COPENHAGEN, 19 MARCH – The Poseidon Principles for Marine Insurance continue to take a leadership role in supporting global shipping decarbonisation with the release of their third annual disclosure report. This year’s report includes contributions from nine signatories and nine affiliate members across ten different countries.
As a framework supporting insurers, brokers, and other industry players in aligning their activities with global shipping decarbonisation efforts, the Poseidon Principles for Marine Insurance contribute to the marine insurance sector’s broader engagement with sustainability and risk considerations, in line with the International Maritime Organization’s (IMO) 2050 net-zero emissions ambition.
“Marine insurers play a crucial role in supporting the IMO’s global shipping industry’s transition to net zero,” said Patrizia Kern-Ferretti, Poseidon Principles for Marine Insurance chair. “Through data driven insights and insurers’ expertise, we are helping shipowners navigate the path toward a more sustainable future while reinforcing the industry’s commitment to responsible underwriting.”
This year, nine signatories, representing over 25% of the total deadweight of the world fleet within the reporting scope, calculated climate alignment scores using vessel data from 2023. The results highlight:
Against the 2023 IMO GHG Strategy – minimum trajectory1, 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 – striving trajectory2, scores ranged from -6.1% to +34%, with a weighted average of +30.8% and a simple average of +26.7%.
This means that, on average, climate alignment scores were +20.8% misaligned with the IMO’s minimum ambition in 20233.
Since June 2024, climate alignment scores can be produced using estimations based on a modelled data pathway track. This approach enhances reporting by efficiently gathering climate data across the entire H&M portfolio, improving efficiency and reducing the administrative burden on both signatories and their clients.
While the IMO does not require marine insurers to report on the climate impact of their portfolios, the insurance sector plays a crucial role in decarbonisation. Insurers help shipowners adapt to new environmental regulations by providing data-driven insights that support sustainable shipping practices. Additionally, they assist clients in meeting compliance requirements and reducing their carbon footprint. These efforts not only benefit shipowners but also help insurers align with key regulatory frameworks, such as the European Union’s Corporate Sustainability Reporting Directive.
As the industry gains greater experience with these methodological improvements, future reports will provide deeper insights into emissions trends and their implications. Tracking emissions is becoming a standard practice in marine insurance, bolstering internal sustainability practices and contributing to the reduction of global shipping emissions.
“This year’s annual report highlights the marine insurance industry’s commitment to supporting the IMO’s decarbonisation goals,” said Sundeep Khera, Poseidon Principles for Marine Insurance vice chair. “By setting higher standards and integrating comprehensive emissions data, insurers are actively contributing to a more sustainable shipping sector.”
Signatories highlight that incorporating the latest IMO ambition provides a more accurate emissions baseline, while updated data pathways enhance reporting efficiency and coverage. They also reaffirm that there is a strong commitment to supporting decarbonisation through client engagement. Meanwhile, affiliate members—such as brokers, captives, and P&I Clubs—are instrumental in connecting insurers with clients, fostering engagement, and raising awareness about the initiative and its developments.
Download the full third annual disclosure report here.
1 For the purposes of the Poseidon Principles for Marine Insurance, and consistent with the current interpretation of the 2023 IMO GHG Strategy, the decarbonisation trajectories used were updated to consider: The “minimum” interim targets of 20% GHG reduction in 2030 and 70% GHG reduction in 2040 relative to 2008.
2 The “striving for” interim targets of 30% GHG reduction in 2030 and 80% GHG reduction in 2040 relative to 2008 with a net-zero GHG target in 2050.
3 Methodological changes introduced in 2024 have complicated direct year-over-year comparisons. In May 2024, signatories adopted updates aligning with the IMO’s 2023 revised GHG Strategy, including a shift to a well-to-wake emissions approach, expanded greenhouse gas boundaries, and a stricter benchmarking system supporting net-zero shipping by 2050. Well-to-wake refers to a life cycle approach with full emissions of fuels accounted for, rather than just those from fuel consumption onboard vessels (shift from a tank-to-wake to a well-to-wake approach).
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The Poseidon Principles for Marine Insurance is a framework for measuring and reporting the alignment of marine insurer’s hull & machinery portfolios with climate goals. Recognising the marine insurance industry’s role in promoting responsible environmental stewardship throughout the maritime value chain, the Poseidon Principles for Marine Insurance equip stakeholders with tools to foster collaboration with clients, acquire insights for enriched strategic discussions, and tackle the challenges posed by climate change.
The Poseidon Principles for Marine Insurance is one of three initiatives based on the same four Principles and developed with the Global Maritime Forum. Together with the Poseidon Principles for Financial Institutions and the Sea Cargo Charter, they share a common objective: fostering transparency on emissions reporting with the aim of contributing to reducing carbon emissions.
Marine insurance involves a collaborative ecosystem where insurance brokers connect insurers with clients seeking coverage for hull and machinery (H&M) of marine vessels. Brokers navigate diverse options, considering coverage specifics and adherence to principles like the Poseidon Principles. Other entities in the marine insurance landscape include captives, providing risk financing for industrial firms, and Protection and Indemnity (P&I) clubs, offering liability coverage on a mutual basis. H&M insurance, covering vessel damage, is a significant component, and understanding the dynamics between “claims leaders” (primary insurers) and “claims followers” (secondary insurers) is crucial for an efficient data collection process. This ecosystem also encompasses cargo, liability freight, and P&I insurance to mitigate various risks associated with shipping, which lie outside of the initiative’s scope.
The 2023 Annual Disclosure Report was produced by the Global Maritime Forum, which performs secretariat services for the Poseidon Principles for Marine Insurance, with expert support provided by UMAS and Swiss Re Institute.