The Poseidon Principles are financial arrangements aimed at sustainable shipping. Aligned with the IMO’s environmental stance, this push for responsible shipping by the financial sector is expected to be instrumental in achieving the proposed 2050 decarbonization targets.
Leading companies in the marine insurance industry have joined an initiative linking their underwriting activities to reducing carbon emissions from global shipping, as pressure mounts on the sector to go fully green.
Last month, some countries, including the United States, pushed at the COP 26 climate summit for the International Maritime Organization (IMO), the UN’s maritime agency, to adopt a zero emissions target by 2050.
Companies adhering to the “Poseidon Principles” for marine insurance commit to assess and disclose the climate alignment of their hull and machinery portfolios and benchmark them against IMO targets.
IMO’s target is to reduce total greenhouse gas emissions from ships by 50% from 2008 levels by 2050, although there is increasing pressure to commit to full decarbonization by 2050.
“The disclosure framework provided by the Poseidon Principles will allow us to credibly report on our progress toward net zero insurance using granular marine data,” Patrizia Kern, head of marine at Swiss Re Corporate Solutions, said in a statement.
Rolf Thore Roppestad, CEO of marine insurer Gard, added that the “common goal is an accelerated move toward a decarbonized industry.”
Other insurers and reinsurers that have signed on include Hellenic Hull Management, SCOR, Victor International and Norwegian Hull Club.
Insurance broker Willis Towers Watson, specialist underwriting agency EF Marine and marine insurance association Cefor have also joined the initiative.
In 2019, an initial group of leading banks signed up to environmental commitments in the first use of the Poseidon Principles, whereby financiers would take into account efforts to reduce CO2 emissions when providing loans to shipping companies.