(Thursday 9th November) The responsible investment NGO ShareAction, along with 17 other civil society organisations, has written to EU policymakers calling for the inclusion of mandatory transition plans in Solvency II, the regulatory framework for European insurers and re-insurers.
As policymakers negotiate the review of Solvency II, the letter from the NGOs explains that making transition plans obligatory would ensure that insurers effectively address the risks created by climate change in their strategy as well as the impact of their investments on the environment, whilst creating consistency across EU regulation.
The letter clearly sets out how insurers would be obliged to produce just one plan complying with several pieces of the EU legislation, addressing concerns raised by some negotiators on the potential for duplication.
Caroline Metz, Senior EU Policy Officer at ShareAction said "Given the important role insurers play as investors and risk managers in the EU economy, it is vital that insurers are forced to set out clear plans on how they intend dealing with all risks, including climate-related risks, and their impact on people and planet.
“As negotiations on Solvency II are in a decisive phase, EU policymakers face a critical choice: whether to prioritise climate risk management within the insurance sector, or to let insurers off the hook.”
Notes to editors
The full text of the joint letter and the list of signatory organisations can be found here