Growing Support for IMO’s Decarbonization Goals

The Poseidon Principles for Marine Insurance has published its third annual disclosure report, revealing increased backing for the International Maritime Organization’s (IMO) decarbonization objectives. The principles, which came into effect in 2022, serve as a framework to help insurers, brokers, and other industry stakeholders align their operations with global efforts to reduce emissions in the shipping sector. This year’s report features contributions from nine signatories and nine affiliate members across ten countries, reflecting a growing commitment to sustainability and risk management within the marine insurance sector.

The report discloses that nine signatories, representing over a quarter of the world fleet’s total deadweight within the reporting scope, have calculated climate alignment scores using vessel data from 2023. These scores were assessed against the IMO’s 2023 GHG Strategy trajectories, revealing an average misalignment of +20.8% with the minimum ambition. Since June 2024, climate alignment scores have been generated using modeled data pathways, improving reporting efficiency and reducing administrative burdens for signatories and their clients. While marine insurers are not mandated by the IMO to report on the climate impact of their portfolios, their role in supporting decarbonization efforts is considered crucial.

According to Poseidon Principles for Marine Insurance vice chair Sundeep Khera, the industry’s commitment to aiding the IMO’s decarbonization targets is evident in the annual report. By setting higher standards and integrating comprehensive emissions data, insurers are actively contributing to a more sustainable shipping sector. Signatories emphasize the importance of incorporating the latest IMO ambitions for accurate emissions baselines and updated data pathways for efficient reporting. They also reaffirm their dedication to supporting decarbonization through client engagement, underscoring the industry’s ongoing efforts to reduce global shipping emissions.

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