In the midst of a myriad of ongoing political, macroeconomic, legislative and societal developments across the globe and in Europe, EIOPA recently published its Single Programming Document which outlines its strategy and work programme from 2022 to 2024. It includes the 2022 work programme which identifies EIOPA’s aims to address the challenges affecting not only the insurance and pensions sectors, but also society in general.
It is noteworthy that EIOPA identifies sustainability as one of the key areas for the upcoming years, with integration of sustainable finance across all areas of work being the first of seven strategic focus areas.
In recent years, EIOPA has gradually increased its focus on sustainable finance: for example, its consultation at the beginning of 2021 addressed the use of climate change risk scenarios in the ORSA. Now, with the publication of its work programme, it becomes clear that this focus has accelerated further, and in part it has also broadened. EIOPA identifies seven key areas of action aiming to contribute to the European Commission’s Sustainable Finance Strategy and Climate Adaption Strategy, which include:
The impact on insurers and pension funds
The list of objectives is fairly extensive, but EIOPA’s following goals are crucial in terms of their impact or potential impact on insurers and pension funds:
What are the timelines?
The implementation and achievement of the above goals are fairly evenly distributed across 2022, with some timelines still to be confirmed. One thing, however, is crystal clear: insurers are expected to increase their focus on integrating sustainable finance across their organisations. The fact that EIOPA highlights this specific topic sincerely underpins the emphasis placed on the insurance sector’s role in contributing to a sustainable society.
At KPMG we support our insurance and pension clients in meeting ESG regulations and supervisory expectations. We strongly believe this is best achieved through a holistic learning-by-doing approach, while keeping a close eye on business opportunities. We are convinced that demonstrating the company’s commitment to sustainability adds value and will help motivate employees to achieve compliance.
For more information, please contact Helen Stijnen and Juanita de Kock.