- The Poseidon Principles for Marine Insurance released its third annual report on climate alignment.
- New 2024 methodologies improve reporting accuracy and compliance support.
- Insurers aid shipowners in meeting IMO decarbonization targets.
The Poseidon Principles for Marine Insurance continue to lead the global shipping industry toward a more sustainable future with the release of their third annual disclosure report. The framework provides insurers, brokers, and industry players with a structured approach to aligning their activities with international decarbonization goals. This aligns with the International Maritime Organization’s (IMO) ambition to achieve net-zero emissions by 2050.
Commitment to Sustainable Shipping
“Marine insurers play a crucial role in supporting the IMO’s global shipping industry’s transition to net zero,” said Patrizia Kern-Ferretti, Poseidon Principles for Marine Insurance chair. “Through data-driven insights and insurers’ expertise, we are helping shipowners navigate the path toward a more sustainable future while reinforcing the industry’s commitment to responsible underwriting.”
This year’s report includes climate alignment scores calculated by nine signatories, representing over 25% of the total deadweight of the global fleet within the reporting scope. The results highlight varying levels of alignment with the IMO’s decarbonization targets:
- Against the 2023 IMO GHG Strategy – minimum trajectory, alignment scores ranged from 10.4% to +28%, with a weighted average of +24.8% and a simple average of +20.8%.
- Against the 2023 IMO GHG strategy–striving trajectory, scores ranged from -6.1% to +34%, with a weighted average of +30.8% and a simple average of +26.7%.
On average, climate alignment scores were +20.8% misaligned with the IMO’s minimum ambition in 2023.
Enhancing Reporting and Compliance Support
Since June 2024, climate alignment scores can now be produced using modeled data pathways, improving efficiency and reducing the administrative burden on signatories and their clients. While the IMO does not require marine insurers to report climate impact data, their role is crucial in assisting shipowners with compliance and reducing carbon emissions.
By providing data-driven insights, insurers help shipowners navigate environmental regulations, meet sustainability targets, and align with frameworks such as the European Union’s Corporate Sustainability Reporting Directive. As the industry continues refining its methodologies, future reports will provide deeper insights into emissions trends and their implications.
Commitment to Higher Standards in Marine Insurance
“This year’s annual report highlights the marine insurance industry’s commitment to supporting the IMO’s decarbonization goals,” said Sundeep Khera, Poseidon Principles for Marine Insurance vice chair. “By setting higher standards and integrating comprehensive emissions data, insurers are actively contributing to a more sustainable shipping sector.”
Signatories emphasize that incorporating the latest IMO ambitions improves the accuracy of emissions baselines. The integration of updated data pathways enhances reporting efficiency and strengthens the industry’s ability to support decarbonization efforts through client engagement. Affiliate members, including brokers, captives, and P&I Clubs, play a crucial role in connecting insurers with shipowners, fostering collaboration, and raising awareness about the initiative.
As tracking emissions becomes a standard practice in marine insurance, these efforts reinforce sustainability within the sector while contributing to the reduction of global shipping emissions.
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Source: Global Maritime Forum
