FERMA has welcomed the view of European insurers that sustainability goes beyond green issues. Insurance Europe submitted a response on behalf of the insurance industry on 27 August to the proposition from the European Commission for a taxonomy or classification framework of sustainable investments. It says that reaching a shared understanding of sustainability should be a key priority of the European Commission to foster sustainable investments in Europe, since sustainability has different meanings across markets.

Insurance Europe is calling on the Commission to integrate social and governance dimensions in a definition of sustainability as a pre-requisite to mandatory rules based on this taxonomy. FERMA also argues that the Commission should also consider conditions that support sustainable corporate performance. Implementing professional risk reduction strategies with the support of qualified risk professionals reduces the risks that organisations and projects in which insurers invest will suffer setbacks from climate change and other shocks, says FERMA.

The proposal for a taxonomy framework is part of an action plan released on 24 May, whose objective is to reorient private capital flows towards sustainable investments to achieve sustainable and inclusive growth. The Commission believes the financial sector has a crucial role to play to boost the transition to a greener economy, and the insurance industry is Europe’s largest institutional investor with €10tn of assets under management.

Sustainability and corporate behavior are at the heart of day 1 of FERMA’s European Risk Management Seminar which will take place in Antwerp on 8 and 9 October Seminar in Antwerp. Elena Malinovská, the head of climate adaptation in DG Climate Action of the European Commission,  will participate in the plenary session with the theme Securing our future through responsible business conduct. It will be an opportunity for risk managers to discuss how they can contribute to this new paradigm and consider the wider issue of sustainability.

Immerse yourself in sustainability at this year’s Ferma seminar. There are still limited spaces available: