Michael Parker, Chairman, Global Shipping, Logistics as well as Offshore, Citi, as well as Chair of the Poseidon Principles Association: “This record notes a considerable turning point for international ship financing as well as for environment financing coverage in its entirety.”
In a first-of-a-kind environment financing record, 15 banks that are notaries to the Poseidon Principles on eco-friendly delivery financing have actually revealed the environment placement rating of their ship financing profiles.
Announced in June 2019, the Poseidon Principles ended up being the very first sector-specific environment placement arrangement for banks.
The Poseidon Principles develop a worldwide structure to quantitatively analyze as well as divulge whether banks’ borrowing profiles remain in line with environment objectives established by the International Maritime Organization (IMO). The IMO’s preliminary GHG technique suggests that global delivery has to minimize its complete yearly greenhouse gas discharges by at the very least 50% of 2008 degrees by 2050, while going after initiatives in the direction of phasing them out immediately in this century.
“This report marks a significant milestone for global ship finance and for climate finance reporting as a whole,“ says Michael Parker, Chairman, Global Shipping, Logistics and Offshore, Citi, and Chair of the Poseidon Principles Association. “I commend my fellow signatories for their pioneering efforts to be transparent and accountable for their role in promoting responsible environmental behavior. I encourage other serious banks and export credit agencies to join us in supporting global seaborne trade in a sustainable manner.”
The Poseidon Principles Annual Disclosure Report 2020 consists of environment placement reporting from 15 banks, a lot of which ended up being notaries in 2019. Financial establishments that signed up with the Poseidon Principles in 2020 are not needed to report prior to 2021. The analysis by each signatory consist of discharges information gathered from customers as well as the profile info from 2019, contrasted to a decarbonization trajectory for the exact same year.
At his still onset in application of the Principles, the record reveals that 3 banks’ ship financing profiles are straightened with the IMO’s preliminary GHG technique while 12 financial institutions’ profiles are not. More notably, the record consists of discourse from banks on essential takeaways from their environment analysis, as well as representations on just how it will certainly notify their service tasks as well as decision-making in the future.
“This first climate assessment reporting provides signatory financial institutions with a unique understanding of our ship finance portfolios’ climate footprint,” claims Paul Taylor, Global Head of Shipping as well as Offshore, Societe Generale, as well as Vice Chair of thePoseidon Principles Association “All industry participants must collectively rise to the climate challenge. Banks under the Poseidon Principles will continue to work proactively with their clients and other important stakeholders to shape a better future for international shipping and society.”
The 20 banks that have actually signed up with the Poseidon Principles with each other, stand for over US$ 150 billion in car loans to global delivery– greater than a 3rd of the international delivery financing profile.
- Download the Poseidon Principles Annual Disclosure Report 2020 HERE.
