ABOUT

A global framework
for responsible marine insurance

The Poseidon Principles for Marine Insurance are a global framework for assessing and disclosing the climate alignment of insurers’ hull and machinery portfolios. They enable the insurance sector to implement transparency and they establish a common, global baseline to quantitatively assess and disclose the climate alignment of the portfolios, in order to assess the environmental and climate impact of the business decisions. Thus they also serve as an important tool to support responsible decision-making.

The Poseidon Principles for Marine Insurance must be applied by signatories in all business activities where:

1. 1. 1. the insurance products cover hull and machinery (H&M);
      2. the signatory is the leading insurer, as well as in cases where the signatory is a claims follower, but the claims leader is also a fellow signatory;
      3. the signatory’s portfolio covers all the vessels in an insured fleet that have an established Poseidon Principles for Marine Insurance trajectory and the ability to measure carbon intensity with IMO Data Collection System (DCS) data.

Climate alignment is currently the only environmental factor considered by the Poseidon Principles for Marine Insurance

Under the current scope, the Poseidon Principles for Marine Insurance are applicable to insurers with H&M policies and underwriters. However, it is recognised that the ecosystem of key players extends beyond this limit, and the framework must be inclusive of these perspectives and their support. Therefore, affiliate membership is applicable to insurance brokers and collective groups, such as insurance associations, unions, captives, and P&I Clubs, and their support is welcome.

Signatories commit to implementing the Poseidon Principles for Marine Insurance in their policies, procedures, and standards and to work in partnership with their clients and partners on an ongoing basis to implement the Poseidon Principles for Marine Insurance. Affiliate members commit to supporting the signatories and working together with their partners and clients to improve transparency across their business activities.

The Poseidon Principles for Marine Insurance are intended to evolve over time to ensure that they are effective, practical, and up to date to reflect climate goals.

TRANSPARENCY INITIATIVES

The Poseidon Principles for Marine Insurance are part of three initiatives based on the same four Principles and developed by the Global Maritime Forum with the shared aim to decarbonise shipping.

It all started with the Poseidon Principles for Financial Institutions – a global framework for responsible ship finance launched in June 2019. With 35 signatories, this initiative currently represents around 80% of global ship finance.

During the very early stages of the Poseidon Principles for Financial Institutions, 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 the Sea Cargo Charter was launched in October 2020. The Sea Cargo Charter provides a global framework for aligning chartering activities with responsible environmental behaviour to promote international shipping’s decarbonisation.

The Poseidon Principles for Marine Insurance is the most recent initiative that was launched in December 2021, gathering a group of marine insurance institutions committed to aligning their portfolios with responsible environmental impacts.

All three initiatives have historically been aligned with the IMO’s 2018 initial 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. 

All three initiatives are now aligned with the 2023 IMO GHG Strategy which aims for net-zero emissions from international shipping by or around 2050. In their Annual Disclosure Report, they report against this new ambition and the scope expands to include all GHG species and well-to-wake emissions, aligning with the IMO’s revised ambition and upcoming guidance on the life cycle GHG intensity of marine fuels as relevant.