The article was published on la.lv
Many Latvian entrepreneurs — including diligent project writers and skilled users of EU funding — often view Brussels’ initiatives and requirements with a touch of ironic skepticism. These directives are frequently perceived as campaigns created by politicians and officials who are detached from real life, destined to fade quickly. A common example cited is the recent supermarket initiative to reduce the use of plastic bags: despite the campaign, the vegetable stands have already returned to their old habits.
A climate‑neutral economy is not a passing trend promoted by a few environmental parties or NGOs. On the contrary — it is supported not only by the majority of political forces within the European Union and several influential member states, but also by major European and global companies and investment funds that manage trillions of euros.
The belief held by some that Brussels will soon “calm down” and abandon its environmental ambitions may turn out to be costly — and in unexpectedly severe ways. Expectations for greener practices will come not only from the European Union, but also from national authorities and business institutions.
Soon it may become clear that banks expect more from their clients than just verifiably “clean” money, respectable account turnover, or timely loan payments.
It is highly likely that a company’s “greenness” will not serve merely as a bonus, but will become an almost mandatory requirement for receiving even a standard loan at standard interest rates.
Even more importantly, loan refusals — or even denial of a bank account — may stem not from the client’s own shortcomings, but from the environmental non‑compliance of their partners or customers. Although the future is difficult to predict, banks are already developing sustainable finance criteria that will guide this type of client assessment.
Exporters will face similarly strict expectations, as they will need to demonstrate the environmental sustainability of their products from A to Z. Several companies — especially those selling goods or services in the Nordic countries — are already encountering these requirements.
It is essential for Latvian companies to promptly assess their development strategies and adjust them in line with the EU’s climate‑neutrality goals and internationally accepted ESG standards (Environmental, Social, Governance).
These requirements are based on the United Nations’ Sustainable Development Goals (SDGs), which define the global framework for sustainable development.
Moreover, a company’s sustainable development plan cannot rely solely on beautiful nature photos or polished communication department narratives about green ideology.
Verified, measurable facts will be required — supported by data that can be periodically certified by accredited organizations. Some global companies have committed to become climate‑neutral as early as 2030, while others plan to reach this target later.
They are becoming more energy‑efficient, reducing emissions, promoting circular‑economy practices, choosing environmentally responsible partners, and offsetting the impact their business activities have on nature. It is unlikely that smaller, non‑global Latvian companies will be able to avoid these expectations or simply “sit on the sidelines.”
For any company, this means critically reviewing its procurement practices, suppliers, and production processes — and, of course, calculating how to finance these changes without losing competitiveness while increasing its future market share.
The management consultancy Meta Advisory offers guidance and expertise in developing sustainable business strategies.
