(Reuters) – Lloyd & # 39 ;s of London said on Thursday that they would join forces to scale up efforts to reduce CO2 emissions and pressure members of the commercial insurance market to do the same, days before international climate talks begin in Scotland
Lloyd & # 39 ;s has long been seen as a laggard when it comes to climate action, leaving the decision on whether to guarantee activity in a number of major emissions sectors to its 100s of union members amid sharp criticism from activists.
As the pressure increases on financial companies to act in the climate field, Lloyd & # 39 ;s said they had joined the UN-convened Net Zero Insurance Alliance, a body that aims to reduce the sector's emissions and help limit global warming.
By joining, Lloyd & # 39 ;s said they are committed to moving their entire business and attributable greenhouse gas emissions to net zero by 2050. They n will also set, publish and report on interim science-based targets every five years to ensure short-term action.
Part of this effort would be to move its £ 3 billion central fund ($ 4.1
"(We) are fully committed to working together across the financial sector to achieve their net zero ambition," said Lloyds CEO John Neal in a statement.
In the more controversial the issue of members' activities, Lloyd & # 39 ;s wrote a letter last week with "dear CEO" to its insurance companies warning them that they would need to come up with an environmental, social and governance plan in the second half of 2022.
] This follows the launch of Lloyd & # 39 ;s own initial ESG strategy last year, years after many of the top European insurance and reinsurance companies.
"Lloyd & # 39 ;s will advocate and support all market players to introduce and implement their own net-zero plans in order to reach a net-zero underwriting position for the market by 2050, "the statement said.
" These new formal expectations will be embedded in Lloyd & # 39; s market surveillance framework, ket puts climate action at the heart of annual business planning cycles. with syndicate. ”
Lloyd & # 39 ;s members 'ESG commitments would form an important part of the risk assessment process when Lloyd & # 39 ;s signs its annual business plans for 2023, it said, which in turn could affect members' ability to writing business in the market.
"Achieving net zero emissions will require transformation of the entire economy," said Nigel Topping, UN High Level Minister for Climate Action at the COP26 climate talks, which begin in Glasgow on Sunday.
"Insurance will be complete crucial to enable that transition and to build resilience to climate shocks.
“I welcome Lloyd & # 39 ;s ambition to lead the Lloyd & # 39 ;s market to a net zero emissions guarantee by using these influences with market participants to full effect. ”