Japan's MUFG Bank joins Poseidon Principles
The Poseidon Principles have been signed by MUFG Bank, a consolidated subsidiary of MUFG and Japan's largest bank.
“By joining the Poseidon Principles network, we are doing our part to transition to low-carbon economy and contribute to the sustainability of the shipping industry. We will also support our clients and fellow signatories in their endeavors to accomplish similar goals,” the bank stated.
With the inclusion of this new signatory, the Principles now have a total of 24 financial institutions as signatories, with a combined portfolio of over $150 billion in loans to foreign shipping.
MUFG Bank will measure the carbon intensity of vessels and report the results of annual climate assessments of its shipping finance portfolio under the arrangement.
The addition of MUFG Bank to the Poseidon Principles structure solidifies Asian financial groups' involvement in the framework, following the announcement of Sumitomo Mitsui Banking Corporation's membership last month.
The general concept behind the mechanism is for signatory banks to support the International Maritime Organization's (IMO) goals as capital providers, with climate change being the primary problem.
The IMO target of halving the shipping industry's greenhouse gas (GHG) emissions by 50 percent by 2050 as compared to 2008 levels is being pursued.
According to the first transparency report from the initial 15 signatories of the Poseidon Principles, published in December 220, three banks' ship finance portfolios are compatible with UN decarbonization goals, while the remaining 12 banks' portfolios are not.
The portfolio analysis is based on emissions data from shipping clients for 2019 versus a decarbonization trajectory for the same year.
Maritime Business World