On March 19, the Poseidon Principles for Marine Insurance released their third annual disclosure report, highlighting the marine insurance industry's role in supporting global shipping decarbonization efforts.
The report includes contributions from nine signatories and nine affiliate members across ten countries.
The Poseidon Principles for Marine Insurance serve as a framework for insurers, brokers, and industry stakeholders to align their activities with global shipping decarbonization goals, in line with the International Maritime Organization's (IMO) 2050 net-zero emissions ambition.
Patrizia Kern-Ferretti, chair of the Poseidon Principles for Marine Insurance, stated, "Marine insurers play a crucial role in supporting the IMO's global shipping industry's transition to net zero."
The report reveals that, on average, climate alignment scores were 20.8% misaligned with the IMO's minimum ambition in 2023. Specifically, alignment scores ranged from -10.4% to +28%, with a weighted average of +24.8% and a simple average of +20.8% against the 2023 IMO GHG Strategy's minimum trajectory.
Against the striving trajectory, scores ranged from -6.1% to +34%, with a weighted average of +30.8% and a simple average of +26.7%.
Since June 2024, climate alignment scores have been produced using estimations based on a modeled data pathway track, enhancing reporting efficiency and reducing administrative burdens.
While the IMO does not mandate marine insurers to report on the climate impact of their portfolios, the insurance sector plays a crucial role in decarbonization by providing data-driven insights that support sustainable shipping practices. These efforts benefit shipowners and help insurers align with regulatory frameworks, such as the European Union's Corporate Sustainability Reporting Directive.
As the industry gains experience with these methodological improvements, future reports are expected to provide deeper insights into emissions trends and their implications.
Tracking emissions is becoming standard practice in marine insurance, bolstering internal sustainability practices and contributing to the reduction of global shipping emissions.
Sundeep Khera, vice chair of the Poseidon Principles for Marine Insurance, commented, "By setting higher standards and integrating comprehensive emissions data, insurers are actively contributing to a more sustainable shipping sector."