Lloyd’s Corporation is the latest in a string of top insurance firms to cast-off coal-heavy businesses amid concerns about climate change.
The Corporation has announced that it’s implementing a coal exclusion policy as part of its responsible investment strategy for the Central Fund.
The Lloyd’s coal exclusion policy will come into effect in April next year and it will apply to assets held in segregated portfolios. These account for around 75% of Central Fund investments.
A precise definition of what constitutes a coal company will be set by Lloyd’s over the next few months, as will the company’s criteria for divestment and exclusion.
Lloyd’s Corporation joins the likes of
Zurich Insurance, AXA and Allianz in the divestment of coal-related investment.
Swiss Re is also expected to release an action plan regarding coal.
According to the Unfriend Coal campaign, 15 insurers with a total of over US$4 trillion (NZD$5.9 trillion) in assets covered by coal divestment decisions are planning to change their coal-related policies in the near future. The industry has already pulled out a total of US$20 billion (NZD$29.4 billion) in the past two years.
Peter Bosshard, coordinator of Unfriend Coal, commented: “Coal needs to become uninsurable. If insurers cease to cover the numerous natural, technical, commercial and political risks of coal projects, new coal mines and power plants cannot be built and existing operations will have to shut down.”
The environmental call-to-arms came several months after Greenpeace called on several major insurers to take action on fossil fuels.
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