In the third Poseidon Principles Annual Disclosure Report 2022, which was released today, more than two dozen foreign banks have disclosed emissions data regarding their ship finance portfolios. The report illustrates the challenging path to emissions reduction. The COVID-19 model continues to affect the data, as reported by Poseidon Principles.
Global framework
Out of the 28 financial institutions reporting their emissions data this year, seven banks are aligned with the International Maritime Organization’s ambition of reducing greenhouse gas emissions from international shipping by at least 50% by 2050. The Poseidon Principles are a global framework for assessing and disclosing the climate alignment of financial institutions’ shipping portfolios pioneered in 2019 by Citi, Societe Generale, and DNB with the support of the Global Maritime Forum. We are on a multi-year journey, but with this data, we can see our performance, and support our decision-making with insight. Reducing GHG emissions has become a priority in the maritime industry, including for ship finance.
More than 70% of the portfolio
The Poseidon Principles were launched in 2019 with 11 founding Signatories and have since grown to 30 financial institutions covering more than 70% of the global ship finance portfolio. Three Signatories joined the Principles after December 2021 and are not required to report this year. We continue to receive strong support for data sharing and transparency among our clients, a sign that the Poseidon Principles have become an established and recognised initiative,» added Paul Taylor, Global Head of Maritime Industries, Société Générale, and Vice Chair of the Poseidon Principles.
Future alignment
In September 2022, Poseidon Principles Signatories committed to aligning the framework with the ambition of the Paris Agreement to limit global temperature rise to 1.5 degrees above pre-industrial levels by 2100. Such a trajectory or trajectories have not been approved yet and are therefore not included in this year’s report.
However, Signatories have also committed to evaluating the current trajectory following the expected adoption of the Revised IMO GHG Strategy at MEPC 80 in July 2023, including raising its levels of ambition.
The Annual Disclosure Report 2022 was produced by the Global Maritime Forum, which performs secretariat services for the Poseidon Principles, with expert support provided by UMAS.
Did you subscribe to our newsletter?
It’s free! Click here to subscribe!
Source: Poseidon Principles
