AB Invalda INVL

Climate Impact & Sustainability Data (2014, 2015-01 to 2015-06, 2022, 2023)

Reporting Period: 2014

Environmental Metrics

ESG Focus Areas

Environmental sustainability

Climate Goals & Targets

Environmental Challenges

Restrictions on the purchase of agricultural land in Lithuania due to changes in the Agricultural Land Acquisition temporary law.
Agricultural production and other commodity price volatility.
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.
Large shareholders risk (three shareholders holding over 60% of shares).

Mitigation Strategies

The company plans to invest in agricultural land in Lithuania through its owned private companies.
Long-term investment strategy to avoid short-term price fluctuations.
Maintaining adequate liquidity levels or securing funding.
Careful tenant selection with consideration of credit history and advance lease payments.

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 as adopted by the European Union

Third-party Assurance: UAB PricewaterhouseCoopers

Reporting Period: 2015-01 to 2015-06

Environmental Metrics

ESG Focus Areas

Environmental sustainability

Governance Achievements

Established a basic property administration agreement with INVL Farmland Management to ensure steady growth of income for shareholders and land value.

Climate Goals & Targets

Environmental Challenges

Restrictions on agricultural land acquisition in Lithuania (limiting investment and control of land-owning companies).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

Responsible business actions
Environmental protection and actions on climate change
Fight against corruption and bribery
Employee social wellbeing

Environmental Achievements

INVL Sustainable Timberland and Farmland Fund II invests in forest and agricultural land, aiming to manage it sustainably in the long term.
INVL Renewable Energy Fund I invests in renewable energy technologies, contributing to the EU’s goal of becoming climate-neutral by 2050.

Social Achievements

Increased number of clients (from 260,600 to 303,900)
Growth in assets under management (from €1.6 billion to €1.9 billion)
Expansion of the team with experienced life insurance professionals (over 80)

Governance Achievements

Adherence to highest ethical standards and compliance with anti-bribery and corruption laws.
Public disclosure of information on objectives, activities, financial results, management, and shareholders.

Climate Goals & Targets

Long-term Goals:

Contribute to societal wellbeing and sustainable development through ESG integration.

Medium-term Goals:

Continue to successfully invest and manage assets.
Develop existing products and create new solutions.

Short-term Goals:

Complete the merger of retail businesses with Šiaulių Bankas.
Strengthen the team to support the merger and other changes.

Environmental Challenges

Evolving geopolitical and economic environment (war in Europe, market volatility, energy price fluctuations, rising interest rates).
Regulatory risk related to pension systems and asset management.
Tax risk related to transactions with related parties.
Liquidity risk related to illiquid investments and dividend payment policy.
Interest rate risk affecting cost of capital and financing.
Credit risk from buyers of products and services, and from holding funds in bank accounts.
Risk of false expectations and assessments regarding investment profitability.
Technological risk related to information security.
Human resources risk related to the loss of key executives.

Mitigation Strategies

Diversification of investments to manage price risk.
Maintaining sufficient cash and committed credit facilities to meet commitments.
Matching money inflows from potential sales with purchases in each foreign currency.
Strengthening the team and carrying out internal transformations.
Implementing a responsible investment approach and integrating ESG factors into investment decisions.
Adhering to highest ethical standards and complying with anti-bribery and corruption laws.
Public disclosure of information to ensure transparency.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: KPMG Baltics, UAB

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

Responsible business actions
Environmental protection and actions on climate change
Fight against corruption and bribery
Employee social wellbeing

Environmental Achievements

Investing in forest and agricultural land sustainably; investing in renewable energy technologies in the European Union.

Social Achievements

Established Iniciatyvos Fondas for social initiatives; ensuring the enforcement of key labour principles and employee social wellbeing; impartial treatment of shareholders.

Governance Achievements

Adherence to highest ethical standards; compliance with all applicable laws, rules and regulations aimed at preventing bribery and corruption.

Climate Goals & Targets

Medium-term Goals:

Double assets under management over the next 3 years to 2027.

Short-term Goals:

Launch INVL Private Equity Fund II (target: at least EUR 250 million).

Environmental Challenges

Unfavorable market conditions across the crop and dairy sectors for Litagra.
Geopolitical risks due to the war in Ukraine.
Regulatory risk in the asset management business.

Mitigation Strategies

Diversified investment portfolio; active monitoring of macroeconomic indicators; compliance with stringent fund management requirements; active monitoring of the asset management business and conducting stress tests.