Lloyd’s launches climate action plan to accelerate the transition to net zero
Lloyd’s, the world’s leading marketplace for commercial, corporate and speciality risk solutions, today sets out how the insurance industry will partner with critical industries to support and accelerate the transition to a low carbon economy, with the launch of its new report Insuring a sustainable, greener future.
The insurance industry has a global capital pool of more than $30 trillion, and the cover it extends to organisations worldwide supports and enables the entrepreneurialism, innovation and investment that is required to accelerate the world’s transition to a more sustainable future.
Alongside the report, Lloyd’s has today set out a climate action roadmap which includes a number of wide-ranging, practical steps that will help accelerate the transition of multiple industries to net zero carbon. Many of the actions set out in the roadmap will be delivered at pace in 2021, and through the Lloyd’s-chaired Sustainable Markets Initiative (SMI) Insurance Task Force launched last month*.
These actions include the development of new risk transfer solutions to provide critical, enabling support for green innovation and renewable energy investment and expansion, together with a public-private disaster resilience, response and recovery framework, which will help protect developing nations from the evolving economic and societal impacts of climate change.
The report details the steps Lloyd’s is taking now, and will take in the future, across the key themes of greener industry, transport, and energy. These include working towards de-risking critical decarbonisation activities, closing protection gaps and acting as a facilitator to catalyse action across the industry, customers, government, and other key stakeholders.
To help accelerate the pace of change, Lloyd’s will work with critical industries to improve the knowledge around risk landscapes and help the insurance industry adapt to meet changing customer needs, as the world transitions to a sustainable future. As part of this work, Lloyd’s is committed to expanding coverage to support the growth of the greener energy sector and will facilitate the development of new insurance products for electric vehicles.
In developing the roadmap, Lloyd’s has engaged with a range of insurers, Lloyd’s market participants, brokers and corporates operating across energy, transport and broader industry to understand the pathway towards a lower carbon footprint and explore the challenges that require the insurance sector’s support. By mobilising, co-ordinating and delivering on these actions, the insurance industry can enable and accelerate the global transition towards a more sustainable world.
Chair of Lloyd’s and the SMI Insurance Task Force, Bruce Carnegie-Brown, said: “There is an ever-more pressing need for a coordinated global effort across industries to effect the monumental transformation needed to address the climate challenge. Lloyd’s is proud to play a role, together with the global insurance industry, in partnering with sectors to provide the risk management solutions and investment that will help enable and accelerate the necessary changes and drive action towards a more sustainable world.”
*The Sustainable Markets Initiative (SMI) Insurance Task Force is an initiative launched in partnership with HRH The Prince of Wales, which has seen many of the world’s most significant insurance firms sign on as members. Chaired by Lloyd’s, it acts as an influential platform for the sector to collectively advance the world’s progress towards a resilient, net-zero economy.1. Lloyd’s studio is available for TV and radio broadcasts
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