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 are a global framework for assessing and disclosing the climate alignment of financial institutions’ shipping portfolios. They establish a common, global baseline to quantitatively assess and disclose whether financial institutions’ lending portfolios are in line with adopted climate goals. Thus, they also serve as an important tool to support responsible decision-making.
These Principles apply to lenders, relevant lessors, and financial guarantors including export credit agencies. They must be applied by all Signatories in all business activities that are:
- credit products – including bilateral loans, syndicated loans, club deals, and guarantees – secured by vessel mortgages, finance leases secured by title over vessel, or unmortgaged ECA loans tied to a vessel
- where a vessel or vessels fall under the purview of the IMO.
The Poseidon Principles are consistent with the policies and ambitions of the International Maritime Organization, a UN agency responsible for regulating shipping globally, including its ambition for GHG emissions to peak as soon as possible and to reduce the total annual GHG emissions by at least 50% by 2050 compared to 2008.
Currently, 28 financial institutions are Signatories to the Poseidon Principles, representing a bank loan portfolio to global shipping of approximately $185 billion – over 50% of the global ship finance portfolio. More banks are expected to join in the near future.
Signatories commit to implementing the Poseidon Principles in their internal policies, procedures, and standards and to work in partnership with their clients and partners on an ongoing basis to implement the Poseidon Principles.
The Poseidon Principles are intended to evolve over time to include other issues where the collective influence of financial institutions can help improve the contribution the industry and its leaders can make to society.