Navigating the green transition: How European insurers are adapting to the EU Taxonomy regulation
As key players in risk management and the financing of economic activity, insurance and reinsurance companies play a crucial role in the transition to a greener, more resilient economy. In accordance with the EU Taxonomy regulation, European insurers and reinsurers have been required to publish information concerning relevant investment and underwriting activities since 2022.
From January 1 2024, insurers and reinsurers will now be required to report on the alignment of their activities and investments with the EU’s environmental objectives of adapting to and mitigating climate change.
Following our 2023 Taxonomy benchmark study, we have again analysed the publications of a sample group of European (re)insurers to outline the main trends and developments for 2024.
Findings
Analysis of the taxonomy information published in 2024 reveals significant progress compared to the previous year’s publications. However, notable disparities persist in the communication and application of sustainability criteria. Many challenges will be faced by (re)insurers next year, including:
Adapting to regulatory clarifications
· Continuing to align reporting practices
· Increasing training and awareness
· Collaborating with stakeholders