Lloyd’s of London has abandoned its net zero insurance commitments following pressure from political and industry figures, including former U.S. president Donald Trump. Patrick Tiernan, who became chief executive of the centuries-old insurance market earlier this year, confirmed that member insurers will no longer be bound by previous pledges to restrict coverage for high-pollution fossil fuel projects.
Under the new direction, Lloyd’s members will only be required to comply with national laws in the jurisdictions where they operate, removing the climate targets introduced by former chief executive John Neal in 2021. Neal had aimed to steer Lloyd’s toward a full net zero transition by 2050, including restrictions on underwriting coal mines, coal-fired power stations, and Arctic oil sands projects.
Tiernan defended the policy reversal, stressing that Lloyd’s must remain “apolitical” and aligned with government-set regulations rather than independently pursuing climate commitments. “The 2050 targets are government targets. We operate in multiple jurisdictions under different governments with different targets. We have to operate under the policies and the laws of where we operate,” he said.
The decision comes as Trump’s election victory last November accelerated a rollback of climate initiatives in the U.S., with his administration promoting fossil fuel expansion under the slogan “drill, baby, drill.” Similar anti-net-zero positions have been taken by Britain’s Conservatives and Reform UK, citing economic risks of rapid green transitions.
Environmental campaigners have strongly criticized the move, warning that Lloyd’s continued support for fossil fuel projects undermines efforts to combat climate change. However, Lloyd’s said its role is to enable insurers to operate freely within legal frameworks while supporting governments in shaping energy strategies. A spokesperson stated: “Our aim is to support whatever energy mix individual governments determine is in their jurisdiction’s best interests while enabling managing agents to operate at the vanguard of new energy technologies.”
