Poseidon Principles adopts IMO's revised well-to-wake strategy

The Poseidon Principles has aligned the existing framework with IMO’s revised GHG strategy.

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The Poseidon Principles aim to reduce the carbon footprint of the shipping industry by providing a framework for banks and other financial institutions to assess, disclose, and manage the environmental impacts of their shipping portfolios.

The shipping finance reporting will now consider all well-to-wake greenhouse gas (GHG) emissions, as outlined in the IMO's revised ambition, according to the joint statement. The annual disclosure report will include detailed information on the reporting scope, it added.

“The IMO’s evolving ambition is propelling us closer to a 1.5°C future. As they concentrate on enacting this forward-looking strategy, the Poseidon Principles have postponed the introduction of an extra pathway for measuring climate alignment with a 1.5°C future until 2024, in harmony with the processes of the Net-Zero Banking Alliance (NZBA),” said the joint statement.

A total of 30 major financial institutions have signed the Poseidon Principles, including BNP Paribas, Citi, Credit Suisse, ING and Standard Chartered.

“Decarbonising shipping requires urgent, large-scale cross-sector collaboration and government and international regulator support,” said Stephen Fewster, treasurer of the Poseidon Principles and managing director at ING.

“To maximise our impact and enhance transparency, the Poseidon Principles initiatives must continue to expand. We invite key players in this global effort to join hands and navigate towards a greener horizon together,” Fewster added.

By Konica Bhatt

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