The Poseidon Principles establish a global framework to quantitatively assess and disclose whether financial institutions’ lending portfolios are in line with climate goals set by IMO. Four more banks have signed up, but China is obvious by its absence
MUFG Bank and Shinsei Bank have signed up, along with Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Finance & Leasing. These banks join original Japanese bank Poseidon Principles member, Sumitomo Mitsui Trust Bank.
Signatories to the Poseidon Principle agree to disclose the climate alignment score of their ship finance portfolios – a crucial component is their ESG ratings.
The original 20 financial institutions represented portfolios of over US$150Bn in loans to international shipping – more than a third of the global shipping finance portfolio.
The expansion of membership brings the total number to 24 banks, but missing are the Chinese banks and Chinese leasing companies that have played a central role in ship finance since the 2008 financial crises.
Without the participation of the Chinese ship finance sector, it will be hard to assess the climate alignment score of global ship finance and its ESG impact.
How China reacts to concerns over ESG will be crucial to preventing an East–West split in ship finance. Hear the experts opinion and explanations: sign up here for the free Maritime Environmental Social and Governance Webinar Week series of ESG-related webinars.