Game-changer: Lloyds of London QUITS Net Zero Commitment

Written by John O'Sullivan CEO Principia Scientific International on September 11, 2025. Posted in Current News

World-leading UK insurance company, Lloyds of London, abandons position on “net-zero” – fossil-fuel restraining policies – citing market forces priorities.

Patrick Tiernan, who became CEO of Lloyd’s in mid-2025, has shifted the marketplace’s stance. Rather than asking/managing agents to stop underwriting or investing in certain polluting fossil fuel projects (coal, oil sands, Arctic exploration, etc.), Lloyd’s will now give its insurers (“managing agents”) more freedom. Life Insurance International+2OilPrice.com+2

Here are some direct quotes from Patrick Tiernan, CEO of Lloyd’s of London — and from Lloyd’s spokespeople — on the shift in policy regarding fossil fuel insurance and “net zero”:

• “We must remain apolitical. Our neutrality is part of our value. In a world of strained trade relations, Lloyd’s licence network can be a safe harbour.” — Patrick Tiernan The Guardian

• “We respect the laws of the land in the countries where insurers at Lloyd’s operate.” — Tiernan Miningmx+2insnerds.com+2

• “The energy mix that the government of [a] jurisdiction chooses.” — Tiernan Financial Times+1

• “Lloyd’s strength is that it’s apolitical. It’s important we don’t wade into issues we don’t need to … Lloyd’s needs to remain apolitical, so we preserve that role when times are choppy in the regions where we operate.” — Tiernan Financial Times

Lloyd’s has stated that it will respect the “energy mix that the government of a jurisdiction chooses.” In other words, Lloyd’s will defer to national governments’ energy policies rather than imposing its own across its global operations. Life Insurance International+1

Abandoning previous ban/commitment

• • Under former CEO John Neal, Lloyd’s made pledges (around 2020) to no longer provide new insurance coverage or investments in things like thermal coal-fired power plants, thermal coal mines, oil sands, new Arctic energy exploration. S&P Global+2Reclaim Finance+2

  • The new stance effectively undoes or weakens those commitments: Lloyd’s will not ask or compel its managing agents to avoid covering those high carbon/high fossil fuel sectors anymore. Life Insurance International+1

Jurisdictional flexibility: Because Lloyd’s operates globally and underwriting is done by many different managing agents in many countries, some with less restrictive laws or differing policies, the view is that a one-size-fits-all ban is not viable under current structures. Life Insurance International+1

• Criticism and reputational risk: This move has drawn strong criticism from climate campaigners and NGOs, who see it as a retreat from climate commitments. Some are arguing Lloyd’s is weakening its net-zero goals and enabling continued fossil fuel expansion. Reclaim Finance+2Reuters+2

• Net-zero credibility: Because Lloyd’s had made public pledges about phasing out certain fossil fuels, reversing or softening those policies may cause stakeholders (investors, regulators, public) to question how serious or credible its net-zero commitment is in practice.

• Regulatory / legal pressure: One reason many insurers left the UN-backed Net Zero Insurance Alliance (NZIA) (which Lloyd’s left in 2023) was concerns over political backlash, antitrust risks, and regulatory scrutiny, especially from U.S. states. Reuters+2Reuters+2

• Operational / underwriting consequences: With the policy shift, more fossil-fuel related projects may become insurable again under Lloyd’s marketplace, potentially reversing one of the levers that had begun to limit climate risk exposure.

What Lloyd’s says about its position

• Lloyd’s claims it remains committed to its sustainability strategy and to supporting the global transition to lower carbon models. lloyds.com+1

• It maintains support for UN principles like the Principles for Sustainable Insurance and the Sustainable Development Goals. Reuters+1

• They’re emphasising that they’ll monitor managing agents’ transition plans rather than mandating that they all comply with fossil-fuel exclusions. Reuters+1

About the author: John O’Sullivan  is CEO and co-founder (with Dr Tim Ball) of Principia Scientific International (PSI).  He is a seasoned science writer and legal analyst who assisted skeptic climatologist Dr Ball in defeating UN climate expert, Michael ‘hockey stick’ Mann in the multi-million-dollar ‘science trial of the century‘. From 2010 O’Sullivan led the original ‘Slayers’ group of scientists who complied the book ‘Slaying the Sky Dragon: Death of the Greenhouse Gas Theory’ debunking alarmist lies about carbon dioxide plus their follow-up climate book. His most recent publication, ‘Slaying the Virus and Vaccine Dragon’ broadens PSI’s critiques of mainstream medical group think and junk science.

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