The Poseidon Principles aims to give better lending conditions to shipping companies that are making good progress on decarbonisation. File Image / Pixabay
Sweden's SEB has joined decarbonisation lending initiative the Poseidon Principles, the company said last week.
SEB will start reporting the 'climate alignment' of its shipping portfolio from next year, the lender said in a statement on its website.
The Poseidon Principles "establish a common framework to quantitively assess and disclose whether financial institutions' lending portfolios are in line with climate goals set by the International Maritime Organization," according to the organisation's website.
"We experience that our customers are ready to make the transition towards a low-carbon economy, and the Poseidon Principles enable us to align our credit processes, and thereby our lending portfolio, with the shipping industry's transition towards a greener future," Hans Christian Kjelsrud, global head of shipping finance at SEB, said in the statement.
"We are pleased to join a group of world leading shipping banks in a new global framework for responsible ship finance."
The Poseidon Principles now represents more than $150 billion in lending to international shipping, or over a third of the global portfolio, according to the organisation's website.