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SUSTAINABILITY HUB
Investment

The transition to a carbon-neutral economic model requires long-term financing. European insurers — Europe’s largest institutional investors with around €10trn in assets under management — play a key role here. Insurers have been at the forefront of sustainable investment for many years, taking concrete actions such as implementing sustainability-related disclosures, standards and strategies into their portfolios.

In particular, many insurers have started to screen their investments using environmental, social and governance (ESG) criteria and to increase their sustainable investment commitments. As a result, Europe’s insurers are significant investors in green, social and sustainability bonds. They finance sustainability-related projects, such as renewable energy projects, sustainable water management, energy-efficient and affordable housing, and other work supporting the UN Sustainable Development Goals. Insurers also offer sustainable investment products to their customers and issue green bonds.

Sustainable investments

Examples

Other long-term investments

Examples

Sustainable investments

Other long-term investments

Examples

Examples

Energy transition

Examples

Facilitating best practices

Examples

Energy transition

Facilitating best practices

Examples

Examples

Sustainable investments

  • The German insurance industry has financed over 1 500 renewable energy projects, providing more than a million households in the EU with green electricity. Moreover, German insurers are important investors in and issuers of green bonds. Around 90% of German insurers’ investments are now screened using ESG criteria.

  • The investments of Austrian insurers have led to the creation of over 100 000 units of affordable rental housing. Austrian insurers have also proactively committed to investing in sustainable projects and have issued green bonds.

  • The Czech insurance association (ČAP) is developing a high-level tool to simplify the evaluation of investment portfolios in line with ESG and transition-risk methodology.


  • In September 2019, Danish private pension funds pledged to invest $50bn in green assets over the course of a decade, starting in 2020. The pledge was announced by Prime Minister Mette Frederiksen in the run up to the 2019 UN Climate Summit. Insurance & Pension Denmark developed a pledge tracker through which companies report their green investments. The tracker ensures transparency and facilitates the streamlining of green investment reporting.

  • A Danish pension fund invested in Belgium’s Northwind offshore wind farm. Danish companies supplied the turbines and installed a transformer station, and a Danish insurance company provided insurance cover. EKF, Denmark's export credit agency, provided the project financing guarantee. Furthermore, several Danish pension funds participated in the financing of the UK’s Walney Extension offshore wind farm. A Danish company was responsible for the construction of the turbines and, to support the financing, Danish pension funds issued credit-rated project bonds to a number of foreign investors. EKF provided a guarantee for one of the bond series. The debt is structured as a green bond.

  • The French insurance association (France Assureurs) conducts annual surveys to keep track of its members’ sustainable finance activities. The surveys show that “green” investments have doubled in three years, from €49bn in 2017 to €113bn by the end of 2020. They now account for 5% of the assets under management.

  • More than 75% of French insurers have formal shareholder commitments based on ESG criteria.


  • Around 94% of Spanish insurers consider ESG criteria to underpin their investments (source: ICEA, “Estadística de Sostenibilidad del Sector Asegurador 2022”).


  • In 2022, a Polish insurance company invested PLN 720m (€162m) in the green transformation of the Polish economy, which includes a PLN 420m investment in wind farm construction projects. This insurance company also offers insurance for installations of renewable energy sources and insures electric cars.

Other long-term investments

  • Insurers in France joined forces to set up a scheme to support the recovery of SMEs and employment from the COVID-19 pandemic. The €2.5bn of funds raised fuels the investment capacity of SMEs and contributes to boosting employment in sectors that were seriously affected by the pandemic, especially the tourism and healthcare industries.

  • In Poland, insurers’ investments in corporate bonds and equities provide capital to grow businesses as well as to finance public spending on health, education and infrastructure, resulting in a substantial increase in economic growth and employment.

  • The Spanish insurance sector is currently one of the country’s largest institutional investors with around €343bn invested in fixed income assets and equities, infrastructure and real estate, contributing to the transformation to a climate-neutral economy.

  • Slovak insurers have set key targets to become "Responsible Investors," including achieving a carbon-neutral investment portfolio by 2050. Goals include gradually reducing their carbon footprint and greenhouse gas emissions, increasing sustainable investments, promoting sustainability in invested companies, growing the share of green assets, and reducing exposure to the coal industry.

  • The move in Germany towards greater use of renewable energy sources is currently one of the most important economic and technical trends. Insurers facilitate the expansion of renewable energies by providing their risk management expertise and innovative financial solutions.

  • French insurers are gradually moving away from insuring coal, with figures showing more than €3m of divestment since 2018, €1.8m of which took place in 2020. The sector’s exposure to the coal sector is now very low, accounting only for 1% of assets under management.
    Furthermore, insurers not only support the energy transition as risk-bearers but — provided the framework conditions are suitable — also as investors in energy parks and infrastructure projects. Through investment in renewable energies, predictable income can be earned through quantifiable sales volumes and minimum price guarantees. Insurers can thus provide part of the capital needed to transform the energy supply and the expansion of energy grids. More information on the German insurance industry’s views on this energy transition can be found here.

  • Some Croatian insurers stopped investing in coal and decided to no longer insure companies that use coal to produce electricity.

  • In 2022, a Polish insurance company reduced carbon dioxide emissions by 25.5% (calculated through a location-based method). The insurance company also compensated for the remaining emissions in 2021 by purchasing certified offset units equivalent to 17.5 thousand tons of CO2. As much as 85% of the electricity purchased by the insurance company came from renewable sources.

  • Slovak insurers are advancing their "Responsible Employer" goals to reduce CO2 emissions through various initiatives. These include promoting carpooling and public transport for business trips, transitioning to electric vehicles, implementing a paperless policy by reducing printed materials and prioritising digital communication, and adopting digital contracts and claims reporting. Regular staff training on digital tools and AI supports these efforts.

  • Since 2017, one insurance company in Slovakia uses renewable energy exclusively in its buildings, primarily hydroelectric power. This effort helps reduce coal consumption and CO₂ emissions, contributing to a greener future. The company also ensures eco-friendly recycling of e-waste through a certified process managed by an external partner.

  • A Croatian insurer, through the "ZelEn" initiative, powers its Zagreb headquarters entirely with renewable energy. The project not only supports sustainability but also funds energy renovation projects for schools and kindergartens.

  • In 2023, one Polish insurance company increased its investment in the transition to sustainable energy to nearly €650 million, including €100 million allocated to the financing of onshore wind farms. The turbines planned for construction by the insurance company are expected to generate green electricity capable of powering over 800 000 households in Poland. -

Insurance associations promote best practices across the industry. And by facilitating the implementation of standards and newly adopted regulations, associations help promote the fight against climate change and advance the sustainability agenda.

  • Members of the Association of British Insurers (ABI) provide their investment teams with responsible investment policies, which use research and analysis across investment portfolios, including work on stranded assets, the economic impact of climate change, the factoring of environmental risks into bond prices and the energy performance of property investments.

    The ABI has also launched a Sustainability Hub on its website, sharing examples of how the industry is working together to adapt, innovate and invest to build a sustainable and financially resilient future.

  • The German insurance association (GDV) has provided its members with guidelines on responsible investment policies and ESG research. Moreover, the GDV has published reports on the risk-return-profiles of institutional investor portfolios managed based on ESG concepts in order to raise awareness and expertise among its members on the economic benefits of such concepts. The GDV also informs its members via conferences and webinars about the latest ESG issues, such as good practices in using ESG concepts and the availability of ESG data and services. The GDV does this by inviting external experts to meetings to facilitate awareness-raising and expertise-sharing among its members.

  • Insurance Sweden published a report in October 2021 on how Swedish insurance and pension companies integrate ESG into their asset management and unit-linked business.

  • Together with four other Spanish financial associations, the Spanish insurance association (UNESPA) founded FINRESP, the Centre of Sustainable and Responsible Finance of Spain. FINRESP aims to become central in the promotion of sustainability and compliance with the UN Sustainable Development Goals. To achieve this, FINRESP organises symposia to foster debate and promotes best practices within the financial industry and in the economy as a whole, as well as promoting financing and investment solutions that will enable SMEs to adopt green and sustainable practices. FINRESP is part of the Financial Centres for Sustainability network (FC4S). Over the course of 2022, FINRESP published training materials focused on sustainable finance and sustainability obligations, such as those related to the Insurance Distribution Directive.

  • Insurance Ireland, the Irish insurance association, has a working group on sustainability, focusing on advocacy and strategy, encouraging members to share knowledge and best practice.

  • The French insurance association (France Assureurs) has published multiple educational guideline documents, aimed at promoting good practice among its members. These documents focus on sustainable reporting standards, reducing carbon footprints, biodiversity, sustainable products, etc.

  • The Polish Chamber of Insurance worked with the Polish Ministry of Development and Technology to develop a guide for companies on the application of the minimum safeguards of the EU Taxonomy. The guide offers valuable advice to Polish entrepreneurs, helping them implement the EU Taxonomy requirements. It serves as a supporting tool for companies in applying the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, promoting responsible business conduct and due diligence procedures.