Sumitomo Mitsui Trust Bank first Asian member of Poseidon Principles

The Poseidon Principles were launched last year in a drive to promote greener global shipping with environmentally sound financing.

SMTB is the 18^th financial institution to sign up to the principles and the first bank in Asia, with all the other members to date being western financiers.

“Through becoming a signatory of the Poseidon Principles and as a member of the maritime cluster, SuMi TRUST Bank will continue to support its clients’ business activities and to contribute to shape a better future for the shipping industry and our society,” SMTB said.

Michael Parker, chairman of Global Shipping Logistics & Offshore at Citi and chair of the Poseidon Principles Association, commented: “Financial institutions play an important role in promoting maritime shipping’s transition to a low carbon economy. SMTB is leading by example by becoming the first Asian bank to sign on to the Poseidon Principles.”

He is hopeful the move will encourage other Asian financial institutions to join. “Asia is a major centre for ship finance, and the decision by SMTB will encourage other Japanese and Asian financial institutions to follow their lead in the coming months.”

The largest growth area in ship financing in recent years has been Chinese financial leasing.

Related:The Poseidon Principles and a 'green transformation' of shipping

The Poseidon Principles now claim their signatories represent over $150bn in loans to international shipping – more than a third of the global shipping finance portfolio.