Solvency II Delegated Regulation: Sustainability Risks
This Regulation amends Delegated Regulation (EU) 2015/35 to integrate sustainability risks into the governance of insurance and reinsurance undertakings. It requires undertakings to take into account environmental, social and governance-related sustainability risks when identifying, measuring, monitoring, managing, controlling and reporting investment risks; to integrate sustainability risks into their remuneration policies, risk management systems and investment processes; and to take customers' sustainability preferences into account. It applies to insurance and reinsurance undertakings in all EU Member States.
Timeline
- 16 Aug 2021Entry into force
- 2 Aug 2022Full application date
Key facts
- Reference
- Regulation (EU) 2021/1256
- Adopted
- 21 Apr 2021
- Published
- 27 Jul 2021
- Status
- In force
- Topic
- Sustainable Finance
- Industries
- Financial Services
Main compliance requirements
Paid members only
The main compliance requirements, applicability questions and penalties are available in the ZC Smart Compliance Hub. Paid members and clients can sign in to the Hub to view them.
Related legislation
- Amends Commission Delegated Regulation (EU) 2015/35. Related legislation includes: Directive 2009/138/EC (Solvency II), Regulation (EU) 2019/2088 (Sustainable Finance Disclosure Regulation), Regulation (EU) 2020/852 (Taxonomy Regulation), Commission Delegated Regulation (EU) 2017/2358 (product oversight and governance requirements).
Official sources
Commission Delegated Regulation (EU) 2021/1256 amending Delegated Regulation (EU) 2015/35 as regards the integration of sustainability risks in the governance of insurance and reinsurance undertakings