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LR JOINS ZERO-CARBON MARINE INSURANCE PROJECT

LR JOINS ZERO-CARBON MARINE INSURANCE PROJECT

Thursday, December 16, 2021 

Six leading marine insurers, supported by a drafting committee which includes Lloyd’s Register (LR), have launched a ground-breaking initiative to provide transparency on carbon emissions and support the shipping industry’s green transition.

The project, known as the Poseidon Principles for Marine Insurance, is a framework to quantitively assess and disclose the climate alignment of marine insurers’ underwriting portfolios. This pioneering initiative makes marine insurance the first line of business to establish a sector-specific methodology to support the ambition of the Net-Zero Insurance Alliance (NZIA), where members commit to transitioning their underwriting portfolios to net-zero GHG emissions by 2050, consistent with a maximum temperature rise of 1.5°C above pre-industrial levels by 2100, in order to contribute to the implementation of the COP21 Paris Agreement.

Founding Signatories include Swiss Re, Gard, Hellenic Hull Management, SCOR, Victor International, and Norwegian Hull Club. Founding members and the drafting committee supporting the Principles include LR, A.P Moller – Maersk, Cefor, EF Marine, Global Marine and Willis Towers Watson.

Signatories to the Poseidon Principles for Marine Insurance commit to assessing and disclosing the climate alignment of their hull and machinery portfolios, and to benchmarking them against two trajectories: one linked to a 50% reduction of annual CO2 emissions by 2050 compared to 2008 – in line with the IMO Initial GHG Strategy; and one linked to a 100% reduction of emissions by 2050. Furthermore, a third trajectory will be introduced to align the full decarbonisation trajectory with zero-lifecycle GHG emissions in order to meet the ambition of net-zero commitments such as the NZIA, and to support a zero-emissions future for shipping.

Brokers, clubs, and other key stakeholders in marine insurance commit to supporting the Principles as affiliate members and align with the goal of decarbonising international shipping by 2050.

Nick Brown, LR CEO, said: “Lloyd’s Register has been involved with the Poseidon Principles from the very beginning and we’re proud to provide independent expertise and advice to support the development of this new framework for marine insurance. This is a significant milestone for maritime – providing the marine insurance industry with a framework that will effectively support the acceleration of maritime decarbonisation.”

LR, the sole classification society to be part of the framework, supported the development and initial launch of Poseidon Principles in 2019. The Poseidon Principles for Marine Insurance are founded on the methodology used in the Poseidon Principles for Financial Institutions and were developed in an effort spearheaded by leading marine insurers and industry stakeholders with expert support provided by the Global Maritime Forum, Swiss Re Institute, and UMAS. The International Union of Marine Insurers (IUMI) is a supporting partner.

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