Signatories will include a covenant clause, or a binding agreement, in all new shipping business activities which ensures access to high quality data and compliance with the Poseidon Principles. Signatories commit to working with clients to gather the necessary information to assess climate alignment. This enforcement mechanism that ensures the appropriate data and information are provided by shipowners and is key to supporting the accurate assessment of climate alignment. It also equalises the burden across signatories and establishes the appropriate consent for data sharing and privacy protections.
Commitment by signatories
We will require that ongoing compliance with the Poseidon Principles is made contractual in our new business activities using standardised covenant clauses. We will contribute to the update and addition of standardised clauses through the annual review process.
Standard covenant clause
The Poseidon Principles use a standardised covenant clause which covers the specific information needed to calculate climate alignment, so that shipowners do not have to negotiate similar language with every lender. For this reason, it is recommended that the covenant clause be included in new loan agreements, but it is not compulsory for signatories.