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.

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

Consumer protection | Risk assessment | Solvency II

Review of specific items in the Solvency II delegated regulation

EIOPA welcomes comments on the review of 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 consider.
Regulation | Risk assessment | Solvency II

Proposal for guidelines on the system of governance

Consumer protection | Risk assessment | Solvency II

Technical advice on the identification and calibration of other infrastructure investment risk categories

Risk assessment | Solvency II

Proposal for guidelines on submission of information to NCA

Consumer protection | Financial stability | Risk assessment | Solvency II

Automation in financial advice

Consumer protection | Risk assessment | Solvency II

Proposal for guidelines on pre-application for internal models

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

Risk assessment

EIOPA’s Risk Dashboard assesses risks in the European Union insurance sector

Today, the European Insurance and Occupational Pensions Authority (EIOPA) published its updated Risk Dashboard based on the fourth-quarter 2016 data. The results show the risk exposure of the insurance sector in the European Union remained overall stable and some positive market developments were...
Risk assessment | Supervision

EIOPA calls for further improvement in the ORSA implementation

Today, EIOPA published a supervisory statement outlining the first supervisory experiences on how European (re)insurance companies have implemented the ORSA process. This statement is based on the supervisory assessments of the ORSA under the Solvency II framework conducted by the national...
Governance | Risk assessment | Supervision

EIOPA issues principles on supervisory approach to the relocations from the United Kingdom

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Risk assessment

EIOPA highlights financial stability risks

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Risk assessment

EIOPA publishes the first paper of a series on systemic risk and macroprudential policy in the insurance sector

Page Content Today, the European Insurance and Occupational Pensions Authority (EIOPA) published the first in a series of papers with the aim of contributing to the debate on systemic risk and macroprudential policy. Until now, the debate has mainly focused on the banking sector due to its...
Sustainability

Keynote address by Gabriel Bernardino, Chairman of EIOPA, at the 19. Handelsblatt Annual Conference in Berlin

Keynote address by Gabriel Bernardino, Chairman of EIOPA, at the 19. Handelsblatt Annual Conference in Berlin
Risk assessment

EIOPA publishes the first study on the modelling of market and credit risk

Page Content Today, the European Insurance and Occupational Pensions Authority (EIOPA) published its first study on the Modelling of Market and Credit Risk. The results of the study show significant variations in asset model outputs, partially resulting from model specificities, which indicates the...
Sustainability

EIOPA joins the Sustainable Insurance Forum

Page Content The European Insurance and Occupational Pensions Authority (EIOPA) recently became a member of the Sustainable Insurance Forum (SIF) , a network of insurance supervisors and regulators from around the world working together on sustainability challenges facing the insurance sector. The...
Risk assessment

ESAs see return of volatility in new risk report

Page Content The European Union’s (EU) securities, banking and insurance sectors continue to face a range of risks, the latest report on risks and vulnerabilities in the EU financial system by the Joint Committee of the European Supervisory Authorities (ESAs) shows.
Risk assessment

ESAs propose new amendments to technical standards on the mapping of ECAIs

Page Content T he Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) launched today a public consultation to amend the Implementing Regulations on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk to reflect...
Risk assessment | Supervision

ESAs statement on securitisation disclosure and application of rules for credit institutions

Page Content The European Supervisory Authorities (ESAs – European Banking Authority, European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority) have published a statement in response to industry concerns relating to severe operational challenges both...
Risk assessment

EIOPA calls for experts to join Network on Catastrophe Risks

Page Content The European Insurance and Occupational Pensions Authority (EIOPA) today issued a call for experts to join a Technical Expert Network on Catastrophe Risks with the aim to strengthen and complement EIOPA's expertise with regard to the modelling and mitigation of (natural) catastrophe...
Risk assessment

ESAs publish joint EMIR STS standards

Page Content The European Supervisory Authorities (ESAs) published today two joint draft Regulatory Technical Standards (RTS) to amend the RTS on the clearing obligation and risk mitigation techniques for non-cleared OTC derivatives . These standards provide a specific treatment for simple,...
Long-term guarantees measures | Risk assessment

EIOPA’s third annual analysis on the use and impact of long-term guarantees measures and measures on equity risk

Page Content Today, the European Insurance and Occupational Pensions Authority (EIOPA) submitted to the European Parliament, the Council of the European Union and the European Commission, its 2018 and third Annual Report on Long-Term Guarantees Measures (LTG) and Measures on Equity Risk. Compared...