The European Insurance and Occupational Pensions Authority (EIOPA) has launched today a consultation on the prudential treatment of sustainability risks.
The consultation paper represents the second phase in EIOPA’s step-by-step approach concerning the expected mandate under the Solvency II Directive, which requires EIOPA to assess whether a dedicated prudential treatment of assets or activities associated substantially with environmental or social objectives, or harm to such objectives, would be justified. In 2022, as a first step, EIOPA published its discussion paper on the methodologies and data sources that form the basis for the analysis in this consultation paper.
Sustainability risks are becoming increasingly relevant for the investment and underwriting activities of insurers. EIOPA is therefore committed to ensuring that the prudential framework adequately takes these risks into account with the ultimate goal of protecting consumers and safeguarding financial stability.
EIOPA follows a risk- and evidence-based approach in relation to the expected mandate. The consultation paper assesses the potential for a dedicated prudential treatment of risks associated with environmental and social factors in accordance with this approach.
Consultation process
EIOPA invites stakeholders to provide feedback on the consultation paper via the EU Survey by 22 March 2024. A dedicated online event regarding the consultation is envisaged for 7 February 2024, providing an opportunity to address stakeholder questions arising from EIOPA’s analysis.
Details
- Publication date
- 13 December 2023