Key to supporting the accurate assessment of climate alignment and to creating an equal burden on all Signatories is an enforcement mechanism that ensures that the appropriate data and information are provided by shipowners to Signatories, the appropriate consents are given for the sharing of data, the data is shared, and appropriate privacy protections are established.
We will require that ongoing compliance with the Poseidon Principles is made contractual in our new Business Activities using standardized covenant clauses. We will contribute to the update and addition of standardized clauses through the annual review process.
Signatories will agree to work with clients and partners to covenant the provision of necessary information to calculate carbon intensity and climate alignment.
Standard covenant clause
The Poseidon Principles include a standardized covenant clause covering the more specific information needed, 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.