Banks, Financial Services, Funds, Latvia, Pensioners
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Thursday, 25.04.2024, 01:25
First Pension Plan Created in Latvia Which Invests in Industries’ Most Sustainable Businesses
The new pension plan, “CBL Sustainable Opportunity
Investment Plan”, has also been published on the manapensija.lv site, and
anyone can apply.
This pension plan differs from others with its investment
strategy. When evaluating whether to invest a share of pension savings in the
assets of a business, CBL Asset Management’s investment experts analyse not
only the financial results of this business, but also its environmental, social
and corporate governance, or sustainability aspects, such as the business’
environmental policy, whether the business sufficiently acknowledges the risks
of climate change, and whether they behave responsibly towards employees and
the local community among others.
“In our daily lives, we are used to thinking about
protecting the environment by purchasing products made of
environmentally-friendly materials or which are not tested on animals. But,
before now, sustainable finance has rarely been discussed in Latvia. Now we can
take care of the sustainable development of our world by choosing a pension
plan in which assets are invested in businesses which behave responsibly
towards the environment, natural resources and society,” explains CBL Asset Management Chairman of the
Board Kārlis Purgailis.
“Even from a profitability point of view, it is becoming
increasingly important to evaluate whether a business in which we are planning
to invest is sustainable. Worldwide precedents and studies confirm the direct
effect of sustainability on the business’ financial results and thus investment
value. We can take a simple example: by not paying sufficient attention to
environmental risks, a business can prompt a local-level environmental
disaster, which will negatively impact the share price of this business and
thus also the pension plan participants’ savings. When we invest in businesses
which pay increased attention to the sustainability of their actions, we can
significantly decrease risks,” says Purgailis, adding: “now, when selecting a
pension plan, each of us can influence what kind of businesses our savings are
put into.”
The “CBL Sustainable Opportunity Investment Plan” has an
active investment policy: the maximum proportion invested in shares is up to
75% of assets. This means that it is most suitable for people aged up to 40
years.
You can apply for this level 2 pension plan through
Latvija.lv, as well as at State Social Insurance Agency (SSIA) customer service
centres. More information on this new investment plan can be found on the
website pensija.lv.