Poseidon Principles: guide to a more sustainable shipping sector
- Sustainability
On Wednesday 16 December the first Poseidon Report was released, detailing the trajectory of greenhouse gas emission reduction from ships financed by the bank.
The participating banks have committed to following the emissionreduction path set by the International Maritime Organisation (IMO). Its aim is to reduce emissions by at least 50% by the year 2050, compared to the 2008 level.
Joep Gorgels, responsible for international shipping financing at ABN AMRO, explains. “The Poseidon Principles have given us an effective sector-wide methodology to continue developing the various sustainability efforts within the sector, together with our shipping clients. This is a major step forward.”
What is ABN AMRO's score?
“For 2019, ABN AMRO scored +5% across the 1,200 checked ships, while the average of allbanks is +2,3%. This means that our portfolio is slightly behind the average reduction curve toward 2050.”
How do you feel about this score?
“Depending on their shipping portfolio, each bank moves towards the 2050 goal at its ownpace. One year into the trajectory, banks are scoring anywhere across a wide range of -45% to +30%. With our rating of +5%, ABN AMRO is in the middle of the pack. These first relative ratings are not very indicative of the future. We will see a clearer picture in three to five years. Every bank still wants to be at the top though, of course.”
What value does the report offer to banks and clients?
“The importance of worldwide targets and methodology cannot be overstated. The annual measurements give us concrete insights and starting points for further cooperation with clients and other banks to make the shipping sector more sustainable. Knowledge is power. Thanks to the report, sustainability has become a tangible topic in our dialogue with clients and other banks alike.”
What is ABN AMRO doing to improve sustainability with its shipping clients?
“ABN AMRO has a large portfolio of European shipping clients, which gives us a good ideaof international sector developments. Including sustainability developments. We share this sector knowledge with our shipping clients. In addition, we offer them sustainability-linked loans: loans with integrated sustainability targets. If the client achieves their targets, they may borrow at a more favourable interest rate. Finally, we participate in international forums aimed at improving sector-wide sustainability. We’re closely involved in the Poseidon Principles initiative, hold the position of Chair in the Responsible Ship Recycling Standards initiative, and are part of the .”
More information
More information about ABN AMRO and the Poseidon Principles can be found in on ABN AMRO's website. The scores of banks involved in the shipping sector can be found on of the Poseidon Principles.