Full Title: Discussion: Adapting The Poseidon Principles For NZBA-Compatible Target Setting
Author(s): Oscar Hernandez, Samuel Kooijmans, James Mitchell, and Katie Mulvaney
Publisher(s): Rocky Mountain Institute
Publication Date: April 21, 2024
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Description (excerpt):
The purpose of this paper is to provide recommendations and clarifications for adapting the Poseidon Principles’ climate alignment assessment methodology for Net-Zero Banking Alliance (NZBA)–compatible shipping portfolio target setting. Recommendations and clarifications are given in three areas: target metrics, financial scope and methodology, and scenario selection. Incorporating some of the recommendations of this paper into bank target-setting efforts may require further work by banks, their clients, and others.
It is acknowledged at the outset that NZBA published updated target setting guidelines in March 2024. This paper references version one of the guidelines because only these were available at the time of writing. Footnotes have been added where necessary to ensure that the recommendations of this paper are accurate to version two of the guidelines. This paper is not intended to supplant the Poseidon Principles, the NZBA Target-Setting Guidelines and Supporting Notes (hereafter NZBA Guidelines), or any other framework. RMI supported the development of the Poseidon Principles and serves as a technical advisor to the Poseidon Principles Association today.