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Insurance solutions supporting carbon emissions reductions in fine art

As art fairs and museums strive for sustainability, Marsh are providing coverage that incentivizes eco-friendly practices, from renewable energy use to sustainable shipping methods.

Art fairs and blockbuster art exhibitions are significant contributors to the art world’s carbon emissions, primarily due to the environmental impact of travel, shipping, and temporary structures. As organisers of art fairs — including Art Basel, Frieze, and Tefaf — commit to halving their greenhouse gas emissions by 2030, insurers have begun providing coverages that incentivise these efforts.

Art fairs and museums aim for greater sustainability

Museums have long been committed to reducing their environmental impact. For example, the Museum of Contemporary Art (MOCA), Los Angeles, transitioned to renewable energy. To lower its carbon dioxide emissions, the National Gallery in the UK installed LED lighting in the picture galleries, maximised the use of natural light, and reduced reliance on boilers.

The industry’s leading emissions source continues to be from transporting artwork for blockbuster exhibitions and art fairs.

The Gallery Climate Coalition (GCC) estimates that, for a typical midsize commercial art gallery, one-third of annual carbon emissions are linked to activities surrounding art fairs. These emissions stem from air travel for the works of art and attendees, energy consumption in venues, and single-use materials waste.

In 2024, more than 40 art fairs pledged to halve their greenhouse gas emissions by 2030 in a new alliance formed by the GCC. Frieze, for example, has eliminated its reliance on fossil fuels by transitioning to biofuels. Energy-efficient LED lighting has been introduced as the standard for gallery lighting, and reusable or recyclable materials are now used to construct temporary structures. Additionally, extra space is provided for galleries to store their reusable packaging.

Art Basel is also minimising waste, by using reusable materials on site. The fair encourages team travel to lower carbon emissions, while raising awareness of climate change and sustainability through panel discussions and presentations. TEFAF Maastricht reports having reduced energy consumption by more than 43% since 2019.

Other suggestions to reduce the environmental impact of art exhibitions, include installing wind turbines and solar panels at art fairs to generate renewable energy.

Insurers support the drive for greater sustainability

Although shipping via sea freight rather than air is typically a more sustainable practice, it is wrought with challenges, not least due to the high insurance costs involved. Some insurers are often reluctant to cover seabound journeys for irreplaceable artworks due to the risks associated with humidity, seawater exposure, and previous losses. Practical problems of sea shipping include that it is often too slow to be practical — dealers may not know whether their artworks will appear in an event until shortly before its occurrence.

However, there is increasing insurance industry support for making the air shipping of art more sustainable. For example, a Marsh insurance offering provides coverage from leading insurers of up to $500 million for fine art clients, such as museums, auction houses, and galleries. The terms of the coverage offered are designed to recognise businesses that demonstrate strong environmental, social, and governance (ESG) practices or businesses that implement sustainable shipping solutions.

For instance, art dealers and museums can seek to reduce premium rates by using ROKBOX LOOP, a global network that provides rentable, sustainable art shipping crates that substantially reduce carbon emissions and costs associated with transporting art to art events. Available in locations worldwide, these crates are reusable, eliminating the skip-fulls of single-use crates that often result from art fairs and large exhibitions.

Marsh’s offering supports all specie risk including fine art, precious metals, cash in transit, and luxury brands. Clients can secure up to $2 billion in coverage when combined with other Marsh solutions for associated industry risks, including protection for physical exposures such as those related to transits, employee theft, repair and restoration, and mysterious disappearance.

Cover can also be obtained for inward and outward loans, indemnity schemes, cancellation of events, and payment for emergency services. The additional coverages are part of Marsh’s Specie Balance, a broader offering that includes protection for highly valuable assets, such as fine art, jewellery, cash, and cryptocurrency.*

For additional information about Marsh’s offerings and sustainable fine art transportation, please contact your Marsh advisor.

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* Marsh offers a range of proprietary insurance solutions, including Specie Balance, each of which is designed to address profile-specific risks of our clients. We receive compensation for creating, administering and/or providing services to insurers for these solutions. The compensation is not specific to individual policies and is in addition to any other fee or commission Marsh earns. Use of a solution is subject to the sole discretion of Marsh’s client.

Our people

Charlie Horrell

Charlie Horrell

Managing Director - Fine Art, Luxury Brands & Specie, FINPRO - Specie

  • United Kingdom

Olivia Eccleston

Olivia Eccleston

Assistant Vice President, FINPRO - Specie

  • United Kingdom

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