The London market will aim to reduce premium income from fossil fuel to just 2% of premium income by 2022

Lloyd’s of London is to end covers for coal, oil sands and Arctic energy project risks by 2030, it announced on Thursday.

New cover for environmentally harmful projects will be reduced to no more than 2% of premium income by 2022, it added. 

Part of the market’s Environmental, Social and Governance Report 2020 launch, it aims to implement ”a comprehensive market-wide strategy that aligns with the United Nations’ Sustainable Development Goals and supports the principles set out in the Paris Agreement”.

Lloyd’s chairman Bruce Carnegie-Brown commented: “This is the first time we have set an ESG strategy for the Lloyd’s market and it represents an important milestone on the journey towards building a more sustainable future.

”We have the opportunity to play our part in building back a braver, more resilient world.

”We recognise that the targets we are setting will be challenging, but will also bring new opportunities.

”We will work closely with our market and customers to help them plan for these changes as we implement a long-term managed programme towards sustainable, responsible underwriting.”

Keith Richards, chief membership officer of the Chartered Insurance Institute said: “… this report is a welcome response to a changing landscape, from the Lloyd’s market, and highlights the leadership our profession can take during this global transition.

“At the heart of this is the concept of building a brighter future, a philosophy that the CII has long shared, and we are delighted to support the launch of these detailed plans for a more environmentally conscious marketplace.

”We commend Lloyds for their work on this and their creation of an ESG Advisory Group to steer their ambitions as they progress.”