Sustainable finance

Sustainable finance in the insurance and pensions sector

Sustainability is at the heart of the EU project and is key in ensuring long-term competitiveness of the EU economy and with it, the insurance and pensions sector.

Insurers and pension funds, as managers of large parts of society’s risks and important long-term investors have a particular interest in mitigating the impact of climate change and  facilitating the transition to a more sustainable and resilient economy.

By integrating sustainability considerations from an environmental, social and governance (ESG) perspective into the regulatory and supervisory framework for insurers, reinsurers, insurance distributors and pension providers, EIOPA contributes to the European Commission's Sustainable Finance Action Plan and to the ‘Green Deal’.

EIOPA has been implementing an ambitious strategic plan on sustainability and climate change with the following objectives: 

  • Insurers should manage and mitigate ESG risks through their underwriting activity;
  • Insurers and pension funds should reflect policyholder and pension scheme member preferences for sustainable investments, where relevant; 
  • Insurers and pension funds should adopt a sustainable approach in their investments based on principles of stewardship

EIOPA’s projects in sustainable finance

EIOPA has been carrying out several projects to establish its policy on sustainable finance and to develop tools and methods for ESG risk analysis, with a view to embed ESG risk analysis in regulation as well as in supervision.

EIOPA publically consults and organizes regular Roundtables on Sustainable Finance, to discuss its proposals with participants from EIOPA’s Stakeholder Groups, the European Commission, representatives of the insurance and pensions, asset management and rating industries, and representatives of consumers associations and civil society.

At its latest Roundtable on Sustainable finance, EIOPA stressed the importance for insurers and pension funds to manage sustainability risks as part of their risk management, as well as to contribute to reducing risks to sustainability for society.

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EIOPA is a member of the Network for Greening the Financial System and of the Sustainable Insurance Forum, as well as the European Commission's Sustainable Finance Platform for the taxonomy on sustainable economic activities.

In addition, EIOPA is aiming to improve its own environmental performance as an institution and to lower its impact on the environment. EIOPA has registered to the EMAS (Eco Management and Audit Scheme).

EIOPA’s mandate on sustainable finance, following the review of its founding regulation, is to:

  • take into account sustainable business models and integration of ESG-related factors in the areas of its competence, 
  • develop criteria for identifying systemic risks and an adequate stress-testing regime, including potential environmental-related systemic risk, 
  • put in place a monitoring system, and 
  • develop common methodologies for union-wide assessment of resilience of financial undertakings taking into account risks stemming from adverse environmental developments and of the effect of environmental risks on the financial stability of financial institutions.

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Sustainability

EIOPA responds to the European Commission’s consultation on a renewed sustainable finance strategy

The European Insurance and Occupational Pensions Authority (EIOPA) submitted today its response to the consultation of the European Commission on a renewed sustainable finance strategy. The aim of the European Commission’s strategy is to increase private investment in sustainable projects and...
Sustainability

ESA's letter to Vice-President Dombrovskis on the Consultation on a Renewed Sustainable Finance Strategy

The European Supervisory Authorities (ESAs) welcome the European Commission’s consultation on a Renewed Sustainable Finance Strategy as part of its European Green Deal. The ESAs support the Commission’s ambition to strengthen the European policy framework to enhance the resilience of the financial...
Stress test | Sustainability

Second Discussion Paper on Methodological Principles of Insurance Stress Testing

This second Discussion Paper is structured in three sections addressing the following topics: Stress test framework on climate change Approach to liquidity stress testing Multi-period framework for the bottom-up insurance stress testing The Discussion Paper is open for comments until Friday, 2...
Sustainability | Disclosure of adverse impacts

Joint Consultation concerning environmental, social and governance (ESG) disclosures

The European Supervisory Authorities (ESAs) invite comments on all matters in this consultation paper on ESG disclosures under Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial sector (hereinafter “SFDR”) and in particular on the specific questions summarised in...
Sustainability | Disclosure of adverse impacts

Joint Consultation concerning environmental, social and governance (ESG) disclosures

The European Supervisory Authorities (ESAs) invite comments on all matters in this consultation paper on ESG disclosures under Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial sector (hereinafter “SFDR”) and in particular on the specific questions summarised in...
Risk assessment | Sustainability | Financial stability

Financial Stability Report December 2018

Risk assessment | Sustainability | Financial stability

Financial Stability Report December 2018

Risk assessment | Sustainability

Potential undue short-term pressure from financial markets

Risk assessment | Sustainability

Potential undue short-term pressure from financial markets

Sustainability

Summaries of EIOPA's roundtables on sustainable finance

Protection gap | Sustainability

Discussion paper on the protection gap for natural catastrophes

Protection gap | Sustainability

Discussion paper on the protection gap for natural catastrophes

Risk assessment | Solvency II | Sustainability | ESG stewardship | IDD | Governance

Technical advice on the integration of sustainability risks and factors in Solvency II and the Insurance Distribution Directive

Risk assessment | Solvency II | Sustainability | ESG stewardship | IDD | Governance

Technical advice on the integration of sustainability risks and factors in Solvency II and the Insurance Distribution Directive

Risk assessment | Solvency II | Sustainability | ESG stewardship | IDD | Governance

Technical advice on the integration of sustainability risks and factors in Solvency II and the Insurance Distribution Directive

Financial stability | Sustainability

Workshop on climate-change related risks

EIOPA plans to carry out a focused analysis of the sensitivity of insurers' balance sheet to climate-change related financial risks. The work is a pilot/learning exercise which aims to support future work and possible future stress-testing. The main objective of this work is to assess key financial...
Financial stability | Risk assessment | Sustainability

Climate risk assessment of the sovereign bond portfolio of European insurers

Financial stability | Risk assessment | Sustainability

Climate risk assessment of the sovereign bond portfolio of European insurers

Cyber Risks | Financial stability | Supervision | Supervisory framework | Sustainability

Introductory statement by Gabriel Bernardino at the hearing of the Committee on Economic and Monetary Affairs of the European Parliament

Madam Chair, Honourable members of the European Parliament, I would like to share with you EIOPA’s work in strengthening supervisory convergence, the impact of the current financial and economic environment on the sectors and on our current focus on climate change, cyber risk and the completion of...
Solvency II | Sustainability

Opinion on Sustainability within Solvency II

Solvency II | Sustainability | Impact underwriting

EIOPA issues opinion on sustainability within Solvency II

Frankfurt, 30 September 2019 – The European Insurance and Occupational Pensions Authority (EIOPA) published today an Opinion on Sustainability and Solvency II. The Opinion addresses the integration of climate-related risks in Solvency II Pillar I requirements. While Solvency II - as a risk-based,...
Solvency II | Sustainability | Impact underwriting

EIOPA issues opinion on sustainability within Solvency II

Frankfurt, 30 September 2019 – The European Insurance and Occupational Pensions Authority (EIOPA) published today an Opinion on Sustainability and Solvency II. The Opinion addresses the integration of climate-related risks in Solvency II Pillar I requirements. While Solvency II - as a risk-based,...
Financial stability | Risk assessment

Risks and Vulnerabilities in the EU Financial System

The report covers the impact of a no-deal Brexit on financial activities, risks related to the low interest rate environment, as well as climate change risks.
Justin Wray | PEPP | Solvency II | Sustainability

Interview with Justin Wray

​Interview with Justin Wray, Deputy Head of the Policy Department of EIOPA, conducted by Evgenia Tzortzi for Kathimerini.