The insurance sector plays a key role in Europe’s sustainable transition due to its role as a major investor and risk manager. However, new research commissioned by ShareAction warns that proposed changes in the EU's Omnibus I package could weaken key sustainability rules, seriously undermining insurers' ability to support climate goals and protect financial stability.

The research shows that up to 85% of European insurers currently covered by the Corporate Sustainability Reporting Directive (CSRD) may be excluded from reporting obligations under changes being discussed between EU policymakers. This would drastically reduce the insurance sector's transparency and accountability and access to data needed to manage sustainability-related risks.

Combined with a narrower EU Taxonomy scope and weakened transition plan requirements under the Corporate Sustainability Due Diligence Directive (CSDDD), these proposals could delay climate action and amplify financial risks. Other regulations, such as Solvency II and the Sustainable Finance Disclosure Regulation (SFDR), also risk being weakened under the Omnibus proposal.