French Insurers facing Climate Change Risk

How do French insurers manage climate change risk and where do they stand in implementing the provisions of Article 173 of the Energy Transition for Green Growth Act. In order to precisely gauge the state of the progress made within the French insurance sector, the Autorité de contrôle prudentiel et de résolution (ACPR) conducted a study of all insurance market players in France last September. 139 insurers, representing 80% of French insurers’ investments, responded. This report details the main results.

Discussion Paper No. 4 ‘Championing Sustainable Finance in the DIFC’

The Dubai Financial Services Authority (DFSA) issued a discussion paper on sustainable finance in the Dubai International Financial Centre (DIFC). ‘Championing Sustainable Finance in the DIFC’ aims to kick-start debate on the most suitable ways to foster the development of sustainable finance in the DIFC.

Financial Stability Report 2020

This is a thematic article on climate-change-related transition risk associated with real estate exposures in the Belgian financial sector. The article identifies the energy inefficiency of real estate exposures as an important risk factor for the transition risk to which the Belgian financial sector is potentially exposed. The article includes the recommendations to financial institutions to gather data on this subject and to start analysing to what extent the energy efficiency of their real estate exposures may impact their current and future credit risk and subsequently manage and mitigate the transition risk associated with their real estate exposures.

Financial Stability Report 2019

This is a thematic article on climate-related risks and sustainable finance. The article presents the results of the sector survey and includes some recommendations aimed at encouraging financial institutions to improve the measurement, management and disclosure of climate related risks, to take part in discussions with regulators and supervisors to jointly improve the data and methods to best capture and mitigate these risks, and to support the financing of more sustainable investments.

The DFSA signs Guiding Principles on Sustainable Finance together with Leading Authorities in the UAE

The Dubai Financial Services Authority (DFSA), together with a group of leading authorities in the United Arab Emirates (UAE), has published the UAE’s first Guiding Principles on Sustainable Finance (the Guiding Principles), which will serve as a catalyst for the implementation of the UAE’s sustainability priorities.The Guiding Principles are designed to encourage signatories to intensify their efforts to achieve increased implementation and integration of sustainable practices among the UAE’s financial entities and to secure a sustainable economic future for the UAE.

Financial Stability Report 2018

This is a thematic article on financial stability risks related to climate change. The article includes a first analysis of Belgian financial sector exposure to climate-related systemic risks (both physical and transition risks).

Discussion Paper on the Protection Gap for Natural Catastrophes

The Discussion Paper addresses the issue of a protection gap for natural catastrophes in Europe in light of available evidence about the impact of climate change on the frequency and severity of extreme weather and climate-related events. The paper builds on research conducted by various stakeholders and sets out elements for discussion. In particular, it highlights the potential systemic impact of situations across Europe where a lack of coverage is combined with high exposures compared to the size of the economy and public revenues as well as high levels of public debt. A coherent European approach, involving private and public actors, with a focus on mitigation and adaptation, should address the risks caused by climate change with regard to natural catastrophes in Europe.

Consultation on the draft opinion on the Supervision of the use of Climate Change Risk Scenarios in ORSA

This draft opinion sets out EIOPA’s expectations to national competent authorities on the supervision of the integration of climate change risk scenarios by insurers in their ORSA, applying a risk-based and proportionate approach, with the aim of enhancing supervisory convergence across Europe. EIOPA invites stakeholders to submit their feedback on the consultation paper by Tuesday, 5 January 2021, 23:59 CET using the EU Survey.

Survey on Product Disclosure Templates under the Sustainable Finance Disclosure Regulation

The European Supervisory Authorities (ESAs) welcomed comments on this survey setting out the details of the presentation of the information to be disclosed pursuant to Article 8(3), Article 9(5) and Article 11(4) of the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services (SFDR). The ESAs proposes to standardise the disclosures by requiring the use of specific templates, recognising the need for standardisation of disclosures to promote comparability of different financial products in different Member States with respect to ESG information, in line with Recital 9 of the SFDR.