Central Bank of Latvia publishes third climate-related disclosures report adding Scope 3 emissions and reporting 73% equity portfolio carbon-footprint reduction

The Central Bank of Latvia published its third annual climate-related financial disclosures report for its non-monetary policy portfolios, covering the 2024 calendar year. The report follows the Eurosystem’s common stance on climate-related disclosures and the recommendations of the Task Force on Climate-Related Financial Disclosures, and describes how the bank assesses and manages climate-related risks in its investments. Updates include deeper integration of the bank’s Sustainability Strategy into investment decisions, with changes to the developed markets equity portfolio and the application of environmental, social, and governance (ESG) criteria to the emerging markets fixed income and global investment grade fixed income portfolios. For the first time, the disclosures include Scope 3 greenhouse gas (GHG) emissions and also revise earlier-year metrics where improved data are available; the bank reports a 73% reduction in the developed markets equity portfolio’s carbon footprint since the sustainability strategy was implemented in 2022 and an 11% increase in the emerging markets fixed income portfolio’s ESG score following the adoption of a new benchmark in 2024. The report also notes continued participation in the Network for Greening the Financial System and support for the Eurosystem’s climate policy work.