Dutch insurers welcome clarity from EC on sustainable investment

The Dutch Insurance Association (Verbond van Verzekeraars) has welcomed the latest moves by the European Commission (EC) to significantly update corporate and financial reporting rules, and in particular provide a basis for much clearer reporting of sustainable investments. The EC has announced legislation to create the European Single Access Point (ESAP), which will gather filings from national supervisory bodies and provide a free single point of access to information on EU-listed companies and investment products. ESAP is part of a package of four legislative proposals that are designed to ensure that investors have better access to company and trading data, better understand their sustainable strategies and encourage the capital markets union. The data repository will be introduced in 2024, and will be operated by the European Securities and Markets Authority (ESMA). “Easy access to data is important in order for decision-makers in the economy and society to make sound decisions that serve the efficient functioning of the market… putting sustainable finance at the heart of the financial system is a key means to achieving a green transition of the economy of the Union. For the green transition to succeed through sustainable finance, it is essential that information related to the sustainability of businesses is easily accessible to investors,” said the EC. The Dutch Insurance Association said it warmly welcomes the progress with ESAP and also the Sustainable Finance Disclosure Regulation (SFDR) that was passed in March. Dutch insurers have been at the forefront of the drive for sustainable investment in the sector, having created the Covenant on International Socially Responsible Investment in the Insurance Sector, which was launched in July 2018 in cooperation with the Dutch government and other stakeholders. “For years, the association has been asking on behalf of insurers for more and more readily available sustainability data from companies in which investments are made. With the help of such data, insurers in their role as investors are better able to choose the sustainable alternative,” said the association in response to news about ESAP. “In addition, the Sustainable Finance Disclosure Regulation requires insurers to indicate the extent to which their investments are sustainable. The so-called European Single Access Point makes it easier to comply with this obligation,” it added. The ESAP is freely accessible to investors and supports the objectives of the European Green Deal, pointed out the association. “The EC initiated the 2021 wave of responsible investing regulation by implementing the Sustainable Finance Disclosure Regulation in March. From requiring fund managers to report adverse impacts of investments on the environment or social justice issues, to necessitating financial advisers to counsel clients about how sustainable their portfolios are, the SFDR raises ESG compliance stakes globally by codifying and quantifying sustainability goals and outcomes,” continued the association. Fund managers will have to wait longer than expected, however, for details on the SFDR as the EC also announced that the single delegated act that will include the Regulatory Technical Standards (RTS) supplementing the SFDR will be delayed by a further six months to 1 January 2023. This follows the EC’s previous postponement of the SFDR RTS from 1 January 2022 to 1 July 2022.

Dutch insurers welcome clarity from EC on sustainable investment

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