The 2023 annual report from the Poseidon Principles marks the fourth time that the signatories to the Principles have reported their climate alignment.
In September, just a few weeks after the adoption by the IMO of its revised GHG, all of the signatories in the initiative, representing 13 countries, unanimously chose to align the Poseidon Principles methodology with the new IMO ambition, including the goal of achieving net zero emissions by or around 2050. This decision accounts for emission reduction milestones in 2030 and 2040, employing a comprehensive lifecycle well-to-wake approach and broadening coverage to include a more extensive range of GHG.
Michael Parker, Poseidon Principles Chair and Chairman of Global Shipping, Logistics and Offshore, Citi, said: “As its first-ever assessment of climate alignment against multiple decarbonisation trajectories aligned with the revised IMO ambition but also showing progress against the initial IMO ambition, the 2023 annual report illustrates how the Poseidon Principles aim to remain at the forefront of the latest global evidence and developments, especially at the IMO, even in the absence of all practical tools like the final IMO emission factors guidelines. By committing to net-zero emissions by 2050 and establishing emission reduction checkpoints to report against, the Poseidon Principles are not just meeting regulatory standards; we are setting the bar higher for responsible and environmentally conscious ship finance.”
Despite the challenges faced by the shipping industry in 2023, such as severe port congestion, personnel shortages, inflation, and geopolitical tensions, the Poseidon Principles’ growing influence on shipping’s decarbonisation is evident. The reporting results against the IMO’s initial GHG Strategy ambition of a 50% CO2 reduction by 2050 shows a considerable improvement, with an average score above the trajectory +2%², a notable advancement from last year’s +9.7%.
Paul Taylor, Poseidon Principles Vice Chair and Global Head of Maritime Industries, Société Générale, said: “The reporting percentage of +95.4% stands as a testament to the strong endorsement from shipowners and clients, indicating a growing trend in which industry stakeholders recognise and value the advantages associated with a more transparent and collaborative approach. While Poseidon Principles signatories acknowledge significant challenges ahead, especially with the new IMO ambition to achieve net-zero by 2050, there is a collective sense of urgency, momentum and recognition of the task at hand.”
The publication of the Poseidon Principles 2023 annual disclosure report, featuring the transparent disclosure of the climate footprint within the ship finance portfolios, signals that the shipping finance sector is leading the way in guiding the maritime industry toward a more sustainable future. These principles, which provide a framework for financial institutions to integrate climate considerations into lending decisions, represent 80% of the global ship finance portfolio.
The 2023 Annual Disclosure Report was produced by the Global Maritime Forum, which performs secretariat services for the Poseidon Principles, with expert support provided by UMAS. The upcoming year will see the Poseidon Principles fine-tune trajectories and methodologies, building on the lessons learned from the current report and outcome of MEPC 81.
