A global framework for responsible ship finance.
June 18 2019
The Poseidon Principles are the world’s first sector-specific, self-governing climate alignment agreement amongst financial institutions. They establish a common framework to quantitatively assess and disclose whether financial institutions’ lending portfolios are in line climate goals set by the International Maritime Organization (IMO), a specialized agency of the United Nations responsible for regulating shipping. The IMO’s target is for greenhouse gas emissions from international shipping to peak as soon as possible and to reduce the industry’s total annual GHG emissions by at least 50% by 2050, with a strong emphasis on zero emissions.
The Principles are designed to support ship owners in achieving the ‘at least 50% by 2050’ reduction target and to help financial institutions in managing critical investment risks – to the benefit of business and society.
The Poseidon Principles are supported by a robust and industry-appropriate climate alignment assessment methodology and carefully considered accountability and enforcement requirements that support practical and robust data collection and analysis practices. The Poseidon Principles also establish transparency requirements for Signatories.
These Principles apply to lenders, relevant lessors and financial guarantors including export credit agencies. They must be applied by all Signatories in all business activities that are credit secured by vessel mortgages or finance leases secured by title over vessel, and where a vessel or vessels fall under the purview of the IMO.
Signatories commit to implementing the Poseidon Principles in their internal policies, procedures, and standards and to work in partnership with their clients and partners on an ongoing basis to implement the Poseidon Principles.
The Poseidon Principles are intended to evolve over time to include other issues where the collective influence of financial institutions can help improve the contribution the industry and its lenders can make to society.
The Poseidon Principles with a technical guidance can be downloaded here.