Lloyd’s Environmental, Social and Governance Report 2020
05 January 2021
05 January 2021
Policy and Public Affairs
Lloyd’s publishes new ESG report outlining its plans for a sustainable future.
This recently published report shares ways Lloyd’s aims to fully integrate sustainability into all of their business activities as well as across the insurance and reinsurance marketplace. This report builds on their existing ESG work with a comprehensive market-wide strategy that aligns with the United Nations’ Sustainable Development Goals and supports the principles set out in the Paris Agreement.
As one of the founding members of ClimateWise, the global network of leading insurance industry organisations focused on driving action on climate change, Lloyd’s are committed to supporting the ClimateWise principles that align fully with the recommendations set out by the Taskforce on Climate-related Financial Disclosures.
Bruce Carnegie-Brown, Chairman of Lloyd’s ESG committee and Chairman of Lloyd’s said, “This is the first time we have set an ESG strategy for the Lloyd’s market and it represents an important milestone on the journey towards building a more sustainable future. We have the opportunity to play our part in building back a braver, more resilient world. We recognise that the targets we are setting will be challenging, but will also bring new opportunities. We will work closely with our market and customers to help them plan for these changes as we implement a long-term managed programme towards sustainable, responsible underwriting.”
As part of the report, Lloyd’s outlines the key areas central to their ESG strategy that will contribute to a more sustainable future:
- commitment to a responsible market
- commitment to people and culture
- commitment to sustainable insurance
- commitment to responsible investment
- commitment to responsible operations
- commitment to customers
- commitment to the community
The report outlines new and existing initiatives in support of the global transition to zero. This includes targets for responsible underwriting and investment, timescales to phase out insurance cover for ‘dirty’ companies (coal-fired power plants, thermal coal mines, oil sands, etc) and details of their Central Fund for impacts. A risk centre will be launched later in the year that will undertake research into new insurance products to protect society from systemic risks, including climate risk.
Social initiatives will include a Cultural Toolkit that will provide practical guidance on how to drive cultural change in the Lloyd’s market. This will include a target of 35% female representation in leadership positions, with new targets for Black and Minority Ethnic representation in leadership positions to be announced at a later date.
The report provides several roadmaps on how these initiatives can be achieved as well as case studies on work currently in progress. Further research and targets will be published throughout 2021.
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), Society of Underwriting Professionals or Chartered Insurance Institute, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the Society or Chartered Insurance Institute.