Lloyd’s of London must stop supporting fossil fuel expansion, says NGO

Lloyd’s of London is undermining climate action and should impose binding rules to prevent insurers from backing fossil fuel expansion, NGO Reclaim Finance said on Wednesday.

Some European insurers, including Generali and Zurich, have imposed restrictions on underwriting fossil fuel projects in response to pressure from investors and campaigners.

But Reclaim Finance said Lloyd’s of London lagged behind by leaving the decision on whether to underwrite activity in high-emissions sectors to syndicate members.

Only five of Lloyd’s 51 members, or managing agents, have policies that limit coverage of new oil and gas fields, Reclaim Finance said.

“If the Lloyd’s market wants to be taken seriously as a leading player in the transition, its managing agents need policies now,” said Ariel Le Bourdonnec, insurance campaigner at Reclaim Finance.

A Lloyd’s spokesman outlined the group’s transition roadmap, a three-year plan to support Lloyd’s customers as they move to low-carbon models and help Lloyd’s managing agents develop their strategies of durability.

“Lloyd’s will continue to follow government policies and regulatory requirements globally, while remaining committed to supporting an urgent and orderly just transition and remaining nimble in response to external shocks,” the emailed statement said.

Lloyd’s had no further comment on the Reclaim Finance report.

Lloyd’s CEO John Neal told Reuters in an interview last week before the publication of the NGO’s report that Lloyd’s did not plan to ask members to tighten their oil and gas underwriting policies but would monitor management agents’ transition plans.

Neal said Lloyd’s remained committed to its net zero goal and believed that supporting two parallel energy systems was essential to a smooth transition.

The Paris-based International Energy Agency has said there is no room for more oil and gas exploration if the Paris Climate Agreement’s goals of keeping global warming below 2 degrees Celsius (3.6 F ) above pre-industrial levels. .

(Reporting by Virginia Furness; Editing by Barbara Lewis)

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Surplus Energy Oil Gas Lloyd’s London