Latvijas Banka Cuts Carbon Footprint 59%
Key Takeaways
Latvijas Banka releases its second Climate-Related Disclosures Report, detailing its commitment to environmental, social, and governance (ESG) issues.
The report shows progress in reducing the carbon footprint of the developed markets equity portfolio by 59%.
Improved ESG score in the emerging market fixed income portfolio demonstrates a shift towards sustainable investments.
It aims to inspire the Latvian financial sector to prioritise sustainability.
Latvia's central bank, Latvijas Banka, has released its second Climate-Related Disclosures Report. This report indicates the bank's consistent commitment to transparency and accountability in sustainability.
It provides information about Latvijas Banka's governance, strategy, risk management processes, and how it manages climate-related risks in its non-monetary policy portfolios.
"The release of this second disclosures report underlines Latvijas Banka's dedication to sustainability, transparency, and sound governance," stated Mārtiņš Kazāks, Governor of Latvijas Banka. "This report reflects our ongoing efforts to provide the public with a clear and comprehensive understanding of our activities."
Latvijas Banka and Sustainable Investing
The report shows Latvijas Banka's progress in reducing the carbon footprint of its developed market equity portfolio. Compared to 2022 data, the carbon footprint dropped by an additional 22% in 2023, resulting in a total reduction of 59% since the implementation of the sustainability strategy.
The report also reveals positive developments in the emerging market fixed income portfolio. Due to a change in the benchmark index, the portfolio's ESG score improved by 13%, rising from 46 at the end of March 2024 to 52 at the end of April 2024.
Latvijas Banka: A Leader in Sustainable Finance
"Latvijas Banka is committed to contributing to global efforts to address challenges such as climate change, biodiversity conservation, and inequality," said Mārtiņš Kazāks. "We recognize that by addressing climate-related and broader sustainability challenges, we can create long-term value for our society, contribute to a more sustainable future, and inspire the entire Latvian financial sector to follow suit."
Latvijas Banka's disclosures align with a coordinated effort among all Eurosystem central banks. They are working together to publish climate-related financial disclosures on their euro-denominated non-monetary policy portfolios. This effort uses a common framework with minimum reporting requirements based on the Task Force on Climate-related Financial Disclosures recommendations.
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Source: Latvijas Banka
