The Poseidon Principles for Marine Insurance announced that they are now entering into force, after the number of its Signatories surpassed the threshold of eight, with Navium and AXA XL being the latest Signatories.
Poseidon Principles are a framework for measuring and reporting the alignment of insurers’ shipping portfolios with climate goals. Recognizing insurers’ role in promoting responsible environmental stewardship throughout the maritime value chain, the Poseidon Principles for Marine Insurance provide them with tools to foster collaboration with clients, gain insight to enhance strategic decision-making, and address the impacts of climate change.
With the two latest signatories, Navium and AXA XL, the framework will enter into force, with the first reporting period taking place at the end of this year.
The Poseidon Principles for Marine Insurance are built on four principles:
- Assessment of climate alignment
- Accountability
- Enforcement
- Transparency
These are also shared with the Poseidon Principles for Financial Institutions and the Sea Cargo Charter.
Now, as part of the founding meeting, members established the Poseidon Principles for Marine Insurance and elected members to the Association’s Steering Committee, the governance body that coordinates the Association on behalf of its members.
Patrizia Kern-Ferretti (Swiss Re Corporate Solutions) was elected as Chair of the Steering Committee, and stated the following:
With Navium Marine and AXA XL among our ranks and the Association officially established, we have all that we need to effect real change and encourage the decarbonization of the maritime industry
Moreover, Rolf Thore Roppestad (Gard) was elected as Vice Chair of the Steering Committee, mentioning that his goal is to “support and incentivize responsible environmental behavior throughout the maritime value chain.”
The founding members of the Association include:
- Swiss Re Corporate Solutions
- Gard
- Hellenic Hull Management
- SCOR
- Victor Insurance
- Norwegian Hull Club
- Fidelis Insurance
- Navium Marine
- AXA XL
- Willis Towers Watson
- Cefor
- EF Marine
- Cambiaso Risso
- Lockton
- International Union of Marine Insurance (IUMI).
What led to Poseidon Principles adoption?
In November 2017, three major global shipping banks (Citi, DNB and Societe Generale) initiated a wide discussion on climate risk in ship finance and “greener” shipping.
The discussion was encouraged by several shipping stakeholders, including AP Møller Mærsk, Cargill, Euronav, Gram Car Carriers, Lloyd’s Register and Watson Farley & Williams, Global Maritime Forum, Rocky Mountain Institute, and University College London Energy Institute, with several workshops taking place.
This led to the first draft in February 2019 and the official adoption in November 2019. The initiative could be seen as an immediate reflection of the rising maritime decarbonization debate in the last few years which was climaxed with the IMO’s GHG strategy in 2018.
