Leading shipping banks and marine insurers pave the way for 1.5-aligned emissions benchmarking

30 shipping banks and 16 marine insurance providers and brokers announce today that the Poseidon Principles will add additional trajectories to report climate alignment with a 1.5C future. This new commitment will align the Poseidon Principles with the ambition of the UN and the latest available climate science.

NEW YORK,Sept. 22,2022 -- The Poseidon Principles have committed to adopting an emissions reduction trajectory in line with net-zero commitments,as soon as such a trajectory or trajectories become available. The Poseidon Principles provide a framework for financial institutions and marine insurers to measure and publicly report the climate alignment of ship finance and marine insurance portfolios with global climate action goals.

"The urgency is clear. Because ofthe role that shipping plays in the global economy,we must accelerate our ambitiontowards theParisAgreement's1.5Ctemperaturegoal.ThisnewambitionwillallowthePoseidonPrinciples to continue playing our role in incentivizing and supporting the decarbonization of shipping," said Michael Parker,Chairman,Global Shipping,Logistics & Offshore,Citi and Chair of the Poseidon Principles for Financial Institutions.

ThePoseidonPrinciplesarealready alignedwiththeInternationalMaritimeOrganization'sambitiontoreduceGHGemissionsfrom international shipping byatleast 50% by2050.The Poseidon PrinciplesforMarine Insurancealso benchmark against an emissions reduction trajectory in line with a 100% reduction by 2050.

The new commitment announced today means that,once a newtrajectory based on credible and well-recognized sources is established and adopted bythe members of the individual initiatives,Signatories will benchmark their portfoliosagainst twotrajectories:onealignedwiththeIMO's50%reduction by2050,andonealigned withnet-zero by 2050 and a maximum temperature rise of 1.5C above pre-industrial levels by 2100,to meetthe temperature goals ofthe Paris Agreement. Forthe second trajectoryto be consistentwith a 1.5C future,the scope will be expanded to include all greenhouse gas species,and to account for well-to-wake emissions.

"Access to real emissions data through the Poseidon Principles creates tangible impact in our business as well asintherealeconomy.Establishingcommonglobaldecarbonizationtrajectorieswillhelpusmakebusinessdecisions thatreflectthelatestavailableclimate science.Thisistherightthingforustodo,"saidPatriziaKern-Ferretti,Head Marine,Swiss Re Corporate Solutions and Chair of the Poseidon Principles for Marine Insurance.

LearnmoreaboutthecommitmentinthisAmbition Statement.

AboutthePoseidon Principles

ThePoseidonPrinciplesforFinancialInstitutionsandthePoseidonPrinciplesforMarineInsuranceareframeworks for measuring and reporting the alignment of financial institutions' shipping portfolios and marine insurers' hull and machinery portfolios with climate goals. Recognizing financial institutions' and insurers' role in promoting responsibleenvironmentalstewardshipthroughoutthemaritimevalue chain,thePoseidon Principlesprovidethem with tools to foster collaboration with clients,gain insightto enhance strategic decision-making,and address the impacts of climate change.

BothPoseidonPrinciplesframeworksarebuiltonfourprinciples–Assessmentofclimatealignment,Accountability,Enforcement,and Transparency – which they share with the Sea Cargo Charter. Established underthe auspices of the Global Maritime Forum,the three initiatives aim to increase the transparency of environmental impacts within global seaborne trade,promote industry-wide change,and support a better future for the industry and society.