For the first time, signatories to the Poseidon Principles for Marine Insurance have published the climate alignment of their hull and machinery insurance portfolios.
Group of eight of the world’s leading marine insurers have gathered and published client data to track their hull and machinery insurance portfolio’s climate impact. The goal was to support the industry’s green transition. The results, from the first annual disclosure report for Poseidon Principles for Marine Insurance, are showing that further work needs to be done on meeting climate change targets. In the report, eight marine insurers have gathered and published client data to track their hull and machinery insurance portfolio’s climate impact.
The data are showing that on average, the signatories’ 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 emissions in the middle of this century. The simple average score of the 100% CO2 emission reduction track is 20.8% above alignment.
It is worth mentioning that the Poseidon Principles for Marine Insurance are a framework for measuring and reporting the alignment of insurers’ shipping portfolios with climate goals.
“It is evident that there is work to do, but hard data and transparency is a necessary first step,” says Patrizia Kern, Chair of the Poseidon Principles for Marine Insurance initiative and Marine Strategy Advisor – CEO Office at Swiss Re Corporate Solutions.
“We 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,” says Rolf Thore Roppestad, Vice Chair of the initiative and CEO at Gard which insures about 50% of the global merchant fleet.
Gathering the data on the portfolios is also a complex task. As it is explained in the report, readers should take note that the data covers 2021 – not 2022, and furthermore the numbers do not cover the signatories’ 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.
Source: Poseidon Principles