The Poseidon Principles for Marine Insurance

Marine insurance establishes a sector-specific
support of the Net-Zero Insurance Alliance’s objectives. Specifically, the
NZIA’s members pledge to transition their underwritten portfolios to
carbon neutral by 2050, in line with the goal of the Paris Agreement to
keep the temperature rise below 1.5C degree by 2100. In this sense, six of
the marine insurance companies have recently launched The
Poseidon Principles for Marine Insurance, which aims at providing
transparency on carbon emissions while supporting the green transition.
As a matter of fact, the Poseidon Principles will serve as a framework to
qualitatively assess and disclose marine insurances’ underwriting
portfolios’ climate alignment. In this way, it will enhance decision-making
processes and help in shaping a more sustainable future, since it will
facilitate for the sector to report progress by using granular marine datas.
The members of The Poseidon Principles pledge to estimate and to
disclose climate alignment of hulls and machinery policies. These
should also be benchmarked according to main two trajectories, the first
being the halving of annual CO2 emissions by 2050 compared with 2008
and the second being a 100% reduction of emissions by 2050. A third
trajectory will be soon added to align with the zero-lifecycle GHG
emissions target of NZIA.
Among founding members, Swiss Re, Gard and Hellenic Hull Management
can be found. Other marine insurers are expected to join in the near