Poseidon Principles Align Shipping Finance Reporting with Ambitious New IMO Climate Goals

2 October 2023 –The Poseidon Principles are pleased to announce a significant revision to their framework for evaluating and reporting financial institutions’ shipping portfolios’ alignment with climate-related objectives. Following the 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. See the list of 30 Signatories here.

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,” said Michael Parker, Chair of the Poseidon Principles and Chairman of Global Shipping, Logistics and Offshore, Citi. “Our 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.”

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. This aims to accelerate the peak of greenhouse gas (GHG) emissions from international shipping and strive for net-zero emissions by or around 2050, compared to 2008, with interim targets set for 2030 and 2040.

“The Poseidon Principles’ revisions go beyond mere reporting; they provide financial institutions with invaluable data-driven insights,” said Paul Taylor, Vice Chair of the Poseidon Principles and Global Head of Maritime Industries, Société Générale. “These insights empower them to better support their clients on their journey towards decarbonisation. 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.”

The reporting scope will be expanded to include all GHG species and to account for well-to-wake emissions[1], aligning with the IMO revised ambition. More detailed information will be provided in the fourth Annual Disclosure Report, published at the end of 2023. The IMO’s evolving ambition is propelling us closer to a 1.5°C future. 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).

“Decarbonising shipping requires urgent, large-scale cross-sector collaboration and government and international regulator support,” said Stephen Fewster, Treasurer of the Poseidon Principles and Managing Director and Global Head of Shipping Finance, ING. “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.”

[1] considering from now on a full life cycle approach of greenhouse gas (GHG) emissions (move from tank-to-wake (TTW) to well-to-wake (WtW))

For media inquiries, please contact:

Molly P. Hannon, Senior Communications Manager

Email: mph@globalmaritimeforum.org

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About the Poseidon Principles 

The Poseidon Principles for Financial Institutions is a framework for measuring and reporting the alignment of financial institutions’ shipping portfolios with climate goals. Recognising financial institutions’ role in promoting responsible environmental stewardship throughout the maritime value chain, the Poseidon Principles provide them with tools to foster collaboration with clients, gain insight to enhance strategic decision-making and address the impacts of climate change. 

The Poseidon Principles framework is built on four principles – Assessment of climate alignment, Accountability, Enforcement, and Transparency – which they share with the Poseidon Principles for Marine Insurance and the Sea Cargo Charter. Established under the auspices of the Global Maritime Forum, the initiative aims to increase the transparency of environmental impacts within global seaborne trade, promote industry-wide change, and support a better future for the industry and society.