Prince Charles launches industry-led climate change task force at Lloyd’s
His Royal Highness The Prince of Wales today launched his Sustainable Markets Initiative (SMI) Insurance Working Group during a visit to Lloyd’s in London.
Chaired by Lloyd’s, the task force is comprised of leaders from many of the world’s largest re / insurers and aims to provide an influential platform for the industry to collectively advance the world’s progress towards a resilient, net zero economy.
Members include CEOs from companies such as AIG, Allianz, Aon, AXA, Beazley, Conduit Re, Hiscox, Howden, Marsh McLennan, Munich Re and Tokio Marine Kiln.
Its statement of intent includes a commitment to provide climate-friendly finance and risk management solutions to support and encourage individuals and businesses around the world to accelerate their transition to a sustainable future.
During his visit to the historic insurance and reinsurance market, Prince Charles underlined the importance of adapting and expanding the coverage of offshore wind projects, keeping pace with the rapid growth of new technologies and efforts to “build back better” by encouraging clients to build back sustainably. .
The SMI working group will also work with governments to establish a public-private framework for disaster resilience, response and recovery, which will help protect developing countries from the evolving economic and societal impacts of climate change.
A framework will be developed to help unlock the more than $ 30 trillion in assets under management, increasingly directing capital towards investments that generate positive climate outcomes in developed and developing countries.
In addition, the task force will launch at least two new insurance products to protect priority industries, such as nuclear power, hydrogen and offshore wind.
Sustainable processes will also be implemented throughout the insurance supply chain to encourage and motivate individuals to take positive steps to live more sustainably.
In addition, a public-private framework for disaster resilience, response and recovery will be developed to help protect developing countries from the evolving economic and societal impacts of climate change, including the effects of growing weather events. frequent and violent.
Once developed, this solution will be deployed in vulnerable countries to support better disaster response and recovery, with a pilot project launched in 2021.
“The insurance industry is uniquely positioned to understand the impact of climate change and the damage it can cause all of us if we don’t act now,” said His Royal Highness.
“This is why I am so happy that many of the world’s largest insurance companies have come together to identify how the insurance industry can help put nature, people and the planet at the heart of our economy. “
Lloyd’s President Bruce Carnegie-Brown added: “As the world begins to recover from a pandemic that has caused significant and far-reaching financial and societal challenges, it does so with an opportunity to rebuild with the sustainability as the foundation and guiding principle.
“While climate change poses an unprecedented systemic risk, it is a risk that – through partnership and accelerated action – we are empowered to address.
“As a task force, we are firmly committed to being a catalyst for action to help create a more sustainable future through the risks we manage and the capital we invest.”