Financial & Insurance
Insurance, reinsurance, and lending activities that channel capital toward climate-resilient and sustainable outcomes.
The financial and insurance sector occupies a distinctive position in the EU Taxonomy as a capital allocation mechanism. Rather than generating direct emissions, financial activities determine where investment flows -- making them powerful levers for accelerating the green transition.
Activities include non-life insurance and reinsurance for climate-related perils, lending for climate adaptation projects, and portfolio management that integrates Taxonomy criteria into investment decisions. The focus on climate change adaptation reflects the insurance industry's frontline role in pricing and managing physical climate risks.
Technical screening criteria for this sector emphasise the systemic importance of financial risk management. Insurers must demonstrate that their underwriting practices incentivise adaptation measures among policyholders. Lenders must apply Taxonomy-aligned criteria to their lending books, ensuring that financed activities meet the relevant technical thresholds. The sector's alignment is measured through metrics such as the Green Asset Ratio (GAR) for banks and the proportion of Taxonomy-aligned premiums for insurers.
Activity data for this sector is being prepared. Check back soon.