Standard Chartered has joined 25 other signatories to the Poseidon Principles, a global framework that targets carbon emission cuts in the shipping industry.
Standard Chartered has joined 25 other signatories in a commitment to track, monitor and drive down carbon emissions in their shipping portfolios.
On Tuesday 20 (April), the bank said it has become a signatory to the Poseidon Principles, a global framework launched in 2019 that aims to align carbon emissions in the shipping industry with the international targets set by the United Nations.
According to the International Maritime Organisation (IMO, a United Nations agency that regulates shipping), maritime transport emits around 940 million tonnes of carbon annually and is responsible for around 2.5 percent of global greenhouse gas emissions.
The key goals set by the IMO are to reduce carbon emissions from 2008 levels by at least 40 percent by 2030, and by at least 50 percent by 2050; and to ensure that greenhouse gas emissions peak as soon as possible.
Standard Chartered and the other 25 bank signatories together hold a global shipping loan portfolio of more than USD 185 billion, representing around 50 percent of all shipping finance globally.
“Cutting carbon emissions in the shipping sector is crucial in curbing the worst effects of climate change and achieving net-zero,” said Standard Chartered Global Head of Shipping Finance Abhishek Pandey, adding that Singapore in particular is an important maritime hub.
“As a bank that specialises in financing world commerce and the enablers of global trade, signing up to the Poseidon Principles is therefore an important addition to our existing efforts to reduce our financed emissions.”
The other signatories to the Poseidon Principles include Citi, Societe Generale, BNP Paribas, Credit Suisse, MUFG, Sumitomo Mitsui, and Nordea, among others.