Following input from ICS members on the final draft policy brief, the finalised policy brief on the Poseidon Principles is attached at Annex A. The policy brief has been produced to assist members in conversations with their Banks and has been finalised ahead of the release of the 2021 Poseidon Principles Annual Disclosure Report (please see 2020 Report for reference) which is expected in the coming weeks.

Members will recall that the ICS position on the Poseidon Principles remains one of neutrality; ICS will neither publicly endorse nor oppose the Principles unless otherwise agreed. As such, the attached brief is not intended to be a public endorsement or opposition of the Principles, in line with the official ICS position.

The purpose of the document attached is two-fold:

1. To provide ICS members and shipping companies with a briefing document with which to approach their ship finance institutions to highlight the benefits of Poseidon’s alignment to IMO requirements, to ensure that no segment of industry is disproportionately burdened by the Principles, and potentially unduly denied access to ship finance. It is designed to complement (as opposed to replace) any approaches already being made by ICS member national associations and their member companies to the shipping banks.

2. To be shared by the Secretariat during engagement with senior representatives of the Poseidon Principles (including the Poseidon Principles Chair, Michael Parker), and the Poseidon Principles Secretariat (GMF), to clarify and qualify industry concerns about the current technical metrics, and support alignment of the Principles to IMO standards of emissions assessment.

It is hoped that these complementary approaches, both to signatory banks and representatives of the Poseidon Principles, will ensure that industry concerns about non-alignment to IMO requirements are heard.

Recent Developments with regard to the Poseidon Principles

The Global Maritime Forum had recently announced that a steering group was developing a sister-scheme to the Poseidon Principles, designed to apply to marine hull insurers.  This matter was discussed at the ICS Insurance Committee on 1st December. Although it is understood that design of the scheme is quite advanced and that individual insurers have been approached to consider becoming signatories, at present the technical details remain confidential and are not publicly available. It appears therefore that some further clarification is needed as to what the consequences would be for assured shipowners whose insurers endorse these new Principles. This matter is being further reviewed by the Insurance Committee, and may also result in an approach to GMF.

Any comments and questions on the above information or the attached Annex A policy brief may be directed to Georgia Spencer-Rowland, georgia.spencer-rowland@ics-shipping.org), with Chris Waddington, (chris.waddington@ics-shipping.org) in copy.