AmCham Monthly Newsletter №8 2020

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August 2020


AMCHAM FMCG COMMITTEE VIRTUAL MEETING On 11 August 2020, AmCham held its regular Fast-Moving Consumer Goods – FMCG Committee Virtual Meeting. During the meeting, 14 participants from AmCham Members, AmCham Partners – the American University of Armenia (AUA) Acopian Center for the Environment and Union of Manufacturers and Business of Armenia (UMBA) discussed the next steps of the Task Force on the best EPR model identification Survey: Coca-Cola Երջանկության գործարան, Pepsi Armenia, McCann Yerevan, JTI Armenia CJSC, Acopian Center for the Environment, PMI Armenia. The Meeting participants updated on the leads of the One to One calls with the companies who will be interested to be part of the project to participate in the project conceptually and make a financial commitment. AmCham and Coca-Cola HBC presented the list of the potential participants of the Survey, stating that most of the companies with whom a call was made, are on the same page conceptually but won’t make a financial commitment until they know the actual financial input they need to commit. So far, 4 companies are firm to make a commitment – AUA, Coca-Cola HBC, Philip Morris, and Optym Armenia. 17 more companies will be deciding once the financial commitment amount is more or less clear, meaning after the Bid announcement and opening. Ms. Syuzanna Hayrapetyan, UMBA rep will provide information regarding the companies’ participation but before that, she suggested to have another clarification webinar with the participation of experts. Another option which Ms. Karine Sarkissian, AmCham Executive Director recommended after the meeting is to have one to one calls with Ms. Elina Markaryan, FMCG the Committee Chair, Harutyun Alpetyan, Circular Economy Expert, AUA Acopian Center for the Environment and move from there, and if there still will be an issue, an extended webinar will be organized at the end of August or in September. Mr. Armen Martirosyan, CEO, Antares Media Holding suggested sending a request to the Ministry of Education, Science, Culture, and Sport and request to include in the school curriculum a program on environmental education, for the long run to educate the society from the school even from the kindergarten. It was communicated that this might be out of the scope of the Committee, but AmCham is ok to be a co-signee of the letter if UMBA initiates it, as given the resources AmCham can have a support role in this, rather than leading. It was proposed that a meeting should be also held with the key stakeholders: Ministry of Environment Ecology, the Ministry of Territorial Administration and Infrastructure, EU, etc. to update on the project and identify the cooperation opportunities. It was decided that the working group will review the Terms of Reference document for the survey and start the bidding process. Meanwhile, a Letter of Intent document will be prepared and signed after the bidding process is completed and the cost of the survey is clear and the document will be signed among the companies who will agree to participate in the project.


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? Women's Equality Day Women's Equality Day is celebrated in the United States on August 26 to commemorate the 1920 adoption of the Nineteenth Amendment (Amendment XIX) to the United States Constitution, which prohibits the states and the federal government from denying the right to vote to citizens of the United States on the basis of sex. It was first celebrated in 1972, designated by Congress in 1973, and is proclaimed each year by the United States President. During the last years, promotion of gender equality and human rights of women in Armenia has witnessed both progress and challenges. In line with its international commitments, the country has made significant strides in adopting legislative and policy reforms path to foster gender equality and to combat violence against women.


OPEN DISCUSSION ON THE RA LAW ON CONFISCATION OF PROPERTY OF ILLEGAL ORIGIN On 25 August 2020 AmCham held a virtual Open Discussion on the RA Law on Confiscation of Property of Illegal Origin (adopted on 23.05.2020) and the possible practice of its application. As per the AmCham TCuFP Committee initiative AmCham Armenia received guests from the RA Ministry of Justice and from the General Prosecutor’s office who introduced the law application details and clarified the outstanding issues, which were raised by AmCham members and partners: • Ms. Ani Varderesyan, Expert, Legislation Development and Legal Research Center Foundation, RA Ministry of Justice • Mr. Karen Amiryan, Senior Prosecutor, Organizational Control and Legal Support Department, General Prosecutor's Office of the RA During the Q&A session of the virtual meeting, AmCham Members introduced their concerns to Ms. Varderesyan and Mr. Amiryan and received prompt replies to their questions. Due to numerous questions, it was decided to run another virtual meeting in 1 or 2 weeks’ time with a more targeted group of specialists to clarify the outstanding concerns. Taking this opportunity, we would like to thank Ms. Ani Varderesyan and Mr. Karen Amiryan as well as Mr. Tatul Khudatyan, a Partner of K&P law firm, and Ms. Irina Danielyan, GPartners for their great contribution and support. You can watch the video recording of the meeting by the link below. https://www.facebook.com/AmChaminArmenia/videos/306811987269362/

HARVARD BUSINESS REVIEW PRESS LIVE VIRTUAL EVENT: COUPLES THAT WORK On 25 August, 2020 an event on how dual-career couples can find fulfilment in love and work took place. Most advice for two-career couples frames solutions in a language of sacrifice and trade-offs. In this workshop INSEAD professor Jennifer Petriglieri shows how couples can tackle challenges throughout their lives—together. In this interactive workshop, she will give you the tools to progress through three key phases: • How can we make this work? This initial phase focuses on the logistics of combining two busy lives and often demands of children. • What do we really want? In this phase, couples learn to navigate midlife crises in ways that allow each partner to feel happy and fulfilled. • Who are we now? With careers winding down and kids grown up, this last phase deals with new freedoms—and uncertainties. Couples That Work includes exercises and activities designed to help couples develop their own answers to the question: How can we successfully combine love and work?



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