Sumitomo Mitsui Trust Bank (SMTB), a major Japanese shipping lender and one of Japan’s largest asset managers, has become the first Asian financial institution to join the Poseidon Principles.
With SMTB’s commitment, signatories to the Poseidon Principles now represent over $150bn 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, SMTB will continue to support its clients’ business activities and to contribute to shape a better future for the shipping industry and our society,” SMTB said in a release.
“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,” said Michael Parker, chair of the Poseidon Principles Association.
The Poseidon Principles are the world’s first sector-specific, self-governing climate alignment agreement amongst financial institutions. They establish a common framework to quantitatively assess and disclose whether financial institutions’ lending portfolios are in line with climate goals set by the International Maritime Organization (IMO). The principles are designed to support shipowners in achieving the ‘at least 50% by 2050’ greenhouse gas reduction target set by the IMO.
So far, 18 financial institutions have joined the Poseidon Principles 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.