EIOPA publishes sustainable finance activities 2022-2024

Guidance on climate risk supervision and ORSA

EIOPA said it will provide guidance on the supervision of climate‑related risks over the 2022‑2024 period. It plans to engage directly with (re)insurers on climate risk materiality assessments and on the use of climate‑related scenario analysis within the Own Risk and Solvency Assessment (ORSA).

The authority also confirmed that it will continue to place emphasis on climate‑related initiatives within its sustainable finance work. Over the same period, EIOPA will gradually start monitoring the offer of sustainable products in the insurance and pensions markets.

Broader ESG and social focus

Alongside climate, EIOPA said other elements of environmental, social and governance risks will receive enhanced attention in its 2022‑2024 programme. It added that increasing consideration will be given to social aspects within sustainable finance. The authority said these priorities will be pursued through different activities across its structure.

Resourcing and programme alignment

EIOPA’s single programming document for 2022‑2024 shows that 39 full‑time equivalent staff have been budgeted for its Sustainable Finance FGIV activity centre over the period. The authority said this resource will support the sustainable finance priorities it has set out for the coming years.

EIOPA stated that its sustainable finance activities for 2022‑2024 are aligned with the EU Commission’s strategy for financing the transition and with climate adaptation policy, as well as with recent regulatory initiatives at EU level. It added that the activities are designed to reflect the need for global action to achieve a more sustainable economy.