- Climate-Insurance Newslink Global Trends-Editor's Quarterly Highlights
- Ariel Re relaunches clean energy division as ‘Ariel Green,’
- Loadsure partners with WeatherOptics
- Miller and Clearwater Dynamics partner to establish marine insurance solution for the Ukrainian grain corridor
- Aviva to acquire AIG’s UK protection business for consideration of £460m
- Vaudoise selects Guidewire Cloud
- Customer Data Platforms to generate over $70bn in additional consumer spend by 2028 globally expired
- IDF Implementation Update: Inclusive Insurance in Kenya expired
- Newslink Global Insurance Trends-Editor's Weekly Highlights expired
- United Nations Capital Development Fund and Sustainable Markets Initiative Insurance Task Force partner to scale insurance access for climate-vulnerable countries expired
- Gallagher Re launches the first in a series of Gray Rhino research papers expired
- 2023 North Atlantic Hurricane Season: El Niño Versus SSTs Tug of War continues-Moody's RMS expired
17th September 2023
Lloyd’s and Moody’s to develop an emissions accounting solution through the Lloyd’s Lab
Lloyd’s has announced a new collaboration with Moody’s Analytics to develop a solution that will help to quantify greenhouse gas(GHG) emissions across managing agents’ underwriting and investment portfolios. The solution being adopted will aid managing agents in meeting expected regulatory reporting requirements.
Under current frameworks such as Streamlined Energy and Carbon Reporting(SECR), many insurers will be required to report their greenhouse gas emissions. With further regulation from the International Sustainability Standards Board(ISSB) and Corporate Sustainability Reporting Directive (CSRD) coming into force in the next few years, it will be necessary to have standardised reporting methodologies that can be adopted and are ready to use.
Lloyd’s is well placed to help the market in solving the challenge of finding a common standard. By partnering with Moody’s Analytics, Lloyd’s will benefit from their pioneering efforts to solve the challenges of global data availability across public and private companies.
The collaboration will see Lloyd’s and Moody’s develop a solution targeted at accurately assessing scope 3 emissions defined by the Greenhouse Gas Protocol’s 15th category, relating to underwriting and investments. By using the Principles for Carbon Accounting Financials(PCAF) standards as the starting point for measurement, this framework will help to guide clear carbon disclosures for the Lloyd’s market that will align reporting to an industry standard.
The collaboration will kick-off with a 12-week proof of concept exercise, under the banner of Lloyd’s Lab’s new ‘Lab Challenge Programme’. This has been established to tackle the industry’s biggest challenges and accelerate product development initiatives for Lloyd’s and the market that can respond to those challenges.
Lloyd’s and Moody’s will be inviting representatives from the Lloyd’s market to take an active role over the 12 weeks, feeding into the solution as a means for transparency and regulatory reporting.
Rebekah Clement, director of Corporate Affairs at Lloyd’s, said: “This new collaboration with Moody’s represents an important step on the path towards insuring the transition. A robust and credible emissions measurement process will allow us to meet our regulatory reporting requirements while improving transparency across the Lloyd’s market. Moody’s have established expertise in this field and are well placed to help us achieve this.”
Dawn Miller, Commercial director at Lloyd’s, said: “Complimenting our leading InsurTech accelerator, the Lloyd’s Lab has created a structured programme for fast fail testing of propositions in partnership with the market to enable faster, more successful innovation to address wider market challenges. A regulatory imperative is coming within the next three years, and the Lloyd’s Lab can play a useful role by helping the market get to a better, swifter, and more consistent outcome.”
Andy Frepp, general manager–Risk Solutions at Moody’s Analytics, said: “Building on our unique experience in delivering specialised sustainable solutions and analytics to brokers, carriers, and reinsurers, we are excited to help the Lloyd’s market quantify its insurance and financed-associated carbon emissions by leveraging our extensive carbon and financial data, advanced name-matching algorithms, and the knowledge of our climate and insurance experts.”
Lloyd's Trends(2,794 articles)
Moody's Trends(115 articles)