Lloyd's releases new coal policy

Written by Adam Cadle

17/12/2020

Lloyd’s of London has released its Environmental, Social and Governance Report which, among other commitments, asks Lloyd’s managing agents to no longer provide new insurance cover for coal-fired power plants, thermal coal mines, oil sands and new arctic energy exploration.

The report is the first ESG publication that Lloyd’s has presented and sets out its plans for accelerating the transition to a more sustainable insurance and reinsurance market-place. The report builds on Lloyd’s existing ESG work with a market-wide strategy that aligns with the United Nations’ Sustainable Development Goals and supports the principles set out in the Paris Agreement.

The report also highlights ongoing work to drive culture change across the Lloyd’s market. This includes commitments to meaningful and measurable actions to build a more inclusive working environment such as establishing Lloyd’s Culture Advisory Group and the setting of gender targets during 2020, and ethnicity targets to be announced in 2021.

The policy comes as Insure Our Future released its fourth annual scorecard on Insurance, Fossil Fuels and Climate Change which revealed that Lloyd’s of London is the last major insurer in Europe to continue underwriting coal. Now, with Lloyd's policy, more than 56% of the reinsurance market have adopted coal restrictions.

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