Sustainability-related disclosures

Luminor Latvijas atklātais pensiju fonds AS / 3rd Pillar Pensions

The Luminor Group's Sustainability Policy (summary and guiding principles are outlined here) sets out the Luminor Group's commitment to ensuring that the Group's companies operate in a responsible, sustainable, and caring manner. The Luminor Sustainability Policy includes a description of key principles of sustainability (ESG) - environmental, social responsibility, and corporate governance - which we, as a Luminor Group company, follow in our business activities, decision making process and relationships with our stakeholders. Luminor is determined to integrate ESG-related considerations and analyze ESG-related risks while implementing Luminor’s business model, risk management framework, investment decisions, and financing activities. One of Luminor's strategic priorities is to be committed to sustainable growth and implementation of ESG targets.

To promote sustainable development, Luminor prioritizes three UN Sustainable Development Goals (SDG¹):

• Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all (SDG 8);
• Take urgent action to combat climate change and its impacts (SDG 13);
• Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable, and inclusive institutions at all levels (SDG 16).

To implement the Luminor Group’s commitments, we also include sustainability-related aspects in our operations - we support such approach and operate within the framework of this business concept.

Our goal is to provide a competitive 3^rd pillar pension plan offering to clients – to protect and grow clients' savings in the long term. That requires sustainable economic, environmental, and social development. We have entrusted the management of our 3^rd pillar pension plans to Luminor Asset Management IPAS (hereinafter referred to as the Asset Manager), which considers sustainability risks and negative impacts on sustainability in the investment process, as well as constantly improves the process of integrating sustainability risks. Such approach contributes to reducing the impact of long-term risks in portfolios of our investment plans, facilitating the achievement of their objectives.

Based on our strategy, we developed investment plans offering according to a client's age and willingness to take risk. The offering includes both SFDR Article 6 investment plans and SFDR Article 8 investment plans, which promote environmental or social characteristics, or combination of these characteristics.

1 UN Sustainable Development Goals. Source: sdgs.un.org
2 SFDR Article 6 pension plan – pension plan that meets the conditions of Article 6 of Regulation (EU) 2019/2088 of the European Parliament and of the Council (November 27, 2019) on the disclosure of information related to sustainability in the financial services sector. The plan does not have a sustainability-related investment objective, and no objective to promote environmental/social characteristics is included into the investment policy.