2021

LVM Supervisory Board has Approved the LVM Sustainability Report for 2020

On 12 May, the Supervisory Board of JSC “Latvia's State Forests” (LVM) approved the company's sustainability report for 2020. The report has been drafted in accordance with the requirements of an internationally recognized organization “Global Reporting Initiative” (GRI), and its compliance with the requirements of the GRI Core Sustainability Reporting Standard has been audited and certified for the first time by an independent auditor.

The sustainability report reflects LVM's activities in achieving balanced economic, social and environmental strategic goals of the company. LVM's strategic economic goals, such as increasing long-term profits, raising the value of assets and stands managed and developing the manufacturing of high value-added products, are complemented by the company's strategic social goals, such as promoting public participation and cooperation in forest management and developing a work environment that increases loyalty and promotes self-motivation. In addition to economic and social goals, LVM also sets strategic environmental goals, such as providing nature diversity and recreation services from the forest ecosystem and increasing the contribution of forests to mitigating global climate change and using renewable resources.

LVM's economic contribution to the State and local government budgets in the period from 2000 to 2020 amounts to more than 1.3 billion euros in the form of taxes and dividends. Every year, in accordance with the basic principles of donation of the company's shareholder (the Ministry of Agriculture), LVM also directs part of its profit to support charity, health and social assistance, culture and art, sports, education and science projects important at the national level.

Preservation of environmental values is of key importance for the company: almost 18 % of the forests and more than 21 % of the total area of all lands are managed by LVM for the purpose of nature protection.

In the conditions of increased economic uncertainty, LVM's biggest challenge is the ability to adjust the company's core business to the market demand. In accordance with the budget for 2021 approved by the LVM Supervisory Board, the company plans to restore forest stands in an area of 17 thousand hectares, cultivate young stands in an area of 33 thousand hectares, as well as clean up drainage ditches in an amount of 564 thousand cubic metres. It is also planned to restore forest drainage systems in an area of more than 19 thousand hectares and to put into operation 338 kilometres of forest roads.