Today (12 December 2023), the European Insurance and Occupational Pensions Authority (EIOPA) has launched a public consultation on its draft Opinion which aims to combat the risk of greenwashing in the insurance and occupational pensions sectors across Europe.
Greenwashing, otherwise known as misleading sustainability claims, has become increasingly prominent as global awareness of sustainability has grown. Consumers and pensions savers are increasingly interested in allocating their money sustainably, causing insurance and pension providers to expand their sustainable offerings and adapt their business models.
EIOPA has proposed four principles which should be observed when providers make sustainability claims. These principles are intended to ensure that sustainability claims are accurate, substantiated and accessible, and to maintain trust in the European insurance and pensions sectors.
Examples of good and bad practices for each of the four principles have also been compiled to provide more clarity. National Competent Authorities will be responsible for monitoring providers’ adherence to the principles, evaluating their sustainability claims and ensuring compliance with relevant regulatory requirements.
Stakeholders are invited to provide their comments on the draft Opinion via an online survey before 12 March 2024. EIOPA is also due to submit its final report to the European Commission by May 2024 following their June 2023 Progress Report on Greenwashing.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.