Swedbank has recently embraced the Poseidon Principles, marking a step in integrating climate considerations into its ship finance lending decisions.
This initiative positions Swedbank as a proactive supporter and influencer in the shipping industry’s ongoing decarbonisation efforts. By adopting this global framework, Swedbank enhances its strategic approach towards sustainable finance, aligning with its broader environmental commitments.
The underlying reason for Swedbank’s new product – the adoption of the Poseidon Principles – is to bolster its capability in backing the shipping industry’s transition towards more sustainable operations. These principles serve as a pivotal standard, offering a uniform methodology for banks to collect and report on emissions within their shipping portfolios. Swedbank’s engagement with these principles underscores its dedication to facilitating and supporting the decarbonisation journey of the maritime sector.
Swedbank’s operational focus encompasses a wide array of financial services, including corporate banking, retail banking, and wealth management. By incorporating the Poseidon Principles into its ship finance portfolio, Swedbank extends its influence beyond traditional banking services, actively participating in global efforts to mitigate environmental impacts and promote sustainability within the shipping industry.
The product, in this context, refers to Swedbank’s strategic adoption of the Poseidon Principles. This initiative enables the bank to conduct a climate alignment assessment of its shipping portfolio, thereby ensuring its lending practices are in harmony with the decarbonisation targets of the shipping industry. It reflects Swedbank’s commitment to environmental stewardship and its role in pioneering sustainable finance solutions.
Swedbank’s adoption of the Poseidon Principles signifies its entry into an elite group of over 30 leading global banks, collectively managing approximately 80% of the world’s ship finance portfolio. This collaboration underscores the banking sector’s collective ambition to steer the shipping industry towards a more sustainable and carbon-efficient future.
In addition to joining forces with other major banks, Swedbank plans to complete and publish its inaugural climate alignment assessment in 2024, adhering to the Poseidon Principles. This move will provide transparency and demonstrate the bank’s progress in aligning its ship finance portfolio with global decarbonisation goals.
“We are happy to have signed the Poseidon Principles, the main reference for climate alignment of ship finance. This adds to the list of sectors in which the bank measures its environmental impact, furthering our commitment to helping our customers become more sustainable,” Swedbank Head of Group Sustainability Johanna Fager Wettergren expressed. Niels R. Bugge, Head of Ocean Industries at Swedbank, also remarked on the importance of the shipping industry for world trade and its superior CO2 efficiency, highlighting the ongoing decarbonisation journey and Swedbank’s enhanced capacity to influence this process as a signatory of the Poseidon Principles.
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