The Poseidon Principles is set to expand beyond its original climate origins to encompass many other environmental, social, and governance (ESG) aspects. The Poseidon Principles Association, known for integrating climate considerations into financial lending and pioneering the assessment and disclosure of climate alignment in ship finance portfolios, has decided to create the Future Principles Committee. This committee will address emerging issues in the shipping industry, including ship recycling, crew safety, gender equality, and biodiversity. Its goal is to strengthen ESG standards. The committee’s work will build on the foundation established by the Poseidon Principles. Stephen Fewster, global head of shipping at ING and treasurer and chair of the Future Principles Committee, said the aim was to set new benchmarks for sustainability and social responsibility. “Our members want to see the Poseidon Principles build on the success of our decarbonisation targets to include broader ESG topics,” said Michael Parker, chairman of global shipping, logistics and offshore at Citi and chair of the Poseidon Principles. “Our goal is to continue creating a more transparent, accountable, and environmentally conscious industry that aligns with global climate goals.” Interviewed by Splash, Fewster said that for crew welfare, this could include safety, internet access, living conditions, and access to mental health support. Details will be fine-tuned when the committee meets for the first time next month. “We are at the beginning of the journey and therefore it will take a little time for us to agree on priorities, agree benchmarks and how we measure actual performance,” Fewster said. Launched in June 2019, the Poseidon Principles initially brought together 11 financial institutions and has since grown to include 35 leading banks that represent 80% of the global ship finance portfolio. The Poseidon Principles establish common global standards that align with international climate goals, allowing financial institutions to responsibly manage their portfolios. The initiative has inspired similar transparency efforts in other sectors, such as steel, aluminium, and aviation, demonstrating how financial institutions can play a crucial role in accelerating climate action through increased transparency. googletag.cmd.push(function() { googletag.display('div-gpt-ad-1_95_0_1_2'); });