Lloyd's of London Seeks Input from Members on Net-Zero Strategy

Lloyd's of London has initiated a consultation with its member firms to discuss strategies for supporting the shift to a low-carbon economy over the next three years.

This includes scrutinizing underwriting practices, investments, exposure management, and the alignment of capital and reserves with environmental sustainability.

The firm expects its managing agents to develop robust sustainability plans, which will be evaluated on aspects like governance, transition planning, and the measurement of emissions.

From next year, Lloyd's intends to improve the data quality on climate-related risks such as flooding and liability, as outlined in a recent "roadmap."

In 2024, a market survey will be conducted to determine how well climate considerations are integrated into the financial safeguarding strategies of managing agents. Additional guidance on responsible investment practices will also be provided.

John Neal, CEO of Lloyd's, articulated the goal of enabling market participants to confidently implement and execute their climate strategies throughout the transition period and beyond.

Stakeholders are invited to share their inputs until the close of the consultation period in January 2024.