Country for PR: United Kingdom
Contributor: PR Newswire Europe
Wednesday, December 16 2020 - 10:01
Poseidon Principles: 15 financial institutions disclose the climate alignment of their ship finance portfolios
COPENHAGEN, Dec. 15, 2020 /PRNewswire-AsiaNet/--

In a first-of-a-kind climate finance report, 15 Signatories of the Poseidon 
Principles disclose the climate alignment score of their ship finance 
portfolios. The Poseidon Principles Annual Disclosure Report 2020 shows that 3 
banks' ship finance portfolios are aligned with UN decarbonization targets 
while 12 banks' portfolios are not. The climate assessment offers banks new 
insight into their lending decisions and provides opportunity to work with 
their shipping clients to meet society's goals.

International ship finance confirms its leadership role in global climate 
finance. Announced in June 2019, the Poseidon Principles became the first 
sector-specific climate alignment agreement for financial institutions. Today, 
Signatories deliver on their commitment and publish the Poseidon Principles 
Annual Disclosure Report 2020 – the first sector-specific climate alignment 
report of its kind.

The Poseidon Principles establish a global framework to quantitatively assess 
and disclose whether financial institutions' lending portfolios are in line 
with climate goals set by UN maritime agency, the International Maritime 
Organization (IMO). The IMO's initial GHG strategy prescribes that 
international shipping must reduce its total annual greenhouse gas emissions by 
at least 50% of 2008 levels by 2050, whilst pursuing zero emissions as soon as 
possible in this century.

"This report marks a significant milestone for global ship finance and for 
climate finance reporting as a whole. I commend my fellow Signatories for their 
pioneering efforts to be transparent and accountable for their role in 
promoting responsible environmental behavior. I encourage other serious banks 
and export credit agencies to join us in supporting global seaborne trade in a 
sustainable manner," says Michael Parker, Chairman, Global Shipping, Logistics 
and Offshore, Citi, and Chair of the Poseidon Principles Association.

Climate assessment will inform future decision-making
The Poseidon Principles Annual Disclosure Report 2020 includes climate 
alignment reporting from 15 financial institutions: ABN Amro, Amsterdam Trade 
Bank, BNP Paribas, Bpifrance Assurance Export, CIC, Citi, Credit Agricole CIB, 
Danish Ship Finance, Danske Bank, DNB, Eksportkreditt Norge, ING, Nordea, 
Sparbanken Vest, and Societe Generale. Financial institutions joining the 
Poseidon Principles in 2020 are not required to report before 2021.

The portfolio assessment builds on 2019 emissions data from shipping clients 
compared to a decarbonization trajectory for the same year. It shows that 3 
financial institutions' ship finance portfolios are aligned with the IMO's 
initial GHG strategy while 12 banks' portfolios are not. More importantly, the 
report includes commentary from financial institutions on key takeaways from 
their climate assessment, and reflections on how it will inform their business 
activities and decision-making in the future.

"This first climate assessment reporting provides Signatory financial 
institutions with a unique understanding of our ship finance portfolios' 
climate footprint. All industry participants must collectively rise to the 
climate challenge. Banks under the Poseidon Principles will continue to work 
proactively with their clients and other important stakeholders to shape a 
better future for international shipping and society," says Paul Taylor, Global 
Head of Shipping and Offshore, Societe Generale, and Vice Chair of the Poseidon 
Principles Association.

20 financial institutions have joined the Poseidon Principles. Together, they 
represent over US$150 billion in loans to international shipping – more than a 
third of the global shipping finance portfolio. The Principles were developed 
by global banks – Citi, Societe Generale, and DNB – in collaboration with 
leading industry players – A.P. Moller Maersk, Cargill, Euronav, Gram Car 
Carriers, Lloyd's Register, and Watson Farley & Williams – with expert support 
by the Global Maritime Forum, Rocky Mountain Institute, University College 
London Energy Institute, and UMAS.

Learn more in the Poseidon Principles Annual Disclosure Report 2020 here 

Further information:
Head of Communications
Torben Vemmelund
+45 2224 1446

Source: Poseidon Principles