Sustainability Regulation in a Nutshell - From CSRD to Taxonomy
Insurance companies provide information on how their business affects the environment and society. The rules for this are extremely complex - our video summarizes the most important ones.
Insurance companies - and other financial service providers - already disclose how they invest their customers' money. This is laid down in the EU's Transparency Regulation - also known as the SFDR. The SFDR is currently being further developed: In the future, financial service providers will have to report in a uniform and thus comparable manner on how their investments affect the environment and society and how they comply with governance rules.
In order for insurers to be able to report on the sustainability impact of their investments in a company, for example, they need information and data from the company itself. This is what the Corporate Sustainability Reporting Directive - CSRD for short - is designed to ensure. But the provision of data alone is not enough - the data must also be meaningful and comparable. This is to be ensured by the taxonomy, which defines scientifically based criteria for the sustainability of an investment. And finally, the data must be made available to insurers and other investors in a timely manner and with as little effort as possible. This is what the European Single Access Point, or ESAP for short, is supposed to do in the future.