Ship financiers’ lending portfolios are getting closer to reaching climate alignment with the International Maritime Organization’s (IMO) ambitious decarbonisation trajectories, according to the Sixth Annual Disclosure Report of the Poseidon Principles.

The report, released just this morning, reveals that the financial sector’s alignment with shipping’s minimum net-zero climate goals has improved by nearly 8%, despite more demanding year-on-year emissions reduction targets.

“The results of this year’s report show encouraging, measurable, real-world momentum and progress in action. This progress is particularly striking considering the pathways become more stringent year-on-year,” said Paul Taylor, Vice Chair of the Poseidon Principles and Global Head of Maritime Industries at Societe Generale.

The report also revealed an uptick in transparency, with signatories disclosing an average of 95% of their eligible portfolio activity, the second highest level since reporting began.

The Posideon Principles are the world’s first sector-specific framework for financial institutions to assess and disclose the climate alignment of their shipping portfolios. With 36 signatories across 14 countries, representing nearly three-quarters of the world’s ship finance portfolio, the initiative establishes a benchmark for the industry in line with the IMO’s goal of net zero greenhouse gas emissions from international shipping by 2050.