Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure the Government’s environmental targets are included in any reform of Solvency II regulation; and if he will make a statement.

From the outset of the review of Solvency II, one of the guiding objectives has been to support insurance firms to provide long-term capital to underpin growth, including investment in productive assets and investment consistent with the Government’s climate change objectives.

The Government is also introducing sustainability disclosure requirements that will require firms to disclose their environmental risks, opportunities and impact. This will continue to be relevant in any reform of Solvency II legislation, again helping to meet the Government’s environmental ambitions.

The Government will consult further on Solvency II reforms in April.