The Poseidon Principles released its sixth Annual Disclosure Report on 15 December 2025, showing that ship‑finance lenders are narrowing the gap with the International Maritime Organization’s (IMO) net‑zero pathways. The report, based on data submitted by 36 signatories across 14 countries, indicates that the group now covers roughly three‑quarters of the world’s shipping‑finance portfolio – a share comparable with the 80 % coverage reported for 2024 poseidonprinciples.org.
Key findings from the 2025 report
• Transparency reached a new high: 29 signatories disclosed at least 90 % of their in‑scope loan book, and nine achieved full (100 %) coverage. The average disclosure rate rose to 95 % of eligible activity, up from 93 % in 2024.
• Climate alignment improved despite tighter IMO targets. Misalignment against the “minimum” trajectory fell from just over 19 % to just under 12 %, a gain of roughly eight percentage points. Against the “striving” trajectory, misalignment slipped from 25 % to just over 18 %.
• Sector‑specific progress was strongest in cargo vessels, where misalignment dropped from 14 % to 6 %, and in passenger ships, which moved from 38 % to 26 %.
These advances were driven by higher‑efficiency retrofits, greater uptake of low‑emission fuels, and the financing of dual‑fuel vessels. The report also notes that methodological tweaks—such as the inclusion of well‑to‑wake emissions—affected score calculations, as did external factors like longer rerouting distances caused by supply‑chain disruptions.
Financial market implications
Bank‑level exposure to shipping finance remains material. Citi, Societe Generale, and other signatories collectively hold loan exposures exceeding $120 billion, according to their latest interim reports. Citi’s shares have outperformed the S&P 500 by 2.3 percentage points over the past twelve months, a performance partly attributed to its leadership in sustainable financing bloomberg.com. The growing share of sustainability‑linked loans—now accounting for roughly 15 % of new shipping credit contracts—signals that investors are rewarding banks that can demonstrate climate‑aligned portfolios.
Expansion of the Poseidon network
The Principles will now offer associate membership to private‑equity firms, hedge funds and capital‑markets underwriters. While associate members are not required to report emissions data, they will be obliged to adopt the same climate‑risk assessment framework when underwriting maritime projects. This move is expected to broaden the pool of capital that evaluates emissions performance, extending the transparency umbrella beyond traditional lenders.
“The Poseidon Principles Annual Disclosure Report has become a vital pulse check for the industry,” said Michael Parker, Chair of the Poseidon Principles and Chairman of Global Shipping & Logistics at Citi. “By opening Associate Membership to any institution providing or arranging capital for the maritime sector, we are broadening the lens through which climate considerations can be directly integrated into financing decisions.” poseidonprinciples.org
IMO decarbonisation targets in context
The IMO’s 2023 revised greenhouse‑gas strategy tightened its interim milestones, requiring a 40 % reduction in carbon intensity by 2030 and a 70 % cut by 2040, before reaching net‑zero around 2050. Shipping currently accounts for about 2.5 % of global CO₂ emissions, according to the International Energy Agency. Achieving the “minimum” trajectory therefore requires a cumulative investment of roughly $250 billion in fuel‑switching and efficiency upgrades, a figure echoed in a recent World Bank analysis of maritime decarbonisation financing needs.
Analyst perspective
Moody’s Investors Service noted that the sharper alignment scores “reduce the credit‑risk premium for banks that can demonstrate a credible pathway to IMO compliance.” Similarly, a S&P Global Market Intelligence briefing highlighted that lenders with Poseidon alignment scores in the top quartile enjoy an average 15‑basis‑point cost‑of‑funds advantage over peers lacking comparable disclosures.
For investors, the expanding transparency provides a clearer signal of which maritime assets are likely to remain viable under stricter carbon regulations. Companies that fail to secure financing from Poseidon‑aligned institutions may face higher borrowing costs or be excluded from green‑bond programmes, potentially eroding market share.
What this means for the industry
The incremental improvement in alignment scores demonstrates that financial discipline can complement technical solutions in the race to decarbonise shipping. With the Poseidon Principles now encompassing a broader swath of the capital market, the next wave of financing is expected to embed lifecycle emissions data directly into loan covenants. As regulators worldwide tighten carbon‑pricing mechanisms, banks that have already built robust emissions‑assessment capabilities will be better positioned to manage risk and capture opportunities in the emerging low‑carbon maritime ecosystem.
For a deeper dive into the financial implications of maritime decarbonisation, read more on Globally Pulse Business.
