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COPENHAGEN, Dec. 15, 2020 /PRNewswire=KYODO JBN/--

In a first-of-a-kind climate finance report, 15 Signatories of the Poseidon

Principles disclose the climate alignment score of their ship finance

portfolios. The Poseidon Principles Annual Disclosure Report 2020 shows that 3

banks' ship finance portfolios are aligned with UN decarbonization targets

while 12 banks' portfolios are not. The climate assessment offers banks new

insight into their lending decisions and provides opportunity to work with

their shipping clients to meet society's goals.

International ship finance confirms its leadership role in global climate

finance. Announced in June 2019, the Poseidon Principles became the first

sector-specific climate alignment agreement for financial institutions. Today,

Signatories deliver on their commitment and publish the Poseidon Principles

Annual Disclosure Report 2020 – the first sector-specific climate alignment

report of its kind.

The Poseidon Principles establish a global framework to quantitatively assess

and disclose whether financial institutions' lending portfolios are in line

with climate goals set by UN maritime agency, the International Maritime

Organization (IMO). The IMO's initial GHG strategy prescribes that

international shipping must reduce its total annual greenhouse gas emissions by

at least 50% of 2008 levels by 2050, whilst pursuing zero emissions as soon as

possible in this century.

"This report marks a significant milestone for global ship finance and for

climate finance reporting as a whole. 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," says Michael Parker, Chairman, Global Shipping, Logistics

and Offshore, Citi, and Chair of the Poseidon Principles Association.

Climate assessment will inform future decision-making

The Poseidon Principles Annual Disclosure Report 2020 includes climate

alignment reporting from 15 financial institutions: ABN Amro, Amsterdam Trade

Bank, BNP Paribas, Bpifrance Assurance Export, CIC, Citi, Credit Agricole CIB,

Danish Ship Finance, Danske Bank, DNB, Eksportkreditt Norge, ING, Nordea,

Sparbanken Vest, and Societe Generale. Financial institutions joining the

Poseidon Principles in 2020 are not required to report before 2021.

The portfolio assessment builds on 2019 emissions data from shipping clients

compared to a decarbonization trajectory for the same year. It shows that 3

financial institutions' ship finance portfolios are aligned with the IMO's

initial GHG strategy while 12 banks' portfolios are not. More importantly, the

report includes commentary from financial institutions on key takeaways from

their climate assessment, and reflections on how it will inform their business

activities and 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. 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," says Paul Taylor, Global

Head of Shipping and Offshore, Societe Generale, and Vice Chair of the Poseidon

Principles Association.

20 financial institutions have joined the Poseidon Principles. Together, they

represent over US$150 billion in loans to international shipping – more than a

third of the global shipping finance portfolio. The Principles were developed

by global banks – Citi, Societe Generale, and DNB – in collaboration with

leading industry players – A.P. Moller Maersk, Cargill, Euronav, Gram Car

Carriers, Lloyd's Register, and Watson Farley & Williams – with expert support

by the Global Maritime Forum, Rocky Mountain Institute, University College

London Energy Institute, and UMAS.

Learn more in the Poseidon Principles Annual Disclosure Report 2020 here

[https://www.poseidonprinciples.org/wp-content/uploads/2020/12/Poseidon-Principl

es-Annual-Disclosure-Report-2020.pdf].

Further information:

Head of Communications

Torben Vemmelund

tve@globalmaritimeforum.org

+45 2224 1446

Source: Poseidon Principles