The world’s oldest insurance market, Lloyd’s, has launched a consultation which sets out its proposed approach for the next three years across all areas of sustainability, as it looks to support global ambitions to achieve net zero.
The consultation on its roadmap sets out the Lloyd’s approach across underwriting, investments, exposure management, and capital and reserving, and has been designed to support market participants in both evolving and embedding their own sustainability strategies.
At the same time, the roadmap aims to provide stakeholders with greater clarity on how Lloyd’s will support customers as they navigate a volatile macro-environment, while maintaining decarbonisation and transition progress.
It also sets out planned oversight processes and regulatory expectations around climate-related risk management, capital and reserving, and transition planning. Lloyd’s says that the idea is to provide “short-term actionable steps than can be taken,” with a focus on the areas that really matter.
The plan, according to Lloyd’s, will be developed and iterated in response to consultation feedback, and for future years to ensure it stays in line with government policy and also regulatory requirements.
“We hope that in setting out this consultation, the market will have greater clarity on the approach the Corporation is planning to implement, to support our customers in facing the challenges of transitioning to lower carbon business models. Our aim is to give our market participants greater confidence in setting, embedding, and operationalising their own individual climate strategies, through the transition and beyond,” said John Neal, Lloyd’s CEO.
The Corporation notes that brokers can use the details provided in the consultation in their discussions with clients, as can managing agents when putting together their transition plans.
Lloyd’s adds that it is also supporting managing agents in this area by providing guidance on new product areas, as well as by publishing thematic reviews on climate change, and committing to develop a proof-of-concept for an emissions accounting measurement framework.
