Insurance Europe, the European insurance and reinsurance federation, has acknowledged the Europe
an Commission’s revised approach to improving competitiveness and using streamlined regulations to support sustainability.
“We fully recognise the need for the sustainability framework to be improved and commend the European Commission for its commitment to simplify the framework,” Thea Utoft Høj Jensen (pictured top right), director general of Insurance Europe, wrote in a letter to executive vice-president Stéphane Séjourné and Commissioner Valdis Dombrovskis. The letter was sent ahead of the Commission’s publication of its simplification approach and annual work programme, which outlines a series of ‘Omnibus’ packages, with the first focusing on sustainable finance rules.
Insurance Europe said that the industry will play its role in addressing climate change and honour its commitment to supporting Europe’s sustainability objectives. It also said that the industry intends to contribute by providing insights into how existing requirements can be streamlined and new obligations minimised.
As such, the organisation suggested several priorities for the EU’s first ‘Omnibus’ package. According to Insurance Europe, the Corporate Sustainability Reporting Directive, or CSRD, which is the main framework for sustainability data reporting, should be revised to reduce regulatory burdens and eliminate overlap with other regulations. It also suggested that work on additional sector-specific reporting should be postponed until existing reporting has been assessed.
On the EU taxonomy regulation, the organisation also called for efforts to reduce reporting burdens, including the introduction of a materiality filter. Insurance Europe noted that the regulation has not been effective for insurers’ investment decisions or in fairly reflecting their contributions to sustainability.
Regarding the Corporate Sustainability Due Diligence Directive (CSDDD), Insurance Europe argued that requirements should be simplified. While the cross-sector requirement for “net zero” transition plans is considered important for climate mitigation and adaptation, Insurance Europe suggests that to avoid complexity and duplication, these plans should align with existing CSRD reporting requirements.
Finally, it called for the inclusion of Solvency II in the package to address unnecessary duplication in sustainability risk management and reporting, reducing complexity for insurers.
“The EU’s sustainability framework is instrumental to achieving the EU’s objectives to reorient capital flows, embed of sustainability in the day-to-day business and economy, and enhance transparency on transition and sustainability performance,” Jensen said.
