Poseidon Principles

The Poseidon Principles establish a global framework for assessing and disclosing the climate alignment of ship finance portfolios through four main principles: assessment, accountability, enforcement, and transparency. These principles set a benchmark for lenders, relevant lessors, and financial guarantors about what it means to be a climate-responsible bank in the maritime sector, providing guidance on how to achieve this benchmark. Consistent with the policies and ambitions of the International Maritime Organization (IMO), the principles are intended to reduce shipping’s total annual GHG emissions by a minimum of 50% by 2050. Financial institutions wishing to become a Signatory of the Poseidon Principles must undergo a multi-step process consisting of a formal declaration, a signatory application, and a self-assessment to ensure that each signatory has made appropriate arrangements to fulfill its obligations while identifying any challenges that arise.