Poseidon Principles in practice

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In June last year ABN AMRO, as one of the banks financing the shipping sector, signed the Poseidon Principles. These principles serve as a guide for banks looking to factor climate considerations into their lending processes, while also providing a framework for reporting on the climate impact of the loan portfolios of shipping companies.

From principle to concrete incentive

Last week, ABN AMRO teamed up with other banks to structure a loan for International Seaways, an international shipping company, including concrete incentives to meet or outperform the goals of the Poseidon principles year after year. If the company succeeds in doing so, the interest on the loan will be lower. If it fails, the interest rate will be higher. This is the first loan with such a concrete incentive to encourage clients to meet the Poseidon Principles. In its role as Sustainability Coordinator, ABN AMRO assisted with the structuring of the sustainability-linked pricing mechanism. 

More information

More information about  the Poseidon Principles can be found on ABN AMRO’s website and in a press release about the loan facility.

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