Introduction to Climate-Related Disclosures
The report, which covers the 2024 calendar year, is prepared in line with the Eurosystem’s common stance on climate-related disclosures and the recommendations of the Task Force on Climate-Related Financial Disclosures. It offers a comprehensive overview of Latvijas Banka’s progress in managing climate-related risks across its investment portfolios and reflects Latvijas Banka’s efforts to align its investment strategies with the objectives of the Paris Agreement and the European Union’s climate neutrality goals.
Key Developments and Progress
Among the key developments highlighted in the 2025 report is a significant reduction in the carbon footprint of its portfolios. The developed markets equity portfolio has achieved a 73% reduction in its carbon footprint since the implementation of its sustainability strategy in 2022, demonstrating the effectiveness of Latvijas Banka’s decarbonisation efforts.
Statement from the Governor of Latvijas Banka
Mārtiņš Kazāks, Governor of Latvijas Banka, commented:
"Climate change is not a distant threat – it is a present-day challenge that demands urgent and coordinated action. At Latvijas Banka, we are committed to doing our part by integrating sustainability into our investment decisions and by promoting transparency. The transition to a low-carbon economy will reshape industries and societies, and we must ensure that finance plays a constructive role in this transformation. Our children will live with the consequences of our choices today, and we must act responsibly and decisively."
Access to the Full Report
The full report is available on Latvijas Banka’s website, providing detailed information on the bank’s climate-related disclosures and progress towards a more sustainable future.
Conclusion
In conclusion, Latvijas Banka’s report highlights the bank’s commitment to addressing climate-related risks and reducing its carbon footprint. The significant reduction in the carbon footprint of its portfolios demonstrates the effectiveness of the bank’s sustainability strategy. As Governor Mārtiņš Kazāks emphasized, climate change requires urgent and coordinated action, and Latvijas Banka is playing its part in promoting transparency and integrating sustainability into its investment decisions. The bank’s efforts serve as a model for other financial institutions to follow in their pursuit of a low-carbon economy.
