A new report published by the Poseidon Principles indicates that the collaboration and engagement between financial institutions and their shipping clients are increasing, toward achieving net-zero emissions by 2050 in line with the 2023 IMO greenhouse gas strategy.
Furthermore, the report shows that the global finance portfolio for shipping has moved closer to alignment with ambitious decarbonisation trajectories set by the IMO.
The new insights are revealed in The Poseidon Principles’ fifth annual disclosure report, which showcases the climate alignment of 35 major financial institutions across 14 countries, representing nearly 80% of the global ship finance portfolio.
The Poseidon Principles are a global framework for financial institutions to assess and disclose the climate alignment of their shipping portfolios, aiming to promote decarbonisation in the maritime industry.
The Poseidon Principles’ signatory institutions commit to annually report their portfolio climate alignment and implement the Poseidon Principles into their internal policies, procedures, and standards.
This year’s report highlights that the signatories reported on average 93.3% of their portfolio activity, with all signatories reporting ship emissions data from at least 70% of their portfolio, 28 of them achieving a reporting rate of 90% or above, and eight achieving 100%.
Furthermore, the average climate alignment scores showed a noticeable progression from last year, with portfolios’ alignment to the IMO’s “minimum” and “striving” decarbonisation trajectories improving.
“As we celebrate the fifth anniversary of this initiative, we recognise both the progress made and the opportunities ahead – this milestone shows how far we have come in five years, but also serves as a reminder that we are now five years closer to critical decarbonisation targets for 2030, 2040, and 2050. We must accelerate efforts, addressing key areas of misalignment and ensuring collective ambition turns into transformative action,” said Michael Parker, Poseidon Principles chair and chairman of Global Shipping & Logistics, Citi.
While celebrating significant progress, the report also acknowledges the challenges of aligning with IMO’s ambitious roadmap.
“However, alignment with 2050 net zero goals remains a challenge, in particular for certain vessel types that are facing operational complexities. Now, the Poseidon Principles’ adoption of well- to-wake emissions reporting offers a robust foundation for addressing these challenges head on,” noted Paul Taylor, vice chair of the Poseidon Principles and Global Head of Maritime Industries, Societe Generale.
