THE banking sector increases transparency in ship finance, as this year's report includes disclosure of emissions data, which will allow financial institutions to better understand their carbon footprint and promote the maritime industry's transition to zero emissions, reports Hellenic Shipping News Worldwide.
Out of the 28 financial institutions reporting their emissions data this year, seven banks are aligned with the International Maritime Organisation's (IMO) ambition of reducing greenhouse gas emissions from international shipping 50 per cent by 2050.
'This year's reporting is the most granular and extensive yet, and more banks have joined the initiative, which is very encouraging. I am pleased that signatories have been willing to be even more transparent about the makeup of the carbon footprint in their portfolios. Being transparent is the only way we can make change happen and better support clients in the crucial years for shipping decarbonisation ahead of us,' said Poseidon Principles chairman Michael Parker.
The Poseidon Principles are a global framework for assessing and disclosing the climate alignment of financial institutions' shipping portfolios.
Mr Parker is not discouraged that only a minority of reporting banks are aligned with the 2050 target.
'We are on a multi-year journey, but with this data, we can see our performance and support our decision-making with insight. Reducing GHG [greenhouse gases] emissions has become a priority in the maritime industry, including for ship finance. However, ships have a 20+ year lifecycle. It will take time for this trend to be reflected in our portfolios, even with the banks favouring low-carbon projects,' said Mr Parker.
The report collates ship emissions data collected by lenders from their clients for their activities in 2021.
The Poseidon Principles were launched in 2019 with 11 founding signatories and have grown to 30 financial institutions covering 70 per cent of the global ship finance portfolio.
Said Poseidon Principles head Paul Taylor: 'I would like to welcome the five new signatories who are reporting their climate alignment scores for the first time this year. We continue to receive strong support for data sharing and transparency among our clients, a sign that the Poseidon Principles have become an established and recognised initiative,'
In September 2022, Poseidon Principles signatories committed to aligning the framework with the ambition of the Paris Agreement, limiting global temperature rise to 1.5 degrees above pre-industrial levels by 2100.
SeaNews Turkey
Out of the 28 financial institutions reporting their emissions data this year, seven banks are aligned with the International Maritime Organisation's (IMO) ambition of reducing greenhouse gas emissions from international shipping 50 per cent by 2050.
'This year's reporting is the most granular and extensive yet, and more banks have joined the initiative, which is very encouraging. I am pleased that signatories have been willing to be even more transparent about the makeup of the carbon footprint in their portfolios. Being transparent is the only way we can make change happen and better support clients in the crucial years for shipping decarbonisation ahead of us,' said Poseidon Principles chairman Michael Parker.
The Poseidon Principles are a global framework for assessing and disclosing the climate alignment of financial institutions' shipping portfolios.
Mr Parker is not discouraged that only a minority of reporting banks are aligned with the 2050 target.
'We are on a multi-year journey, but with this data, we can see our performance and support our decision-making with insight. Reducing GHG [greenhouse gases] emissions has become a priority in the maritime industry, including for ship finance. However, ships have a 20+ year lifecycle. It will take time for this trend to be reflected in our portfolios, even with the banks favouring low-carbon projects,' said Mr Parker.
The report collates ship emissions data collected by lenders from their clients for their activities in 2021.
The Poseidon Principles were launched in 2019 with 11 founding signatories and have grown to 30 financial institutions covering 70 per cent of the global ship finance portfolio.
Said Poseidon Principles head Paul Taylor: 'I would like to welcome the five new signatories who are reporting their climate alignment scores for the first time this year. We continue to receive strong support for data sharing and transparency among our clients, a sign that the Poseidon Principles have become an established and recognised initiative,'
In September 2022, Poseidon Principles signatories committed to aligning the framework with the ambition of the Paris Agreement, limiting global temperature rise to 1.5 degrees above pre-industrial levels by 2100.
SeaNews Turkey
