ShareAction welcomes EIOPA's analysis, which concludes that fossil fuel-related assets carry higher risk levels compared to other economic activities. We are also pleased that EIOPA acknowledges and accepts the need for higher capital requirements for such riskier stocks and bonds.

This is groundbreaking, and long overdue. However, the policy options formulated by EIOPA to ensure such higher risks are accounted for and safeguard financial stability are suboptimal and unambitious.

In our response to the consultation, we have built on the results of EIOPA's analysis to emphasise that 100% capital charge is not only the most adequate option to account for such high (and still likely underestimated) risk levels, but it is also feasible given its limited impact on insurers' balance sheet. Finally, we have urged EIOPA to continue its analysis of underwriting risk and kickstart its parallel work on the possibility to introduce higher capital requirements for assets exposed to social risks (Pillar 1) as soon as possible.