Swedish lender Swedbank has signed up to the Poseidon Principles group of banks encouraging the decarbonisation of shipping.
The number of signatories is now 35.
Lenders commit to measuring and reporting the carbon intensity of their loan portfolios.
The grouping now covers more than 80% of the global ship finance book.
“We are proud and happy to have signed up to the Poseidon Principles, the main reference for climate alignment of ship finance,” Swedbank’s head of group sustainability Johanna Fager Wettergren said.
“This adds to the list of sectors in which the bank measures its environmental impact, further strengthening our commitment to helping our customers become more sustainable,” she added.
Founded more than 200 years ago, Swedbank’s roots are firmly planted in the history of Sweden’s savings banks and its cooperative agricultural bank tradition.
The lender has 600,000 corporate clients in Estonia, Latvia, Lithuania and Sweden.
“The Poseidon Principles are pleased to welcome Swedbank as their 35th signatory,” chairman Michael Parker said.
Parker, who is also chair of global shipping, logistics and offshore at Citi, added: “Evolving our framework in line with the IMO revised strategy encourages the expanded participation of financial institutions worldwide. Swedbank’s own sustainability agenda exemplifies this commitment.”
Improving scores
In December, the Poseidon Principles said lenders improved emissions-reduction scores in 2023, but uncertainty remained over net-zero targets and reporting methodology.
The group called 2023 a “pivotal year” and said its alliance was a “driving force for change”.
The fourth annual report, released just after the COP28 gathering in Dubai concluded, showed the portfolio average score was 2% above the trajectory needed to meet the International Maritime Organization’s initial goal of a 50% cut in greenhouse gas emissions by 2050.
This was a significant improvement from 9.7% above in 2022.
Swedbank strengthened its Nordic shipping reach through a strategic partnership in Norway with SpareBank 1 SR-Bank in 2022.
The maritime specialists aimed to build their ocean industries business together, including boosting financing of environmentally friendly vessels.
The two sides said that the partnership would be built on a shared commitment to sustainable growth to enable improved services for corporate clients in Sweden and Norway.
Part of the deal was the transfer of a portfolio worth NOK 5.6bn ($562m) by Swedbank to SpareBank.
This consisted of shipping, renewables and property loans.
A Swedbank spokesman told TradeWinds less than a third of the amount was shipping and offshore related.
