Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has formally signed up to the Poseidon Principles, which requires financial institutions to disclose the climate alignment of shipping portfolios with the IMO’s 2050 greenhouse gas emission reduction strategy.
As a signatory, SMBC will, on an annual basis, measure the carbon intensity and assess climate alignment – carbon intensity relative to established decarbonisation pathways – of its shipping portfolio using the methodology established by the Principles.
The accession to the Principles is in line with SMBC Group’s Mission, established in April 2020, to ‘contribute to a sustainable society by addressing environmental and social issues’.
‘We are acceding and joining the existing signatories to the Poseidon Principles and are therefore committed to reducing greenhouse gas emissions,’ the Tokyo-headquartered bank said. ‘SMBC Group will conduct business in a manner that contributes to the growth of both its customers and society, and will further enhance its actions towards addressing climate change.’
Established in 2019, the Poseidon Principles were developed in an effort spearheaded by global shipping banks – Citi, Société Générale, and DNB – and leading industry players – A.P.Møller Mærsk, Cargill, Euronav, Lloyd’s Register and Watson Farley & Williams – with support from the Global Maritime Forum, Rocky Mountain Institute and University College London Energy Institute.