11 major shipping banks, representing a bank loan portfolio to global shipping of approximately $100 billion will for the first time integrate climate considerations into lending decisions to incentivize maritime shipping’s decarbonization.
The Poseidon Principles are a global framework for assessing and disclosing the climate alignment of financial institutions’ shipping portfolios consistent with the policies and ambitions of the Initial GHG Strategy adopted in April 2018 by member states of the IMO.
The Principles were developed in an effort spearheaded by global shipping banks – Citi, Societe Generale, and DNB – and leading industry players – A.P.Møller Mærsk, Cargill, Euronav, Lloyd’s Register and Watson Farley & Williams – with expert support provided by the Global Maritime Forum, Rocky Mountain Institute and University College London Energy Institute.
The Poseidon Principles establish a common baseline to quantitatively assess and disclose whether financial institutions’ lending portfolios are in line with adopted climate goals. In this way, they also serve as an important tool to manage critical investment risks.