Photo: Illustration; Image by Offshore Energy

Development Bank of Japan joins Poseidon Principles

Development Bank of Japan Inc. (DBJ) has become a signatory to the Poseidon Principles, a regulatory framework for responsible financing of the shipping industry.

DBJ joins a number of Asian financial institutions to ink the framework over the recent period, including Sumitomo Mitsui Banking Corporation and MUFG Bank.

The Poseidon Principles are consistent with the policies and ambitions of the International Maritime Organization, including its ambition to reduce shipping’s total annual GHG emissions by at least 50% by 2050.

The aim of the framework is to enable financial institutions to align their ship finance portfolios with responsible environmental behavior and incentivize international shipping’s decarbonization.

Based on the Principles, DBJ plans to disclose the yearly contribution of its ship finance to the reduction of greenhouse gas emissions.

DBJ is also promoting the GRIT Strategy, as part of its Fifth Medium-Term Management Plan.

The bank said that its corporate philosophy is to “apply financial expertise to design the future: to open up new frontiers as we resolve the issues of our clients and the community while promoting sustainable development for Japan and the world.”

“Through our participation in the Principles, we will actively support the shipping industry’s efforts to achieve a sustainable society as we promote our customers’ sustainable growth through financial expertise,” DBJ said.

The framework signatories have grown from the initial 15 signatories to 27 banks with a portfolio of over $185 billion in shipping finance.

This represents around 50 percent of all shipping finance globally, making the Poseidon Principles initiative a significant contributor to tackling climate change.

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