The Poseidon Principles group of banks has moved closer to alignment with IMO’s revised GHG strategy to remove emissions from shipping by 2050. In its fifth annual report, the framework for measuring and reporting the alignment of lenders’ shipping portfolios with climate goals showed a noticeable progression from last year. The 35 banking signatories, representing nearly 80% of the global ship finance portfolio of about $240bn, reported on average 93.3% of their portfolio activity, with all signatories reporting ship emissions data from at least 70% of their portfolio, 28 of them achieving a reporting rate of 90% or above, and eight achieving 100%. Last year, 26 of 30 signatories achieved a reporting rate of 90% or above, five achieved 100%, and the simple average proportion of activity reported was 95.4%. The report noted that while the average this year is slightly lower, this is still viewed as an improvement due to the increasing number of signatories reaching between 90% and 100% of data collection. In addition, five signatories reported for the first time this year, compared to only two last year. Signatories disclosed their climate alignment scores against trajectories aligned with the 2023 IMO net-zero goal in a well-to-wake CO2 e perspective for the second straight year. Last year, signatories also calculated their climate alignment scores against the initial 2018 IMO ambition for the sake of continuity. However, this year signatories only calculated climate alignment against the two 2023 IMO GHG strategy trajectories (minimum and striving). The simple average climate alignment score relative to the 2023 IMO GHG Strategy was +19.4% above the minimum ambition of the IMO to reduce GHG emissions from international shipping by 20% in 2030, 70% in 2040, and reach net zero by or around 2050. Scores ranged from -8% to +61.5%, with eight of 35 signatories disclosing a score of +10% or lower. The average climate alignment score improved by 7.8 percentage points. “The increased number of signatories reporting a score of less than +10% also supports the notion that, while overall scores are misaligned, they have gotten closer to alignment with the minimum ambition,” the report noted. Meanwhile, on average, climate alignment scores were +25% above the IMO’s striving ambition to cut GHG emissions from shipping by 30% in 2030, 80% in 2040, with net zero by or around 2050. Scores ranged from -3.5% to +69.4%, with four signatories disclosing a score of 10% or below. All in all, the average climate alignment score improved by 7 percentage points, according to the report. Over the last five years, the Poseidon Principles framework has inspired similar maritime disclosure initiatives like the Sea Cargo Charter and the Poseidon Principles for Marine Insurance, both of which are also hosted by the Global Maritime Forum. The framework has also enabled signatories to use climate alignment scores to shape financing decisions, guide sustainability-linked lending, support investment in green technologies, and foster closer collaboration with shipowners towards decarbonisation. “As we celebrate the fifth anniversary of this initiative, we recognise both the progress made and the opportunities ahead – this milestone shows how far we have come in five years but also serves as a reminder that we are now five years closer to critical decarbonisation targets for 2030, 2040, and 2050. We must accelerate efforts, addressing key areas of misalignment and ensuri