The Central Bank of Latvia has released its third annual climate-related financial disclosures report for its non-monetary policy portfolios, covering the 2024 calendar year. Prepared in line with the Eurosystem’s common stance on climate-related disclosures and the Task Force on Climate-Related Financial Disclosures recommendations, the report describes how climate considerations are being embedded in investment decision-making and how climate-related risks and metrics are being monitored across portfolios. Key updates include further integration of the bank’s Sustainability Strategy, with changes to the developed markets equity portfolio and the application of environmental, social and governance criteria to the emerging markets fixed income portfolio and global investment grade fixed income portfolio. The report adds Scope 3 greenhouse gas emissions for the first time and updates prior-year metrics as improved data become available. It also 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 adoption of a new benchmark in 2024 and reallocation toward issuers with stronger ESG ratings.
Central Bank of Latvia 2025-02-07
Central Bank of Latvia publishes third climate-related disclosures report adding Scope 3 emissions and reporting a 73% equity portfolio footprint cut
The Central Bank of Latvia released its third annual climate-related financial disclosures report for non-monetary policy portfolios, detailing 2024 activities. Updates include enhanced integration of the Sustainability Strategy, significant changes to equity and fixed income portfolios, and the addition of Scope 3 emissions data. Notably, the developed markets equity portfolio's carbon footprint decreased by 73% since 2022, and the emerging markets fixed income portfolio's ESG score rose by 11% after adopting a new benchmark in 2024.