It was a tough call to pick the top climate and sustainability story this month. Brussels has been rewriting the rulebook, the International Sustainability Standards Board (ISSB) has softened its stance on emissions and the European Insurance and Occupational Pensions Authority (Eiopa) has set out new priorities.
But InsuranceERM's exclusive on Lloyd's of London axing its dedicated sustainability function takes the crown.
At the start of this month, Lloyd's confirmed it had disbanded its central team, spreading responsibilities across senior leadership. The shift followed the summer exit of sustainability director Rebekah Clement and other team members. Lloyd's insists it is still committed to the transition, but the move lands just as new CEO Patrick Tiernan faces scrutiny for softening the market's climate messaging and stressing its "apolitical" stance.
It's a restructuring that has raised eyebrows – and questions – across a sector under growing pressure to deliver on climate goals.
The recalibration doesn't stop there. Brussels' simplification drive, unveiled this week, has put 115 Level 2 financial rules (including 25 under Solvency II) on hold until at least 2027. That means proposals for detailed standards on sustainability risk plans and the management of related risks are frozen for now. Industry groups welcomed the breathing space, with Insurance Europe calling it "constructive", but campaigners such as Finance Watch warned simplification is fast becoming code for deregulation.
Insurance Europe and the CFO Forum stepped in with fresh calls to further ease the European Sustainability Reporting Standards. Their joint letter praised progress but said the revisions still create disproportionate obligations. They want more flexibility on quantitative disclosures and the freedom to use intensity-based emissions targets.
Meanwhile, Eiopa supports some trimming, but cautioned too much of a haircut risks weakening supervision. The authority also set out its 2026 work plan, placing sustainability and digitalisation front and centre.
On the international stage, the ISSB voted to drop insurance-associated emissions from its climate reporting standards, cutting what for many insurers was the most material part of their emissions. Supporters see a pragmatic step; critics call it a retreat.
Across the Atlantic, sustainability talk took on a political edge. Last month at InsuranceERM's Insurance Risk & Capital Americas conference in New York, climate remained firmly on the agenda – though increasingly framed by debates over the politicisation of data and policy, as well as accessibility challenges.
In other news, WTW launched a market-first parametric policy that pays out when an extreme weather warning is issued, adding to the now long list of climate-related parametric products.