Kristīne Černaja-Mežmale, Member of the FCMC Board, emphasizes, “The global Covid-19 pandemic leads to changes, and current policies of the European Union and its Member States are not only responding to overcoming the effects of Covid-19, but also highlighting the presumed development vectors where changes need to be promoted, with a significant emphasis on mitigation of the climate change impacts and promoting digitisation. It is important to introduce these directions also in the forthcoming steps of Latvia’s development. The role of financial sector is of great importance in raising common awareness of sustainable finance in the climate, social and governance dimensions.”
The role of the FCMC as the supervisor of financial sector in stimulating sustainable growth is to encourage dialogue with the financial sector encouraging the financial and capital market participants to implement sustainability principles in their operational strategies and products. Besides, the FCMC is planning to add sustainability and competitiveness aspects to the regulatory environment.
“As the financial sector regulator, we need to use the supervisory tools at our disposal to ensure the preparedness and resilience of financial institutions to all types of risks, including climate change. Attention should be paid to the development of appropriate risk management system and compliance with the principles of good corporate governance. Timely identified risks and targeted action to mitigate them result in a smart decision-making and the ability to respond flexibly to a changing situation,” Kristīne Černaja-Mežmale points out.
Another essential facet of the FCMC’s sustainability strategy is the integration of sustainability aspects into the FCMC’s corporate governance, which involves developing an inclusive, innovative and eco-efficient working environment, raising the quality of human capital by increasing productivity, as well as paying sufficient attention to the wellbeing aspects.
In addition, the FCMC’s sustainability strategy envisages a key role to awareness-raising on sustainable finances by encouraging the altering of general public behaviour and enhancing personal financial literacy.
For further information:
Head of Communications and Financial Literacy Division