Letter to Lloyd’s of London on operation of its ESG Guidance

The Society of Lloyd’s has publicly committed to transition the Lloyd’s market to net-zero emissions by 2050. It set out its approach to climate change and other ESG issues in ESG Guidance provided to Lloyd’s market members in October 2021.

This letter asks the Society a series of questions on how it intends to operate its framework on climate change (as set out in its ESG Guidance) in practice. In particular, it asks for more information on:

• what targets on climate change it expects Lloyd’s members to set; and
• the steps the Society will take where a Lloyd’s member is not taking credible action on climate change.

Unless the Society provides further information on these matters, it will not be possible for the public to tell whether the Society is actually taking any meaningful action in the short-term to start the Lloyd’s market on a transition to net-zero, or to assess the credibility of the Society’s public climate commitments.

We previously wrote to the Society on 13 December 2021 setting out deficiencies in the framework on climate change set out in the ESG Guidance.