Financial Risks from Coal Underwriting and Investment

ClientEarth argues that Lloyd's of London's current risk management is inadequate regarding coal assets, noting that its Coal Exclusion Policy only covers 2.5% of assets. The letter highlights the Carmichael coalmine as a high-risk project due to potential stranded asset risks and a lack of a 'social licence to operate', which could lead to significant insurance claims. ClientEarth asserts that continuing to enable coal undermines the insurance business model by fueling climate-driven natural catastrophes, and calls for public disclosure of risk management criteria.

• ClientEarth contends that the Coal Exclusion Policy for the Lloyd's Central Fund is insufficient because the fund represents only "about 2.5% of the assets at Lloyd's", leaving over 97.5% of the "chain of security" potentially exposed to coal-related risks.
• The document alleges that Lloyd's has failed to meet legal disclosure requirements, noting that its Solvency and Financial Condition Report (SFCR) as of 31 December 2017 "made no mention of the risks from coal, or climate change more generally."

APA

ClientEarth (2019). Financial Risks from Coal Underwriting and Investment. https://www.clientearth.org/media/4jcfpcee/clientearth-letter-to-lloyds-of-london-on-adani-carmichael-mine-ce-en.pdf

Chicago

ClientEarth. Financial Risks from Coal Underwriting and Investment. 2019. https://www.clientearth.org/media/4jcfpcee/clientearth-letter-to-lloyds-of-london-on-adani-carmichael-mine-ce-en.pdf.

Wikipedia

{{cite press release |author=ClientEarth |title=Financial Risks from Coal Underwriting and Investment |date=4 March 2019 |url=https://www.clientearth.org/media/4jcfpcee/clientearth-letter-to-lloyds-of-london-on-adani-carmichael-mine-ce-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2019financial, author = {{ClientEarth}}, title = {{Financial Risks from Coal Underwriting and Investment}}, publisher = {ClientEarth}, year = {2019}, month = mar, url = {https://www.clientearth.org/media/4jcfpcee/clientearth-letter-to-lloyds-of-london-on-adani-carmichael-mine-ce-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }