The Poseidon Principles have announced a significant revision to their framework for evaluating and reporting financial institutions’ shipping portfolios’ alignment with climate-related objectives, following IMO’s 2023 GHG Strategy.
fter IMO’s GHG revised strategy adopted during MEPC80 in July 2023, this update signifies the dedication of 30 leading shipping banks to support the maritime sector’s transition towards a sustainable, low-carbon future. The reporting scope will be expanded to include all GHG species and to account for well-to-wake emissions, aligning with the IMO revised ambition.
The updated trajectories will empower Poseidon Principles’ signatories to elevate their ambition levels in measuring and reporting emissions. It’s a clear demonstration of their commitment to not just meeting but collaboratively advancing climate goals.
… said Paul Taylor, Vice Chair of the Poseidon Principles and Global Head of Maritime Industries, Société Générale
More detailed information will be provided in the fourth Annual Disclosure Report, published at the end of 2023.
What are the Poseidon Principles?
As Dr-Ing Orestis Schinas, Scientific Advisor, HHX.blue explained during the 2023 GREEN4SEA Athens Forum, the Poseidon Principles is an agreement among financial institutions as well as related entities, that provides a framework for integrating climate considerations into lending decisions. These principles consist a private agreement among financial institutions mainly active in shipping finance.
From their inception, the Poseidon Principles for Financial Institutions were designed to be a living framework, evolving continually to meet the dynamic challenges of climate change. Through regular reviews, they ensure their continued relevance and effectiveness.
In 2019, when we launched the Poseidon Principles, we chose to be transparent in our portfolio alignment against the then IMO ambition set in 2018. We, as the Poseidon Principles Association, are now raising our targets to align with the IMO’s new ambition announced at the end of MEPC80 this July
… commented Michael Parker, Chair of the Poseidon Principles and Chairman of Global Shipping, Logistics and Offshore, Citi. He also stated that their focus is on working with our clients to help them to a greener, more sustainable maritime future through the energy transition to net zero once the fuels, ships and technology are available at scale.
Furthermore, as they concentrate on enacting this forward-looking strategy, the Poseidon Principles have postponed the introduction of an extra pathway for measuring climate alignment with a 1.5°C future until 2024, in harmony with the processes of the Net-Zero Banking Alliance (NZBA).
Their current alignment with the IMO’s latest ambition to reach net-zero greenhouse gas emissions in the shipping sector close to 2050, including indicative checkpoints in 2030 and 2040 on a well-to-wake basis, demonstrates their adaptability and unwavering commitment to staying at the forefront of climate action.
To maximise our impact and enhance transparency, the Poseidon Principles initiatives must continue to expand. We invite key players in this global effort to join hands and navigate towards a greener horizon together.
… concluded said Stephen Fewster, Treasurer of the Poseidon Principles and Managing Director and Global Head of Shipping Finance, ING