As pressure mounts on the marine insurance industry to go fully green, leading companies have joined an initiative linking their underwriting activities with the reduction of carbon emissions from global shipping.
At the COP 26 climate summit last month, countries including the United States pushed for the International Maritime Organization (IMO), the UN's shipping agency, to adopt a zero-emissions target by 2050.
Companies that sign up for marine insurance under the "Poseidon Principles" commit to assessing and disclosing the climate alignment of their hull and machinery portfolios, as well as benchmarking them against IMO targets.
Although there is growing pressure for a commitment to full decarbonization by 2050, the IMO's goal is to reduce overall greenhouse gas emissions from ships by half from 2008 levels by 2050.
"The Poseidon Principles' disclosure framework will enable us to credibly report our progress toward net-zero insurance using granular marine data," Patrizia Kern, marine head at Swiss Re Corporate Solutions, said in a statement.
According to Rolf Thore Roppestad, CEO of marine insurer Gard, the "common goal is an accelerated transition to a decarbonized industry."
Hellenic Hull Management, SCOR, Victor International, and Norwegian Hull Club are among the other insurers and reinsurers that have joined.
Willis Towers Watson, EF Marine, and Cefor, the marine insurance association, have also joined the initiative.
In 2019, an initial group of leading banks agreed to environmental commitments in the first application of the Poseidon Principles, under which financiers would consider efforts to reduce CO2 emissions when making loans to shipping companies.