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.

Read more

Risk assessment | Gabriel Bernardino

Global capital standards will reinforce the international level playing field

Article by Gabriel Bernardino, Chairman of EIOPA, in the Eurofi Newsletter.
Risk assessment

The (Re-)calibration dilemma

Article by Carlos Montalvo, Executive Director of EIOPA, in the Eurofi Newsletter.
Sustainability | Gabriel Bernardino

Creation of a sustainable and adequate pension system in the EU and the role of EIOPA

Keynote speech by Gabriel Bernardino, Chairman of EIOPA, at the Terminsstart Pension Conference in Stockholm.
Sustainability | Gabriel Bernardino

How to ensure sustainability, strong governance and full transparency in occupational pensions?

Speech by Gabriel Bernardino, Chairman of EIOPA, at 14th Handelsblatt Conference on „Occupational Pension Plan Management“ in Berlin.
Risk assessment | Solvency II | Organisation

Interview

Interview with Carlos Montalvo, Executive Director EIOPA, conducted by the National Association of Insurance Companies Officials (Italy).
Risk assessment | Solvency II

Asset Management for Insurance, Europe

Interview with Carlos Montalvo, Executive Director of EIOPA, conducted by Adrian Ladbury,(The United Kingdom).
Sustainability | Gabriel Bernardino

Reshaping the occupational pensions system in Europe

Keynote speech by Gabriel Bernardino, Chairman of EIOPA, at the NAPF Annual Conference in Liverpool.
Risk assessment | Gabriel Bernardino

Risk Management – A supervisor’s approach

Presentation by Gabriel Bernardino, Chairman of EIOPA, at SUERF Annual Lecture in Helsinki.
Consumer protection | Financial stability | Risk assessment

Joint Consultation on anti-money laundering and countering the financing of terrorism

Risk assessment | Solvency II

Guidelines on preparing for Solvency II

Consumer protection | Financial stability | Risk assessment

Joint guidelines of acquisitions and increases of qualifying holdings in the financial sector

Risk assessment | Solvency II

Standard formula design and calibration for certain long-term investments

Consumer protection | PRIIPs | Risk assessment

Risk, performance scenarios and cost disclosures in KIDs for PRIIPs

Consumer protection | Regulation | Risk assessment | Solvency II

Joint draft RTS on the uniform conditions of application of the calculation methods

Solvency II | Sustainability

Technical Advice on the integration of sustainability risks and factors under Solvency II and IDD

EIOPA welcomes comments on its draft technical advice regarding possible amendments to the delegated acts under Solvency II and IDD concerning the integration of sustainability risks and factors. Comments are most helpful if they: respond to the question stated, where applicable; contain a clear...
Consumer protection | Regulation | Risk assessment | Solvency II

Call for Advice from the EC on the identification and calibration of infrastructure investment risk categories

Consumer protection | Risk assessment

Joint draft RTS on risk mitigation techniques for OTC derivatives not cleared by a CCP

Consumer protection | Financial stability | Risk assessment

Joint draft RTS on risk-mitigation techniques for OTC-derivative contracts not cleared by a CCP

Financial stability | Risk assessment | Solvency II

Draft proposal on the add-on quantitative financial stability reporting templates

Consumer protection | Risk assessment

Joint draft ITS on the allocation of credit assessments of ECAIs to an objective scale of credit quality steps

Risk assessment | Solvency II

Proposal for guidelines on own risk and solvency assessment

Risk assessment | Solvency II

Draft advice to the EC on equivalence assessment of the Swiss supervisory system

Risk assessment | Solvency II

Call for advice on the review of Directive 2003/41/EC: Second consultation

Risk assessment | Solvency II

Draft advice to the EC on equivalence assessment of the Bermudian supervisory system

Risk assessment | Solvency II

Draft advice to the EC on equivalence assessment of the Japanese supervisory system

Regulation | Risk assessment

Addendum Joint draft ITS on the mapping of ECAIs’ credit assessments

Consumer protection | Financial stability | Risk assessment

Joint CP related to the draft ITS on risk-mitigation techniques for OTC-derivatives

Consumer protection | IDD | Risk assessment | Solvency II

Second set of advice to the EC on specific items in the Solvency II delegated regulation

EIOPA welcomes comments on the second set of advice to the European Commission on specific items in the Solvency II Delegated Regulation. Comments are most helpful if they: respond to the question stated, where applicable; contain a clear rationale; and describe any alternatives EIOPA should...
Regulation | Risk assessment

Joint draft ITS on the mapping of ECAIs' credit assessments