Improved transparency from financial institutions has revealed increased alignment between their global shipping portfolio with decarbonisation trajectories set by the International Maritime Organization (IMO). The Poseidon Principles – a global framework for responsible ship finance which aims to help incentivise the shipping industry to decarbonise in line with the IMO’s climate goals – represent nearly 80% of global shipping finance. Its fifth annual disclosure report, which has assessed the climate alignment of 35 major financial institutions across 13 countries, noted that an average of 93.3% of signatories’ portfolio activity was reported. All signatories reported ship emissions data from at least 70% of their portfolio, with 28 achieving a reporting rate of 90% or above. Eight signatories achieved 100%. Average climate alignment scores also showed “noticeable progression” from last year, the report said, with portfolios’ alignment to the IMO’s ‘minimum’ and ‘striving’ trajectories improving. “The principles have redefined what is possible in transparent climate reporting for the shipping industry,” said Michael Parker, Poseidon Principles Chair and Chairman of Global Shipping & Logistics at Citi. “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.” In 2023, the Poseidon Principles adopted well-to-wake emissions reporting, encompassing full lifecycle emissions of fuels and setting a new benchmark for climate reporting in line with climate science. “Alignment with 2050 net zero goals remains a challenge, in particular for certain vessel types that are facing operational complexities,” said Paul Taylor, Vice Chair of the Poseidon Principles and Global Head of Maritime Industries at Societe Generale. “The principles will continue to evolve, setting new benchmarks for transparency and commitment to a sustainable future.”
