The Poseidon Principles meet the policies and ambitions of the Initial GHG Strategy adopted in April 2018 by the IMO. They specifically set out a common baseline to quantitatively assess and reveal if financial institutions’ lending portfolios are complying with adopted climate goals. Therefore, they also serve as an important tool to manage critical investment risks.
The Principles aim to evolve over time as the IMO adapts its policies and regulations and when further adverse environmental and social impacts are identified for inclusion. They also aspire to support other initiatives developed to address climate, environment, and social risks, like the Principles for Responsible Banking, Energy Transitions Commission, and the Task Force of Climate-Related Financial Disclosures.
Moreover, the Poseidon Principles can be applied to lenders, relevant lessors, and financial guarantors including export credit agencies. They are implemented in internal policies, procedures and standards, as well as in all credit products secured by ships that fall under the purview of the IMO.
The founding Signatories of the Poseidon Principles are the following:
- Societe Generale Societe Generale
- ABN AMRO
- Amsterdam Trade Bank (ATB)
- Credit Agricole Corporate and Investment Bank (Credit Agricole CIB)
- Danish Ship Finance
- Danske Bank
More banks are expected to join in the near future, including Asian banks.
As banks, we recognize that our role in the shipping industry enables us to promote responsible environmental stewardship throughout the global maritime value chain. The Poseidon Principles will not only serve our institutions to improve decision making at a strategic level but will also shape a better future for the shipping industry and our society
stated Michael Parker, Global Industry Head of Shipping & Logistics at Citi and Chair of the Poseidon Principles drafting committee.
In addition, Alastair Marsh, Chiel Executive Officer of Lloyd’s Register, mentioned that zero-emission vessels must enter the fleet by 2030 at the latest if the maritime industry is to successfully meet the IMO ambitions of at least 50% reduction in greenhouse gases by 2050. He specified that the 2020s will be a vital decade for not only piloting and prototyping new fuel types and energy sources but also building future fuel supply chains.
The introduction of the Poseidon Principles demonstrates that ship finance is determined to support shipping’s decarbonisation challenge across the maritime value chain and also support other factors such as the energy transition
Mr. Marsh addressed.
In conclusion, the Managing Director, Head of Projects & Programs, Global Maritime Forum, Johannah Christensen added
The Poseidon Principles demonstrate how collaborative action from all stakeholders in the global maritime value chain can advance shipping's decarbonization.