Sumitomo Mitsui Trust Bank Joins Poseidon Principles

shippingllustration. Image Courtesy: Pixabay under CC0 Creative Commons license

Japan’s Sumitomo Mitsui Trust Bank has become the first Asian financial institution to sign on to the Poseidon Principles, a global framework for responsible ship finance which helps incentivize shipping’s decarbonization.

The principles now cover over USD 150 billion in loans to international shipping —  more than a third of the global shipping finance portfolio.

“Through becoming a signatory of the Poseidon Principles and as a member of the maritime cluster, SuMi TRUST Bank will continue to support its clients’ business activities and to contribute to shape a better future for the shipping industry and our society,” the bank said in a statement.

“Financial institutions play an important role in promoting maritime shipping’s transition to a low carbon economy. SMTB is leading by example by becoming the first Asian bank to sign on to the Poseidon Principles. Asia is a major center for ship finance, and the decision by SMTB will encourage other Japanese and Asian financial institutions to follow their lead in the coming months,” Michael Parker, Chairman of Global Shipping Logistics & Offshore at Citi and Chair of the Poseidon Principles Association, commented.

As explained,  the bank will, on an annual basis, measure the carbon intensity and assess climate alignment – carbon intensity relative to established decarbonization pathways – of its shipping portfolio using the methodology established by the principles.

SuMi TRUST Bank will also publish the overall climate alignment of its shipping portfolio starting from FY2021.

The Poseidon Principles were launched in June 2019 by eleven global shipping banks as founding signatories in an effort to improve the role of maritime finance in addressing global climate change.

The principles are consistent with the policies and ambitions of the International Maritime Organization (IMO), the Initial IMO Strategy on the reduction of GHG emissions from ships and existing IMO activity related to reducing GHG emissions in the shipping sector.

There are four principles that comprise the Poseidon Principles — Assessment of Climate Alignment, Accountability, Enforcement and Transparency.

Eighteen financial institutions have joined the Poseidon Principles so far including ABN Amro, Amsterdam Trade Bank, BNP Paribas, Bpifrance, Citi, Credit Agricole CIB, Credit Industriel et Commercial, Credit Suisse, Danish Ship Finance, Danske Bank, DNB, DVB, Export Credit Norway, ING, Nordea, Société Générale, Sparebanken Vest and Sumitomo Mitsui Trust Bank.

In a separate announcement, SuMI Trust Bank said it signed a loan agreement with Sumitomo Heavy Industries. The loan is in accordance with the Principles for Sustainability Linked Loan established by the Loan Market Association.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Apr 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

The 9th Annual Event Green Shiptech China Congress 2020

The 9th Annual Event- Green Shiptech China Congress 2020 will be held on next…

read more >

Belgian Offshore Days 2020

During this event, a conference will be held with focus on “Increasing value by data driven innovation…

read more >

Europort Romania

Europort Romania is the premier maritime networking event of the Black Sea and will connect maritime technology and service suppliers with high level professionals from Romania and surrounding shipbuilding markets.

More info

read more >

MARITIME INDUSTRY 2020

The future of the maritime sector is the point of focus during Maritime Industry 2020.

read more >