This year’s Third Annual Disclosure Report from the Poseidon Principles for Marine Insurance (PPMI) marks a pivotal shift in climate reporting, underpinned by two significant methodological changes: alignment with the 2023 International Maritime Organization Strategy on Reduction of Greenhouse Gas Emissions from Ships (2023 IMO GHG Strategy), and the introduction of modelled data to calculate climate alignment calculations.
The update includes a shift to well-to-wake emissions accounting, broader greenhouse gas coverage, and updated decarbonisation trajectories, all of which set a higher benchmark for emissions performance. The two new decarbonisation trajectories (the 2023 IMO GHG Strategy – minimum and the 2023 IMO GHG Strategy – striving) follow the two IMO pathways to net-zero by or around 2050 compared to 2008 levels, at minimum reaching a reduction of 20%, but striving for 30% by 2030, and at minimum reaching a reduction of 70%, but striving for 80% by 2040.
Complementing this, the newly introduced modelled data pathway has transformed how climate data is gathered. It allows signatories to use third-party estimations to calculate emissions across their entire hull and machinery portfolios, addressing prior limitations of only relying on client-reported IMO DCS data. Eight of nine reporting signatories used modelled data in some capacity in climate alignment calculations. As a result, the most recent report achieved broader coverage and efficiency: “Using modelled data instead of client-reported data significantly simplifies the process, reduces the burden for our customers, and enables us to assess our entire portfolio.”
The report shows that climate alignment scores—now measured against the IMO’s updated 2023 GHG goals—averaged +20.8% (simple) and +24.8% (weighted) misalignment with the minimum IMO ambition, and +26.7% (simple) and +30.8% (weighted) misalignment with the striving IMO ambition. These results are not directly comparable with past years due to methodological changes, but offer a new baseline to track progress. As one signatory put it, “This shift provides a more comprehensive representation of our portfolio, establishing a fresh starting point with improved data and methodologies to support future efforts.”
The report also emphasises that emissions tracking is fast becoming standard practice. The shift to modelled data and updated benchmarks positions signatories and affiliate members to better support the decarbonisation goals of both the IMO and their clients, highlighting PPMI’s ongoing role in enabling transparency and data-driven sustainability in the sector.
Looking ahead, the PPMI Association is focused on fine-tuning the updated methodology after assessing learnings from this reporting cycle, along with further expansion of the membership. The enhanced framework offers not only a tool for compliance and risk management, but a shared language for driving decarbonisation across the sector.
If you’re interested in learning more or getting involved, contact the PPMI Secretariat at info@poseidonprinciples.org and explore the website here.
