Lloyd’s coal policy is step in right direction, but must immediately drop insurance for all new coal projects
December 16, 2020
On December 17, Lloyd’s of London releases its Environmental, Social and Governance Report which, amongst other commitments, asks Lloyd’s managing agents to no longer provide new insurance cover for coal-fired power plants, thermal coal mines, oil sands and new arctic energy exploration. Insure Our Future welcomes this as a step in the right direction, but highlights that more ambitious and urgent action is needed.
This policy comes just after the Insure Our Future campaign released its fourth annual Scorecard on Insurance, Fossil Fuels and Climate Change which revealed that Lloyd’s of London is the last major insurer in Europe to continue underwriting coal.
Lindsay Keenan, European Coordinator for Insure Our Future, says: “We welcome Lloyd’s new policy of no longer providing new insurance cover for coal-fired power plants, thermal coal mines, oil sands and new arctic energy exploration as a step in the right direction. However, the policy should take effect now, not 2022. Additionally, the target date for Lloyd’s to phase out existing policies should be January 2021 for companies still developing new coal and tar sand projects. Lloyd’s 2030 deadline is not justified by climate science and the urgent need for action. We will continue to hold Lloyd’s accountable until it has met these recommendations.”
Lloyd’s market is estimated to have accounted for approximately 40% of the total global energy insurance premium in 2018. Lloyd’s management and members bear responsibility when they insure and therefore support projects that fuel the climate crisis.
Flora Rebello Arduini, Senior Campaigner Consultant for SumOfUs, says: “Lloyd’s needs to prohibits all members of its market from renewing insurance for the Adani Carmichael coal mine, the Trans Mountain tar sand pipeline extension and other such climate wrecking projects when they come up for renewal in 2021, not in 2030. The time to act is now. Lloyd’s must set binding market-wide policies that make clear to all stakeholders what can and cannot be done under Lloyd’s brand name and credit rating.”
Adam McGibbon, UK Campaigner for Market Forces, says: “Lloyd’s new ESG report sends a message to its syndicates that taking on new thermal coal risks, such as the Adani Carmichael coal project, is not supported. With seventeen Lloyd’s syndicates already committed to never insuring Adani Carmichael, the time has come for the hold-outs, such as Brit and Convex, to also rule out any insurance for the Carmichael coal project, including the mine, railway line, other associated infrastructure and project contractors.”