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Responsible business approach

Underpinning our core mission

Lloyd's responsible business approach underpins our core mission, which is to support global economic growth, enable human progress, and help nations, businesses and communities recover post disaster by paying claims. We want to be known as a responsible business leader, operating in a way that makes those who work for us feel proud of their contribution to what we do and how we do it.

Our programmes focus on four key themes which are integral to Lloyd’s and the wider insurance sector. These are:

  • Innovation
  • Managing risk
  • Building resilient communities
  • Empowering individuals to reach their potential

Responsible business areas

Find out more about some of our responsible business practices below.

Lloyd's United Nations Global Compact 2021 report

As part of our journey to become a more responsible business, we have signed up to the United Nations Global Compact to commit to their sustainability principles. As we publish our third United Nations Global Compact report, we aim to reflect Lloyd’s’ ambition to build sustainability and responsibility into all our core activities.

In publishing this report, we hope to demonstrate that this goal is being achieved and we are developing real momentum across a broad spectrum of activities and delivering on our commitments.

This report sets out our achievements in 2021 and our approach for 2022.

These include the Sustainable Markets Initiative (SMI) Insurance Task Force which commits its participants to provide climate positive financing and risk management solutions to support and encourage individuals and businesses around the world to accelerate their transition to a sustainable future.

In May 2022, Lloyd’s published its second Environmental, Social and Governance (ESG) Report. The report outlines our progress towards building a more sustainable, resilient and inclusive marketplace. The report also builds on Lloyd’s 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.

This report represents a continuation of Lloyd’s journey to become a more responsible organisation. Our clear ambition is to continue to build on our progress and commitments as laid out here to benefit our people, our customers and society. Thank you to everyone across the Corporation who contributed to the report and for your commitment to the principles.

Lloyd’s sustainability guidance for managing agents

Lloyd’s is committed to working towards a sustainable marketplace, with a portfolio of customers and business that supports our ambition to achieve net zero by 2050.

In Q2 2023, as part of our oversight process, we reviewed managing agents’ strategies and produced Thematic Feedback to highlight market-leading practice, allowing the whole market to collectively benefit from this insight. The Thematic Feedback focuses on embedding sustainability across the four areas of governance, underwriting, investments and operations. Each managing agent also received a tailored scorecard sharing specific areas of strength and areas for development.

Previous guidance we have published to our market is available below.

Responsible investment strategy

Lloyd’s investment philosophy focuses on generating long-term, sustainable capital growth for Central Fund assets. Our approach to responsible investment is detailed in our strategy for the Lloyd's Central Fund and is built upon three core pillars; Protecting, Providing and Promoting.

Sustainable procurement

Lloyd’s mission is to deliver an effective and sustainable approach to all third party sourcing and supplier management, with a clear purpose to support our Protect, Promote and Provide principles while achieving maximum value, minimising risk and driving efficiencies to invest in the future.

Please see our vision and our expectations from our suppliers in our Sustainable Procurement Statement and our Supplier Code of Conduct.

Living wage employer

As part of our commitment to being a responsible business, Lloyd’s is part of the Living Wage campaign.

The campaign for a working living wage for all employees started in east London 16 years ago. Today over 30,500 businesses across the UK are part of the Living Wage campaign. Our commitment to the initiative means that all Lloyd’s employees, including those working for our sub-contractors, are guaranteed a fair wage that accurately reflects the cost of living.

Modern slavery

We are committed to ensuring that there is no modern slavery or human trafficking taking place in our supply chains or in any part of our business. We continue to implement appropriate policies to support our commitment to act ethically and with integrity in all our business relationships.

You can find out more in our Modern Slavery Act Statement.

Lloyd’s and Sherbro Alliance Partners

06 February 2024, Lloyd’s signed a Memorandum of Understanding (MOU) with Sherbro Alliance Partners (SAP) to support economic resilience and growth opportunities on Sherbro Island, Sierra Leone, as part of a landmark sustainable development initiative that aims to put nature and renewable energy at the centre.