PRINCIPLE 3

Enforcement

Signatories will include a covenant clause, or a binding agreement, in all new shipping business activities which ensures access to high quality data and compliance with the Poseidon Principles for Marine Insurance*. Signatories commit to working with clients to gather the necessary information to assess climate alignment. This enforcement mechanism that ensures the appropriate data and information are provided by shipowners and is key to supporting the accurate assessment of climate alignment. It also equalises the burden across signatories and establishes the appropriate consent for data sharing  and privacy protections.

*As of June 2024, the standard covenant clause has been made optional. Work is ongoing to redefine Principle 3.

We will require that ongoing compliance with the Poseidon Principles for Marine Insurance is made contractual in all business activities using standardised covenant clauses**. We will contribute to the update and addition of standardised clauses through the annual review process.

**The introduction of the use of modelled data in June 2024 implies the standard covenant clause has been made optional. Work is ongoing to redefine Principle 3.

Due to the flexibility of sourcing data introduced by the Modelled Data Pathway Track, the use of the standard covenant clause has been made an optional part of the Enforcement Principle. The standard covenant clause is still recommended to be used by signatories who wish to collect data from clients or through a recognised organisation, but is no longer a requirement for all signatories.

This also means there are no longer any data-sharing requirements between signatory claims leaders and followers since signatories relying exclusively on modelled data will no longer be requesting data from clients.

Role of affiliate members

Affiliate members will agree to work with signatories, shipowners, other marine insurance providers, brokers and business partners where possible, to support signatories by sharing knowledge about the Enforcement principle and standardised clauses with relevant stakeholders, in line with the Technical Guidance.

Supporting documents
To assist in the collection and sharing of data for the Poseidon Principles for Marine Insurance, there are two supporting documents:

1. A Standard Covenant Clause, to be included in policy agreements.
2. A form of letter to be sent by signatories to shipowners to request the data.

The clause and supporting documents are available from the Secretariat.

Learn more about Enforcement in the Technical Guidance