Lloyd's to quit fossil fuel investments by 2022

In its first environmental, social and governance report, Lloyd’s said the 90 insurance syndicates that make up the market would phase out all existing insurance policies for fossil fuel projects.

This accounts for less than 5% of the market’s £35bn annual premiums.

“We want to align ourselves with the UN sustainability development goals and the principles in the Paris [climate] agreement,” said the Lloyd’s chairman, Bruce Carnegie-Brown.

“A lot of syndicates are already doing some of the things we are setting out here but we are trying to create a more comprehensive framework for the whole market.”

Carnegie-Brown added: “We want to try to support our customers in the transition and we don’t want to create cliff edges for them,” he said.

“Oil is too fundamental an energy supply source for the world today and it would be impossible to get out of that without creating real dislocation to our customers. It’s an issue of calibration over time.”