May 2021
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AMCHAM BOARD MEMBER AMCHAM 2ND VICE PRESIDENT MR. GAGIK GYULBUDAGHYAN Please meet Mr. Gagik Gyulbudaghyan, who was elected as Vice President / Treasurer of AmCham in March 2021. Before that, during 2011-2018, Mr. Gyulbudaghyan served as Director in the Board of AmCham. Mr. Gyulbudaghyan is the Managing Partner of Grant Thornton Armenia. He was serving at the Board of Governors of Grant Thornton International for 6 years (2014-2020), where he was involved in the development of the strategy for the whole worldwide organization. He is a professional services executive with 27 years of management experience. He built and operated successful professional services firms in Armenia, Georgia, Jordan, Lebanon and in Central Asia. Achieved revenue and profit targets in complex and emerging markets. Created vibrant regional teams and drive high strategic change agendas. Consistent success in delivering sustained corporate value and performance. Strong motivational and transformational leader and mentor, developing and leading high-performance organizations. His background includes leadership roles in relationship development and operations as well as strategic partnering. Possess world-class general management and executive leadership skills combined with strong business acumen and passion for winning. Mr. Gyulbudaghyan is widely involved in advising governments on economic development strategies. Mr. Gyulbudaghyan is the Honorary Consul of the Royal Kingdom of Denmark in Armenia. He has a Master’s Degree in Industrial Engineering and Management Systems from American University in Armenia. In 2015-2016 he completed Senior Leadership Programme, at Oxford University, UK. In his free time, Gagik enjoys composing music, songs as well as writing stories and poems. 4 books have been already published.
BE MY GUEST WITH IDBANK On 7 May 2021 in the scope of the AmCham BE MY GUEST networking series, AmCham members were invited to enjoy their Friday night with IDBank. IDBank was founded in 1990 as a shareholding commercial bank and has around 13 branches in Yerevan, Gyumri, Abovyan, Gavar, Etchmiadzin, and Vanadzor. IDBank’s mission is to become the first for its customers, be the best innovative bank, and suggest all modern services to its customers. Also, the bank aims to provide customers modern digital solutions with an individual approach. The bank is involved in international credit programs of the European Bank for Reconstruction and Development (EBRD), German-Armenian Foundation (GAF), Agricultural Marketing Service of the U.S. Department of Agriculture (USDA), International Organization for Migration (IOM) and World Bank (WB). The bank is a member of the Union of Banks of Armenia, SWIFT system, shareholder of ArCa CJSC, member of Mastercard, Visa systems. Mr. Karen Nalbandyan, Business Development Director, IDBank gave a welcoming speech and a thank you message to the participants. During the event, a great tour was organized by IDBank to present all the offers that the bank suggests to their customers. AmCham Members had a networking opportunity and enjoyed their Friday night in a wonderful atmosphere. During the event, there were more than 30 participants from 20 AmCham member companies.
AMCHAM RESPONSIBLE BUSINESS NETWORK (RBN) PLATFORM AmCham is revitalizing the AmCham Responsible Business Network (RBN) Platform events which aim to promote Corporate Social Responsibility and facilitate the private sector companies and NGO’s cooperation for mutually beneficial projects. On 13 May 2021 AmCham held its 2nd RBN event. The meeting started with the opening remarks of Ms. Karine Sarkissian, Executive Director, AmCham. Mr. Nazareth Seferian, CSR and Social Entrepreneurship Professional facilitated the meeting and interaction between participating private companies and NGOs. In his speech, Mr. Seferian focused on the UN Sustainable Development Goals (SDGs) to identify target areas for NGO programs as well as business CSR strategies. Before the event, the companies identified which SDGs apply to their NGO programs or their business CSR strategy. During the event, NGOs presented projects to the private sector with short 2-minute elevator pitches. Each company familiarized itself with the SDGs and put their company name stickers on the board as per their strategic direction which was followed by networking discussion between Businesses and NGOs. Various AmCham Members participated in the meeting: Mr. Ashot Hovanesian, Synergy International Systems, AmCham President, Ms. Nora Nazaryan, HSBC Armenia, Ms. Vanane Ararktsyan, SOS Children’s Villages Armenia, Ms. Arpi Karapetyan, Cascade People and Business, Ms. Elen Martirosyan and Mr. Vigen Sahakyan, ArchiDutch, Ms. Arev Petrosyan, Arev Art Gallery, Ms. Catalina Susan, Armenia Marriott Hotel Yerevan, Ms. Lusine Mnatsakanyan, Coca-Cola HBC, Ms. Astghik Markosyan, ibis Yerevan Center, Mr. David Grigoryan, Pikasso, Ms. Ani Tovmasyan and Ms. Irena Balayan, World Vision Armenia. As well as representatives from AmCham non-member company Bekon Products. During AmCham 1st RBN event HSBC Armenia and Apaga Foundation representatives met and discussed their company strategies, potential cooperation opportunities, and established a cooperation network. Apaga learned about HSBC Group’s Future Skills High Impact Fund Programme launch and applied for the respective funding accordingly. This example sets a strong foundation to believe in the purposeful and valuable objectives of this Network. Apaga Foundation has applied for the HSBC Global Fund.
E-DRAFT DISCUSSION WORKSHOP On 27 May 2021, AmCham Legal and TCuFP Committee Members were invited to participate in an event with the USAID Business Enabling Environment Project on E-Draft Discussion workshop. A new platform of effective dialogue between the public and the private sectors has been created! The USAID-funded Armenia Business Enabling Environment project initiated a discussion with public and private sector representatives on increasing the efficiency of the e-draft.am platform, the website where draft regulations are published by government agencies for public review and comments. The participants from businesses and non-governmental organizations voiced the issues they encountered when using the platform and made suggestions to improve it. All the suggestions will be sent to the Ministry of Justice for their consideration. The parties agreed to meet again to continue their discussions on modernizing the platform.
GOLD MEMBER – GRANT THORNTON
Grant Thornton Armenia, a member of Grant Thornton International Ltd, is a leading provider of audit, tax and advisory services in Armenia and in the region. We’re a network of independent assurance, tax, and advisory firms, made up of 58,000 people in 138 countries. And we’re here to help dynamic organizations unlock their growth potential. Member firms within Grant Thornton International are leaders in creating and sustaining transparency about their operations and possess extensive experience in the spheres of business and management consulting, financial audit and accounting, economic and financial analysis, tax, legal and policy advice. Grant Thornton International member firms do share a commitment to common standards and methodologies and provide the same high-quality service to their clients wherever they choose to do business. 150 qualified and experienced international and local professionals of Grant Thornton Armenia invest time and make an effort to deliver solutions necessary to meet the needs of their clients and bring added value for their growth and development. For over 25 years Grant Thornton has been providing audit and advisory services to top-level enterprises, state institutions, international and local organizations, national and commercial banks in Armenia and in the region.
GOLD MEMBER – PHILIP MORRIS ARMENIA
Philip Morris International (PMI) registered its affiliate Philip Morris Armenia LLC (PMA) in Armenia in December 2010. PMA imports tobacco products under trademarks owned by PMI. PMI is the leading international tobacco company, with products sold in approximately 180 countries and has more than 78,000 employees. In 2011, PMI held an estimated 16.0 percent share of the international cigarette market outside of the USA. PMI has an unequaled brand portfolio led by Marlboro, six of PMI brands rank in the top 15 international brands in the world. PMI is building its future on smoke-free products that—while not risk-free—are a far better choice than cigarette smoking. Indeed, their vision—shared by all at PMI—is that these products will one day replace cigarettes. PMI is an award-winning company certified as Top Employer Armenia 3rd time in a row in 2021, one that has Equal salary certification because of an inclusive culture founded on equal opportunity. (35% of management roles held by women) Creating value So far PMI has invested USD 8.1 billion into the science and research of developing smoke-free products. This is also true for Armenia, where large investments in science are undertaken by the company. PMA has adopted a unique approach to support the research and education ecosystem in Armenia. Thanks to the company's experience in scientific and technological spheres, in 2017 Philip Morris signed a Memorandum of Understanding with the Government of the RA, National Polytechnic University of Armenia and Yerevan State University, strengthening the company's goal of establishing a research and development center in Armenia and supporting educational and research programs. PMI Science supports Masters and Ph.D. programs, promotes Faculty team research projects, supports the organization of scientific-technological conferences and conducts trainings. Their initiatives aiming to develop the scientific ecosystem in Armenia impact the reproduction of science and support the scientific renaissance of the country. PMA cooperates with a number of local research institutions and universities on joint projects in the following primary directions: • Data Science • Technologies • Material Science
EXTENDED PRODUCER RESPONSIBILITY (EPR) PAGER
Armenian Business Community
Take the lead and make your voice heard in the upcoming changes! With this letter, we encourage the Armenian business community to join the efforts in establishing transparent, efficient, and sustainable post-consumer waste management system to meet Armenia’s obligations to introduce Extended Producer Responsibility (EPR) system by 2023. This commitment is part of the EU-Armenia Comprehensive and Enhanced Partnership Agreement (CEPA) signed between EU and RA of Armenia in 2017: While Nature Protection Payments (Բնապահպանական վճարներ) aim to mitigate the damages caused to the environment, the Extended Producer Responsibility system ensures the proper handling of specific post-consumer waste products (tires, batteries, packaging, etc.) that producers or importers have put in the market. The models of Extended Producer Responsibility vary from country to country, and Armenia is yet to develop and adopt the best working model that would meet its environmental and economic needs. The global practice shows that the earlier the businesses engage in the initial stages of the strategy development, the better model the country adopts. While the RA Government is obliged to create the necessary legislative framework, the role of the private sector is to support this process through the following: ▪ ▪
Engage in a dialogue with the government and follow up on policy development, Co-finance the research/study of various scenarios for the introduction of an Extended Producer Responsibility (EPR) in Armenia and the development of an appropriate model according to international experience.
It is important that the private sector will take an active role in helping to create the best recycling system in the country. Municipal Post consumption waste (PCW) management is in a development stage in Armenia and we as a business community need to produce data and evidence on deciding the best case scenario to increase packaging waste recycling in the most effective and efficient way to create a win-win scenario that will meet compliance targets and at the same time mitigate potential tax implications on business. Together, we need to conduct research/study through a professional agency for the following purposes: • Analyze the current PCW situation, specifically volumes, types, collectors, recyclers, and opportunities; run SWOT to decide on the best waste collection and recycling practices, from the available alternatives, which will be the most suitable for Armenia and financially justified. • Develop the best case implementation plan/guidance scenario for taking actions with the best expert agency. • To engage with the government and negotiate the best case scenario of collaboration to drive the agenda and support the business interests. Join the initiative! American University of Armenia (AUA) American Chamber of Commerce of Armenia (AmCham) Fast Moving Consumer Goods (FMCG) Committee Waste Management Working Group European Business Association Armenia (EBA) Union of Manufactures and Business of Armenia (UMBA)
EXTENDED PRODUCER RESPONSIBILITY (EPR) PAGER
Q&A Question․ What are the start and end dates of the research? Answer․ The dates will be determined when the number of organizations interested in the initiatives is confirmed. The study process is planned to start in September 2020. Before starting the study, a tender will be announced with detailed Terms of Reference. The best agency selection criteria will be based on the the best technical implementation experience and price. Question․ Which organization will conduct the research and how will it be selected? Answer․ Even though there are experienced organizations, the selection will follow the tender procedure – preparation of Terms of Reference, announcement for tender, receiving applications and selection. Question․ What is the purpose of the research and what will be the result. Answer․ As a result of the research, the best waste management model for both the public and private sectors will be selected. The model will be justified by financial and economic analysis based on the current situation in Armenia. Question․ Which level specialist form an organization shall be involed? Answer․ The organization should provide the contact details of a technical manager who is involved in waste management and environmental issues. However, the process must be under the general director’s supervision.
DID YOU KNOW? World Press Freedom Day On December 20, 1993, the UN General Assembly adopted a special resolution declaring May 3 as World Press Freedom Day. World Press Freedom Day is designed to remind the international community that freedom of press and expression are fundamental freedoms enshrined in the Universal Declaration of Human Rights. May 3 acts as a reminder to governments of the need to respect their commitment to press freedom. It is also a day of reflection among media professionals about issues of press freedom and professional ethics. In Armenia, everyone has the right to freedom of expression. It is forbidden to force a person to give up his opinion or change it. Everyone has the right to freedom of expression, including the freedom to seek, receive and disseminate information and ideas through any medium of information, regardless of state borders. Freedom of the media and other media means is guaranteed. The state guarantees the existence of an independent public radio, television, which offers a variety of informational, educational, cultural, and entertainment programs.”