22 Amendments of Pascal CANFIN related to 2021/0295(COD)
Amendment 216 #
Proposal for a directive
Recital 4
Recital 4
(4) In its Communication of 11 December 2019 on the European Green Deal19 , the Commission made a commitment to integrate better into the Union’s prudential framework the management of climate and environmental risks. The European Green Deal is the Union’s new growth strategy, which aims to transform the Union into a modern, resource-efficient and competitive economy with no net emissions of greenhouse gases by 2050. It will contribute to the objective of building an economy that works for the people, strengthening the Union’s social market economy, helping to ensure that it is future-ready and that it delivers stability, jobs, growth and investment. In its proposal of 4 March 2020 for a European Climate Law, the Commission proposed to make the objective of climate neutrality and climate resilience by 2050 binding in the Union. That proposal was adopted by the European Parliament and by the Council and it entered into force on 29 July 202120 . The Commission’s ambition to ensure global leadership by the EU on the path towards 2050 was reiterated in the 2021 Strategic Foresight Report21 , which identifies the building of resilient and future-proof economic and financial systems as a strategic area of action. To reflect that ambition, the insurance framework should be updated to ensure that insurance and reinsurance undertakings manage and mitigate climate and environmental risks. __________________ 19 COM(2019)640 final 20 Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1). 21 COM(2021)750 final
Amendment 219 #
Proposal for a directive
Recital 5
Recital 5
(5) The EU sustainable finance framework will play a key role in meeting the targets of the European Green Deal and environmental regulation should be complemented by a sustainable finance framework which channels finance to investments that reduce exposure to these climate and environmental risks. In its Communication of 6 July 2021 on a Strategy for Financing the Transition to a Sustainable Economy22 , the Commission committed to propose amendments to Directive 2009/138/EC to consistently integrate sustainability risks in risk management of insurers by requiring climate change scenario analysis by insurers. As a result, sustainability risks should be reflected in underwriting and investment decisions. __________________ 22 COM(2021)390
Amendment 223 #
Proposal for a directive
Recital 6 a (new)
Recital 6 a (new)
(6 a) To ensure an orderly transition towards the objective of carbon neutrality as established in Regulation (EU) 2021/1119(European Climate Law), insurance and reinsurance undertakings in the scope of Directive (EU) 2021/0104 (COD) [CSRD Directive], as regards corporate sustainability reporting shall develop and adopt a transition plan to ensure that their business model and strategy are compatible with the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement.
Amendment 248 #
Proposal for a directive
Recital 27 a (new)
Recital 27 a (new)
(27 a) EIOPA is required to initiate and coordinate Union-wide assessments of the resilience of financial institutions to adverse market developments according to Article 32 of Regulation (EU) No 1094/2010. A first IORP stress test was launched in April 2022 with results expected in December 2022. Similarly, national supervisory authorities should perform stress tests on climate but also on environmental and social risks.
Amendment 296 #
Proposal for a directive
Recital 78
Recital 78
(78) Achieving the environmental and climate ambitions of the Green Deal requires the channelling of large amounts of investments from the private sector, including from insurance and reinsurance companies, towards sustainable investments. The provisions of Directive 2009/138/EC on the capital requirements should not impede sustainable investments by insurance and reinsurance undertakings but should reflect the full risk of investments in environmentally harmful activities. While there is not sufficient evidence at this stage on risk differentials between environmentally or socially harmful and other investments, such evidence may become available over the next years. In order to ensure an appropriate assessment of the relevant evidence, EIOPA should monitor and report by 2023 on the evidence on the risk profile of environmentally, including fossil fuel-related assets, or socially harmful investments. Where appropriate, EIOPA’s report should advise on changes to Directive 2009/138/EC and to the delegated and implementing acts adopted pursuant to that Directive. EIOPA may also inquire whether it would be appropriate that certain environmental risks, other than climate change-related, should be taken into account and how. For instance, if evidence so suggests, EIOPA could analyse the need for extending scenario analyses as introduced by this Directive in the context of climate change-related risks to other environmental risks.
Amendment 300 #
Proposal for a directive
Recital 79
Recital 79
(79) Climate change is affecting and will affect at least over the next decades the frequency and severity of natural catastrophes which are likely to further aggravate due to rising temperatures, environmental degradation and pollution. This may also change the exposure of insurance and reinsurance undertakings to natural catastrophe risk and render invalid the standard parameters for natural catastrophe risk set out in Delegated Regulation (EU) 2015/35. In order to ensure that there is no persistent discrepancy between the standard parameters for natural catastrophe risk and the actual exposure of insurance and reinsurance companies to such risks, EIOPA should review regularly the scope of the natural catastrophe risk module and the calibrations of its standard parameters. For that purpose, EIOPA should take into account the latest available evidence from climate science and, where discrepancies are found, it should submit an opinion to the Commission accordingly.
Amendment 429 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point a
Article 1 – paragraph 1 – point 21 – point a
Directive 2009/138/EC
Article 41 – paragraph 1 – subparagraph 3
Article 41 – paragraph 1 – subparagraph 3
The system of governance shall be subject to regular internal review. Such internal review shall include an assessment on the adequacy of the composition, effectiveness, expertise about sustainability risks and internal governance of the administrative, management or supervisory body taking into account the nature, scale and complexity of the risks inherent in the undertaking’s business.;
Amendment 437 #
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point c
Article 1 – paragraph 1 – point 21 – point c
Directive 2009/138/EC
Article 41 – paragraph 3 – subparagraph 1
Article 41 – paragraph 3 – subparagraph 1
3. Insurance and reinsurance undertakings shall have written policies in relation to at least risk management, internal control, internal audit, remuneration, stewardship and, where relevant, outsourcing and a written transition plan as described in Article 44a. They shall ensure that those policies arend the transition plan are properly implemented.
Amendment 447 #
Proposal for a directive
Article 1 – paragraph 1 – point 22 – point - a (new)
Article 1 – paragraph 1 – point 22 – point - a (new)
Directive 2009/138/EC
Article 42 – paragraph 1 – point a
Article 42 – paragraph 1 – point a
(-a) paragraph 1, point (a) is replaced by the following: "(a) their professional qualifications, knowledge and experience, including in the field of sustainability risks, are adequate to enable sound and prudent management (fit); and (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)" Or. en
Amendment 459 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b a (new)
Article 1 – paragraph 1 – point 23 – point b a (new)
Directive 2009/138/EC
Article 44 – paragraph 2 b (new)
Article 44 – paragraph 2 b (new)
(ba) the following paragraph is inserted: "2b. As regards underwriting and investment, insurance and reinsurance undertakings shall perform a regular assessment and ensure that their business model, strategy and activities for underwriting portfolio and the whole portfolio of assets, are aligned with the objective to achieve climate neutrality by 2050 at the latest, as set out in Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 (“European Climate Law”)."
Amendment 465 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b b (new)
Article 1 – paragraph 1 – point 23 – point b b (new)
Directive 2009/138/EC
Article 44 – paragraph 3 b (new)
Article 44 – paragraph 3 b (new)
(bb) the following paragraph is inserted: "3b. The written policy on risk management referred to in Article 41(3) shall include policies relating to sustainability risks and sustainability factors, as well as a stewardship policy that shall include a report on the impact of the policy in the last financial period, in particular the decisions taken by the insurance or reinsurance undertaking following the condition of climate change scenario analysis referred to in Article 45a to assess the risks referred to in Article 45(2)."
Amendment 466 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 – point b c (new)
Article 1 – paragraph 1 – point 23 – point b c (new)
Directive 2009/138/EC
Article 44 – paragraph 4 a (new)
Article 44 – paragraph 4 a (new)
(bc) the following paragraph is inserted: "4a. The risk management system shall cover any sustainability risks to which the insurance or reinsurance undertaking is exposed to."
Amendment 476 #
Proposal for a directive
Article 1 – paragraph 1 – point 23 a (new)
Article 1 – paragraph 1 – point 23 a (new)
Directive 2009/138/EC
Article 44 a (new)
Article 44 a (new)
(23a) The following article is inserted: 'Article 44a Transition plan 1. In order to demonstrate alignment with the Green Deal and the objective of carbon neutrality by 2050 at the latest as established in Regulation (EU) 2021/1119(European Climate Law),insurance and reinsurance undertakings in scope of Directive (EU)2021/0104 (COD) [CSRD Directive] shall develop and adopt a transition plan by no later than [1 year after the date of the application of the Directive]. 2. The plan shall be approved by the administrative, management or supervisory body of the insurance or reinsurance undertaking. The plan shall be reviewed at least every 2 years. 3. The plan shall be subject to the disclosure obligations referred to in article 19aand article 29a of the Directive amending Directive 2013/34/EU, Directive 2004/109/EC, Directive2006/43/EC and Regulation (EU) No 537/2014, as regards corporate sustainability reporting.'
Amendment 490 #
Proposal for a directive
Article 1 – paragraph 1 – point 24 – point c a (new)
Article 1 – paragraph 1 – point 24 – point c a (new)
Directive 2009/138/EC
Article 45 – paragraph 4
Article 45 – paragraph 4
(ca) paragraph 4 is replaced by the following: "4. The own-risk and solvency assessment shall be an integral part of the business strategy and shall be taken into account on an ongoing basis in the strategic decisions of the undertaking. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0138-20210630)In particular, insurance and reinsurance undertakings shall take all necessary measures to ensure that they appropriately manage and address allmaterial risks identified, including climate change risks. " Or. en
Amendment 502 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 2 – point b
Article 45a – paragraph 2 – point b
(b) a long-term climate change scenario where the global temperature increase is equal to orsignificantly higher than two degrees Celsius.
Amendment 505 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 5
Article 45a – paragraph 5
5. By way of derogation from paragraphs 2, 3 and 4, insurance and reinsurance undertakings that are classified as low-risk profiAt regular intervals, the undertaking concerned shall perform a backward analysis on previous climate change scenarios to disclose to what extent their tools and principles undertakings shall neither be required to specify climate change scenarios nor to assess their impactsed when conducting their long-term climate change scenario analyses lead to an overestimation or underestimation onf the business of the undertaking.;materiality of its exposure to climate change risks.
Amendment 508 #
Proposal for a directive
Article 1 – paragraph 1 – point 25
Article 1 – paragraph 1 – point 25
Directive 2009/138/EC
Article 45a – paragraph 5 a (new)
Article 45a – paragraph 5 a (new)
5a. In order to ensure common, uniform and consistent application of this Article, EIOPA shall develop guidelines to facilitate common supervisory tools and specify the principles to be used when conducting long-term climate change scenario analyses referred to in Article 45a.
Amendment 513 #
Proposal for a directive
Article 1 – paragraph 1 – point 25 a (new)
Article 1 – paragraph 1 – point 25 a (new)
Directive 2009/138/EC
Article 45b (new)
Article 45b (new)
(25a) The following article is inserted : ‘Article 45b Stress tests of ESG risks 1. The national supervisory authorities shall carry out as appropriate but at least every two years supervisory stress tests of environmental, social and governance risks on institutions they supervise. 2. EBA,EIOPA and ESMA shall, through the Joint Committee referred to in Article 54 of Regulations (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010, develop guidelines to ensure that consistency, long-term considerations and common standards for assessment methodologies are integrated into the stress testing of environmental, social and governance risks.’
Amendment 518 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point b
Article 1 – paragraph 1 – point 26 – point b
Directive 2009/138/EC
Article 51 – paragraph 1a – point b
Article 51 – paragraph 1a – point b
(b) a brief description of the capital management and the risk profile of the undertaking., including in relation to sustainability risks;
Amendment 519 #
Proposal for a directive
Article 1 – paragraph 1 – point 26 – point b
Article 1 – paragraph 1 – point 26 – point b
Directive 2009/138/EC
Article 51 – paragraph 1a – points b a (new) and b b (new)
Article 51 – paragraph 1a – points b a (new) and b b (new)
(b a) where the undertaking conducts a climate scenario analysis described in Article 45a, a description of the latest results; (b b) a description of the implementation of the transition plan described in Article 44a.
Amendment 782 #
Proposal for a directive
Article 1 – paragraph 1 – point 91
Article 1 – paragraph 1 – point 91
Directive 2009/138/EC
Article 304a – paragraph 1 – subparagraph 1
Article 304a – paragraph 1 – subparagraph 1
1. EIOPA, after consulting the ESRB, shall assess, on the basis of available data and the findings of the Platform on Sustainable Finance referred to in Article 20 of Regulation (EU) 2020/852 of the European Parliament and of the Council* and the EBA in the context of its work under the mandate set out in Article 501c, point (c), of Regulation (EU) 575/2013 whether a dedicated prudential treatment of exposures related to assets or activities associated substantially with environmental or social objectives would be justified. In particular, EIOPA shall assess the potential effects of a dedicated prudential treatment of exposures related to assets and activities which are associated substantially with environmental and/or social objectives or which are associated substantially with harm to such objectives on the protection of policy holders and financial stability in the Union, including fossil fuel related- assets.
Amendment 792 #
Proposal for a directive
Article 1 – paragraph 1 – point 91
Article 1 – paragraph 1 – point 91
Directive 2009/138/EC
Article 304a – paragraph 2 a (new)
Article 304a – paragraph 2 a (new)
2a. EIOPA shall evaluate whether and to what extent insurance and reinsurance undertakings assess their material exposure to biodiversity-related risks as part of the assessment referred to in Article 45(1). EIOPA shall subsequently assess which actions should be taken to ensure that insurance and reinsurance undertakings dully consider these risks. EIOPA shall submit a report on its findings to the Commission by 28 June 2023.