The European Insurance and Occupational Pensions Authority (EIOPA) has underlined its commitment to supporting the pensions industry in its efforts to tackle climate change.

The authority stated that it is moving on from considering what it should do in regard to supporting the green transition to defining how it should do things.

It pointed to its provision of guidance on the application of the Sustainable Finance Disclosures Regulation and that its stress test this year will assess the resilience of Europe’s occupational pensions sector against a climate change scenario.

Furthermore, the authority noted it was making progress on its work on assessing the extent to which a dedicated prudential treatment of environmental or social objectives under Solvency II might be warranted, and plans to launch a consultation before the end of the year.

“Climate change is an enormous global challenge and meeting the challenge requires a joint effort by many parties,” EIOPA stated.

“The insurance and occupational pensions sectors play a vital role addressing climate-related challenges, as both risk managers for society and major long-term investors.

“EIOPA therefore values its consultative dialogue with the insurance and pensions sectors as part of its work to support both sectors in their efforts to mitigate and adapt to climate change and other sustainability risks.”

EIOPA also plans to continue to contribute to a range of bodies at national, European and international level, with the aim of fostering a common approach to supervisory practices related to sustainability.

“At EIOPA, we will continue to integrate sustainable finance across all areas of our work and to ensure that insurers and occupational pension funds incorporate sustainability risks in their risk management frameworks in a forward-looking and transparent way,” the authority concluded.

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