Standard Chartered Bank has signed up to the Poseidon Principles, a global framework that aims to align carbon emissions in the shipping industry with the international targets set by the United Nations.
The Poseidon Principles, launched in 2019, are a commitment between banks and the shipping industry to cut emissions from maritime transport, with two key goals set by the IMO.
These are to reduce carbon emissions compared to 2008 by at least 40 per cent by 2030 and by at least 50 per cent by 2050, and ensure that greenhouse gas emissions peak as soon as possible.
Abhishek Pandey, Global Head of Shipping Finance, Standard Chartered, said, “Cutting carbon emissions in the shipping sector is crucial in curbing the worst effects of climate change and achieving net-zero.
“As a bank that specialises in financing world commerce and the enablers of global trade, signing up to the Poseidon Principles is therefore an important addition to our existing efforts to reduce our financed emissions.
“Standard Chartered joins this initiative during Singapore Maritime Week – the nation state is a hugely important maritime hub – and we look forward to partnering with our peers and clients globally to achieve the goals that we all share with the IMO.”
Standard Chartered and the other 25 bank signatories – who commit to track, monitor and drive down emissions in their shipping portfolios – together hold a global shipping loan portfolio of more than $185 billion.
It said this represents around 50 per cent of all shipping finance globally, making the Poseidon Principles initiative a significant contributor to tackling climate change.