Following nearly two years of work, discussions, and the search for shared solutions, the Latvian Peat Industry Sustainability Memorandum was signed on 21 September. It marks the industry's collective commitment to move towards more sustainable management, with each company developing a climate plan and improving the recording of greenhouse gas (GHG) emissions, strengthening cooperation with the scientific community, and gradually implementing a unified approach to environmental, social responsibility, and governance issues.
The memorandum is based on conditions jointly developed by the Latvian National Peatlands Association and the Latvian Peat Association, which were agreed upon by industry representatives during the discussion process. The document was created to unite peat industry companies and organizations under a common vision for the industry's future development at a time when the implementation of the European Green Deal and related regulations present new challenges.
The peat extraction and substrate production sector in Latvia plays a significant role in the national economy and regional development. It provides jobs in Latvia’s regions, creates exportable products, and makes a significant contribution to the Latvian economy. Over the last ten years, the value of Latvia’s peat and substrate exports has increased nearly threefold, rising from 130 million euros in 2015 to 342 million euros in 2024. Latvian peat products hold a significant place in the international market, and peat extraction in Latvia takes place on a relatively small part of the total peatland area – approximately 4% or 26,000 hectares.
“The peat industry is currently facing significant changes, so it is important for us not only to react to new requirements but to define ourselves what kind of industry we want to see in the future. This memorandum is the result of an internal industry conversation – about what we can do better, where we need science-based solutions, and how to simultaneously maintain the competitiveness and economic significance of the Latvian peat industry. It is important that today, not only industry organizations but also the companies that make up this industry on a daily basis are agreeing to the memorandum,” says Ingrīda Krīgere, Head of the Latvian Peat Association.
One of the most essential tasks is to improve the availability and quality of data. More precise data will allow companies not only to assess their own progress but will also provide a more comprehensive picture of the actual impact of the Latvian peat industry and its changes over time. This is especially important in the field of GHG emissions, where quality record-keeping is a prerequisite for making scientifically sound decisions.
“This was not a document we could agree on immediately. However, we chose to take this difficult path, to discuss among ourselves, and to seek solutions. The Peat Industry Memorandum will not be just a formal document. We want to collect data regularly and monitor progress so that our collective commitment regarding these goals is upheld,” says Ilze Ozola, Board Member of the Latvian National Peatlands Association.
The signing of the memorandum is not the end of the process – it is an agreement for future, measurable, and responsible work. It also provides for further cooperation between industry organizations, companies, state and municipal institutions, scientists, and other stakeholders. Its goal is to create a shared understanding of the industry's development opportunities and to promote responsible action, while simultaneously finding a balance between climate neutrality and nature conservation goals, economic growth, and social well-being.
The memorandum was signed by the Latvian Peat Association, the Latvian National Peatlands Association, and the following peat industry companies: “BalviFlora”, “Laflora”, “Rīgas meži”, “Klasmann-Deilmann Latvia”, “Pindstrup Latvia”, “Saldus meliorācija”, “Unguri”, “Galenieki”, “Sapata”, “Saukas kūdra”, “Silu kūdra”, “Florabalt”, “Olaines kūdra”, “Gargrode”, AS “Strūžānu kūdras fabrika”, “Kūdras enerģija”, “LV-SBS”, and “GPK”.
The Roadmap for the Latvian Peat Industry’s Sustainability until 2050 – the methodology for creating the memorandum was developed by the association “Latvian Corporate Social Responsibility Platform” (CSR Latvia) with the aim of creating a unified and evidence-based understanding of sustainability aspects in the peat industry and its impact on the environment, society, and the economy. The methodology was based on the Corporate Sustainability Reporting Directive (CSRD) and the associated principles of the European Sustainability Reporting Standards (ESRS). The industry agreed on 14 (fourteen) material aspects promoting sustainability and industry resilience – climate change adaptation, climate change mitigation, energy, air pollution, water pollution, microplastics, ecosystems, circular economy, bioeconomy, competitive remuneration, occupational safety, regional socio-economic impact – employment, food security and quality in the global supply chain, and corporate governance. In total, 30 goals were set, and agreement was reached on more than 65 indicators that will be measured going forward to evaluate the industry’s progress on the path to sustainability.
As Agnese Alksne-Bensone, Chair of the Board of CSR Latvia and author of the sector sustainability roadmap methodology, points out: “I wish for the signed memorandum to become not a formal agreement, but a foundation for concrete action, measurable results, and long-term cooperation. Let science go hand in hand with production, and let decisions on the use of peat resources and the restoration of peatlands be based on data, research, and solutions tested in practice. And, most importantly, let us have the courage to collectively build an industry future where entrepreneurs, scientists, public administration, and society cooperate to develop Latvia’s bioeconomy, create higher added value, and responsibly manage natural resources for future generations.”