In 2023, “Rīgas meži” was primarily characterised by a few powerful words: challenges, innovation, sustainability, victories and successes. These relate to the management of forests, the capital's gardens and parks, corporate governance, development and finances, environmental education and recreation, as well as the overall situation in the forestry sector – emphasises Anita Skudra, Chairperson of the Board of “Rīgas meži”.
Challenges. One of the biggest challenges for “Rīgas meži” in 2023 was ensuring the company’s financial stability, as there was a price decline in the timber and sawn timber market, and sales were relatively sluggish. According to the general market situation, compared to the first 11 months of last year, the average prices for “Rīgas meži” timber have also decreased – by 22% for roundwood and by as much as 25% for sawn timber.
The most significant revenue in the 11-month period came from timber – 14.04 million euros. The net turnover, or revenue from core business, of “Rīgas meži” reached 20.34 million euros in the 11-month period, while profit stood at 0.8 million euros.
The second significant challenge was related to weather conditions and their consequences. Specifically, during the summer and autumn, forests and parks suffered major damage from drought, as well as excessive moisture and strong winds, which were among the most significant in the last decade. In turn, the beginning of winter saw snowfall and snow-induced tree damage.
This year, the forests experienced significant damage from the European spruce bark beetle. By placing pheromone traps, conducting sanitary logging and closely monitoring the situation, the results of the pest control measures can generally be considered good.
Governance. The improvement of the company’s operations and management processes is aimed at ensuring and developing rational, efficient and sustainable activities.
For example, at the beginning of the year, the Council of “Rīgas meži” approved amendments to the company’s Medium-term Strategy for 2019–2025. Meanwhile, at the end of the year, a draft Sustainable Development Strategy until 2035 was developed.
In order to prevent market and competition distortions, in compliance with the instructions of the State Audit Office and the Competition Council, as well as the decisions of the Riga City Council and the “Rīgas meži” Council, significant preparatory work was carried out in 2023 for the company’s exit from the roundwood processing business.
A significant step in streamlining and simplifying daily work was the practical implementation of the EDUS document management system. Various internal document systems have been integrated into it. Furthermore, in the field of financial management, a business intelligence solution has been introduced – a sustainable data warehouse, analysis and visualisation platform. It provides in-depth data analysis, facilitates data-driven decision-making, and accelerates and improves the acquisition of various reports, among other things.
Innovation and sustainability have become integral components of “Rīgas meži”. The company pays great attention to achieving the goals of the European Green Deal, aiming for climate neutrality in Europe by 2050. For example, “Rīgas meži” is creating more sustainable plantings, transitioning to more environmentally friendly machinery, starting the installation of solar panels for electricity generation, and implementing green procurement, etc. Additionally, “Rīgas meži” is the first in Latvia to have officially joined the European initiative to plant three billion trees for the future of the planet, “Three Billion Trees”, in order to compensate for CO₂ “footprint”, reduce air temperature, preserve biodiversity, and so on.
By investing its own funds and attracting international financing, the company has started work on implementing various modern and sustainable solutions. For example, the use of satellite data and artificial intelligence in forest monitoring as part of the “Horizon Europe” international project SWIFTT, and preparatory work is underway to begin the modernisation of the “Norupe” nursery.
Newly acquired multi-functional machinery helps to maintain the capital's plantings more efficiently, while new forestry equipment allows for gentler work in the forest, for example, in Mežaparks. Meanwhile, water-purifying floating islands have been installed in Māra’s Pond. Solar-powered waste bin compactors help manage waste in parks more smartly and effectively.
In 2023, “Rīgas meži” specialists, for the first time, prepared and delivered a course on “Multi-purpose and Urban Forestry” for master’s students at the Latvia University of Life Sciences and Technologies, introducing them to the company’s unique experience. Furthermore, “Rīgas meži” employees shared their experience in innovation implementation as experts in various seminars, conferences, and more.
From the perspective of employee well-being and sustainability, it is significant that “Rīgas meži” has practically joined the “Mission Zero” initiative, the aim of which is to look after company employees, their health and safety. This year, the company attained the status of a Family-Friendly Workplace.
Victories and successes. Participating in the “Sustainability Index” for only the second year, “Rīgas meži” earned the Gold category. This is primarily the result of good corporate governance, as one of the highest scores (94.7% of the 100% possible) was obtained in the “Strategy” section, where experts evaluate organisational management principles, decision-making processes, actual performance and impact. Furthermore, in this prestigious ranking, “Rīgas meži” received one of the special awards – the title of “Sustainability Champion”, which is awarded to the participant that has shown the fastest progress during the year (the company’s performance improved by 20% over the year).
“Rīgas meži” is an attractive potential workplace for young people. This is confirmed by the fact that this summer the company was the third-largest employer in Latvia in the State Employment Agency’s summer youth employment project. 150 young people worked at “Rīgas meži” this summer, and it was not even possible to provide jobs for everyone who applied.
This year, “Rīgas meži” received the State Environmental Service (VVD) Green Excellence Award for the first time for cooperation, including the campaign for clean Riga and Pierīga forests implemented jointly with the VVD – #TīriRīgasMeži #VidesSOS. In turn, the Employers’ Confederation of Latvia has commended us as a successful enterprise in implementing work-based learning and internships. It is particularly satisfying to be part of the process of preparing young professionals.
A well-deserved recognition for the colleagues' work was two Landscape Architecture Awards: in the “Outdoor Space” category – Arkādija Park, maintained by the “Gardens and Parks” Pārdaugava district, and in the “Personality” category – the chief gardener of Uzvaras Park, Daiga Seņkāne. Her creation is also the winner of this year’s and last year’s Summer Flower Bed Parade – the Grand Flower Bed of Uzvaras Park.
On a Baltic scale, a success was the company-initiated 1st Baltic International Summer Flower Bed Festival – for three days, flower beds from the three capitals competed for titles in five categories. In Riga, the Grand Flower Bed of Uzvaras Park triumphed – the colours and patterns of the Alsunga skirt (cared for by the “Gardens and Parks” Pārdaugava district team). The Riga summer flower beds were dedicated to the 150th anniversary of the Song and Dance Festival.
Environmental education. In May, the environmental education centre, the “EkVidO2” or “ECOLOGY. ENVIRONMENT. AIR” programme (formerly “Green Class”), began work under a new name and with an expanded capacity following the opening of the Craft House, offering ten new educational programmes and nature exploration activities, such as the Birdhouse Trail, Science Lesson Outdoors, and Orienteering Marathon in Riga’s central parks. “EkVidO₂” organises birdhouse building workshops, participates in various events, and visits schools. This year, approximately 9,700 people participated in the environmental education centre’s activities.
Trails and recreational opportunities. The year began with a new recreational trail project #RadiTakasRīgasMežos. Specifically, digitally marked trails were offered each month in the company’s territories – both in forests and in gardens and parks featuring the most beautiful summer flower bed trails. The routes will continue to be supplemented. They are available on the “Rīgas meži” trail account: https://ej.uz/wyb7 (the Komoot app is required).
Caring for leisure opportunities, resting places have been created or renovated in the forests – benches and tables, the path surfacing and boardwalks have been restored, including the much-loved Cenas Mire boardwalk.
A video about the most important highlights of “Rīgas meži” in 2023 can be viewed here: https://ej.uz/ofza. We wish you a successful New Year! See you in the forests, parks and gardens!