In an attempt to help care for the environment, specifically the ocean, banks financing shipping companies have promised to make decisions from here on while taking consideration of the environmental impact and to make sure that shipping companies will contribute less of their shipping emissions. This covers the entire shipping industry such as FTL dedicated truckload freight since the issue of global warming continues to heat up.
Eleven of the largest bank names in the shipping industry have given their signature as a sign of being one with the pledge. The initiative was then called the Poseidon Principles in honor of the god of the sea. These banks believe that it is only the beginning of the process as they reach their target which is to significantly lower the greenhouse gas emissions coming from the shipping industry. The target is to reduce it by a minimum of 50 per cent in the next fifty years.
Citibank’s Michael Parker is one of signatures under the initiative. According to him, banks will now consider a number of factors before they make a decision whether to support a shipping company financially. Some of the factors include their current emissions and other environmental concerns. This will have a huge impact on shipping companies that have been relying on leverage alone. As for them, they will most likely refinance only companies with vessels that are still considered to be in their excellent condition.
He added that the dream of becoming carbon neutral might be hard for shipping if they continue to use the same fuel therefore it is only logical to find an alternative power source. Annually, the banks who have signed the agreement have vowed to make public their climate alignment scores in the spirit of transparency and accountability as well as to make sure that they are enforcing what they promised to accomplish.
The principles have been developed for more than 19 months and it was not introduced out of nowhere. It was a byproduct of the cooperation between major banks. The shipping industry together with FTL dedicated truckload freight understands the importance of the policy and is therefore planning to follow the guidelines.