Sustainability and digital transition loom high on FERMA’s agenda for EU

The EU’s risk management community, led by FERMA submit comments on three key proposed legislations, which are set to define the region’s green and digital transitioning processes.

Architecture, Building, Office Building, City, Urban, Flag

The Federation of European Risk Management Associations (FERMA) advises Spain, which currently holds the Presidency of the Council of the EU, to prioritise existing plans to green and digitally transform the region’s economy. In a paper to the Presidency, the group highlights the key role played by insurance management companies in supporting the transitioning processes and spoke to three key legislations: the Directive on corporate sustainability due diligence (CS3D), which addresses the responsibility companies have to humans and the environment; Solvency II Directive, which in the main requires insurance companies to hold capital in relation to their risk profiles, and the proposed Cyber Resilience Act.

Despite the few challenges the proposed legislation is likely to pose, FERMA advocates for the following: 

  1. A risk-based approach to applying the CS3D.
  2. The need for affordable and adequate insurance coverage to support companies during transition periods. 
  3. A framework which will provide companies with more options for transferring risks. 
  4. Concerted political action on the proposed Cyber Security Act and risk manager’s commitment to the ‘cyber security by design’ approach.  

Several other RM bodies, including the Association of Risk Management and Insurance (AGERS) and the Spanish Risk Managers Initiative (IGREA) welcome FERMA’s remarks and agree that the proposed items will not only deliver on sound supply chain operations within the EU but that they will also ensure Europe maintains its robust business environment as well as its global competitive advantage.