Lloyd’s sets out plan for insurers to accelerate transition to net zero
Lloyd’s has set out a plan for the global insurance industry to tackle climate change and accelerate the transition to a low carbon economy. These include working towards de-risking critical decarbonisation activities, closing protection gaps and developing new insurance products for the green energy sector.
The roadmap includes numerous practical steps that will help accelerate the transition of multiple industries to net zero carbon. Lloyd's expects many of the actions set out in the roadmap to be delivered at pace in 2021, through the Lloyd’s-chaired Sustainable Markets Initiative (SMI) Insurance Task Force, which was convened by Prince Charles last month.
Actions such as the development of new risk transfer solutions to provide critical, enabling support for green innovation and renewable energy investment and expansion, together with a public-private disaster resilience, response and recovery framework, will help protect developing nations from the evolving economic and societal impacts of climate change, said the corporation.
Lloyd’s intends to work with critical industries to improve the knowledge around risk landscapes and help the insurance industry adapt to meet changing customer needs. As part of this work, Lloyd’s plan to expand coverage to support the growth of the greener energy sector and facilitate the development of new insurance products for electric vehicles.
The corporation has engaged with a range of insurers, Lloyd’s market participants, brokers and corporates operating across energy, transport and broader industry to understand the pathway towards a lower carbon footprint and explore the challenges that require the insurance sector’s support. By mobilising, co-ordinating and delivering on these actions, the insurance industry can enable and accelerate the global transition towards a more sustainable world, it said.
According to Bruce Carnegie Brown (pictured), chair of Lloyd’s and the SMI Insurance Task Force: “There is an ever-more pressing need for a coordinated global effort across industries to effect the monumental transformation needed to address the climate challenge. Lloyd’s is proud to play a role, together with the global insurance industry, in partnering with sectors to provide the risk management solutions and investment that will help enable and accelerate the necessary changes and drive action towards a more sustainable world.”
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