International shipping must reduce its annual greenhouse gas emissions by at least 50% of 2008 levels by 2050, whilst pursuing efforts towards phasing them out as soon as possible in this century.
To reach this goal, global shipping banks in collaboration with industry players and external experts have developed the Poseidon Principles.
Poseidon Principles is a framework for assessing and disclosing the climate alignment of financial institutions’ shipping portfolios.
The climate alignment is measured every year and a score of zero percent represents a portfolio that is exactly in line with the decarbonization trajectory.
Danske Bank has improved its score
This year Danske Bank has improved its score from 11.9% in 2020 to 3.3%.
“We are pleased that this year's reporting shows an improvement from last year. Although we acknowledge that the score has been impacted by changes to some of the vessels' trajectories and Covid-19, we also believe that our customers' continued focus on modern and fuel efficient tonnage contributed to this improvement,” says Einar Stavrum, Global Head of Shipping at Danske Bank. He elaborates:
“We continuously aim to improve our score and will use the findings from Poseidon Principles to support our customers green transition and help finance their decarbonisation”.
The Poseidon Principles is a framework for assessing and disclosing the climate alignment of ship finance portfolios. The Poseidon Principles set a benchmark for what it means to be a responsible bank in the maritime sector and provide actionable guidance on how to achieve this.
The Bank’s score is measured by collecting data about distance travelled, amount of fuel consumption for each fuel type, hours underway, and technical characteristics of ships. In addition, the bank’s debt outstanding also plays a role. Using these parameters, the carbon intensity per vessel is calculated and compared with the decarbonization trajectory for its ship type.
Read more about Danske Bank’s Climate Alignment Score and the Poseidon Principles.