2022 IORP Climate Stress Test Report

The European Insurance and Occupational Pensions Authority (EIOPA) has carried out its first climate stress test for the Institutions for Occupational Retirement Provisions (IORPs) sector in the European Economic Area (EEA) to gain insights into the effects of environmental risks on the occupational pension sector.

The 2022 IORP stress test is assessing the resilience of IORPs against a climate change scenario, which was developed together with the European Systemic Risk Board (ESRB) and the European Central Bank (ECB). It is designed to simulate the scenario of a sudden, disorderly climate-policies transition to a green economy, which results in a sharp rise in carbon prices. This abrupt carbon price increase triggers transition risk effects to the entire economy.