- Poseidon Principles are a framework for measuring and reporting the alignment of insurers’ shipping portfolios with climate goals.
- With the two latest signatories, Navium and AXA XL, the framework will enter into force, with the first reporting period taking place at the end of this year.
- This led to the first draft in February 2019 and the official adoption in November 2019.
The Poseidon Principles for Marine Insurance have officially entered into force, with Navium and AXA XL joining the list of Signatories, bringing the total number of Signatories to eight as reported by Safety4Sea.
Climate goals
Poseidon Principles are a framework for measuring and reporting the alignment of insurers’ shipping portfolios with climate goals.
Recognizing insurers’ role in promoting responsible environmental stewardship throughout the maritime value chain, the Poseidon Principles for Marine Insurance provide them with tools to foster collaboration with clients, gain insight to enhance strategic decision-making, and address the impacts of climate change.
With the two latest signatories, Navium and AXA XL, the framework will enter into force, with the first reporting period taking place at the end of this year.
Poseidon Principles
The Poseidon Principles for Marine Insurance are built on four principles:
- Assessment of climate alignment
- Accountability
- Enforcement
- Transparency
The Poseidon Principles for Financial Institutions and the Sea Cargo Charter are similarly similar.
Members developed the Poseidon Principles for Marine Insurance at the founding meeting, and members were elected to the Association’s Steering Committee, the governance body that organises the Association on behalf of its members.
“With Navium Marine and AXA XL among our ranks and the Association officially established, we have everything we need to effect real change and encourage the decarbonization of the maritime industry,” said Patrizia Kern-Ferretti (Swiss Re Corporate Solutions), who was elected Chair of the Steering Committee.
Rolf Thore Roppestad (Gard) was also chosen Vice-Chair of the Steering Committee, with the stated purpose of “supporting and incentivizing good environmental behaviour throughout the maritime value chain.”
What led to the Poseidon Principles adoption?
Three major global shipping banks (Citi, DNB, and Societe Generale) launched a broad conversation on climate risk in ship finance and “greener” shipping in November 2017.
Several shipping stakeholders, including AP Møller Maersk, Cargill, Euronav, Gram Car Carriers, Lloyd’s Register and Watson Farley & Williams, Global Maritime Forum, Rocky Mountain Institute, and University College London Energy Institute, all encouraged the discussion, which included several workshops.
As a result, the first draught was completed in February 2019 and the final version was approved in November 2019. The project might be considered an immediate response to the growing maritime decarbonization debate in recent years, which culminated in the International Maritime Organization’s GHG policy in 2018.
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Source: Safety4Sea
