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.

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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.

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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.

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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.

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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.

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Signatories

11 leading banks, jointly representing approximately USD 100 billion in loans, have come together to establish the Poseidon Principles.

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