Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • Cat Bond Investors Told to Brace for Jamaica Payout
  • Berkley Explains Property Market, Company Appetite
  • Articles
  • Jobs
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Login
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

EU Regulators Call for Changes to Landmark ESG Rulebook

By Frances Schwartzkopff | June 19, 2024
Email This Subscribe to Newsletter
  • Article

Europe’s ESG rulebook, which is seen as the benchmark for setting sustainability-disclosure requirements worldwide, keeps getting pushback from the regulators charged with enforcing it.

In an opinion to the European Commission, regulators for the markets, banking and insurance industries called Tuesday for changes to the Sustainable Finance Disclosure Regulation.

Specifically, the European Supervisory Authorities, or ESAs, want clear labels for defining insurance, pension and investment funds so that customers can better compare products being marketed as conforming with environmental, social and governance principles.

A “coherent sustainable-finance framework” is needed to protect investors, the regulators said. SFDR must go further to “enhance retail investor’s trust, confidence and participation in financing the economy,” they said.

The proposals signal another period of regulatory pressure for Europe’s financial industry. It’s struggled with SFDR since the regulation went into force three years ago to clean up greenwashing and channel investments to sustainable companies. Since then, asset managers and supervisors alike have called for revisions as the market for ESG investments has grown.

Of particular concern have been funds classified as Article 8, whose broad requirement to promote ESG factors has led to widespread concerns about misleading claims. Last month, EU market regulators imposed stringent new naming rules to curtail the practice, a measure that may force asset managers to divest as much as $40 billion of stock holdings, according to estimates from analysts at Morningstar Sustainalytics.

In their opinion to the European Commission, the ESAs called for new product categories of “sustainable” and “transition” — at a minimum — with clear objectives and criteria “to reduce greenwashing risks.” Use would initially be voluntary, though they suggested the commission consider making them mandatory. The regulators also proposed a “sustainability indicator” to “grade” financial products.

“Subject to consumer testing, such an indicator could group products according to how sustainable the investments are, while also identifying which products foster the transition,” the regulators said.

The opinion focuses on one of the more contentious questions about SFDR: What exactly constitutes a sustainable investment? The definition was left broad to allow for varied ESG strategies, but the result has been to make comparisons across products difficult. The regulators urged the commission to provide more stringent requirements.

The European Commission is currently reviewing possible changes to SFDR.

Copyright 2025 Bloomberg.

Topics Europe

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Alaska Airlines Vows IT Upgrades After Outage Forces 400 Flight Cancellations
Trucking App Trucker Path Launches Retail Insurance Agency
A futuristic female cyborg in profile looking up with a glowing red brain visible through a transparent helmet.The Future of the Agency in a World of AI
Suspects in Louvre Heist in Custody After Week-Long Manhunt

Written By Frances Schwartzkopff

More From Author

The most important insurance news,
in your inbox every business day.

Get the insurance industry's trusted newsletter

Email This Subscribe to Newsletter
  • Categories: International & Reinsurance NewsTopics: environmental social and governance (ESG) criteria, EU climate change, EU ESG rules
  • Have a hot lead? Email us at newsdesk@insurancejournal.com
More News
Prediction Markets Firm Kalshi Sues NY Gambling Regulator Alleging Overreach
Starr Acquiring IQUW; Starr Managing Agency to Be Among 10 Largest at Lloyd’s
Breaking: Florida Appeals Court Reverses $200M Jury Verdict in Maya Kowalski Case
Florida Jury Awards $20 Million in J&J Talcum Powder Mesothelioma Lawsuit
More News Features

Read This Next

  • EU Regulators Call for Changes to Landmark ESG Rulebook
  • Global Commercial Insurance Rates Drop 4% in Q3, for 5th Quarterly Decline: Marsh
  • Progressive Now 4th Largest Global Insurer; RenRe Fastest Growing in '24
  • SIAA Launches New Data Driven AI Tool to Boost Agency, Carrier Growth
  • Viewpoint: Insurance and AI - A Double-Edged Sword

Insurance Jobs

  • Senior Underwriter - Denver, CO ( Hybrid)
  • Property Liability Claims Supervisor - Wilsonville, OR
  • Business Development Representative - Remote/Pittsburgh, PA/Allentown, PA
  • Regional Sales Manager - Irving, TX
  • Insurance Account Executive - Remote/ Brooklyn, NY
MyNewMarkets
  • Bigger Piece of the Pie: Surplus Lines Market Hits New Record as Specialty Lines Continue to Grow in Prominence, Market Share
  • Death and Insurance (Not Taxes): Part One
  • AI for Agents
  • How to Attract the Next Generation to Insurance
  • 5 Evolving Trends Shaping Architects and Engineers Coverage
Claims Journal
  • Opioid Distributors Can't Shake $2.5 Billion Suit After Ruling
  • OpenAi Sued for Trademark Infringement Over Sora's 'Cameo' Feature
  • Adjuster Countersues Heritage Over '60 Minutes' Response While Probe Stalls
  • Edison Wildfire Fund to Pay Millions, Fast-Track Death Claims
  • The Impact of Nuclear Verdicts on Casualty Claims
Academy of Insurance education
  • October 21 E&S Property Underwriting
  • October 23 Gotchas That'll Getchya - Latest Policy Language That'll Get You Sued
  • October 30 Challenges in Agency Mergers – Reducing Staff Flight and Avoiding E&O Claims
  • November 6 Risk and Insurance for Digital Nomads

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map