Daily Management Review

New ‘Shipping Finance’ Chairman Of Citigroup To Take Forward ‘Poseidon Principles’


Citigroup’s planned transition turns its focus on environmental commitments.

Source: flickr.com; (CC BY 2.0)
Source: flickr.com; (CC BY 2.0)
Michael Parker, a “veteran shipping finance banker” of Citigroup gets appointed as the chairman of “shipping & logistics business” of the bank. As per Citi’s information, Parker’s responsibility will also include strengthening of bank’s focus on environment.
In the month of June Citi signed up for the “Poseidon Principles”, which puts forth some “environmental commitments” and a “group of leading banks” have joined Citi for the same. Through this commitment, for the first time attempts will be made to integrate the CO2 emission reduction efforts with the decision making of banks especially during loan sanctions to shipping companies.
This initiative shows that corporate bodies are responding to investors’ moves around the world concerning “environment, social and governance (ESG) risk” related issues and combining them into “their commercial strategy”.
2.2% of global CO2 emission is resulted through international shipping, while the “International Maritime Organization” of the United Nations has established a “long-term goal” of cutting down “greenhouse gas emissions” by half from its 2008’s figures by the year of 2050. In Parker’s words:
“As the IMO progresses its agenda, we will look to adapt our policies for shipping in line with that and the evolution of the Poseidon Principles”.
The Citigroup holds a “lending portfolio of around $11 billion” and secures a place amid the “major shipping finance banks” across the globe. According to a statement from Citigroup:
“As chairman Michael will remain actively involved in senior client relationships and overall strategy as well as Citi’s sustainability and ESG agenda with the industry given his role as chairman of the drafting committee of the Poseidon Principles”.
“This is a planned transition as a consequence of Michael stepping up to a full-time role as chairman EMEA Corporate Banking for Citi.”