Lockton outperforms sector peers for environmental sustainability
With this latest achievement, Lockton is leading the way among its financial services peers, whose average grade is B- for the UK, and C globally. In 2020, a record-breaking number of companies disclosed their climate change data with CDP, and Lockton scored in the top 7% of all 9,600+ respondents.
This marks the third consecutive year that Lockton has been awarded a top climate change rating by CDP, and the first year the company has achieved carbon neutral status – the only London broker to achieve this so far.
While the last year saw Lockton expand in terms of turnover and headcount, it also saw electricity use decline by an impressive 10.5% in the UK. By increasing the use of renewable energy in the supply chain, Lockton also reduced CO2 emissions by 17%.
In recognition of all of these significant improvements over the last 12 months, CDP awarded the business an overall ‘Double A’ rating, a step up from the A-grade status we achieved last year.
“This proud achievement is a direct result of the hard work and commitment shown by our Associates over the last year to reduce our collective environmental impact,” says Chief Operating Officer Simon Coleman. “Our newly-achieved carbon neutral status illustrates our efforts as an organisation to act as a positive force for change. In the year ahead, we will continue to make major improvements across our supply chain.”
CDP’s rating system focuses on “climate-related issues, evaluating a company’s emissions across its value chains, the strength of its governance, the rigour of its environmental targets, and its supplier engagement strategies.” The companies that disclosed represent over 50% of global market capitalisation.
Lockton’s three core corporate social responsibility (CSR) pillars are charity, community and environment.
The insurance industry is aware of the risks that climate change represents to its business in form of floods, storms and wildfires and is reducing its exposure to fossil fuels both in underwriting as well as investments. The pressure on oil and gas companies to transition to a more sustainable and climate friendly energy sector has increased substantially in recent years.The Covid-19 pandemic might provide the final push.
It has become increasingly clear that global warming could have a devastating effect on our world. Concerns that were once voiced only within the scientific community are now shared by politicians and ordinary people around the world. But how will the challenge of climate change effect the property insurance market in years to come?
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