On Wednesday, Lloyd’s of London said that it is stepping back from coal and oil sands in its business, its first climate change policy after traditionally it acted a hands-off approach to climate change strategy.
The Lloyd’s Corp. and its members will end new investment and stop providing new insurance cover in thermal coal-fired power plants, thermal coal mines, oil sands, and new Arctic energy exploration activities from January 1, 2022. A target date of January 1, 2030, is set to phase out the renewal of the existing cover.
By the end of 2025, Lloyd will phase out its existing investments in companies deriving 30% or more of their revenues from those sectors.
The group obliges its members to derive 2% of their premium income from sustainable insurance products by 2022. Lloyd also will establish a roadmap for transitioning to net zero for its own operations by 2025.
