Six of the world’s major marine insurers have undertaken a ground-breaking project to give carbon emissions transparency and promote the shipping industry’s green transition.
The Poseidon Principles for Maritime Insurance (PPMI) establishes a methodology for quantifying and disclosing the climate alignment of marine insurers’ underwriting portfolios.
This aims at developing a sector-specific methodology to support the ambition of the Net-Zero Insurance Alliance (NZIA).
NZIA members have committed to transitioning their underwriting portfolios to net-zero GHG emissions by 2050.
This is in line with the International Maritime Organization (IMO) who adopted a zero-emissions target by 2050 at the COP 26 climate summit.
Signatories to the PPMI have committed to assessing and disclosing the climate alignment of their hull and machinery portfolios.
They have also benchmarked their alignment with two initial pathways:
- A 50% reduction in annual CO2 emissions by 2050 compared to 2008 (this is in line with the IMO’s Initial GHG Strategy)
- A 100% reduction in emissions by 2050.
Members include: Swiss Re, Gard, Hellenic Hull Management, SCOR, Victor International, and the Norwegian Hull Club.
More marine insurers are anticipated to join in the not-too-distant future.