2025-06-12
Today Lietuvos bankas published the Climate-related disclosures of Lietuvos bankas’ non-monetary policy portfolios for 2024. The report provides information on Lietuvos bankas’ contribution to the EU’s climate neutrality objectives and the transition to a low-carbon economy.
Lietuvos bankas seeks to make its non-monetary policy-related financial assets climate neutral by 2050 at the latest. Interim climate change-related targets have also been set for equity investments. The aim is to reduce the weighted average carbon intensity (WACI) for equity investments by 30% by the end of 2025, compared to both the selected 2020 baseline value of the WACI for Lietuvos bankas’ financial assets, and the weighted average carbon intensity of the market (equity index for developed countries).
“After the sustainability strategy was introduced in 2022, the WACI indicator for Lietuvos bankas’ equity investments has already fallen by 54% and improved by 29% compared to the benchmark. The possibility of setting interim targets for other asset classes is currently being considered,” says Marius Ignotas, Director of the Market Operations Department of Lietuvos bankas.
With the Paris Agreement, EU countries aim to make the EU a climate-neutral economy and society by 2050. In addition, the EU has committed to reducing GHG emissions by 2030 by at least 55%, compared to the 1990 level.
With a view to achieving these long-term objectives, the financial asset management policy of Lietuvos bankas provides that the investment of foreign reserve assets would be aimed at reducing climate change-related risks, where this is not contrary to the basic principles of investment security, liquidity and return.
The report published by Lietuvos bankas on 12June is part of the Eurosystem’s joint disclosure of climate-related financial information. Lietuvos bankas and the Eurosystem are committed to addressing climate change by managing climate-related risks, supporting an orderly transition to a carbon-neutral economy, and reducing environmental impact.
The published report is structured around the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), covering four pillars: governance, strategy, risk management, as well as indicators and targets. Three key indicators are used, including the weighted average carbon intensity, total carbon emissions and carbon footprint.
Lietuvos bankas, the ECB and other central banks of the Eurosystem publish climate change-related reports annually. You can find Lietuvos bankas’ report here.