in tackling climate change. Along with other activities in the area of sustainable finance, EIOPA will finalize in 2022 the first European-wide...
Protection gap | Sustainability

EIOPA commits to support the insurance and pensions sectors’ efforts to tackle climate change

On the occasion of the 2021 United Nations Climate Change Conference (COP26), EIOPA highlights its commitment to support the insurance and pensions sectors in tackling climate change. Along with other activities in the area of sustainable finance, EIOPA will finalize in 2022 the first European-wide...
Taxonomy

Final Report on draft Regulatory Technical Standards

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 disclosures under Articles 8(4), 9(6) and 11(5) of Regulation (EU) 2019/2088 (‘Sustainable Finance Disclosure...
Solvency II | Sustainability

EIOPA welcomes Solvency II proposals from the European Commission on sustainability

The European Insurance and Occupational Pensions Authority (EIOPA) welcomes the Solvency II proposals of the European Commission to give mandates to EIOPA for further action on sustainable finance. EIOPA is convinced that these proposals would contribute positively to a transition into a more...
Solvency requirements

Technical standards

Petra Hielkema | Solvency II | Sustainability

A supervisor’s perspective: 10 days in

Ladies and gentlemen, Thank you for this invitation to speak at Eurofi both to the organisation as well as the Slovenian Presidency. It is a wonderful event and I am happy to participate even though it is via a screen and not in person. Only last week I started as the new chairperson of EIOPA and...
Petra Hielkema | Sustainability

Climate change: A challenge for our time

What is the actual role and contribution of insurance undertakings regarding their ESG risk mitigation in the EU economy? There is a growing urgency to tackle environmental, social and governance-related risks. As news of devastating natural catastrophes fills our screens and we see first-hand the...
Risk assessment | Financial stability

ESAs highlight risks in phasing out of crisis measures and call on financial institutions to adapt to increasing cyber risks

The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) issued today their second joint risk assessment report for 2021 . The report highlights the increasing vulnerabilities across the financial sector, the rise seen in terms of cyber risk and the materialisation of event-driven...
Risk assessment

Joint Committee Report on risks and vulnerabilities in the Eu financial system - Autumn 2021

The report highlights the increasing vulnerabilities across the financial sector, the rise seen in terms of cyber risk and the materialisation of event-driven risks.
Sustainability | Ana Teresa Moutinho

Digital operational resilience: Addressing risks of the digital transformation

Digital operational resilience is essential for a well-functioning financial services sector. As the digital transformation of the sector accelerates, addressing the risks of digital innovation becomes increasingly important. The proposal for a Digital Operational Resilience Act – or DORA, as part...
Sustainability

5th EIOPA Sustainable Finance Roundtable

The 5th EIOPA sustainable finance roundtable will take place on 7 December 2021 at 8:30-15:30 CET . Join us to discuss with stakeholders and experts the vital role that insurance and pensions play in strengthening society’s resilience to sustainability risks. Hear from EIOPA about the work it is...
Disclosure | Consumer protection

Consumer disclosures: what needs to change?

Save the date : 27 & 28 October 2021 (morning) EIOPA’s workshop on Consumer Disclosures will explore how current approaches to disclose information about insurance and pension products can be improved to work better for consumers. In this workshop we aim to gather ideas and feedback from a wide...
Reporting | Supervision | Disclosure

EIOPA consults on the amendments of supervisory reporting and disclosure requirements

The European Insurance and Occupational Pensions Authority (EIOPA) published today a consultation on the amendments of supervisory reporting and disclosure requirements under Solvency II . After a number of years of the implementation of Solvency II and the information received by national...
Reporting | Supervision | Disclosure

Consultation on the amendments of supervisory reporting and public disclosure documents

After a number of years of the implementation of Solvency II and the information received by national supervisory authorities it is important to ensure that the regular supervisory reporting remains fit for purpose. The analysis over the last years lead to a number of proposals to amend the...