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carbon emissions, the Poseidon Principles measure carbon-equivalent emissions from a well-to-wake perspective. This captures the full life cycle of marine fuels, from extraction and refining through to bunkering and combustion, and accounts for additional greenhouse gases beyond CO2. For financial institutions seeking a genuinely comprehensive view of environmental risk, this distinction matters. Why regulatory delays do not change the need for action A common temptation in times like these is to pause voluntary action and wait for clearer signals. This logic is understandable, but ultimately shortsighted. The IMO%u2019s 2023 GHG Strategy and its overarching goal remain in place: net-zero emissions from international shipping by or around 2050. For lenders and investors, this means that the ships being financed today will need to meet increasingly stringent emissions requirements over the course of their operational lives. Banks will strive to finance new alternative-fuel vessels as they come on stream; still, those providing debt capital cannot move faster than those responsible for supplying the new fuels and infrastructure needed to underpin them.The refinancing and retrofitting of existing vessels are equally important, with specialist upgrade funds now offering sale-and-leaseback structures on vessels demonstrating improved operational performance. This is where the Poseidon Principles framework adds particular value: providing signatories with the data-driven insights needed to help their clients navigate the complexity of the transition ahead. A vessel financed in 2026 may still be on the water in 2050. The decisions made now (dual-fuel capability, technologies installed, energy efficiency, etc.) will determine whether that asset remains commercially viable as the regulatory environment tightens, whether that is later this autumn or years down the track. Ignoring climate alignment today does not reduce future exposure; it makes mitigating risks harder. Climate-related initiatives, such as the Poseidon Principles, underscore the importance of transparent, continuous benchmarking. They provide a measurement framework that helps institutions and their clients understand where they currently stand and chart their own pathways forward. The goal is transparency and accountability, not ultimatums. This approach reflects a hard-won lesson from the first six years of operation: ambition must be balanced with practicality. Decarbonisation takes time and requires that the right infrastructure, fuels, regulations, and technologies be available at scale. Many signatories have found that progress begins with listening to clients, shipowners, and operators to understand the real constraints and opportunities at play. Transparency creates a common language for those conversations and a shared basis for decision-making. May 2026 229