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Response provided on EC consultation on technical expert group’s report about sustainability taxonomy

Insurance Europe has today published its response to a consultation on the European Commission technical expert group's (TEG) proposal for the usability of the EU environmental taxonomy.

Insurance Europe welcomed the improvements in the TEG’s work, especially on the inclusion of enabling and transition activities. While the European insurance sector supports common criteria for sustainable activities in the future, open questions remain about its practical application.

Insurance Europe said that the taxonomy may provide guidance to assess the sustainability of certain investments. However, given insurers’ large and diversified investment portfolios, it is still too complex to perform the sustainability assessment on individual investee companies. Investors should consider the overall sustainability of their investments instead.

Finally, Insurance Europe added that data availability and quality remains an issue for the large part of insurers' investments. In fact, not all companies/issuers are covered by the taxonomy and/or will report according to it. Insurance Europe also stressed that the taxonomy should be made more useful for insurers’ investment decisions in different asset classes, especially public equity, corporate bonds and government bonds.

Published 16 September 2019