Citadele Bank’s subsidiary and pension manager, CBL Asset Management, has joined the United Nations-supported Principles for Responsible Investment (PRI) declaration. Thus CBL Asset Management becomes the first pension management company based in Latvia to join the organisation and will operate in accordance with responsible investment principles. This means that, when evaluating investments, CBL Asset Management will integrate environmental, social and governance considerations going forward.
“The assets saved in pension funds are some of the largest assets in the global economy. Where and how these assets are invested significantly affects how business develops worldwide and what consequences it leaves on the environment and society. By signing this declaration, we join the United Nations-supported Principles for Responsible Investment investor initiative, which is the world’s leading organisation for investors who implement and promote responsible investment practices,” explains CBL Asset Management Chairman of the Board Kārlis Purgailis.
“The times are long past when we took into account only financial results and prognoses when evaluating whether a business was creditworthy and we could invest in it. As we continue to develop our asset management processes, we see that it is increasingly important to evaluate whether a business is sustainable not just financially, but also environmentally, socially and within its governance. Worldwide examples and studies confirm the direct effect of broader sustainability factors on financial results and the resulting value of the investment,” emphasizes Purgailis.
Principles for Responsible Investment (PRI) CEO Fiona Reynolds commented: “The PRI is very pleased to welcome CBL Asset Management as a signatory. In joining PRI, CBL Asset Management is demonstrating leadership in the Latvian market its commitment to considering ESG factors in investing. We look forward to working with the organisation.”
By signing this declaration, CBL Asset Management commits to six principles of responsible investment, meaning that the company will now give additional weight to its analysis of environmental, social and governance (ESG) considerations when evaluating and selecting which companies to invest in, as well as promoting this practice within the industry.
“Evaluating investments using ESG factors is like a safety buffer for the future, because the risks linked with a business are more widely investigated. Companies’ non-financial information, such as whether a business poses risks to the environment, whether they are giving enough consideration to the risks posed by climate change, whether they act adequately towards their employees, or whether the company has an independent Supervisory Board, is given additional weight. Many other environmental, social and governance factors are also evaluated, according to the specifics of each company,” adds CBL Asset Management’s Financial Market Analyst and Sustainable Investment Expert Evija Tambaka.
As reported, CBL Asset Management created a pension plan this May, the CBL Sustainable Opportunity Investment Plan, which is Latvia’s first plan in which pension savings are invested in businesses which are sustainability leaders in their industries. Savers can apply for the new pension plan through pensija.lv, Latvija.lv and in VSAA branches.
About CBL Asset Management
Citadele Bank’s subsidiary, IPAS CBL Asset Management, is one of the leading and most experienced financial asset management companies in the Baltics. It has been managing investment portfolios since 2002. Meanwhile, in 2003, it became one of the first in Latvia to manage level 2 pension savings. CBL Asset Management has the largest team of managers in Latvia, which regularly analyses the financial and capital market and macroeconomic trends, investing pension savings in both large international and local Latvian businesses, as well as in the bonds of various countries.