Swedbank commits to shipping’s decarbonization as newest signatory of Poseidon Principles

Nordic-Baltic banking group Swedbank has signed the Poseidon Principles, a global framework for integrating climate considerations into lending decisions within ship finance.

Illustration; Image by offshore Energy

By joining the Poseidon Principles for Financial Institutions, Swedbank affirms its commitment to supporting and influencing the continued decarbonization efforts of the shipping industry.

The Poseidon Principles provide a standardized methodology for data collection and reporting of emissions from banks’ shipping portfolios, with the overall ambition of supporting and facilitating the decarbonization of the shipping industry.

Covering more than 80 % of the global ship finance portfolio, the Poseidon Principles now boasts 35 signatories from diverse geographies. 

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“We are happy to have signed the Poseidon Principles, the main reference for climate alignment of ship finance. This adds to the list of sectors in which the bank measures its environmental impact, furthering our commitment to helping our customers become more sustainable,” Johanna Fager Wettergren, Head of Group Sustainability at Swedbank, commented.

“The shipping industry is a key enabler for world trade and offers transportation services with superior CO2 efficiency when compared to air- and road-based alternatives. The industry has made significant progress on its decarbonisation journey. However, this work will still be ongoing for many years. As a Poseidon Principles signatory, Swedbank will enhance its ability to impact this process,” Niels R. Bugge, Head of Ocean Industries at Swedbank, said.

“The Poseidon Principles are pleased to welcome Swedbank as their 35th signatory,” Michael Parker, Poseidon Principles Chair and Chairman of Global Shipping, Logistics and Offshore, Citi, stated.

“Evolving our framework in line with the IMO revised strategy encourages the expanded participation of financial institutions worldwide. Swedbank’s own sustainability agenda exemplifies this commitment.”

During 2024, Swedbank will complete and publish its first climate alignment assessment according to the principles.

Last year, the Poseidon Principles updated their global framework for assessing and reporting financial institutions’ shipping portfolios’ alignment with climate goals to the IMO’s revised GHG strategy adopted in July 2023.

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The IMO’s latest ambition is to reach net-zero greenhouse gas emissions in the shipping sector close to 2050, including indicative checkpoints in 2030 and 2040 on a well-to-wake basis. This aims to accelerate the peak of greenhouse gas (GHG) emissions from international shipping and strive for net-zero emissions by or around 2050, compared to 2008, with interim targets set for 2030 and 2040.