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Lloyd’s opens lower-carbon economy consultation

John Neal, CEO of Lloyd’s (File photograph)

Lloyd’s has launched a consultation on its roadmap for insuring the transition to a lower-carbon economy.

The consultation sets out Lloyd’s proposed approach for the next three years across all areas of sustainability for the market, including underwriting, investments, exposure management and capital and reserving.

The organisation said the roadmap has been designed to support market participants in evolving and embedding their own sustainability strategies, including navigating evolving regulatory reporting requirements.

It also aims to provide greater clarity to all stakeholders on how Lloyd’s will support customers as they respond to a volatile macro-environment, while maintaining decarbonisation and transition progress to support global ambitions to achieve net zero.

Lloyd’s said the document sets out planned oversight processes and regulatory expectations on climate-related risk management, capital and reserving as well as transition planning.

It added that it seeks to provide short-term actionable steps that can be taken, focusing on the areas that matter.

The plan will be developed and iterated in response to consultation feedback, and for future years to ensure it remains in line with government policy and regulatory requirements, Lloyd’s said.

John Neal, Lloyd’s CEO, said: “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.”

Acknowledging that effectively planning and executing on transition plans is one of the greatest challenges businesses will face in the coming years, the details provided in the consultation can be used by brokers in their discussions with clients, as well as managing agents formulating their own transition plans, as and when is appropriate for each business, Lloyd’s said.

The organisation said it is further supporting managing agents in this area by providing guidance on new product areas, publishing thematic reviews on climate change and committing to develop a proof-of-concept for an emissions accounting measurement framework.

Lloyd’s said the consultation, open until January 31, was designed with managing agents, brokers, and insurance associations.

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Published December 01, 2023 at 6:00 pm (Updated December 03, 2023 at 5:49 pm)

Lloyd’s opens lower-carbon economy consultation

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