{"id":5134,"date":"2025-12-15T08:50:45","date_gmt":"2025-12-15T07:50:45","guid":{"rendered":"https:\/\/www.poseidonprinciples.org\/finance\/?p=5134"},"modified":"2025-12-15T09:04:19","modified_gmt":"2025-12-15T08:04:19","slug":"global-shipping-finance-transparency-initiative-reveals-closer-alignment-with-climate-goals","status":"publish","type":"post","link":"https:\/\/www.poseidonprinciples.org\/finance\/news\/global-shipping-finance-transparency-initiative-reveals-closer-alignment-with-climate-goals\/","title":{"rendered":"Global shipping finance transparency initiative reveals closer alignment with climate goals"},"content":{"rendered":"

—\u00a0 New report from the Poseidon Principles reveals the financial sector\u2019s alignment with shipping\u2019s minimum net-zero climate goals has improved by nearly 8 percentage points, despite more demanding year-on-year emissions reduction targets.<\/p>\n

—\u00a0 Signatories, which represent almost three-quarters of the global shipping finance portfolio, disclosed 95% of their eligible portfolio activity in 2025, up from 93% in 2024.<\/p>\n

—\u00a0 Poseidon Principles announces expansion to include more financial institutions \u2013 from private equity and hedge funds to capital-markets underwriters \u2013 with an aim to further increase climate transparency in shipping finance.<\/p>\n

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15 December 2025, Copenhagen<\/strong> \u2013 Ship financiers<\/span>\u2019 lending portfolios<\/span> are<\/span> getting closer to reaching <\/span>climate <\/span>alignment with<\/span> the International Maritime Organization\u2019s (IMO) ambitious decarbonisation trajectories<\/span>, <\/span>with <\/span>average scores against the \u2018<\/span>minimum<\/span> trajectory\u2019<\/span> improving by <\/span>nearly 8 percentage points<\/span>.<\/span><\/p>\n

The news was revealed today in the Sixth Annual Disclosure Report of the Poseidon Principles<\/a>, the world\u2019s first sector-specific framework for financial institutions to assess and disclose the climate alignment of their shipping portfolios. With 36 signatories across 14 countries, representing nearly three-quarters of the world\u2019s ship finance portfolio, the initiative establishes a benchmark for the industry in line with the IMO\u2019s goal of net zero greenhouse gas emissions from international shipping by 2050.\u00a0<\/span>\u00a0<\/span><\/p>\n

This year, signatories disclosed 95% of their eligible portfolio activity, up from 93% last year and the second-highest level since reporting began.<\/span>\u00a0<\/span><\/p>\n

Paul Taylor, Vice Chair of the Poseidon Principles and Global Head of Maritime Industries, Societe Generale, said:<\/span><\/b> \u201cTransparency is key. It fosters collaboration between financial institutions and shipowners, and guides capital toward more efficient vessels and cleaner fuels. The results of this year\u2019s report show encouraging, measurable, real-world momentum and progress in action. Signatories are disclosing the vast majority of their portfolios, showing increasing collaboration between financiers and clients, and climate alignment scores have moved closer to the IMO\u2019s decarbonisation pathways. This progress is particularly striking considering the pathways become more stringent year-on-year. In short, the Poseidon Principles continue to demonstrate the power of financial transparency in guiding the shipping industry\u2019s transition.\u201d<\/span><\/i>\u00a0<\/span><\/p>\n

The report shows that emissions data is increasingly informing credit decisions and innovative financial products, such as sustainability-linked loans. Operational efficiency, retrofits, and emerging fuel pathways are noted as key drivers of score improvements this year, and the scores were also impacted by evolving methodologies and external factors, including rerouting vessels on longer routes and disruptions in supply chains. The framework positions financial institutions as active partners in the industry\u2019s transition.\u00a0<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

2025 Annual Disclosure Report key findings\u00a0<\/span><\/b>\u00a0<\/span><\/h2>\n

—\u00a0 Increasing transparency<\/span><\/b>: Twenty-nine\u00a0signatories disclosed 90% or more of their in-scope portfolio, while nine signatories achieved <\/span>100%<\/span> reporting, the highest number of signatories to hit these two respective targets to date. The average disclosure rate across all signatories was 95%.<\/span>\u00a0<\/span><\/p>\n

—\u00a0 Improved climate alignment<\/span><\/b>: While the average scores remain misaligned with the IMO\u2019s net-zero pathways, substantial year-on-year improvements were recorded. Against the IMO\u2019s \u2018minimum trajectory\u2019, the scores went from just over 19% misaligned last year to just under 12% misaligned this year, representing a nearly 8 percentage point improvement. Against the IMO\u2019s \u2018striving trajectory\u2019, scores went from 25% misaligned to just over 18% misaligned.<\/span>\u00a0<\/span><\/p>\n

—\u00a0 Meaningful progress in the cargo and passenger segments: <\/span><\/b>The cargo and passenger segments saw improvements from 14% to 6% misaligned, and from 38% to 26% misaligned, respectively. These shifts demonstrate advances in vessel efficiency, increased uptake of low-emission fuels, and the entry of more efficient dual-fuel vessels into the fleet.\u00a0<\/span>\u00a0<\/span><\/p>\n

It is important to note that the decarbonisation trajectories set by the 2023 IMO\u2019s GHG Strategy get more challenging to reach each year, making it more difficult to achieve alignment as time goes on. Seeing improvements year-on-year is promising, but additional efforts are still needed to reach milestones in 2030, 2040, and 2050.<\/span>\u00a0<\/span><\/p>\n

Reinforcing the initiative as an established, globally recognised standard for shipping finance, the Poseidon Principles methodology has been included as an acceptable method to set near-term and long-term portfolio alignment targets as part of the Science Based Targets initiative\u2019s Financial Institutions Net-Zero Standard.<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

A<\/strong>ssociate membership expansion<\/span><\/b>\u00a0<\/span><\/h2>\n

Since 2019, the Poseidon Principles have matured into a globally recognised benchmark for transparent, industry-wide climate reporting that has been replicated by other critical sectors, such as steel, aluminium, and aviation. Now, there is a willingness to go further in bringing other institutions on board.\u00a0<\/span>\u00a0<\/span><\/p>\n

In addition to the lenders, lessors, and financial guarantors historically represented in the signatory list, the Poseidon Principles are now expanding to offer associate membership to a broader range of financial institutions, including private equity, hedge funds, and capital markets underwriters. This expansion will increase the initiative\u2019s potential impact by engaging the wider financial community in the framework without initial reporting obligations. This expansion will strengthen the Association\u2019s influence across the full maritime finance ecosystem and support a broader, more consistent approach to emissions accountability.\u00a0<\/span>\u00a0<\/span><\/p>\n

Michael Parker, Poseidon Principles Chair and Chairman of Global Shipping & Logistics, Citi, said<\/span><\/b>: <\/span>\u201cThe Poseidon Principles Annual Disclosure Report has become a vital pulse check for the industry, showing how global lending portfolios measure up against the climate ambitions set by the IMO. This consistent transparency gives us a clear view of progress across approximately three-quarters of global ship finance. Without it, we would have no meaningful way to understand how far we\u202fand the industry have\u202fcome, or how far we still need to go.<\/span><\/i>\u00a0<\/span><\/p>\n

“Today, the Poseidon Principles are taking another important step to deepen that transparency. By opening Associate Membership to any institution providing or arranging capital for the maritime sector\u2014including private equity firms and hedge funds\u2014we are broadening the lens through which climate considerations can be directly integrated into financing decisions. This expansion supports a broader commitment to transparency and accountability across finance and reinforces the sector\u2019s contribution to a more sustainable future for shipping.\u201d\u00a0<\/span><\/i>\u00a0<\/span><\/p>\n

The latest report cements the critical nature of finance in supporting the shipping industry\u2019s shift toward a zero-emission future while emphasising the crucial role transparency plays in measuring climate alignment.<\/span> Read the report here<\/a>.<\/p>\n

ENDS<\/strong><\/p>\n

Notes to editors <\/strong><\/p>\n