Insurers Call for a More Practical Sustainability Reporting
The German Insurance Association (GDV) has published a position paper on the planned revision of the EU sustainability reporting framework. By contributing their practical experience, insurers aim to make sustainability reporting more targeted, simpler, and more effective.
"We advocate for a reporting framework that is simple, feasible, and meaningful, without losing sight of its purpose," said Jörg Asmussen, CEO of the German Insurance Association (GDV). "Climate change is increasing risks for the economy and society – and insurers are key players in managing and covering these risks. To do this, they need a robust regulatory framework."
Concrete Reform Proposals
The GDV proposes that future reporting standards known as the European Sustainability Reporting Standards (ESRS) should be more closely aligned with the business models of companies – rather than following purely formal requirements. "Companies should have more flexibility" said Asmussen. Sustainability reports should present an accurate picture of both positive and negative sustainability activities of an insurer and not merely be seen as a checklist of individual requirements.
The content of the ESRS reports should also be better tailored to the needs of their users. "The main addressees are investors. By focusing on figures and streamlining the qualitative requirements, the scope of the reports could be significantly reduced without compromising their informative value," said Asmussen.
Another proposal concerns the measurement of a company’s own greenhouse gas emissions. Insurers are calling for relief in reporting their indirect CO₂ emissions that occur along the value chain, such as those from policyholders. For example, motor insurers, have no influence over their customers’ driving behaviourf. "Companies should only be required to report indirect emissions that they can actually influence through their own actions," said Asmussen.
Background
At the beginning of 2025, the EU Commission announced its intention to revise and streamline several EU sustainability regulations. Part of this so-called Omnibus procedure involves corporate sustainability reporting.
The European Financial Reporting Advisory Group (EFRAG) has been tasked with developing proposals on this – and has invited stakeholders to contribute their positions, therefore the GDV has now addressed its new position paper to EFRAG. The body plans to submit its recommendations to the EU Commission by the end of October 2025.
You can find the full overview of the GDV’s proposals in the position paper:
