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.