Driving innovation to promote sustainability in the art market

Environmental, Social, and Governance (ESG) concerns have permeated every industry, and the art market is no exception. The industry has come under scrutiny for its environmental impact, with an estimated global carbon footprint of around 70 million tonnes of CO2 per annum[1]. Reducing these emissions is a significant challenge to navigate, but the industry has stepped up to the mark and found innovative solutions that align with its sustainability commitments. 

The challenges of sustainability in the art world

International art fairs, large exhibitions and museum events are essential to the art market - both economically and socially. However, these events come with a high environmental cost. One of the most significant costs involves the shipping process given it largely involves air freight, which has a substantial carbon footprint. Transporting artwork also requires elaborate packaging to protect items in transit, contributing to higher levels of waste. 

Another issue is the increasing scale of art fairs and exhibitions today, which tend to draw in large audiences from across the world, further increasing carbon emissions through travel. One example is the recent Caspar David Friedrich (CDF) exhibition in Greifswald: setting a new visitor record, it attracted 75,000 visitors over seven weeks. It is estimated that visitor travel accounts for 52 million tonnes of the art industry’s carbon emissions[2]. The challenge for the art market therefore lies in balancing its social and economic needs with its environmental responsibility.

Sustainable innovations 

As awareness grows around these issues, many entities in the art world are pioneering sustainability initiatives that better align with ESG principles. Certain projects have been established to promote these efforts. For example, the Gallery Climate Coalition, an international community of art organisations, was founded in London in 2020 and works with international galleries to promote sustainable practices and reduce the carbon footprint associated with the industry. 

Other industry organisations have issued their own guidance on best practices for sustainability. For instance, the German Museums Association released a sustainability code last year which guides museums towards more sustainable practices such as eco-friendly renovations and energy-efficient operations.

Beyond these organisations, tangible steps have been taken to directly reduce the industry’s emissions on a broader scale. Firstly, many art shippers have switched single-use packaging for reusable packaging. Some have also introduced crates made from sustainable materials such as fast-growing regional wood. This has helped minimise waste associated with the shipping process. 

Art warehouses, which are known for their precise climate control needs, have also integrated climate-neutral energy sources into their operations. These innovations have led to a reduction in their carbon footprint without compromising the security and preservation of valuable artworks.

Elsewhere, the industry has leveraged digitalisation to broaden access, allowing more people to engage with the art market remotely, such as through virtual auctions and museum tours. While this shift has helped reduce emissions associated with visitor travel it has also caused some challenges, particularly an increase in online art transactions. This has consequently led to more art being shipped internationally as well as heightening the risk of cyber threats. In May 2024 for example, Christie’s auction house experienced a cyber-attack disrupting its website and forcing the postponement of several auctions[3].

Despite these challenges, addressing the environmental impact of visitor travel remains crucial. To drive meaningful change, there must be a healthy balance between physical and digital participation as well as a focus on robust cybersecurity measures to help the art world reduce its environmental footprint without compromising its security.

Setting up for success

The art industry has made impressive strides in advancing its ESG commitments, demonstrating a genuine dedication to action rather than just words.

As Fine Art and Specie underwriters we have an important role in fostering this progress. By collaborating with industry professionals, we can promote accountability and ensure that sustainability efforts translate into meaningful change. At Liberty Specialty Markets, our engagement with the market is hands-on: our underwriters attend art fairs and exhibitions to deepen their industry insight and verify that the art we insure has been sourced ethically and sustainably. 

Our commitment as trusted partners in navigating the evolving ESG landscape empowers clients to reach their sustainability objectives while safeguarding their valuable assets. With a focus on collaboration and ongoing innovation, we are helping to set the art market up for lasting success in sustainable practices.

 [1] The Art of Zero, Catherine Bottrill and Alison Tickell
 [2] The Art of Zero, Catherine Bottrill and Alison Tickell
 [3] BBC article