(Reuters) – Lloyd & # 39 ;s of London reduces its exposure to coal and oil sands, the commercial insurance market said in its first sustainability report on Wednesday, in a reversal of its traditional practical approach to climate change.  Lloyds acts as the supervisory authority for about 100 union members and leaves decisions on insurance and investment strategy to them.
However, other regulatory bodies, such as the Bank of England, have emphasized the risks of climate change for financial institutions.  "This is the first time we have set up an ESG (environment, social and governance) strategy for Lloyd's market and it is an important milestone on the journey towards building a more sustainable future," said President Bruce Carnegie-Brown in a
Lloyds has been protected by activists because its members have insured controversial projects such as the Adani Enterprises & # 39; Carmichael thermal coal mine in Australia and Canada. a government oil pipeline of Trans Mountain.
European insurance companies such as Axa and Zurich have already withdrawn from taking out fossil fuels such as coal and oil sands, although US and Asian insurance companies have mainly retained their exposure.
The Lloyd & # 39 ;s Corporation and its members will complete new investments in thermal coal-fired power plants, thermal coal mines, oil sands and new Arctic energy exploration activities from January 1
It would wind up existing investments in companies that derive 30% or more of their revenue from these sectors by the end of 2025.
Lloyd & # 39 ;s also said that members are asked to stop providing new insurance coverage for thermal coal, oil sands or new Arctic energy exploration from 1 January 2022, with a target date of 1 January 2030 to phase out the renewal of existing protection.
Lindsay Keenan, European coordinator for the activist group Insure Our Future, welcomed the policy but said that Lloyds should act soon.
"Lloyd's 2030 deadline is not motivated by climate science and the urgent need for action," he said.
Lloyd also set a goal for its members to receive 2% of their premium income from sustainable insurance products. in 2022 and said that it would prepare a roadmap for transition to net zero for its own operations by 2025.