Lloyd’s Corporation joins coal-heavy investment boycott

Lloyd’s Corporation joins coal-heavy investment boycott

Lloyd’s Corporation joins coal-heavy investment boycott Lloyd’s Corporation is the latest in a string of top insurance firms to cast-off investments in 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.

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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 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 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.”

This environmental call-to-arms comes several months after Greenpeace called on several major insurers to take action on fossil fuels.

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  • Old King Coal 11/20/2017 11:04:58 AM
    Usually when it is politically incorrect to insure an industry, it might be the right time to jump in. Better pricing. Watch, Berkshire will join that, but then use it to reinsure companies that insured coal. They are really good at that.
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  • One World 11/20/2017 3:41:31 PM
    Shall we be more responsible with how we produce food? the majority corporations and government say "no" in the face of very real data on causes of death. In the Coal game, the facts are true, the government support of this industry is akin to P. Dump agreeing to allow for the use of lead paint and asbestos insulation all over again.
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