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The first Annual Disclosure Report for Poseidon Principles for Marine Insurance is a landmark step forward towards transparency in the maritime and insurance sectors. The data will act as a stepping-stone for the Signatories to engage their clients in a discussion about climate change, technology, and new risks.<\/em><\/p>\n 26 January 2023<\/strong> \u2013 In the report, eight of the world\u2019s leading marine insurers have gathered and published client data to track their hull and machinery insurance portfolio\u2019s climate impact. The goal is to support the industry\u2019s green transition.<\/p>\n \u201cThis level of transparency is a major milestone on our journey to decarbonise the maritime industry,\u201d<\/em> says Patrizia Kern, Chair of the Poseidon Principles for Marine Insurance initiative and Marine Strategy Advisor \u2013 CEO Office at Swiss Re Corporate Solutions.<\/strong><\/p>\n On average, the Signatories\u2019 portfolios are 12.7% above being aligned with reaching the UN maritime-goal of at least 50% reductions of the annual greenhouse gas emissions from international shipping by 2050, compared with their level in 2008. The second trajectory the Signatories track takes is more ambitious and has a goal of zero CO2 <\/sub>emissions in the middle of this century. The simple average score of the 100% CO2<\/sub> emission reduction track is 20.8% above alignment.<\/p>\n \u201cIt is evident that there is work to do, but hard data and transparency is a necessary first step,\u201d<\/em> Kern says.<\/p>\n Many takeaways<\/strong><\/p>\n In the report, member companies describe individual takeaways and how this new information will influence decision-making.<\/p>\n \u201cWe know there is room for improvement, both in our climate alignment score and in the data collection process itself, but that is why we wanted to be part of the Poseidon Principles for Marine Insurance. This is a journey we are on to learn and improve, and together with our clients, I am confident we will make the necessary progress,\u201d<\/em> says Rolf Thore Roppestad, Vice Chair of the initiative and CEO at Gard<\/strong> which insures about 50% of the global merchant fleet.<\/p>\n Gathering data on the portfolios is a complex task. First of all, readers should take note that the data covers 2021 \u2013 not 2022. Further, the numbers do not cover the Signatories\u2019 entire hull and machinery portfolios, as not all clients reported their data back to the insurance providers. In addition, it is industry practice that each ship is insured by a primary insurer and several secondary insurers, because of the extraordinary value of modern ships, which adds another level of complexity to the data collection.<\/p>\n Read the report for a full breakdown of methodology and individual responses here<\/a>.<\/p>\n 2023 ambition<\/strong><\/p>\n The Poseidon Principles were established in 2019 by the Global Maritime Forum and a number of financial institutions to create a global framework to quantitatively assess and disclose whether financial institutions\u2019 lending portfolios are in line with climate goals. In addition to the annual report on Marine Insurance, the Poseidon Principles for Financial Institutions published their third annual disclosure report<\/a> with 28 of them reporting in December 2022.<\/p>\n For 2023, the ambition of the Poseidon Principles for Marine Insurance is to get more members to join the principles, increase the contribution volume from the insurance clients and improve access to data.<\/p>\n Industry foundation is shifting<\/strong><\/p>\n The very foundation of the maritime insurance sector is changing, according to the Signatories, because the maritime industry has begun its transition away from the monolithic oil-based combustion technology towards a future with a wide array of propulsion technologies and energy sources. Therefore, each company within the marine insurance sector must understand what they will insure in the future and how new ship technology will work.<\/p>\n \u201cThe insurance companies are only one component in a complex ecosystem, but while engaging with our clients we can become levers of change,\u201d <\/em>Kern says.<\/p>\n Climate change is a \u2018here and now challenge\u2019 for the global insurance industry, and the marine insurers see their engagement with their clients as a way of contributing to the wider sector, given that international shipping emits 2-3 percent of global greenhouse gas emissions, transporting close to 80 percent of global trade by volume.<\/p>\n Reporting Signatories:<\/strong> Affiliate members:<\/strong> \u00a0<\/em><\/p>\n The Poseidon Principles for Marine Insurance are a framework for measuring and reporting the alignment of insurers\u2019 shipping portfolios with climate goals. Recognising insurers\u2019 role in promoting responsible environmental stewardship throughout the maritime value chain, the Poseidon Principles for Marine Insurance provide them with tools to foster collaboration with clients, gain insight to enhance strategic decision-making, and address the impacts of climate change. The Annual Disclosure Report 2022 was produced by the Global Maritime Forum, which performs secretariat services for the Poseidon Principles for Marine Insurance, with expert support provided by UMAS and Swiss Re Institute.<\/p>\n The Poseidon Principles for Marine Insurance are built on four principles \u2013 Assessment of climate alignment, Accountability, Enforcement, and Transparency \u2013 which they share with the Poseidon Principles for Financial Institutions and the Sea Cargo Charter. Established under the auspices of the Global Maritime Forum, the three initiatives aim to increase the transparency of environmental impacts within global seaborne trade, promote industry-wide change, and support a better future for the industry and society.<\/p>\n The Poseidon Principles for Marine Insurance Annual Disclosure Report 2022<\/strong> is available for download here<\/a><\/strong>.<\/p>\n Media contact:<\/strong> Rasmus Nord J\u00f8rgensen | Head of Communications | +45 21680421 | rnj@globalmaritimeforum.org<\/a><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" The first Annual Disclosure Report for Poseidon Principles for Marine Insurance is a landmark step forward towards transparency in the maritime and insurance sectors. The data will act as a stepping-stone for the Signatories to engage their clients in a discussion about climate change, technology, and new risks.<\/p>\n","protected":false},"author":3,"featured_media":4389,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" The first Annual Disclosure Report for Poseidon Principles for Marine Insurance is a landmark step forward towards real transparency in the maritime and insurance sectors. The data will act as a steppingstone for the Signatories to engage their clients in a discussion about climate change, new technology, and the risks involved. \u00a0\u00a0<\/em><\/p> In the report, eight of the world\u2019s leading marine insurers have published data gathered from their clients to track their hull and machinery insurance portfolio\u2019s climate impact. The goal is to support the industry\u2019s green transition.<\/p> \u201cThe insurance sector is in the frontline when it comes to direct business impact from climate change, and this level of transparency is a major milestone on our journey to decarbonise the maritime industry,\u201d<\/em> says Patrizia Kern, Chair of the Poseidon Principles for Marine Insurance initiative and Marine Strategy Advisor \u2013 CEO Office at Swiss Re Corporate Solutions.<\/strong><\/p> On average, the companies\u2019 portfolios are 12.7% above being aligned with reaching the UN maritime goal of a 50% CO2<\/sub> reduction by 2050, according to the Annual Disclosure Report 2022. The second trajectory the Signatories track takes steps towards alignment with the Paris Agreement, which is more ambitious and has a goal of zero CO2 <\/sub>emissions in the middle of this century. The simple average score of the 100% CO2<\/sub> emission reduction track is 20.8% above the alignment.<\/p> \u201cIt is evident that there is work to do, but hard data and transparency is a necessary first step,\u201d<\/em> Kern says.<\/p> Many takeaways \u201cWe know there is room for improvement, both in our climate alignment score and in the data collection process itself, but that is why we wanted to be part of the Poseidon Principles for Marine Insurance. This is a journey we are on to learn and improve, and together with our clients, I am confident we will make the necessary progress,\u201d<\/em> says Rolf Thore Roppestad, Vice Chair of the initiative and CEO at Gard<\/strong> which insures about 50% of the global merchant fleet.<\/p> The data covers 2021 \u2013 not 2022. Further, the numbers do not cover the Signatories\u2019 entire hull and machinery portfolios. The data is also influenced by how the vessels were used during 2021, and therefore the COVID-19 pandemic and the changed fleet operations have an impact on the numbers. Because of the extraordinary value of modern ships, it is the industry practice that each ship is insured by a primary insurer and several secondary insurers, which adds another level of complexity to the data collection.<\/p> 2023 ambition<\/strong> The Poseidon Principles were established in 2019 by the Global Maritime Forum and a number of financial institutions to create a global framework to quantitatively assess and disclose whether financial institutions\u2019 lending portfolios are in line with climate goals, and in addition to the annual report on Marine Insurance, the Poseidon Principles for Financial Institutions published their third annual disclosure report<\/a> with 28 institutions reporting in December 2022.<\/p> For 2023, the ambition of the Poseidon Principles for Marine Insurance is to get more members to join the principles, increase the contribution volume from the insurance clients and improve access to data.<\/p> Industry foundation is shifting \u201cWe can\u2019t delegate this responsibility. The insurance companies are only one component in a complex ecosystem, but we must engage with our clients to create change,\u201d<\/em> Kern says.<\/p> Climate change is a \u2018here and now challenge\u2019 for the global insurance industry, and the marine insurers see their efforts as a way of contributing to the wider sector, given that international shipping emits 2-3 percent of global GHG emissions, transporting close to 80 percent of global trade by volume.<\/p>
Fidelis MGU, Gard, Hellenic Hull Management, Navium, Norwegian Hull Club, SCOR, Swiss Re Corporate Solutions and Victor Insurance.<\/p>\n
Cambiaso Risso Group, Cefor, Cosco Shipping Captive, CTX Special Risks, EF Marine, Gallagher, Lochain Patrick Insurance Brokers, Lockton Marine, WTW.<\/p>\nAbout the Poseidon Principles for Marine Insurance<\/h2>\n
<\/strong>In the report, each company describes individual takeaways and how the new information will influence decision-making.<\/p>
The UN maritime agency\u2019s - the International Maritime Organization\u2019s (IMO) - initial Greenhouse Gas (GHG) Strategy prescribes that international shipping must reduce its total annual GHG emissions by at least 50% by 2050 compared to 2008 levels, whilst pursuing efforts towards phasing them out as soon as possible in this century.<\/p>
<\/strong>The very foundation of the industry is changing, according to the Signatories, because the maritime industry has begun its transition away from the monolithic oil-based combustion technology to a future with a wide array of propulsion technologies and energy sources. Therefore, each company within the marine insurance sector must understand what they will insure in the future and how new ship technology will work.<\/p>