Latvijas Banka Publishes Annual Climate-Related Financial Information Report

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Latvijas Banka has published its annual climate-related financial information report for non-monetary policy portfolios, reaffirming its commitment to ensuring transparency, sustainability, and the inclusion of climate change considerations in investment practices.

The report, which covers the 2025 calendar year, has been prepared in accordance with the Eurosystem's common stance on climate-related information disclosure and the recommendations of the Climate Financial Information Disclosure Working Group. It provides a comprehensive overview of Latvijas Banka's progress in managing climate-related risks within its investment portfolios. It reflects Latvijas Banka's continuous efforts to align investment strategies with the objectives of the Paris Agreement and the European Union's climate neutrality goals.

The 2025 report primarily highlights the following developments.

Broader integration of sustainability principles . Latvijas Banka has continued to integrate sustainability strategies into investment decision-making, updating the strategy for its developed market equity portfolio and adjusting natural resources, pollution, and waste thematic factors in its portfolio guidelines.

Improved climate indicators . The financial information report has been expanded to include relative Scope 3 greenhouse gas emission data for non-government issuers. This provides a more comprehensive overview of Latvijas Banka's investment carbon footprint. With updated climate and financial data availability, Latvijas Banka also provides updated indicators for previous years.

Significant reduction in carbon footprint . Since the implementation of the sustainability strategy in the developed market equity portfolio in 2022, the carbon footprint in that portfolio has decreased by 75%. This reflects the effectiveness of Latvijas Banka's decarbonization efforts.

Commitment to ensuring cooperation and achieving EU climate neutrality goals . Latvijas Banka continues to support the Eurosystem's climate policy and strives to ensure that its managed non-monetary policy portfolios comply with the action plan supporting the Paris Agreement objectives and EU climate neutrality goals. Latvijas Banka is actively involved in the work of the Network for Greening the Financial System and participates in the development of best practices in the field of sustainable finance.

Mārtiņš Kazāks President of Latvijas Banka

"The role of the financial sector in the green transition is broader than mitigating harm. It should support the reallocation of capital in favor of sustainable outcomes. Latvijas Banka continues to strengthen the analytical basis that can enable more meaningful reallocation. Four years have passed since we began publishing climate-related financial information reports, and what we have achieved is encouraging—a significant reduction in the carbon footprint of our equity portfolio, an improved environmental, social, and governance (ESG) profile for fixed-income investments, and a consistently expanded disclosure framework. However, we recognize that transparency alone is not enough. Ultimately, what matters most is whether our investment decisions help redirect resources toward a more resilient low-carbon economy. There is still much to be done in this area. We are committed to continuing these efforts honestly and openly."

2026 Latvijas Banka Non-Monetary Policy Portfolios: Climate-Related Information Disclosure (Full Report)