Following the addition of its latest signatory, the Poseidon Principles framework for setting environmental requirements for lending to the shipping industry now encompasses more than half of the worldwide shipping portfolio as reported by Ship&Bunker.
Climate goals
The Poseidon Principles announced on Thursday that Germany’s DekaBank has joined the framework, bringing its portion of the worldwide ship finance portfolio to over 50%. To date, the framework has been signed by 28 financial institutions.
The guidelines mandate that signatory financial institutions measure and report on their shipping portfolios’ conformity with climate goals. As more financial institutions join, the potential financing pool for shipping companies that do not meet climate goals shrinks, incentivizing them to improve their environmental standards.
Best strategy
DekaBank’s head of specialised loans, Marco Albers, stated in a statement that “sustainability is a major priority for DekaBank and a core component of its business strategy.”
“For Ship Finance, we established specific sustainability standards roughly five years ago and also developed our own ship financing scorecards within which CO2 emissions can be documented systematically.”
“The Poseidon Principles are now a crucial component in integrating climate change into our loan decisions and monitoring our shipping portfolio’s decarbonization ambitions.”
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Source: Ship&Bunker
