This approach is designed to support measures that will improve the long-term performance of investee companies.

ClimateWise sub principles

  • 4.1 Evaluate the implications of climate change for investment performance and shareholder value.
  • 4.2 Incorporate the material outcomes of climate risk evaluations into investment decision making.
  • 4.3 Communicate our investment beliefs and strategy on climate change to clients and beneficiaries.

How is Lloyd's incorporating climate change into our investment strategies?

Communicating our beliefs
Lloyd’s use its position as a shareholder to promote better management of climate change amongst the companies we invest in. John Parry, Director of Finance, is also the Director responsible for ClimateWise within Lloyd's.

Shareholder power
Since 2008, we have engaged Foreign & Colonial have provided a service engaging those companies in which Lloyd’s Central Fund invests and to exercise its voting rights in pursuit of environmental, social and governance issues. Foreign & Colonial seek to encourage positive action on climate change and the long-term value protection this inevitably brings. This typically includes asking for better management of emissions and for the development of enhanced climate change strategies.

Over the 2014-2015 reporting cycle, Foreign & Colonial voted 154 times in respect of the Lloyd's Central Fund’s equity investments. They engaged with 62 investee companies across 25 different countries on Lloyd’s behalf, leading to 25 instances at 21 companies where environmental, social and governance practices were reformed or improved.

These are just a few examples of how we have and will continue to incorporate climate change into our investment strategies.  Find out more about our progress with ClimateWise.