The Poseidon Principles provide a framework for assessing and disclosing the climate alignment of ship finance portfolios. To further enhance environmental, social, and governance (ESG) standards in the shipping industry, the Poseidon Principles Association has established the Future Principles Committee. This new committee will address emerging issues such as ship recycling, crew safety, gender equality, and biodiversity.

As the committee has only recently been formed, it will take time to set priorities, establish benchmarks, and determine how performance should be measured. The committee's first meeting is scheduled for next month, where members will discuss ways for financiers to monitor clients' commitment to safety and consider limiting lending to those who fail to meet required standards. For instance, favourable interest rates could be offered to those who adhere to established safety and ESG criteria.

Concerns are growing about the working conditions of seafarers, who often spend long periods in international waters without oversight from land-based authorities. For example, this year, some shipowners have continued to navigate through the Red Sea despite missile attacks by Yemen's Houthi militants. Additionally, during the COVID-19 pandemic, thousands of seafarers were stranded at sea with minimal support when countries closed their borders.

Focusing on crew welfare, the Future Principles Committee might prioritise areas such as safety, internet access, living conditions, and access to mental health support.

As regards gender diversity, only 2% of the world's 1.89 million seafarers are women. The industry is keen to attract more female seafarers and break down gender stereotypes, but it is crucial to ensure that efforts are made to prevent bullying and harassment at sea and to ensure that there is a consistent and improved approach to maternity benefits and rights.