Information from monetary establishments seem to point out that the worldwide finance portfolio for delivery has moved nearer to alignment with formidable decarbonisation trajectories set by the Worldwide Maritime Group (IMO), which purpose to take away emissions from worldwide delivery by 2050.
The brand new insights are contained in The Poseidon Ideas’ fifth Annual Disclosure Report, which showcases the local weather alignment of 35 main monetary establishments throughout 13 international locations, representing practically 80% of the worldwide ship finance portfolio. The Poseidon Ideas are a worldwide framework for monetary establishments to evaluate and disclose the local weather alignment of their delivery portfolios, aiming to advertise decarbonisation within the maritime {industry}.
This yr’s report, which additionally marks the fifth anniversary of the Poseidon Ideas, highlights the transformative progress achieved since its launch in 2019, when it turned the world’s first sector-specific framework for measuring and reporting local weather alignment in delivery finance. What started as a dialog in 2017 and was launched as an idea below improvement on the first International Maritime Discussion board Annual Summit in Hong Kong in 2018 has since developed right into a celebrated mannequin for industry-specific, clear local weather disclosure in delivery—one which has impressed comparable initiatives in sectors like metal, aluminium, and aviation.
Key findings from the 2024 Annual Disclosure Report embrace:
· Transparency on the rise: A median of 93.3% of signatories’ portfolio exercise was reported, with all signatories reporting ship emissions information from not less than 70% of their portfolio, 28 signatories attaining a reporting price of 90% or above, and eight attaining 100%.
· Local weather alignment efficiency: The common local weather alignment scores confirmed a noticeable development from final yr, with portfolios’ alignment to the IMO’s “minimal” and “striving” decarbonisation trajectories bettering.
· Elevated collaboration: Collaboration and engagement are growing between monetary establishments and their delivery purchasers, demonstrating the initiative’s pivotal position in guiding the {industry} towards attaining web zero emissions by 2050 in keeping with the 2023 IMO Greenhouse Fuel Technique.
“The Poseidon Ideas have redefined what is feasible in clear local weather reporting for the delivery {industry},” mentioned Michael Parker, Poseidon Ideas Chair and Chairman of International Transport & Logistics, Citi. “As we have a good time the fifth anniversary of this initiative, we recognise each the progress made and the alternatives forward – this milestone reveals how far we’ve are available 5 years, but additionally serves as a reminder that we at the moment are 5 years nearer to essential decarbonisation targets for 2030, 2040, and 2050. We should speed up efforts, addressing key areas of misalignment and making certain collective ambition turns into transformative motion.”
By integrating actual emissions information into monetary decision-making, the framework has additionally enabled signatories to make use of local weather alignment scores to form financing selections, information sustainability-linked lending, and help funding in inexperienced applied sciences akin to biofuels and various propulsion methods. Elevated transparency has additionally fostered nearer collaboration between monetary establishments and shipowners, reinforcing a shared dedication to decarbonisation.
Whereas celebrating important progress, the report additionally acknowledges the challenges of aligning with IMO’s formidable roadmap.
“We have now a lot to have a good time on this annual disclosure report, particularly when it comes to growing ranges of transparency” mentioned Paul Taylor, Vice Chair of the Poseidon Ideas and International Head of Maritime Industries, Societe Generale. “Nonetheless, alignment with 2050 web zero objectives stays a problem, specifically for sure vessel varieties which can be dealing with operational complexities. Now, the Poseidon Ideas’ adoption of well-to-wake emissions reporting affords a sturdy basis for addressing these challenges head on. The Poseidon Ideas will proceed to evolve, setting new benchmarks for transparency and dedication to a sustainable future.”
In 2023 the Poseidon Ideas adopted well-to-wake emissions reporting, encompassing full lifecycle emissions of fuels and setting a brand new benchmark for local weather reporting in keeping with the newest local weather science and supporting the IMO’s newest ambition.
Mentioned an announcement: “In simply 5 years, the Poseidon Ideas have set the worldwide customary for local weather transparency in ship finance and impressed different monetary disclosure initiatives just like the Sustainable STEEL Ideas for metal financing, the Sustainable Aluminium Finance Framework for aluminium financing, and the Pegasus Tips for aviation financing.”
“Local weather disclosure reporting performs a vital position in enhancing the transparency and accountability of local weather and environmental affect, threat administration, and strategic planning of taking part organisations and their purchasers.”
“Because the Poseidon Ideas enter their sixth yr, the Affiliation celebrates the transformative energy of collective motion, and the tangible progress made towards decarbonising international delivery. Whereas challenges stay, the shared dedication of signatories, delivery purchasers, and stakeholders is a testomony to what could be achieved by collaboration and transparency.”
