Poseidon Principles Now Cover 50% of Global Ship Finance Lending

by Ship & Bunker News Team
Thursday May 19, 2022

The Poseidon Principles framework setting environmental standards for lending to the shipping industry now covers more than half of the global shipping portfolio after taking on its latest signatory.

Germany's DekaBank is the latest firm to sign up to the framework, the Poseidon Principles said in a statement on its website on Thursday, taking its share of the global ship finance portfolio over the 50% mark. A total of 28 financial institutions have signed up to the framework to date.

The principles set requirements for measuring and reporting the alignment of their signatory financial institutions' shipping portfolios with climate goals. As more institutions sign up, the potential lending pool for shipping firms not taking action on climate goals becomes smaller, incentivising them to raise environmental standards.

"Sustainability is a high priority for DekaBank and a central component of its business strategy," Marco Albers, head of specialised lending at DekaBank, said in the statement.

"For Ship Finance we already implemented specific sustainability principles about five years ago and also developed our own score cards for ship financing within the framework of which CO2 emissions can be recorded systematically.

"The Poseidon Principles are now an additional key element to further integrate climate change into our lending decisions and to monitor the decarbonization targets of our shipping portfolio."

Ship & Bunker News Team
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