HOW DID WE GET THERE
Committed to improving the role of maritime finance in addressing global environmental issues
The Poseidon Principles were developed in an effort spearheaded by global shipping banks – Citi, Societe Generale, and DNB – in collaboration with leading industry players – A.P. Møller Mærsk, Cargill, Euronav, Gram Car Carriers, Lloyd’s Register, and Watson Farley & Williams – with expert support provided by the Global Maritime Forum, Rocky Mountain Institute, and University College London Energy Institute/UMAS.
A series of three workshops held in June 2018 across Singapore, London, and New York City brought together a total of 45 senior ship financiers along with a select group of ship owners and experts in order to explore practical approaches for integrating climate risk into financial decision-making in the maritime industry. Throughout these workshops, there was a shared vision of success: a group of aligned and committed institutions taking ownership of a set of principles with the aim of integrating climate considerations into lending decisions in alignment with the climate-related goals of the IMO.
A drafting group of leading banks, key industry stakeholders and experts was subsequently convened to develop the Poseidon Principles. Shipowners of varying sizes and geographies as well as other experts and stakeholders have been engaged and consulted throughout the process of developing the Poseidon Principles.
The Poseidon Principles are the first of three initiatives based on the same four Principles and developed by the Global Maritime Forum with the shared aim to decarbonize shipping.
During the very early stages of the Poseidon Principles, some charterers who were part of the drafting group voiced the need for a transparent process for reporting emissions relating to chartering activities. This is how, following the example of the Poseidon Principles, the Sea Cargo Charter was launched in October 2020. The Sea Cargo Charter provides a global framework for aligning chartering activities with responsible environmental behavior to promote international shipping’s decarbonization. The climate-alignment scores for this initiative were published for the first time in June 2022. See the report here.
The most recent initiative was launched in December 2021. The Poseidon Principles for Marine Insurance gather a group of marine insurance institutions committed to aligning their portfolios with responsible environmental impacts.
All three initiatives are aligned with the IMO’s ambition for GHG emissions from international shipping to peak as soon as possible and to reduce the total annual GHG emissions by at least 50% by 2050 compared to 2008. Furthermore, the Poseidon Principles for Marine Insurance have also chosen to take steps toward alignment with the Paris Agreement by providing a 100% CO2 reduction trajectory.