Leading shipping banks and marine insurers pave the way for 1.5-aligned emissions benchmarking
Published : Sept 22, 2022 - 19:21 Updated : Sept 22, 2022 - 19:21
30 shipping banks and 16 marine insurance providers and brokers announce today that the Poseidon Principles will add additional trajectories to report climate alignment with a 1.5C future. This new commitment will align the Poseidon Principles with the ambition of the UN and the latest available climate science.
NEW YORK, Sept. 22, 2022 /PRNewswire/ -- The Poseidon Principles have committed to adopting an emissions reduction trajectory in line with net-zero commitments, as soon as such a trajectory or trajectories become available. The Poseidon Principles provide a framework for financial institutions and marine insurers to measure and publicly report the climate alignment of ship finance and marine insurance portfolios with global climate action goals.
"The urgency is clear. Because of the role that shipping plays in the global economy, we must accelerate our ambition towards the Paris Agreement's 1.5C temperature goal. This new ambition will allow the Poseidon Principles to continue playing our role in incentivizing and supporting the decarbonization of shipping," said Michael Parker, Chairman, Global Shipping, Logistics & Offshore, Citi and Chair of the Poseidon Principles for Financial Institutions.
The Poseidon Principles are already aligned with the International Maritime Organization's ambition to reduce GHG emissions from international shipping by at least 50% by 2050. The Poseidon Principles for Marine Insurance also benchmark against an emissions reduction trajectory in line with a 100% reduction by 2050.
The new commitment announced today means that, once a new trajectory based on credible and well-recognized sources is established and adopted by the members of the individual initiatives, Signatories will benchmark their portfolios against two trajectories: one aligned with the IMO's 50% reduction by 2050, and one aligned with net-zero by 2050 and a maximum temperature rise of 1.5C above pre-industrial levels by 2100, to meet the temperature goals of the Paris Agreement. For the second trajectory to be consistent with a 1.5C future, the scope will be expanded to include all greenhouse gas species, and to account for well-to-wake emissions.
"Access to real emissions data through the Poseidon Principles creates tangible impact in our business as well as in the real economy. Establishing common global decarbonization trajectories will help us make business decisions that reflect the latest available climate science. This is the right thing for us to do," said Patrizia Kern-Ferretti, Head Marine, Swiss Re Corporate Solutions and Chair of the Poseidon Principles for Marine Insurance.
Learn more about the commitment in this Ambition Statement.
About the Poseidon Principles
The Poseidon Principles for Financial Institutions and the Poseidon Principles for Marine Insurance are frameworks for measuring and reporting the alignment of financial institutions' shipping portfolios and marine insurers' hull and machinery portfolios with climate goals. Recognizing financial institutions' and insurers' role in promoting responsible environmental stewardship throughout the maritime value chain, the Poseidon Principles provide them with tools to foster collaboration with clients, gain insight to enhance strategic decision-making, and address the impacts of climate change.
Both Poseidon Principles frameworks are built on four principles – Assessment of climate alignment, Accountability, Enforcement, and Transparency – which they share with 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.