The targets are consistent (if not identical) with IMO’s GHG Strategy. By 2021, 27 banks, representing about USD 185 billion in shipping finance, are acknowledged signatories.
The four Poseidon Principles provide a benchmarking tool by which leading institutions can demonstrate their commitment to reducing the impact of GHGs of the fleets they finance.
- Assessment of climate alignment Signatories will measure the carbon intensity of their shipping portfolios on an annual basis and assess their climate alignment relative to established decarbonization trajectories.
- Accountability Signatories commit to using data types, sources, standards and service providers established by the IMO to calculate their shipping portfolio’s climate alignment.
- Enforcement Signatories commit to making compliance with the Poseidon Principles contractual in their new business activities. They will use standardized covenant clauses and work together with their clients and partners to meet this requirement.
- Transparency Signatories are required to report their portfolio alignment score on an annual basis. All signatories’ scores will be published annually by the Secretariat of the Poseidon Principles.
DNV INSIGHT: Standardised reporting
The Poseidon Principles are based on the IMO’s Fuel Oil Consumption Data Collection System (DCS), which mandates annual reporting of CO2 emissions, among other information. This provides a common platform to measure GHGs emitted by ships, allowing owners and banks to benchmark performance.