Global shipping finance transparency initiative reveals closer alignment with climate goals
A recent report from the Poseidon Principles highlights a significant improvement in the financial sector's alignment with shipping's net-zero climate goals, despite increasingly stringent emissions reduction targets. The report reveals that signatories, representing nearly three-quarters of the global shipping finance portfolio, have increased their transparency by disclosing 95% of their eligible portfolio activity in 2025, up from 93% in 2024.
The Poseidon Principles, a sector-specific framework for financial institutions, is expanding to include more institutions, such as private equity and hedge funds, to further enhance climate transparency in shipping finance. This expansion aims to engage a broader financial community in the initiative without imposing initial reporting obligations.
The 2025 Annual Disclosure Report showcases the industry's progress in transparency and climate alignment. Signatories have achieved a 95% average disclosure rate, with 29 signatories disclosing 90% or more of their in-scope portfolio, and nine achieving 100% reporting. The average scores against the IMO's 'minimum trajectory' have improved by nearly 8 percentage points, from just over 19% misaligned last year to just under 12% misaligned this year.
Key drivers of score improvements include operational efficiency, retrofits, and emerging fuel pathways. The report also emphasizes the evolving methodologies and external factors, such as rerouting vessels and supply chain disruptions, that impact climate alignment. Financial institutions are increasingly positioned as active partners in the industry's transition to a zero-emission future.
The Poseidon Principles methodology has been recognized as a globally accepted standard for shipping finance, included in the Science Based Targets initiative's Financial Institutions Net-Zero Standard. This recognition reinforces the initiative's role in promoting responsible environmental stewardship and transparency in the maritime value chain.
The Global Maritime Forum, an international not-for-profit organization, supports the Poseidon Principles by fostering collaboration and collective action among industry leaders and experts. The forum's commitment to sustainable long-term economic development and human well-being aligns with the IMO's ambitious decarbonization goals.
