Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental sustainability

Environmental Achievements

• Increase in certified organic and innovative farms in leased areas

Climate Goals & Targets

Environmental Challenges

• Restrictions on the purchase of agricultural land in Lithuania
• Agricultural production and other commodity price volatility
• Common agricultural risks (weather conditions)
• Reliance on EU and national subsidies
• Land illiquidity risk
• Risk of legislative and regulatory changes
• Tax increase risk
• Inflation and deflation risk
• Credit risk
• Liquidity risk
• Interest rate risk
• Large shareholders risk
• Market-related risks (share price volatility, liquidity risk, dividend payment risk)

Mitigation Strategies

• Long-term investment strategy to avoid short-term price fluctuations
• Diversification of land holdings
• Insurance against some agricultural risks
• Maintaining adequate liquidity levels or securing funding
• Minimizing debt
• Close cooperation between the Board and the Director to maximize shareholder value

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Weather conditions (floods, droughts, heavy rains, hail, frost, weeds, pests, diseases, fire, climate change related worsening conditions)

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: UAB PricewaterhouseCoopers

Environmental Metrics

ESG Focus Areas

• Environmental sustainability

Climate Goals & Targets

Environmental Challenges

• Restrictions on the purchase of agricultural land in Lithuania.
• Agricultural production and other commodity price volatility.
• Common agricultural risks (weather conditions, etc.).
• Reliance on EU and national subsidies.
• Land illiquidity risk.
• Risk of legislative and regulatory changes.
• Tax increase risk.
• Inflation and deflation risk.
• Credit risk from tenants not fulfilling obligations.
• Liquidity risk.
• Interest rate risk (though minimal debt is used).
• Large shareholder risk.
• Market-related risks (share price volatility, analyst opinions).
• Dividend payment risk.

Mitigation Strategies

• Land plot administration outsourced to UAB INVL Farmland Management.
• Long-term investment strategy to mitigate short-term price fluctuations.
• Maintenance of adequate liquidity levels or securing funding.
• Minimal use of debt to reduce interest rate risk.
• Internal procedures to ensure transparency of operations and prevent bribery.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Weather conditions (floods, droughts, etc.)

Reporting Standards

Frameworks Used: IFRS as adopted by the European Union

Third-party Assurance: UAB PricewaterhouseCoopers

Environmental Metrics

ESG Focus Areas

• Environmental sustainability

Climate Goals & Targets

Environmental Challenges

• Restriction on the purchase of agricultural land in Lithuania
• Agricultural production and other commodity price volatility
• Common agricultural risks (weather conditions)
• Reliance on EU and national subsidies
• Land illiquidity
• Legislative and regulatory changes
• Tax increase
• Inflation and deflation
• Credit risk
• Liquidity risk
• Interest rate risk
• Large shareholders' risk
• Market-related risks

Mitigation Strategies

• Long-term investment strategy to avoid short-term price fluctuations
• Risk mitigation through diversification
• Insurance (partial)
• Maintaining adequate liquidity levels or securing funding
• Minimizing debt
• Close cooperation with the land administration company (UAB INVL Farmland Management)

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods, droughts, heavy rains, hail, frost, weeds, pests, diseases, fire, climate change related worsening conditions

Reporting Standards

Frameworks Used: IFRS as adopted by the European Union

Third-party Assurance: UAB PricewaterhouseCoopers