Financial sector signs memorandum of cooperation to promote sustainability

Finance Latvia Association, Financial and Capital Market Commission, Latvijas Banka, Nasdaq Riga, Latvian Leasing association and Latvian Insurers Association (LIA) have agreed to work together to raise public awareness of the concept and principles of sustainability and sustainable finance, as well as to promote their implementation in business environment and everyday life.

Sustainability is one of the most important challenges for the development of society in the coming decades. The financial sector has already accepted this challenge. Everyone should be aware that sustainability can be promoted not only by planning and investing, developing and modernising, but also by taking appropriate action on a daily basis. Transitioning to sustainable growth requires redefining public attitudes, consumer culture, and the entire perception of the world.

Sanita Bajāre, Chairwoman of the Board of the Finance Latvia Association

In addition to raising awareness among financial institutions and supporting them in reducing the climate change-related risks, the Financial and Capital Market Commission has included in its priorities for 2021 a number of action lines that promote open negotiations with financial market players to agree on the action plan for achieving the sustainability goals, focusing on climate risk management and sustainable financial opportunities. Our common long-term economic objective must ensure that every financial decision is made with climate, environmental and social considerations in mind.

Santa Purgaile, Chairwoman of the Financial and Capital Market Commission

The Latvian financial sector is clearly aware that sustainability is here to stay, and the level of income and quality of life in Latvia will be determined by how quickly and efficiently the Latvian economy will transition to a model that embraces the principles of sustainability. The introduction of the principle of sustainability in all areas of our lives is as important an event as the introduction of the euro once was, which allowed us to successfully survive the geopolitical and economic challenges. Strengthening the sustainability mindset is an opportunity to leave a better Latvia for future generations.

Mārtiņš Kazāks, Governor of Latvijas Banka

The European Union (EU) has developed the “Green Deal” aimed at making the EU’s economy sustainable. Its implementation requires the state and financial institutions to work closely together, as well as it requires representatives of the financial industry to have a common understanding of the measures to be taken to ensure successful and sustainable transformation of the national economy.

Our challenge is to show, not only in words, but also in actions, that the Green Deal is a long-term goal of society, not a short-term trend. This memorandum, approved by the entire financial sector, is a very important sign of commitment, but it will be much, much more important and also more difficult to implement the principles of the memorandum in day-to-day activities of each company and institution. Everyone’s attitude and actions that can influence positive changes are important.

Jānis Abāšins, President of the LIA

Sustainability is and is becoming an increasingly important part of a company’s business strategy. Not only investors demand it, but also the public, expecting more openness and awareness on these issues.

Daiga Auziņa-Melalksne, Chair of the Board of Nasdaq Riga

Signet Bank welcomes the industry initiative and is thrilled to take part in it, but there is still a long way ahead to achieve the set sustainability goals. It requires collective cooperation, transformation of mindset, habits and priorities, the success of which depends, firstly, on understanding and recognising why it is important, and secondly, on motivation and leadership. The financial sector can be an important driver in promoting change. Being aware of this, we too are building a culture of sustainable thinking in our company to further integrate it into the Bank’s operations, services and customer relations.

Nora Pastore, Head of Business Development at Signet Bank

The implementation of the principles of sustainable finance will have a significant impact on the development of financial services, business, transport, agricultural and other sectors in the coming years. Financial service providers will have to adapt their products and services to the new requirements by integrating them into sustainability risk models, develop data collection infrastructure and appropriate IT solutions. At the same time, financial institutions must be prepared to support their clients, especially businesses, in this transformation process, as well as set an example to other industries, which is what representatives of the financial sector have committed to do.

The bank was founded in 1992 as Latvijas Biznesa banka. Since 2013, it has focused its strategy on servicing entrepreneurs and their businesses, with an emphasis on high-quality capital maintenance and structured investment projects. Signet Bank’s majority shareholders are a group of Latvian and international investors, which includes SIA Hansalink, SIA Fin.lv, and Signet Acquisition III.