Insurers’ sustainability reporting: EIOPA’ technical advice on key performance indicators under article 8 of the taxonomy regulation

The main objective of the Taxonomy Regulation is to set out relevant criteria for determining whether an economic activity qualifies as environmentally sustainable, in particular, in order to address market failures that hamper the identification of such economic activities and therewith, ultimately to remove barriers to the functioning of the internal market. Further clarity and transparency can help raising funds for sustainability projects and may prevent the future emergence of barriers to such projects. With a clear definition of such economic activities, entities shall find it easier to raise funding across borders for their environmentally sustainable activities, as their economic activities could be compared against uniform criteria in order to be selected as underlying assets for environmentally sustainable investments. The harmonisation of relevant criteria are expected to facilitate cross-border sustainable investment in the European Union.