06/18/2019 | News release | Distributed by Public on 06/18/2019 01:06
ING is one of 11 major banks that today launch the Poseidon Principles, which aim to support the shipping industry's reduction of carbon emissions by 50% by 2050. Together, the banks hold a global shipping loan portfolio of about $100 billion.
The Poseidon Principles establish a way to assess and disclose whether financial institutions' lending portfolios are in line with adopted climate goals. Banks will implement them via internal policies, procedures and standards and will apply them in all credit products secured by ships that fall under the purview of the International Maritime Organisation (IMO), an agency of the United Nations that regulates shipping. Their goal is to promote responsible environmental stewardship and socially responsible behaviour throughout the maritime value chain.
Stephen Fewster, global head of Shipping Finance at ING: 'Banks have an important role to play in promoting sustainable development. The Poseidon Principles fit perfectly with our Terra approach, our strategy to steer our portfolio towards the Paris Agreement's well-below two-degree goal. The Principles will be integrated into this approach to support our ambition. It's encouraging to see so many banks collaborate for a low-carbon future and we are delighted to be part of this important initiative.'
The Principles were developed by global shipping banks in collaboration with leading industry players - ship owners, charterers and classification societies - as well as the Global Maritime Forum, Rocky Mountain Institute and University College London Energy Institute. Other banks introducing the Principles are Citi, DNB, Danish Ship Finance, Danske Bank, Société Générale, DVB Bank, Nordea, Crédit Agricole, Amsterdam Trade Bank and ABN AMRO. Together, these banks represent around 20% of the global ship finance portfolio. Additional banks are expected to join in the near future.
The Poseidon Principles are consistent with the initial greenhouse gas (GHG) strategy adopted in April 2018 by member states of the IMO. The strategy says that the international shipping industry must reduce the total annual GHG emissions by at least 50% of 2008 levels by 2050, with a strong emphasis on zero emissions.