By adhering to the Poseidon Principles, SACE, the Italian Export Credit Agency (ECA) led by Pierfrancesco Latini, commits to monitoring the greenhouse gas emissions of its shipping portfolio – which is particularly important for the company’s export credit business - in order to ensure compliance with the decarbonization targets set by the International Maritime Organization (IMO).
The Poseidon Principles are the first global framework for financial institutions related to the climate alignment of ship finance portfolios. Adherence to the Poseidon Principles is part of SACE’s sustainability process and follows the adoption of a Climate Change Policy and other initiatives described in the Sustainability Report.
The Poseidon Principles promote the signatories’ assessment and disclosure of the alignment of their ship finance portfolios with the IMO’s goal of reducing greenhouse gas emissions of at least 50% by 2050 compared to 2008 levels for ships over 5,000 tons. In practice, every year, SACE will measure the carbon intensity of the ships in its portfolio and, together with the other signatories, will disclose climate alignment figures in order to promote transparency and accountability in the sector.
As set forth in the Simplification Decree of July 2020, SACE’s commitment to sustainability also includes effective support to Italy’s Green New Deal. Green guarantees covering up to 80% of loans for domestic projects will facilitate the transition to a greener economy, integrating production cycles with low-emission technologies and promoting smart mobility initiatives.
As part of this new line of business, SACE has already issued guarantees worth approximately €1.4 billion for projects intended to promote the country’s green transition. This figure is expected to grow over the next few months, thanks to various transactions, including in cutting-edge technological sectors, which the company is currently considering. The projects under evaluation will reconvert industrial processes to reduce waste and polluting emissions, support circular economy and smart mobility, and producing energy from renewable sources, such as solar and wind.
In addition, SACE has adopted a Climate Change Policy to reduce support to greenhouse gas emissions. Specifically, the policy introduces a ban on coal-fired power plants and on extraction, production and transportation of thermal coal, as well as transactions in the oil&gas industry that involve the use of routine flaring and fracking.
“Sustainability - commented SACE’s Chief Executive Officer Pierfrancesco Latini - is more and more at the core of SACE’s strategy. The adhesion to the Poseidon Principles which apply to a strategic sector for the Italian economy, such as the shipbuilding industry, shows that business and sustainability must go hand in hand. We pursue our mission to support the country’s green transition with great commitment and determination, acknowledging the importance of our role as part of Italy’s Green New Deal and in the framework of Italy’s National Recovery and Resilience Plan. In this respect, SACE’s support to investments and projects will be a potential driver for both public and private sector resources”.