A global framework
for responsible ship finance
The Poseidon Principles provide a frameworkfor integrating climate considerations into lending decisions
to promote international shipping’s decarbonization
The Poseidon Principles establish a framework for assessing and disclosing the climate alignment of ship finance portfolios. They set a benchmark for what it means to be a responsible bank in the maritime sector and provide actionable guidance on how to achieve this.
The Poseidon Principles are consistent with the policies and ambitions of the International Maritime Organization, including its ambition for greenhouse gas emissions to peak as soon as possible and to reduce shipping’s total annual GHG emissions by at least 50% by 2050.
As a result, the Poseidon Principles will enable financial institutions to align their ship finance portfolios with responsible environmental behavior and incentivize international shipping’s decarbonization – to shape a better future for the shipping industry and society.
The Poseidon Principles are applicable to lenders, lessors, and financial guarantors globally. They are intended to evolve over time to address other adverse impacts.
As banks, we recognize that our role in the shipping industry enables us to promote responsible environmental stewardship throughout the global maritime value chain. The Poseidon Principles will not only serve our institutions to improve decision-making at a strategic level but will also shape a better future for the shipping industry and our society
Michael Parker,
Chairman, Global Shipping, Logistics & Offshore, Citi and Chair of the Poseidon Principles drafting committee
Principle 1
Assessment of climate alignment
Commitment:
Signatories will measure the carbon intensity of their shipping portfolios on an annual basis and assess their climate alignment relative to established decarbonization trajectories. This assessment is based on a robust industry-appropriate methodology.
Principle 2
Accountability
Commitment:
Signatories recognize the important role that classification societies and other recognized organizations play in providing unbiased information. They support and rely on the mandatory regulation established by the IMO for collecting data on fuel consumption from ships.
Principle 3
Enforcement
Commitment:
Signatories commit to making compliance with the Poseidon Principles contractual in their new business activities. They will use standardized covenant clauses and work together with their clients and partners to meet this requirement.
Principle 4
Transparency
Commitment:
Signatories are required to report their portfolio alignment score on an annual basis. All Signatories’ scores will be published annually by the Secretariat of the Poseidon Principles.
Signatories
11 leading banks, jointly representing approximately USD 100 billion in loans, have come together to establish the Poseidon Principles.
– 18 June 2019
Signatories include:
Get in touch
www.poseidonprinciples.org
Email: info@poseidonprinciples.org
Press: tve@globalmaritimeforum.org
Phone: +45 3840 1800
Stay informed
Where to find us
Amaliegade 33 B, 2nd floor
1256 Copenhagen K
Denmark
VAT number: 40632379
Follow us
A global framework
for responsible
ship finance
The Poseidon Principles provide a framework for integrating climate considerations into lending decisions to promote international shipping’s decarbonization
The Poseidon Principles establish a framework for assessing and disclosing the climate alignment of ship finance portfolios. They set a benchmark for what it means to be a responsible bank in the maritime sector and provide actionable guidance on how to achieve this.
The Poseidon Principles are consistent with the policies and ambitions of the International Maritime Organization, including its ambition for greenhouse gas emissions to peak as soon as possible and to reduce shipping’s total annual GHG emissions by at least 50% by 2050.
As a result, the Poseidon Principles will enable financial institutions to align their ship finance portfolios with responsible environmental behavior and incentivize international shipping’s decarbonization – to shape a better future for the shipping industry and society.
The Poseidon Principles are applicable to lenders, lessors, and financial guarantors globally. They are intended to evolve over time to address other adverse impacts.
As banks, we recognize that our role in the shipping industry enables us to promote responsible environmental stewardship throughout the global maritime value chain. The Poseidon Principles will not only serve our institutions to improve decision-making at a strategic level but will also shape a better future for the shipping industry and our society
Michael Parker,
Global Industry Head of Shipping & Logistics at Citi and Chair of the Poseidon Principles drafting committee
Principle 1
Assessment of climate alignment
Signatories will measure the carbon intensity of their shipping portfolios on an annual basis and assess their climate alignment relative to established decarbonization trajectories. This assessment is based on a robust industry-appropriate methodology.
Principle 2
Accountability
Signatories recognize the important role that classification societies and other recognized organizations play in providing unbiased information. They support and rely on the mandatory regulation established by the IMO for collecting data on fuel consumption from ships.
Principle 3
Enforcement
Signatories commit to making compliance with the Poseidon Principles contractual in their new business activities. They will use standardized covenant clauses and work together with their clients and partners to meet this requirement.
Principle 4
Transparency
Signatories are required to report their portfolio alignment score on an annual basis. All Signatories’ scores will be published annually by the Secretariat of the Poseidon Principles.
Signatories
11 leading banks, jointly representing approximately USD 100 billion in loans, have come together to establish the Poseidon Principles.
⟶ All Signatories
⟶ Learn more about how to become a signatory
March 13, 2020Sumitomo Mitsui Trust Bank joins responsible ship financing principles
January 22, 2020BNP Paribas and Credit Suisse join leading global shipping banks in support of UN climate targets
June 18, 2019Citi, Societe Generale, DNB and other leading international banks promote greener global shipping through new principles
Get in touch
www.poseidonprinciples.org
Email: info@poseidonprinciples.org
Press: tve@globalmaritimeforum.org
Phone: +45 3840 1800
Stay informed
Where to find us
c/o Global Maritime Forum
Amaliegade 33 B, 2nd floor
1256 Copenhagen K
Denmark
VAT number: 40632379
Follow us