Climate-alignment framework used by shipping-finance banks to disclose portfolio alignment with IMO decarbonisation targets — end-to-end guide including AER methodology, signatory banks, connection to Sea Cargo Charter, and what it means for operators.
The Poseidon Principles are a voluntary framework for financial institutions that integrate climate considerations into lending decisions for the international shipping sector. Launched June 2019 in New York by 11 founding banks; signatory count now exceeds 35 institutions covering over $200 billion of shipping loans — roughly 60% of the global ship-finance market.
Each signatory bank publishes an annual portfolio Alignment Score — a single number showing whether the aggregated carbon intensity of the ships it finances is above or below the IMO decarbonisation trajectory (initially the 50% by 2050 target; updated in 2023 to net-zero by/around 2050 per the revised IMO GHG strategy).
A positive score means the portfolio is above (worse than) the target trajectory. A negative score means below (better). The score is published, audited, and comparable across banks — creating market pressure on banks (and by extension on shipowners) toward more efficient vessels.
The Principles bind the signatory banks directly, not shipowners. But because the score depends on the emissions performance of every ship in the bank's loan book, banks push the compliance data collection down to owners:
Fuel consumed (per type, in tonnes), distance travelled (nautical miles), and hours underway — same base as IMO DCS. Method must be documented + auditable.
AER = (Fuel × Cf) / (DWT × Distance) — grams of CO₂ per DWT-nautical-mile. Same denominator as CII but with all mandatory hours reported (not just underway).
Each ship type has a decarbonisation pathway derived from the revised IMO GHG Strategy 2023 (net-zero by/around 2050). Ship AER is compared to the pathway target for the specific ship type and reporting year.
Bank aggregates weighted-average alignment across all financed ships, using outstanding loan balance as weight. Result: single number (positive = above target, negative = below). Published annually.
35+ banks as of 2026. Founding + notable additions shown. Full current list: poseidonprinciples.org.
Two related but distinct frameworks — one for banks, one for charterers. Data plumbing overlaps substantially.
| Dimension | Poseidon Principles | Sea Cargo Charter |
|---|---|---|
| Signatory type | Financial institutions (banks) | Charterers (cargo owners) |
| Launched | June 2019 | October 2020 |
| Signatories (2026) | 35+ banks | 35+ charterers |
| Methodology | AER weighted by loan balance | AER weighted by cargo-tonne share |
| Data source | Ships financed | Ships chartered |
| Output | Portfolio Alignment Score | Portfolio Alignment Score |
| Disclosure | Annual public report | Annual public report |
| Governance | Poseidon Principles Association | Global Maritime Forum |
VEMO computes AER per voyage, projects year-end AER vs IMO trajectory, and generates the exact Poseidon Principles submission format your bank expects. Sea Cargo Charter aligned from same data.
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