Lloyd's Adds Its Voice to Dire Peak Oil Warnings

Major insurance and financial institutions have warned about fossil fuel risks, helping shift investment away from carbon-intensive industries.

1 min read
Updated Jan 25, 2026
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When Lloyd of London began warning about fossil fuel risks, the financial world took notice.

From Peak Oil to Stranded Assets

Today the greater worry is stranded assets: fossil fuel reserves that may never be extracted because climate policies make them uneconomic.

Insurance Industry Climate Action

Underwriting losses from extreme weather have soared, with 2024 seeing over $100 billion in insured catastrophe losses.

Financial Sector Climate Risk

Central banks now consider climate change a systemic financial risk.

Investor Pressure

Institutional investors managing over $150 trillion have joined climate action initiatives.

The Transition Risk

Companies slow to adapt face both physical climate risks and transition risks as carbon-intensive business models become obsolete.