The Poseidon Principles for Marine Insurance (PPMI) Association has released its Interim Disclosure Report for 2024, revealing that all signatory portfolios remain misaligned with the International Maritime Organization’s (IMO) minimum and striving decarbonization trajectories. This marks the fourth annual disclosure and the second year of benchmarking results against the IMO’s 2023 Greenhouse Gas (GHG) Strategy, which targets net-zero emissions from international shipping by or around 2050.
Rising Misalignment Despite Operational Improvements
According to the report, climate alignment scores for 2024 show an average misalignment of 27.4% with the minimum trajectory and 35.1% with the striving trajectory, both higher than in 2023 (24.8% and 30.8%, respectively).
Despite this setback, the report notes positive progress at the vessel level, particularly in operational efficiency and emissions intensity reduction. However, external challenges such as global supply chain disruptions and geopolitical tensions causing longer voyage routes contributed to higher emissions and overall misalignment.
The 2024 data also indicates a narrower range of climate alignment scores, suggesting greater consistency among signatories. This uniformity is largely due to improved data modeling and collection processes, allowing insurers to better understand and address emissions trends in their portfolios.
Commitment Toward a Sustainable Maritime Future
While the report underscores the gap between current performance and IMO targets, it also highlights a shared commitment to change. Signatories are strengthening their approach by integrating responsible underwriting, educating clients on decarbonization strategies, and collaborating strategically to promote sustainability.
Additionally, insurers are exploring ways to increase coverage for green vessels, adopt efficiency-based underwriting, and leverage sustainability as a competitive advantage. These steps signal a growing recognition that environmental performance is becoming central to long-term business resilience in the maritime sector.
The 2024 PPMI report paints a mixed picture: while progress in efficiency and awareness is evident, the overall alignment with IMO decarbonization goals has weakened. The findings emphasize the urgent need for collective innovation, regulatory support, and industry-wide cooperation to steer global shipping back on course toward net-zero emissions. With continued dedication and collaboration, the maritime insurance sector can play a pivotal role in driving sustainable transformation across the global shipping industry.
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Source: Safety4Sea
