Poseidon Principles for Marine Insurance come into force
As one of the founding members of the Poseidon Principles for Marine Insurance (PPMI) – which entered into force on April 27 this year - Norwegian Hull Club strengthened its commitment to its clients’ journeys towards zero emissions.
The PPMI are a framework for assessing and disclosing the climate alignment of Hull and Machinery insurance portfolios. They create common global baselines that are consistent with -and supportive of - society’s goals to better enable insurers to manage their portfolios in terms of environmental impacts. The objective of the principles is to use knowledge of portfolio climate alignment in order to guide and support marine insurance clients on how to adopt and align their business in their green transition.
An industry-driven initiative towards a greener tomorrow
Norwegian Hull Club expects to see – and welcome - an increased focus on transparency and sustainability. The Club aims to be a trusted companion on its clients’ sustainability voyages. To succeed in hitting the goal of a maximum 1.5°C temperature rise above pre-industrial levels, all industry players must engage and take responsibility to gain insight and for taking the necessary actions. Our industry has seen a massive shift in focus over the past few years; cooperation and movement within and across industries for a sustainable future make us optimistic.
Acknowledging the importance of industry players as driving forces for a sustainable future, Norwegian Hull Club is proud to be a signatory to PPMI and to take part in its development. As a signatory, The Club has committed to measure and disclose the carbon intensity of its Hull and Machinery portfolio on an annual basis. The PPMI are consistent with the policies and ambitions of IMO and take steps toward alignment with the Paris Agreement.
‘Transparency is key’
The CEO of Norwegian Hull Club, Hans Christian Seim, said: “We are convinced that increased transparency is key on the road towards a more sustainable future for all. Norwegian Hull Club is therefore dedicated in its support for more openness that will provide the industry with the greater knowledge and insight necessary to make informed decisions and choices for the future.
“Going forward, we believe that we will experience more regulations together with higher expectations from governments, clients, reinsurers and other industry players. Through initiatives like this, driven by the industry, we are taking an active part in forming the future and we will use our position to help influence the industry in the right direction.”
Many of Norwegian Hull Club’s clients have already taken major steps towards their green transitions. This comes with both new, unknown risks and great opportunities. We encourage cooperation across the industry regarding knowledge sharing and will seek client initiatives for experience transfer as the transition progresses and they continue to increase their know-how. Norwegian Hull Club is committed to following its clients on their sustainability voyages and will strive to develop insurance solutions that take the transitions into account, whether it arises from technical development or new regulations.
Practical information regarding the data collection process
This year, we will collect emission data on vessels insured by Norwegian Hull Club as a Hull & Machinery claims leader on 1st October 2021. The data reported for PPMI calculations is the same as shipowners report to the IMO Data Collection System (DCS). The Club has appointed IHS Markit to collect the data on our behalf. IHS Markit will reach out to owners directly, meaning our collection process will not involve brokers or our contacts with the shipowners.
Although this year’s reporting will be voluntary for most clients, we hope for broad support of this initiative and that as many as possible will contribute. Going forward, The Club will include a PPMI clause in all Hull & Machinery claims lead policies that warrants the disclosure of the emission data. The details of the vessel and fleet reporting will be treated confidentially, while the results on portfolio level will be presented in a disclosure report similar to what has been produced for the banks that have signed up for the Poseidon Principles.
Last year’s report for the banks is available at: https://www.poseidonprinciples.org/finance/wp-content/uploads/2021/12/Poseidon-Principles-Annual-Disclosure-Report-2021.pdf