Green Business 2018 by The FINANCIAL

GENERAL SPONSOR OF THE EDITION:

Interview with Ketevan Kekelashvili, Head of the Environmental Management Unit at ProCredit Bank

“Number of electric and hybrid cars in Georgia is growing rapidly” The FINANCIAL

See on p. 8

FOCUSING ON SUSTAINABILITY Interview with Levan Giorgadze, Director of Socar Georgia Petroleum See on p. 10

GREEN STANDARDS OF LIFE Interview with Evgeny Nesterenko – Chief Administrative Officer of MAQRO Group See on p. 19

Interview with Kakha Kuchava, Chairman of the Committee on Environmental Protection and Natural Resources at Georgian parliament

See on p. 21

Q. What does green business mean to you? A. Green business is an eﬃciency of not only rational use of natural resources but resources that a company uses and consequently, at the expense of this eﬃciency, the growth of income and social responsibility in the country. Q. Why should businesses become green? A. Any business, especially if it is a big and ambitious business, thinks about the future and not just about its future but the future of the surrounding environment. It is necessary for all businesses to gradually switch to

the principles of green economy, since the trends that are in the world, including increasing use of resources, even by an ordinary business, will ultimately lead to catastrophic consequences for our future generations. The most diﬃcult part, in general, is the level of education and level of knowledge in the field of green economy. Unfortunately, many believe that green economy and implementation of entrepreneurship in green economy principles is associated with less profit. Continued on p. 17

“Respect for the Planet is our basic philosophy” The FINANCIAL

“GOING GREEN IS A NEW TREND Interview with WITH A VARIETY Mitsuru Konishi, President of OF BENEFITS” Interview with Samson Pkhakadze, President of Wissol Group

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30 July, July 2018

FINANCING ENVIRONMENT FRIENDLY BUSINESS ONLY

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Toyota Caucasus

Q. Can you describe Toyota’s green initiatives and practices?

A, Firstly, I would like to express my gratitude for showing an interest in Toyota and its environmental goals. The environmental issue is one of our top priorities. The aftermath of disasters taking place throughout the world over the last few years resulting from humans being careless towards the environment has made us think about the consequences we may soon be facing. Environmental issues

have become one of the top priorities for Toyota Motor Corporation. “Respect for the Planet” is our basic philosophy, and based on it in 2015 we formulated our Environmental Challenge 2050. Unfortunately, car manufacturing is related to generating CO2, the cars themselves generate CO2. Continued on p. 15

http://www.fi h ttp://www.finchannel.com

“We believe that secondhand tires should be prohibited” Interview with Dimitri Gozalishvili, Commercial Director of Tegeta Motors See on p. 2

“Banks Are Leading in Green Business” Interview with Boris Kiknadze, Head of CSR at Bank of Georgia

See on p. 4

Fighting Environmental Offenders The FINANCIAL

Interview with Manana Kochladze, Chair (official) at Green Alternative Q. What does green business mean to you? A. For me, green business is a sustainable business. It consumes few resources, is local

and serves the interests of the local community. Q. Why should a business go green? A. It is very profitable for a business to be green. A business which is green consumes less energy, or energy from renewable energy sources, as well as other material or natural resources. Consequently, they have less of a negative impact on the environment and at the same time they pay less for modest energy. Continued on p. 17

HEADLINE NEWS & ANALYSIS 30 JULY, 2018 | FINCHANNEL.COM

Green Business

“We believe that secondhand tires should be prohibited”

DIMITRI GOZALISHVILI, Commercial Director of Tegeta Motors

Interview with Dimitri Gozalishvili, “THE BEST ADVERTISEMENT FOR A Commercial Director COMPANY TODAY AND FOR THE of Tegeta Motors Eva BOLKVADZE The FINANCIAL Q. Can you describe Tegeta Motors’ green initiatives and practices? A. In general, as a leader in the auto industry with a large share of the Georgian market, Tegeta Motors actively cares about and is working on this direction. The types of service we oﬀer customers both prevent damage to their cars, but also result in a reduction in emissions. And this reduction in emissions, in turn, reduces the damage done to the environment through pollution. Q. How does Tegeta Motors focus on environmental sustainability? A. The products that we present to the market are medium or premium products and world leaders in their segments. Like MAN, JCB, Toyota, Mazda, Porsche, Bridgestone, Michelin, Pirelli, Motul, Shell, Varta, ZF, Bosch, and many others (we represent more than 300 brands in Georgian market mainly exclusive basis). On one hand, we are proud to represent those brands to Georgian market, but on another hand this is a big responsibility towards supplier as well as toward Georgian

NEXT 10-15 YEARS WILL BE TAKING CARE OF THE GREEN DIRECTION.”

customer. As you know it is very difficult to sell premium product to the market, but on another hand selling the product of premium quality have less pollution impact on environment. And we are proud that with our more than 1,500 professional staﬀ we can sell the products to Georgian market. And Georgian customer pay more attention to the quality of product rather than price only In Georgia, there is a big problem with the import of second-hand tires.. Yearly basis secondary tires import reach 1.2-1.5 mln units. Normally, secondary tires serve less than twice vs new tires. It means, we as minimum consume twice or three times more tires. And as we do not have any factory to utilize those tires the damage to the environment is twice bigger due to secondary tires import only There is always talk about emissions, but in Georgia, along with emissions, a significant problem lies in second-hand tires. We be-

lieve that second-hand tires should be prohibited, hence our campaigns are actively directed against secondhand tires, replacing them instead with new ones. We even try to oﬀer new tire with the same price as secondary tires, but this we can only do in lower inch tires for smaller sedan cars. Q. Can you tell us about the community engagement part of Tegeta Motors? A. Our company is diversified from the user’s perspective, and one of the reasons for sustainable development is that we are not dependent on a retailer or state consumer. We work with 5 diﬀerent channels – we serve more than 30,000 corporate and private customers all over Georgia. We serve big number of retail customers, and we have more than 230,000 retail card holders. The number of which is growing on a daily/monthly basis. Most importantly, we also have a very large network of wholesale consumers, which buy

from us for further sale and realization. Q. As one of the main auto service providers, how would you evaluate the technical condition of cars in Georgia. What are the main problems? A. In my opinion, the main problem is the low level of economic development in Georgia compared to in developed countries. It is this that determines the problems linked with low quality cars and auto fleet in Georgia. Georgian customer like many in post-soviet countries prefer SUVs vs sedan. There are many arguments linked with SUV preference, but the main point is linked with road condition and infrastructure. The road condition in Georgia is considered as rough roads, and many small cities or rural area we even do not have roads at all. At the same time SUVs have higher CO emission as well as consume more and expensive car parts, including tires. Once roads are developed we are sure the preference of customers will switch more to smaller sedan cars, like in more developed European markets Q. Does Tegeta Motors oﬀer any special conditions for car owners who are keen to reduce air pollution? A. We have been working on this direction since 2016. We purchased equipment designed to test emissions, and for 2 years already we have been checking cars within the framework of the ‘Argmbolo’ marketing/social campaign. If the car meets the established

norms (Euro 4, Euro 5 standards), we gift presents to customers linked with green products. While at the same time, for those who don’t pass the test, we offer a 50% discount to repair catalyst and/or other problems linked with emission. We have checked 3 000 cars in these two years. Q. Does Tegeta Motors have other green plans it intends to carry out over the next few years? A. As we are one of the biggest company in Georgia , we are aware of this responsibility. We have a vision of which directions we are going to develop. We have planned different types of actions and public activities to be carried out by our staff. We cannot specifically say at this stage what these are, however we do feel our responsibility as a company and are going to be more active than we were before as a result. Q. What advice would you give to organizations who are interested in going green? A. From my point of view this is more commitment for all Georgian citizen, and this is a must for all of us. We Georgians have beautiful nature, and we should be proud of it. At the same time this is a big responsibility for all of us to take more care. The best advertisement for a company today and for the next 10-15 years will be taking care of the green direction. So many good campaigns have already been implemented and in the future I think more and more campaigns will be introduced in this direction too.

HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | 30 JULY, 2018

Green Business

Advertiser: Tegeta Motors. Contact FINANCIAL Ad Dep at marketing@ďŹ nchannel.com

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Green Business

“Banks Are Leading in Green Business” Interview with Boris Kiknadze, Head of CSR at Bank of Georgia Eva BOLKVADZE The FINANCIAL Q. Can you evaluate the overall ‘green business’ situation in Georgia? A. When we talk about the overall situation in Georgia, especially in the green business, we have to mention that it’s a totally new aspect of business ethics and CSR. It will definitely take a few more years to fully establish the right concepts for green business. So I think right now we are in a period of transition where we see companies striving towards new projects which are totally connected to green business. I think the banking sector is also leading in this field and in the future we will see more and more involvement from banks in green business, doing more and more green initiatives. Q. Can you describe Bank of Georgia’s green initiatives and practices? A. As Bank of Georgia is a leading bank, we feel a responsibility to be involved in many social aspects. One of them is green initiatives. For instance, in 2008 when there was the war with Russia, BOG was one of the first to decide to bring in a new initiative of green deposits. And with a certain amount from this project we started to plant trees in the territory that had been damaged by the war. Since then BOG has also been using different practices. One of them is using new technologies such as ‘SMS signature’ which completely cut the amount of paper we are now using in our service centres. Besides that, we also finance different initiatives such as green start-ups and social enterprises which are oriented towards renewable energy or recycling. And we must also mention that BOG is a leading partner of the Caucasus Nature Fund which is taking care of all of the protected areas not only in Georgia but in Armenia and Azerbaijan too. Q. What is the main challenge that BOG is facing at present in the field of green finance? A. I think that there are a lot of problems in Georgia, especially in the regions, to do with protecting the environment and nature. When we are talking about the main challenges, I think one of them is protecting the existing nature and maintaining the green environment that we have, while another one is raising awareness among the population. If there was more interest in this subject from people then more and more companies would get involved in the process of establishing new initiatives. So, as we are a private company, we are looking for new solutions to challenge those aspects. Q. Have you researched the main reasons behind Tbilisi’s worsening environmental situation. Can you please name these reasons? A. As I said, we have internal initiatives and projects dealing with these problems, so of course we did research. One of the main problems we have seen is the number of cars on the roads, which is one of the main reasons for the critical environmental situation in the city. We decided to tackle this issue by introducing the totally new project of employee car sharing. We called it the “GZAD” application, aimed towards connecting our employees to each other. As a result they’re able to give each other lifts, taking them to the office or back home again. With this idea we wanted to reduce the amount of cars that we and our employees are using as well as tack-

BORIS KIKNADZE, Head of CSR at Bank of Georgia

le the problem of parking, which is another big problem, especially in Tbilisi. So by this small initiative we were trying to fix a whole host of problems, such as air pollution, too many cars in the city, parking problems, and of course, to better connect our employees with each other. Q. What do you think you can do in the short and medium term to add to the field of green business? A. I think the financial sector, especially the banking sector and Bank of Georgia specifically, is looking towards bringing more and more social enterprises in. We have really good examples of green social enterprises and green start-ups. Every year we host a grant competition, in which we have up to 5 winning projects with each of them receiving GEL 50 000 grant. So I think in the near future BOG will continue investing in social enterprises, and of course one of them is green social start-ups. Additionally, we have had an internal policy for years already and are working towards energy eﬃciency and using modern technology to decrease the harm that we are doing. I think this is one of the small examples of things that banks can do. I also have to mention that last year when there were fires in the Borjomi area BOG gave the biggest contribution out of all Georgian companies towards re-building the new forest of Borjomi and planting trees. So I think if other companies were to also go for this direction we would have a much better situation overall. Q. How would you define green financing? A. I think that green financing is totally new in Georgia, it is still making baby steps and will take a few years to totally establish the right concept that we are seeing for example in Europe or the USA. As I have said, BOG was leading in green financing and when we had green deposits, it was the first step forwards. I think nowadays green financing

is looking towards establishing environmentally friendly companies, environmentally friendly organizations and NGOs, supporting them and being involved with them. As a CSR component of our company we are partnered with different NGOs, we are a part of different alliances and organizations with whom we are trying to jointly establish some ideas or at least raise awareness not only among our employees but among our customers and people who are using our services. Q. How has going green helped BOG? Can the experience of BOG in green finance be helpful to other banks in Georgia? A. I think that in any case, any movement towards green initiatives will be beneficial for any company. For instance, I have mentioned the SMS signature which we introduced in the banking sector a few years ago. It decreased the amount of paper usage in our service centres by up to 65-68%. I think internal polices are really important. When you are trying to evaluate how you are making an impact on society and the environment, at the same time you can also teach your employees how they can save energy, how they can recycle, how they can participate in the establishment of an idea among society and employees. Q. In your experience how important is energy efficiency? A. Every year we are trying to bring in new technologies that can help us to reduce the amount of energy and water that we are using. Energy efficiency has a direct link with banks, companies and other entities because they can also reduce the amount of spending they are doing. So if you are establishing new technologies, they might be expensive to a certain extent at the beginning, but in the long run we do believe that small savings on each technology and form of energy can have an impact. It was beneficial for BOG and it is beneficial still. We are continuing to establish new technol-

ogies and integrate with our services because we see the value not only in financial terms but also the value of saving the environment and local community. Q. In terms of the green deposit programme, what have you implemented since 2008? A. The green deposit was really a pioneer project back in 2008. It was really impactful for the community and for the area that was burned during the war with Russia. We collected volunteers who were willing to help us, employees, customers, and with them we planted trees in that area. Unfortunately last year when we had a fire around this area many of those territories where we planted trees were burned again. That’s why we feel a continued sense of responsibility to take care of those areas and last year we said that one million GEL would be donated to preserve these areas once again. The green deposit was a really good example of how banks and companies can integrate initiatives. These kinds of integrated initiatives can have much more of an impact than onetime projects. That’s why the green deposit initiative brought us a lot of attention from people. A. What about the ‘green bag’ initiative? What was the idea behind this service? A. Green bag was an initiative we began a few years ago. We started with the idea that along with our employees in our service centres we have a lot of paper we are using every day. We therefore started a campaign to introduce our employees to how important it is to recycle paper, and how many trees we can save if we just collect this paper and throw it into special bags. We have collected more than 8 tons of paper since then. Green start-ups have a mission to recycle green bags. So we collect paper for them, then they recycle and use it for diﬀerent purposes. I think it’s a good example of how a bank can start with just an idea, and introduce it as a way we can save nature. Q. What is BOG doing to help

small businesses compete in today’s market in the field of green finance? A. I think what we are seeing nowadays on the market is that more and more companies are using modern green technologies oriented towards green business. Mostly, I have to say that it’s still on an NGO or social enterprise level because it’s totally new and there might not be that many profit-oriented initiatives or projects. For instance, we already have companies that are building green buses or establishing electric vehicle charging stations available not only in Tbilisi but in the regions too, and thereby promoting green mobility. BOG is part of the green mobility initiative and we think that more and more such initiatives will come and we are willing to support them when they do. Q. Can you share one brief story about how the BOG green finance programme is helping Georgian businesses thrive? A. I think ‘Green Gift’, the company which is taking care of recycling paper, is a really good example. This was an initiative by two young people who wanted to change something in our reality. Years ago we didn’t have any chance to recycle used paper, but nowadays we have really good companies who can take care of such paper, who can recycle and reuse it. When they came to us with this idea, we were willing to support them and they won one of our grant competitions. We not only gave them the money but also went through all the stages with marketing, PR, helping them to establish an online platform and helping them to sell their product. I think this small case is an example of how one company such as Bank of Georgia can help a small start-up with a fresh initiative to establish a totally new idea in Georgia especially in a green field and how it can slowly transform the current reality. BOG is always open to such ideas which are oriented toward saving our nature and greening the local environment.

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Green Business

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Green Business CURRENT PRICES ON GASOLINE AND DIESEL

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Global metrics for the environment: Air quality remains the leading environmental threat to public health. The FINANCIAL -- In 2016 the Institute for Health Metrics and

Evaluation estimated that diseases related to airborne pollutants contributed to two-thirds of all life- years lost to environmentally related deaths and disabilities. Air pollution issues are especially acute in rapidly urbanizing and industrializing nations such as India and China. With 20 years of experience, the EPI reveals a tension between two fundamen- tal dimensions of sustainable development: (1) environmental health, which rises with economic growth and pros-

peri- ty, and (2) ecosystem vitality, which comes under strain from industrialization and urbanization. Good governance emerges as the critical factor required to balance these distinct dimensions of sustainability. The world has made great strides in protecting marine and terrestrial habitats, exceeding the international goal for marine protection in 2014. Additional indicators measuring terrestrial protected areas suggest, however, that more work needs to be done

to ensure the presence of highquality habitat free from human pressures. Most countries improved GHG emissions intensity over the past ten years. Three-fifths of countries in the EPI have declining CO2 intensities, while 85–90% of countries have declining intensities for methane, nitrous oxide, and black carbon. These trends are promising yet must be accelerated to meet the ambitious targets of the 2015 Paris Climate Agreement.

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Green Business

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Green Business

Financing Environment Friendly Business Only Interview with Ketevan Kekelashvili, Head of the Environmental Management Unit at ProCredit Bank Eva BOLKVADZE The FINANCIAL Q, Last year ProCredit Bank Georgia was recognised as the most sustainable and environmentally friendly bank in Georgia, has anything changed since then? A. As part of the German based ProCredit Group we continue to focus mainly on providing financial services to small and medium-sized businesses with long-term business plans. We oﬀer our customers innovative, modern, and convenient banking services and strive to be a reliable business partner, promoting long-term partnerships in line with our “Hausbank” concept. At the same time, we continue to develop our sustainable approach to finance, meaning to shape our business model to support our clients and employees in their development, and simultaneously ensure a positive environmental, social and economic impact. At this point I would also like to highlight that in the beginning of this year we published our first group wide impact report, reporting on the non financial aspects of our approach to sustainable banking. The report is based on the international standard for sustainability reporting GRI (Global Reporting Initiative) and we strongly recommend your readers take a look at it under: https://www. procredit-holding.com/aboutus/business-ethics-and-environmental-standards/ Q. ProCredit Bank is the only bank in Georgia that has an Environmental Management System. Can you tell us any more details about this? A. In line with our group wide approach to sustainable finance, we have developed and implemented a comprehensive environmental management system, which helps us to monitor our performance, set clear goals and allows us to continuously improve this approach. Therefore also in ProCredit Bank Georgia we continuously

KETEVAN KEKELASHVILI, Head of the Environmental Management Unit at ProCredit Bank

“BY THE END OF 2020 ALL VEHICLES OF PRO CREDIT BANK GEORGIA WILL BE ELECTRIC” strive to minimize our own impact on the environment by closely monitoring our resource consumption. Moreover, we do not finance activities that are harmful to the environment and society, and actively encourage our clients to be more environmentally friendly by supporting them to invest in modern facilities, making them more competitive and more environmentally friendly at the same time. It is also important to mention that our EMS follows international best practices. As mentioned before, our nonfinancial reporting follows the international most developed framework for sustainability reporting GRI and our EMS is certified under the international standard – ISO 14001:2015. Q. What are your main achievements of 2017 /2018? A. We are proud to say that we have been successfully continuing to finance the environmentally friendly investments of our clients in the last year as well. Our green loan portfolio consisting of investments in energy eﬃciency, renewable en-

ergies and other environmentally friendly projects steadily continued to grow throughout the last year and is expected to grow further in the future. As of the end of 2017, already 13.3% of the ProCredit Bank Georgia’s total loan portfolio was allocated to “Green” loans. We have an expectation that by 2018 this share will increase up to 15%. Moreover, in line with our goal to promote environmentally friendly investments among our clients, we also try to be a good role model ourselves. Therefore, we are proud to say that our overall eﬀorts to reduce our internal resource consumption has been very fruitful and in 2017 alone our electricity consumption decreased by 24%. We consume 19% less water, 12% less printing paper per employee, and 20% less fuel compared to the previous year. All our measures to protect the environment and prevent climate change led to 19% less CO2 emissions in comparison to the previous year. We also expect to continuously improve these figures, for example with our recent investments in rainwater har-

vesting and upcoming solar photovoltaic for our head office in Tbilisi. After analyzing our water consumption in the head office, we understood that 50% of consumed water was being issued for toilet flushes. Therefore, in order to reduce our fresh water consumption, we installed a rainwater harvesting system where rainwater from the roof and impermeable areas is collected, filtered, treated in a proper way before being introduced into the water supply of the building. The system functions automatically and does not need manual work on a regular basis. The rain catchment area is 2000 m2 and annual rainwater usage is estimated at ca. 1000 m3. Moreover, by the end of 2018 we will install a Solar PV system on our roof with a capacity of 80 kW which will save 155458 kWh annually. Additionally, a charger for E-cars in front of our Head Office will provide our clients and others with the possibility to charge their electric cars there. Q. Your fleet of cars consists of electric cars as well doesn’t it? A. Yes, you are right. Out of our total car fleet 39% are electric and hybrid vehicles. This share will increase in the future. By the end of 2020 all vehicles of Pro Credit Bank Georgia will be electric. Promotion of the purchase of electric and hybrid cars is an important part of our

Green Lending Strategy. Investment in e-cars is relevant not only for private individuals, but also for businesses to efficiently manage their logistical expenses. Q. How do you approach the effects of environmental and social aspects on your client? A. We are aware that impacts arising from our clients’ operations are very important. The Georgian market, similar to other developing countries with transition economies, is characterized by businesses with a low degree of environmental and social awareness. While financing SMEs we engage with our clients in dialogue to discuss how our services can help to improve their environmental and social performance, increase their resource efficiency and sustainability. Practically, this means that in our day to day lending operations we promote environmentally and socially sound investments of our clients. We closely monitor the environmental and social performance of our clients and wherever there is an opportunity, we initiate direct discussions with our clients and together find ways in which our clients can modernize their business and be more environmentally and socially responsible at the same time. Moreover, we screen all new potential clients against our Exclusion List, which strictly forbids financing or even establishing business

relationships with anyone who is engaged in environmentally and socially harmful activities. Q. You mentioned Green Finance and the Green Loan Portfolio, can you tell us more about them? A. We are encouraging our clients to take a green approach to their businesses. For this purpose, we have implemented Green Finance for businesses and private clients. In particular, Green loan is investment in: Energy-efficient equipment and processes (EE), e.g. Thermal insulation of the building envelope; space heating, cooling and ventilation; efficient production machinery and equipment, etc. Renewable energy technologies (RE), e.g. Solar water heating systems; a photovoltaic system; hydro-power plants; wind power systems. Environmentally friendly projects with a direct positive impact on the environment (Gr), e.g. Soil, air, water protection measures; waste management; organic agriculture; environmental licensing/certification, etc. We wish to accelerate investment in green lending among our clients because from a business perspective it leads to better quality products and services, more efficient use of energy and resources, reduced costs and increased competitiveness. As mentioned before, as of the end of 2017, already 13.3% of ProCredit Bank Georgia’s loan portfolio was allocated to “Green” loans. We have an expectation that by 2018 the share will increase up to 15%. Q. What is the main challenge ProCredit Bank is facing at present in the field of Green Finance? A. One of the main challenges in this field is the low level of awareness about environmental issues and protection, thus initiatives and suggestions of investments in environmentally friendly measures and technologies come more from the bank’s side rather than from business or private individuals. Also gaps in legal framework in this area need to be dealt with, starting from the development and enforcement of a Building Code and ending in environmental regulations. Either way, already now, more and more clients are very aware about environmental and social concerns and choose to be ahead of the regulations and we are very glad to be able to support them in regard to their banking needs. In the future we hope that more and more businesses in Georgia will follow these examples, choosing to take actions themselves, and we are ready to support them with their banking needs.

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Green Business

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Green Business

Focusing on Sustainability

LEVAN GIORGADZE, Director of Socar Georgia Petroleum

Interview with Levan Giorgadze, Director of Socar Georgia Petroleum Eva BOLKVADZE The FINANCIAL Q. What role does environmental sustainability play in your company’s overall strategic plan? A. Environmental sustainability plays a huge role in our company’s overall strategic plan. Besides various CSR projects, in which the company is involved, one of our main priorities is to sustain the quality of our infrastructure. We have switched to hybrid vehicles for our regional managers, our fleet of trucks are modern and fuel eﬃcient. We also plan on further modernizing petrol station infrastructure to ensure minimal impact on the environment. Overall, Socar has developed a CSR strategy based on 5 major directions – promoting healthy lifestyle; supporting persons with disabilities; empowering women and supporting their aspiration towards leadership

and innovation; safe driving; and above all: ecology. Q. What are the main social and environmental challenges and opportunities at Socar? A. One of the top challenges that the world is facing at the moment is protecting our environment. We at Socar have made some specific actions in this direction. We support electric and hybrid vehicles and are the first network of petrol stations to install free electric charging ports along the entire highway from West to East Georgia. We plan to further develop the charging infrastructure, to make sure our chain is convenient for electric vehicles and their drivers. Q. What are the objectives and targets of your sustainability efforts, and what progress has been made in meeting your goals? A. Our main objective is to ensure that our operations leave a minimum impact on the environment, therefore we strongly believe that modern and efficient infrastructure, alongside an efficient car fleet and environmentally-conscious staff will ensure the sustainability of our operations. We have started to renew our car fleet and replace standard

engines with hybrids. We have started the installation of vapour recovery systems on several stations in the test regime so that we can properly plan further installation at all of the locations. Q. What business value have you seen from your environmental sustainability eﬀorts? A. Firstly, we sincerely believe that environmental sustainability should be among the top priority of each person and respectively any type of business where we work. Socar is part of the general society and has an active role in it. We as a business and we as individuals see tremendous appreciation from wider society and believe that this is the result of our CSR policy. We have made a commitment to plant trees on 2 ha of territory after the terrible fire in Borjomi forest. This and other CSR activities such as several viral campaigns to increase awareness about safe driving; the restoration and conservation of historical buildings; renovation and creation of sports complexes; the financial support of various sports; have given us huge value in terms of brand perception and customer loyalty. Q. How do you help businesses communicate

their greenness to their customers? A. We plan to issue annual CSR reports that, among 5 pillars, will include an environmental report. We are in the process of developing a strategy for the next year and it will be presented to a wider audience in the IV quarter. Q. Does sustainable marketing typically cost more money? A. Complying with sustainability goals could demand initial investments, but in terms of marketing it can sometimes be even more eﬃcient than sales promotion campaigns. The reason is the higher interest from numerous target groups. We are happy to support society in overcoming diﬃculties that they encounter, including awareness campaigns and direct financing. These are the real topics that are interesting for the public and thus attracting people’s attention becomes easier. The outcome is more pleasing as well. Q. What is Socar doing to improve the environment around PFS? A. We are making a strategic development plan of our Petrol Filling Stations chain, where we are looking into the possibilities of making the areas greener and environmentally sustainable.

Currently I can’t tell you exactly what are or will be the eﬀorts, however we are looking into that. Q. Will Socar develop renewable energy? Have there been any investments made already? A. We are expanding the number of electric charging ports at our stations. The first rapid charger has been installed in Gori. It reduces the charging time to 30 minutes. Overall, seven of our stations are equipped with electric chargers; this gives our customers an ability to travel across Georgia, from Telavi to Batumi, with electric cars. We are also looking closely into using solar energy to power our stations. We are analyzing possibilities to install solar panels on top of our PFS. We are looking to supply around 20-30% of electricity from solar energy within 5 years, so let’s see. Q. What is the responsibility of Socar towards air pollution? A. Our responsibility is to comply with the environmental standards of the country as well as promote cleaner and more sustainable vehicles, like hybrids and electric. As mentioned above we are constantly investing in the infrastructure to make our operations more sustainable.

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July sees extreme weather with high impacts Extreme weather, including record temperatures and heatwaves, drought and disastrous precipitation, has marked the first half of summer in the northern hemisphere. This has had widespread impacts on human health, agriculture, ecosystems and infrastructure and led to devastating wildfires, latest report by World Meteorological Organization said. The FINANCIAL

018 is shaping up to be one of the hottest years on record, with new temperature records in many countries. This is no surprise. WMO Deputy Secretary-General Elena Manaenkova sayd. The UK saw its driest first half of summer on record, with just 47 mm between 1 June and 16 July. Japan suﬀered the worst flooding and landslide in decades, with many daily rainfall records broken between 28 June and 8 July.

Deadly fires fanned by extremely high winds killed dozens of people near Athens on the night of 24 July in one of Greece’s worst tragedies for years. Many recent studies have found that the probability of the extreme event has been influenced by human activity, either directly or indirectly. The persistency of high temperatures in some regions – including northern Europe - has been due to a stationary high pressure system, ac-

cording to World Meteorological Organization This is common in summer in both Northern and Southern Hemispheres. The jet stream, a core of strong winds around 10 kilometers above the Earth’s surface that blow from west to east and which steer weather around the globe – is generally slower in summer and occasionally become weaker than usual, then very settled weather occurs on the surface.

Drought and heat in northern Europe

What’s In a Cigarette? There are approximately 600 ingredients in cigarettes. When burned, they create more than 7,000 chemicals. At least 69 of these chemicals are known to cause cancer, and many are poisonous. Many of these chemicals also are found in consumer products, but these products have warning labels. While the public is warned about the danger of the poisons in these products, there is no such warning for the toxins in tobacco smoke. Here are a few of the chemicals in tobacco smoke and other places they are found: Acetone – found in nail polish remover Acetic Acid – an ingredient in hair dye Ammonia – a common household cleaner Arsenic – used in rat poison Benzene – found in rubber cement Butane – used in lighter fluid Cadmium – active component in battery acid Carbon Monoxide – released in car exhaust fumes Formaldehyde – embalming fluid Hexamine – found in barbecue lighter fluid Lead – used in batteries Naphthalene – an ingredient in mothballs Methanol – a main component in rocket fuel Nicotine – used as insecticide Tar – material for paving roads Toluene - used to manufacture paint

“The weekly temperature anomalies are forecasted with up to +3 to +6°C (in the first week in parts +6 to +10°C). The probability that precipitation will be below the lower tercile is more than 70% in the first week and more than 50% in the second week. This drought may be accompanied by water scarcity, local thunderstorms, risks of wildfires and harvest losses since soil moisture is reduced,” it said. Amid an extended heatwave in Scandinavia, temperatures topped 30°C in the Arctic Circle. Norway saw a record temperature of 33.5°C in Badufoss on 17 July, and it reached 33.4°C in Kevo, Finland. Influenced by a warm wind, the far north of Norway (Makkaur) saw a new record minimum overnight temperature of 25.2°C on 18 July. The heatwave followed an exceptionally dry and warm May in northern Europe, leading to a a sustained elevated risk of forest fires throughout Scandinavia and the Baltic region. Sweden reported about 50 forest fires burning in mid-July. Deadly fires fanned by extremely high winds killed dozens of people near Athens on the night of 24 July in one of Greece’s worst tragedies for years. Temperatures on 23 July reached about 38°C and there were strong west winds. Greece, however, has not witnessed below average precipitation so far this summer and so meteorological conditions in Greece cannot be compared to Scandinavia. Ireland recorded heatwaves at 15 synoptic stations (5 consecutive days or more with maximum temperature over 25°C) and an absolute drought at all its stations. The UK saw its driest first half of summer on record, with just 47 mm between 1 June and 16 July. The Met

Oﬃce has said that the heatwave will continue across much of England this week, with temperatures peaking up to 32-34°C in a few places on 27 or 28 July. Armenia saw a heatwave from June 29 to July 12. The average daily air temperature was 4 - 7° C above normal and up to 9°C in some region. A new record temperature of 42.6°C was observed at Areni on 12 July. Conversely, southern parts of Europe including parts of Spain, Italy, Greece and Turkey, have been witnessing below average temperatures and above average precipitation for the early part of summer. The conditions were due to a persistent anticyclone, or high pressure, system blocked over northern Europe. Atmospheric blocking over the northern North Atlantic involves isolation of large regions of air from the westerly circulation for 5-14 days or more. Atmospheric blocking alters normal climates across Europe and Russia by shifting storm tracks. Typically associated with an anticyclone, the zonal wind pattern known as the jet stream deviates from its mean position and its westerly winds reroute north and south of the anticyclone. Blocking is a typical winter weather phenomena, but it can also influence summer weather patterns as well and it could be linked to extremes such as Russian heat wave in 2010. Recent analysis suggests that climate change from human activities, also called anthropogenic forcing, might indeed aﬀect the characteristics of blocking events in the EuroAsia sector, in particular leading to longer blocking episodes. Another possible player in creating summer atmospheric blocking situations is the interaction between the atmosphere and the Atlantic ocean, which modulates sea surface temperature patterns on decadal time scales. These surface temperature patterns can influence the occurrence probability of summer blocking.

Extreme temperatures An intense heatwave hit Japan. Within the nationwide observation network deployed by the Japan Meteorological Agency (JMA), 200 out of 927 stations recorded maximum temperature exceeding 35 degrees Celsius on 15 July. On 19 July, JMA

issued a warning of very high temperatures from 24 July to 2 August. Kumagaya set a new maximum daily temperature record of 41.1°C, with Oume on 40.8°C on 23 July, according to JMA. Both are near Tokyo. The dangerously high temperatures and humidity came as Japan sought to recover from its worst flooding and landslide disasters in decades (see below) While issuing warnings of dangerously high temperatures, JMA also produced “Weather Analysis Maps” showing meteorological conditions and temperatures, updated every hour. The Korean Meteorological Administration issued a severe warning for several days that daily maximum temperatures will be more than 35 degrees, as a number of daily temperature records were broken. It said that no big change was expected in the pressure system, with hot conditions likely to continue until the end of July. Ouargla, in Algeria’s Sahara Desert, reported a maximum temperature of 51.3°C on 5 July. It is likely that this is the highest reliable temperature ever recorded in Algeria. WMO’s Weather and Climate Extremes Archive currently lists Kebili, Tunisia, as being Africa’s highest temperature with 55°C recorded in July 1931. However, there have been questions about the reliability of colonial era temperature records in Africa. On June 28, Quriyat, just south of Muscat, on the coast of Oman, recorded a 24-hour minimum temperature of 42.6°C, meaning that the coolest overnight temperature did not drop below that level. Although highest “low” temperature is not currently monitored as a category in the WMO Weather and Climate Extremes Archive, it is believed to be the highest such temperature ever recorded by a thermometer. Many parts of North Africa saw a heatwave from 3 to 10 July. Morocco saw a new record of 43.4°C at Bouarfa on 3 July. High temperatures are also forecast for the week beginning 23 July. The station of Furnace Creek in Death Valley national park in California, USA, recorded a temperature of 52.0°C on 8 July. The station holds the record for the highest recorded temperature on Earth at 56.7°C (134°F), on 10 July 1913. Other parts of California were also gripped by extreme heat. Continued on p. 16

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Cities that are starting yo ban cars (not in Tbilisi)

adrid plans to ban cars from 500 acres of its city center by 2020, with urban planners redesigning 24 of the city’s busiest streets for walking rather than driving. The initiative is part of the Spanish capital’s “sustainable mobility plan,” which aims to reduce daily car usage from 29% to 23%. Drivers who ignore the new regulations will pay a fine of at least $100. And the most polluting cars will pay more to park. People in Chengdu, China will be able to walk anywhere in 15 minutes or less. Chicago-based architects Adrian Smith and Gordon Gill designed a new residential area for the Chinese city. The layout makes it easier to walk than drive, with streets designed so that people can walk anywhere in 15 minutes. While Chengdu won’t completely ban cars, only half the roads in the 80,000-person city will allow vehicles. The firm originally planned to make this happen by 2020, but zoning issues are delaying the deadline. Hamburg is making it easier not to drive. The German city plans to make walking and biking its dominant mode of transport. Within the next two decades, Hamburg will reduce the number of cars by only allowing pedestrians and bikers to enter certain areas.

In February, Germany’s highest administrative court also ruled that, in an eﬀort to improve urban air quality, cities can ban cars from some streets. As The New York Times notes , the ruling could open the floodgates for cities around the country to go car-free. Over half of Copenhagen’s population bikes to work every day, thanks to the city’s eﬀort to introduce pedestrian-only zones starting in the 1960s. The Danish capital now boasts more than 200 miles of bike lanes and has one of the lowest percentages of car ownership in Europe. The latest goal is to build a superhighway for bikes that will stretch to surrounding suburbs. The first of 28 planned routes opened in 2014, and 11 more will be completed by the end of 2018. The city has also pledged to become completely carbon-neutral by 2025. Paris will ban diesel cars and double the number of bike lanes. When Paris banned cars with evennumbered plates for a day in 2014, pollution dropped by 30%. Now, the city wants to discourage cars from driving in the city center at all. As of July 2016 , all drivers with cars made before 1997 are not permitted to drive in the city center on weekdays. If they do, they will be fined, though they can drive there freely on the weekends. The mayor says Paris also plans to

double its bike lanes and limit select streets to electric cars by 2020. The city also continues to make smaller, shortterm eﬀorts to curb emissions — its first car-free day was in 2015, and it instated a car-free Sundays rule in 2016. Just like Paris, the mayor of London says the city will ban diesel cars by 2020. Currently, the city discourages the use of diesel engines in some areas of the city by charging a fee of $12.50 per day for diesel cars that enter during peak hours. They call it a “congestion charge. Brussels, Belgium features the largest car-free area in Europe. Most streets that surround Brussels’ city square, stock exchange, and Rue Neuve (a major shopping street) have always been pedestrian-only. The roads make up the second largest car-free zone in Europe, behind Copenhagen. Mexico City hopes to ban about two million cars from the city center. In April 2016, Mexico City’s local government decided to prohibit a portion of cars from driving into the city center two days every work week and two Saturdays per month. It determines which cars can drive on a given day using a rotating system based on license plate numbers. With reports by Business Insider, Reuters

Global Gas Flaring Declined in 2017 After Years of Growth The FINANCIAL – Oil production sites across the globe burned oﬀ less natural gas last year, new satellite data revealed. Despite a half-percent increase in global oil production, the decline in the global gas flaring – the burning of natural gas associated with oil extraction – reversed a trend that started in 2010. Flaring of natural gas around the world contributes to climate change and it constitutes a waste of energy resources. The process takes place

because of technical, regulatory, and/or economic constraints. It causes more than 350 million tons of CO2 emissions each year, with serious harmful impacts from uncombusted methane and black carbon emissions. The data was recently released by the Global Gas Flaring Reduction Partnership (GGFR), a World Bankmanaged organization comprising governments, oil companies, and international institutions working to

reduce gas flaring. According to the data, 141 billion cubic meters (bcm) of natural gas was flared in 2017. This is a 5% decrease from 2016 when nearly 148 bcm of natural gas was flared. While Russia remains the world’s largest gas flaring country, it also saw the largest decline in flaring last year. Venezuela and Mexico also reduced their flaring significantly in 2017, while in Iran and Libya, there were notable increases in gas flaring.

Migrant integration – adult learning rates

The FINANCIAL -- In 2017, 11.1% of adult migrants (aged 25-54) who were born in another EU Member State took part in education or training courses in their new country of residence. This rate was lower than the education or training participation rate recorded for the nativeborn population (12.4%). Migrants born outside of the EU had the highest education or training participation rate, standing at 13.0%. Looking at the individual Member States, Sweden, Finland and Denmark reported the highest participation rates for adult learning in general, regardless of the country of birth of the persons concerned. In 2017, almost one third of adults participated in education or training courses in these countries.

According to the data available, the majority of the EU Member States recorded the highest adult learning participation rates among their native-born population. On the other hand, three Member States reported that people born in another EU Member State topped the participation rate in adult learning. These three Member States were Estonia (24.0% of migrants born in another EU Member State participated in adult learning), the Czech Republic (13.0%) and Belgium (11.1%). In contrast, five EU Member States recorded the highest rates of education and training among those migrants born outside of the EU, namely Finland (32.2%), the United Kingdom (18.2%), Ireland (17.1%), Portugal (13.4%) and Germany (11.8%).

How can you prevent unhealthy air at work? The FINANCIAL – The best way to guard against harm is to prevent or minimize the sources of indoor air pollution, says American Lung Association. Employers are responsible for providing safe work conditions, including healthy air. - Make sure your work place is 100 percent tobacco free. Learn more about smokefree air. Store food properly. Dispose of garbage correctly and regularly. - Do not bring in products or chemicals that have strong odors or could give off harmful emissions. - Clean up water spills and report leaks immediately. - Be aware of the hazards and safe handling procedures for materials on the job. This information must be available to you and usually is provided in Material Safety Data Sheets (MSDS), employer instructions and container warning labels. - Let your supervisor or building maintenance staff know immediately if you suspect a problem with the air indoors. - Make sure that the air in your office can circulate freely. - Keep air vents open. Do not put papers, furniture or equipment in front of or on top of vents. The building’s heating, air conditioning and ventilation systems should be well designed, maintained and operated. Radon is a colorless, tasteless and odorless gas that causes lung cancer. Radon can reside at dangerous levels inside homes, schools and other buildings. Exposure to radon is the second leading cause of lung cancer in the United States, after smoking. Radonrelated lung cancers are responsible for an estimated 21,000 deaths annually in the United States

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Toyota Environmental Challenge 2050 Challenge4 Challenge of Minimizing and Optimizing Water Usage

Challenge1 New Vehicle Zero CO2 Emissions Challenge

In automobile manufacturing, water is used in painting, forging and other processes. Therefore, even a small reduction of its impact on the water environment is important. Our two measures to achieve this are comprehensive reduction of the amount of water used and comprehensive water purification and returning it to the earth.

Toyota has decided to challenge itself to reduce vehicle CO2 emissions by 90 percent in comparison with 2010 levels, by 2050. We will promote the development of next-generation vehicles and further accelerate the spread of these vehicles.

Challenge5 Challenge of Establishing a Recycling-based Society and Systems

Challenge2 Life Cycle Zero CO2 Emissions Challenge Toyota eﬀorts to reduce to zero not simply the CO2 emissions produced in traveling and manufacturing, but all CO2 emissions including in the processes of materials production, and disposal and recycling of vehicles.

Toyota has been working for 40 years on the challenge of resource recycling. Going forward, by rolling out to the world the technology and systems evolved in Japan, we will continue working on the challenge of establishing a recycling-based society.

Challenge6 Challenge of Establishing a Future Society in Harmony with Nature

Challenge3 Plant Zero CO2 Emissions Challenge The two main pillars of our strategy to achieve zero CO2 emissions at our plants are 1) developing and introducing low-CO2 technologies with ongoing Kaizen 2) adopting renewable energy sources and utilizing hydrogen energy.

Otar Danelia: MEMBER OF PARLIAMENT Veriko SUKHIASHVILI FactChek

VERDICT: FactCheck concludes

that Otar Danelia’s statement is TRUE.

Table 1: Wine Export in 2010-2018, Million Bottles (0.75 litre)

Toyota has engaged in planting trees at plants, environmental conservation activities in our surrounding area. To establish a society where humans and nature coexist in harmony, we are promoting several activities to connecet regions, the world and the future.

“Wine export in 2017 was quite voluminous and exceeded 76 million bottles.”

Year

2010

2011

2012

2013

2014

2015

2016

2017

Amount

2017 (6 months) 30

2018 (6 months) 38

Source: National Wine Agency Graph 1: Wine Export in 2010-2018 (USD Million)

RESUME: In accordance with the Na-

tional Wine Agency of Georgia’s data, 76.7 million bottles (0.75 litre) of wine were exported from Georgia in 2017 which is 54% more as compared to the figure for 2016. In the accounting period, income received from wine export reached USD 170 million which is 49% more as compared to the same figure for 2016. As of the first six months of 2018, a total of 38.2 million bottles of wine have been exported with income exceeding USD 90 million. These figures surpass the previous year’s figures by 21% and 28%, respectively. Of note is that Russia still remains the largest importer country of Georgia’s wine – 62% of the total wine exports are destined to Russia.

ANALYSIS At the session of the Parlia-

ment of Georgia, Otar Danelia, Chair of the Agrarian Issues Committee, underlined the

Source: National Wine Agency increased volume of Georgia’s wine export and stated: “Wine export in 2017 was quite voluminous. More than 76 million bottles were exported. This is unparalleled in the history of independent Georgia.” In accordance with the National Wine Agency LEPL’s data, 76.7 million bottles (0.75 litre) of wine were exported to

53 countries in 2017 which is 54% more as compared to the figure for 2016. In 2017, wine export amounted to USD 170 million in revenue. The growth constitutes 49% as compared to the same figure for 2016. Growth of wine export is notable as concerns the following countries: China – 43% (7,585,407 bottles),

Russia – 76% (47,778,920 bottles), Ukraine – 46% (8,502,554 bottles), Poland – 15% (2,676,440 bottles), Latvia – 20% (1,505,138 bottles), Belarus – 56% (1,827,130 bottles), USA – 56% (457,920 bottles), Germany – 38% (404,538 bottles), etc. The top markets for Georgia’s wine exports are: Russia

– 62.2%, Ukraine – 11%, China – 9.8%, Kazakhstan – 4.3% and Poland – 3.4%. In 2017, nearly 250 companies exported wine from Georgia. For this year, in accordance with the National Wine Agency’s data, 38.2 million bottles (0.75 litre) of wine were exported from Georgia to 48 countries in 2018 which is 21% more as compared to the same period of 2017. The total value of exported wine is USD 90.3 million. In this aspect, growth constitutes 28% as compared to the same period of the previous year. As of January-June 2018, growth in wine export was notable as concerns the following countries: Japan – 200% (130,628 bottles), the Czech Republic - 134% (30,456 bottles), Kyrgyzstan – 81% (140,370 bottles), South Korea – 78% (31,650 bottles) and the Netherlands – 68% (38,799 bottles). The top five largest importer countries of Georgian wine are as follows: Russia – 62.8%, Ukraine – 10.9%, China – 7.8%, Kazakhstan – 4.3% and Poland – 4.1%. In the last years, the growth or decline in the export of Georgian wine has largely depended on the Russian factor. This happened in 2013-2014 when wine export increased significantly because Russia revoked its trade ban on Georgian wines in June 2013.

A total of 37,615,052 bottles of wine were exported to Russia in 2014 which constituted 63% of the total export. In 2015, it was the Russian factor again that contributed to a decrease in Georgian wine export. In 2015, export of wine to Russia decreased by 51% and to Ukraine by 56%, accounting for a total decline of 39% in Georgia’s wine export. Russia is quite an unstable market for Georgia’s wine export. This is sufficiently demonstrated by the fact that Russia’s Federal Service for the Oversight of Consumer Protection and Welfare (Rospotrebnadzor) published a statement a week ago that some Georgian wines and alcoholic beverages failed to meet quality standards according to testing done by the Service. As a result of this, 16,000 litres of Georgian alcoholic beverages were denied entrance into Russia. The statement also says that oversight on alcoholic products imported into Russia will become stricter. Therefore, it is true that Georgian wine is exported to more and more countries every year and it is gaining footholds in new markets but there is still work to do in order to increase publicity for Georgian wines and popularise them further which will make for less dependence upon unstable markets such as Russia.

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“Respect for the Planet is our basic philosophy” Interview with Mitsuru Konishi, President of Toyota Caucasus Eva BOLKVADZE The FINANCIAL Q. Can you describe Toyota’s green initiatives and practices? A, Firstly, I would like to express my gratitude for showing an interest in Toyota and its environmental goals. The environmental issue is one of our top priorities. The aftermath of disasters taking place throughout the world over the last few years resulting from humans being careless towards the environment has made us think about the consequences we may soon be facing. Environmental issues have become one of the top priorities for Toyota Motor Corporation. “Respect for the Planet” is our basic philosophy, and based on it in 2015 we formulated our Environmental Challenge 2050. Unfortunately, car manufacturing is related to generating CO2, the cars themselves generate CO2. Therefore, under the 6 challenges that Toyota has set itself, we expect to eliminate CO2 emissions almost completely, by 90%, by the year 2050. Q. In what ways are you incorporating social and environmental practices into your business? A. We have several actions for this. The first is very basic but I think the most important. Environmental education and support for environmental programmes is one of our major activities. Considering the importance that forests carry, Toyota Caucasus made the decision to contribute to the latter’s development and last year planted 2,000 trees in Borjomi forest. I believe that Toyota Caucasus will continue to position the maintenance of environmental infrastructure as its core value. Q. Does Toyota have any specific environmental targets it hopes to achieve? A. As I mentioned above, we have the environmental challenge 2050 with its main objectives being to reduce CO2 emissions by 90% by 2050. Toyota has set out for itself very specific targets that we aim to achieve before 2050 that include 90% reduction of CO2 emission in cars manufactured and also during the manufacturing process. Toyota has the goal to simplify manufacturing technologies and their complexity so that this reduces CO2 emissions. Vehicles manufactured using solar, wind and hydrogen energy is our direction. The other point is water. As the population is growing, we are doing our best to prevent the depletion of natural resources as water is one of the most significant resources we rely on. Toyota will thoroughly reduce the amount of water used, purify it and return it to the earth. One more issue is to ensure the appropriate disposal of increasing waste volumes and establish an End-of-Life vehicle system that implies using eco-friendly materials; using auto parts for longer; developing recycling technologies; and manufacturing vehicles from Endof-life vehicles.

MITSURU KONISHI, President of Toyota Caucasus

Q. As one of the main auto service providers, please evaluate the technical conditions of cars in Georgia. What are the main problems? A. I’m afraid that that there are some issues in Georgia, especially in Tbilisi. Perhaps the most critical one is vehicle emissions, which are a major source of air pollution. This is of course caused by technical malfunction of the vehicles and import of vehicles that do not support the standards required to maintain sufficient air quality. To improve air quality Toyota Caucasus has been actively working to promote hybrid technologies, which enhance air purification performance to ensure vehicle exhaust gas emissions are as clean as possible. Globally, Toyota will continue collaborating with Group companies and partners to actively develop new catalyst technologies which use fewer precious metals and achieve cleaner exhaust gas emissions. Q. What is the main challenge Toyota Caucasus is facing at present in terms of environmental sustainability? A. First of all, we need to under-

stand what each society expects from us. Maybe we should understand what kind of environmental regulations there are and what we are doing for those regulations. The region Toyota Caucasus is covering at the moment is currently making its first steps towards adopting environmental regulations. And maybe next is hybrid promotion. Prius was the first car to introduce hybrid technology on the market and customers have the opportunity to select vehicles based on their environmental performance. More and more automakers are developing and launching new hybrid vehicles, so a new market segment of “hybrid vehicles” is being established in the mindset of our customers. Now that customers opt for hybrid vehicles, it has made it possible for the automotive industry to reach further environmental sustainability. Having reached the milestone of selling 10 million hybrid vehicles, Toyota is encouraged to keep striving to make ever-better cars for its customers. Q. You mention hybrid vehicle introduction and promotion as an important contribution to environmental

problem-solving. However, from an ecological point of view, electric vehicles should be considered even more ecofriendly tools for achieving environmental sustainability, shouldn’t they? A. Definitely, from a pure vehicle emissions point of view electric cars are even more eco-friendly, however we need to think about the full picture of energy consumption. Even in Europe, which is actively considering EV promotion, it has been admitted that in the event the full auto park will be switched to electric cars, increased energy consumption will require several new nuclear power plants being built. That on the other hand might create another issue from an environmental point of view. That is why globally Toyota is working on alternative fuel technologies like hydrogen cars that have already started in some countries, but need quite specific infrastructure for further development. Therefore from a practical point of view, especially for our region, that does not have appropriate infrastructure developed yet, Toyota

electric hybrid – self-charged vehicles might be considered the best solution for decreasing air pollution and improving the environmental situation. Our customers have already experienced the benefits of hybrid cars and been reassured by them. Q. How do the environmental challenges fit into Toyota’s long-term philosophy? A. It has a very long history. Toyota’s environmental philosophy and policies are based on the Guiding Principles at Toyota established in 1992 (revised in 1997). Policies for environmental initiatives were formulated in 1992 as the Toyota Earth Charter (revised in 2000). This Charter is shared among 661 Toyota aﬃliates* subject to the Consolidated Environmental Management System (consolidated EMS) around the world. The Toyota Global Vision announced in 2011 emphasizes the importance of “Respect for the Planet.” Based on its philosophy and policies, Toyota formulated the Toyota Environmental Challenge 2050 in FY2015 as its first long-term vision for environmental initiatives. In FY2016, Toyota started the Sixth Toyota Environmental Action Plan (FY2016-2020), initiating new programmes for sustainable development in harmony with society toward the year 2050. Q. How does Toyota Caucasus engage its employees to think and act upon sustainability? A. We are already taking several actions. Each Toyota representation in the region has a designated Environmental Manager. Environmental managers make sure to keep in line all environmental requirements, whether legislative or internal. For the 4th year already Toyota Caucasus has maintained ISO 140001 certification. We systematically conduct training of staﬀ to keep them updated on environmental requirements, keep track of the waste and its proper utilization.

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EU hepatitis death rate stable The FINANCIAL -- From the 5.2 million deaths reported in the European Union (EU) in 2015, 7 300 were due to viral hepatitis. Men (3 900 deaths) and women (3 400 deaths) were almost equally aﬀected. These values have remained roughly stable since EU records began in 2011. Nearly two-thirds of these deaths concerned people aged over 65. In absolute terms, Italy (2 900 deaths, or around 40% of the EU total) recorded by far the most deaths from hepatitis in 2015, followed by Germany (960), Spain (900) and France (600). However, for a relevant country comparison, these absolute numbers need to be adjusted to the size and structure of the population. With 40 deaths from viral hepatitis per million inhabitants, Italy registered the highest rate among the EU Member States. It was followed by Austria (31 deaths per million inhabitants), Latvia (26), Hungary (21) and Spain (19). At the opposite end of the scale, Malta recorded zero cases of hepatitis in 2015. Low rates were recorded in Slovenia and Finland (both with 1 death per million inhabitants), Bulgaria and Denmark (3 each)

DEATH RATE FROM HEPATITIS HIGHEST IN ITALY, LOWEST IN SLOVENIA AND FINLAND

Electrification is identified as the biggest opportunity for the capital goods sector, with microgrids and energy storage systems ranked as the technologies with the greatest potential for green economic transformation. The overall demand for energy storage is set to grow from current levels of 10 gigawatts to 125 GW by 2030, creating an investment opportunity of US$103bn1. Capital goods companies are identifying and investing in transformative and radical technologies such as microgrids, hybrid renewables and energy storage. Schneider, ABB, Mitsubishi Electric, Siemens and Honeywell lead the way on this. Mitsubishi Electric has also filed the largest number of high quality patents with 657 (per 10,000 employees) between 2000 and 2017. More than 60% of these focus on technologies that relate to automation, connectivity and digitalization. Renewable energy is an important profitability driver for several companies, with Vestas leading in hybrid renewables and large-scale digitalization. Heavy machinery lags electrical equipment and industrial conglomerates on innovation. Regulation of this sub-sector has so far focused on air quality rather than CO2 emissions and the end-markets served (e.g. agriculture, mining) are relatively traditional. At the same time, heavy goods vehicles are still largely dependent on diesel as a primary fuel. The main transition risk for the sector is managing emissions down the value chain. Scope 3 accounts for over 90% of sector emissions, however corporate disclosure and management of these emissions are poor. Less than a third of the companies we analyzed have a scope 3 emissions reduction target. Source: Bridging low carbon technologies report, 2018

as well as the Netherlands and the Czech Republic (4 each). At EU level, the hepatitis death rate stood on average at 14 deaths from viral hepatitis per million inhabitants in 2015.

USD 1.5 million to Expand Energy Efficiency Financing in Georgia The Green for Growth Fund (GGF) has provided a senior loan of USD 1.5 million to new partner JSC MFO Crystal (Crystal) to expand green energy lending in Georgia. The largest microfinance organization in the country, Crystal primarily serves microentrepreneurs and farmers, with a strong focus on rural clients. The institution is also unique among microlenders in Georgia for its keen interest in addressing the need for energy-efficiency improvements among this client group: Crystal has been substantially ramping up its portfolio of green energy products and last year pioneered financing for solar energy systems in remote areas. This strategic focus on energy-efficiency financing makes Crystal an ideal partner for the GGF’s mission to reduce energy use in the region. The new GGF funding will boost Crystal’s capacity to help households and farmers improve their carbon footprint and save energy: Measures financed through the loan are expected to result in annual primary energy savings of over 2,600 MWh and reduce CO2 by approximately 910 metric tons per year. The GGF will also support Crystal in measuring and promoting green impact, developing energy-efficiency products, and raising green energy awareness among its client sector.

July sees extreme weather with high impacts Continued from p. 12

Downtown Los Angeles set a new monthly July minimum overnight record of 26.1°C on 7 July. Chino, near Los Angeles, saw a record temperature of 48.9°C (120°F). Burbank airport set a new absolute record of 45.6°C (114°F) on 6 July, beating 45°C in 1971, and Van Nuys Airport saw a record temperature of 47.2°C (117°C) according to the US National Weather Service. NWS issued an excessive heat warning for South East California and Southwest and South-Central Arizona, valid through 25 July. It said temperatures in Las Vegas valley may reach up to 46°C and Death Valley National Park 53°C. Waco, Texas reported an all-time high temperature record of 45.6°C on 23 July. In Canada, a heatwave combined with high humidity in the province of Quebec contributed to dozens of deaths, especially among the vulnerable and elderly. At the same time, parts of Eastern Canada saw a brief return of wintery weather, with snow in parts of Newfoundland and Cape Breton (Nova Scotia), and temperatures of -1C, in St John’s and Halifax. Winter weather this late in the year is rare, this being the first since 1996.” Temperatures were exceptionally high over large parts of northern Siberia in June 2018. That trend continued through the first week of July. The Western Siberian Hydromet Center of Russia issued a storm warning due to temperatures of more than 30°C for more than five days, expected to last between 9 and 16 July. This creates high risks of wildfires as well as of power supply, transportation, and utility services disruptions and drowning of people escaping the heat in water. Krasnoyarsk Region reported daily anomalies of 7°C above average, with fires already impacting about 80,000 hectares of forest. Globally, June was the second warmest on record, according to the European Centre for Medium Range Weather Forecasts Copernicus Climate Change Service. The

year to date is the hottest La Niña year on record. In addition to the exceptionally high over large parts of northern Siberia in June 2018, temperatures were also well above average over much of the USA, central Canada and North Africa, and over the Middle East and northern China. The contiguous USA had 3rd hottest June on record. But many parts of the country had well above average minimum overnight temperatures, according to the US National Centers for Environmental Information. In 2018 (as of July 9), there have been 6 weather and climate disaster events in the USA, with losses exceeding $1 billion each across the United States. These events included 4 severe storm events and 2 winter storm events. Overall, these events resulted in the deaths of 36 people and had significant economic eﬀects on the areas impacted.

Japan Heavy Rain Event Japan suﬀered the worst flooding and landslide in decades, with many daily rainfall records broken between 28 June and 8 July. According to oﬃcial government figures, more than 200 people lost their lives. Around 10,000 houses have been destroyed and/or inundated. Japan is one of the world’s best prepared countries for disaster risk reduction and disaster management. JMA issued emergency warnings in advance, targeting as many as eleven prefectures in the country to alert people to the significant likelihood of catastrophes. The emergency warning system was launched by JMA in 2013, based on lessons from the major tsunami caused by the 2011 Great East Japan Earthquake. In addition, JMA dispatched its experts as the JMA Emergency Task Team or JETT, to local governments in the region to best support multi-hazard disaster prevention activities. It set up a web portal dedicated to the heavy rain event. Between 28 June and 8 July,

there was extraordinarily heavy rainfall caused by a huge amount of water vapor from a stationary rainy front, in addition to damp air remaining from Typhoon Prapiroon. West Japan and Hokkaido experienced record precipitation during the period, according to the Japan Meteorological Agency (JMA). Total precipitation at many observation sites reached two- to four times the mean monthly precipitation for July. For instance, 1,800 mm of rain fell in Shikoku, 1,200 mm in Tokai, 900 mm in North Kyushu, 600 mm in Kinki, and 500 mm in Chugoku. This triggered a large number of landslide, inundation and flood events.

Relationship with Climate Change Episodes of extreme heat and precipitation are increasing as a result of climate change. Although it is not possible to attribute the individual extreme events of June and July to climate change, they are compatible with the general longterm trend due to rising concentrations of greenhouse gases, WMO says. Many recent studies have found that the probability of the extreme event has been influenced by human activity, either directly or indirectly. Of a set of 131 studies published between 2011 and 2016 in the Bulletin of the American Meteorological Society, 65% found that the event’s probability was significantly aﬀected by anthropogenic activities. In the case of some extreme high temperatures, the probability increased by a factor of ten or more. It has been more diﬃcult to identify anthropogenic influence in the attribution of precipitation extremes. Whilst some studies have found that the probability of some extreme precipitation events was increased, most often indirectly, by climate change, for many other studies the results have been inconclusive.

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Fighting Environmental Offenders Interview with Manana Kochladze, Chair (official) at Green Alternative Eva BOLKVADZE The FINANCIAL Q. What does green business mean to you? A. For me, green business is a sustainable business. It consumes few resources, is local and serves the interests of the local community. Q. Why should a business go green? A. It is very profitable for a business to be green. A business which is green consumes less energy, or energy from renewable energy sources, as well as other material or natural re-

MANANA KOCHLADZE, Chair (official) at Green Alternative

sources. Consequently, they have less of a negative impact on the environment and at the same time they pay less for modest energy. Q. What are the main problems in the field of environmental sustainability? A. There is no eﬀective framework for environmental governance in Georgia, in Georgia that leads towards increased environmental problems , including air and water

pollution, deforestation and impact on human’s health.. There is no planned strategy for how to solve these problems. There are issues which can be more easily resolved, without any additional resources. However, there are problems that require significant investments but they are priority and need to be solved by government. Therefore what’s very important is for there to have an environmental policy framework that defines these priorities and allocates resources and instruments in order to solve those problems. Q. Do you think that the existing law is eﬀective in terms of protecting Georgia from companies with the most negative impact on environment? A. If the law was good, private individuals or judicial entities could not harm the environment. The laws that we have are mostly outdated or ineﬀective, since there is a narrative in Georgia that first we must develop the economy and then take care of the environment. For example, we talk about air pollution narrative is that state could not request polluting companies to

stop polluting environment as the investments in environment protection measures are expensive, companies may refuse and stop operation and this considered to be bad for employment situation as well as for economy .As a result, air pollution heavily impacts on people’s health. But worsening people’s health status has serious implications on the economy. E.g. In 2016, according to State Audit oﬃce government spent approximately 120 million lari to fight consequences of air borne disease and this may be 1/3 of total spending of those diseases. This is a money that has been withdrawn from economy, both in terms of improving living conditions. Additionally, the Government periodically fines companies, and then these companies complain against fine , and there is endless court processes. However, flines are not an eﬀective way to solve a number of problems, including historical pollution, permanent emissions due to the industrial process. In this cases there is important to suspend the operations and developed well based planned for improvement if possible. In some cases, government rather to

fine the companies can even stimulate them through various economic instruments, to install environmentally friendly technologies, as it is recognized practice in lots of the countries. However, again it needs the clear and transparent regulations for introduction and application of those various tools. Q. Which companies are considered the most damaging to the environment? A. They are RMG Gold, Chiatura Mines, Zestafoni Ferroalloy Plant, Tkibuli mines, Heidelberg Cement in Kaspi. In short, in Georgia, where there is a so-called industrial zone, and therefore there is a very diﬃcult situation in terms of environmental pollution. Q. What are the main challenges Green Alternative is facing at present? A. Basically, we are working on all the issues that are are priority in the country. This concerns the mining industries and their ineﬀective regulatory framework; as well as the development of hydropower stations, protection of biodiversity and forests, expansion and management of protected areas system.

“Number of electric and hybrid cars in Georgia is growing rapidly” Interview with Kakha Kuchava, Chairman of the Committee on Environmental Protection and Natural Resources at Georgian parliament Eva BOLKVADZE The FINANCIAL Q. What does green business mean to you? A. Green business is an efficiency of not only rational use of natural resources but resources that a company uses and consequently, at the expense of this efficiency, the growth of income and social responsibility in the country. Q. Why should businesses become green? A. Any business, especially if it is a big and ambitious business, thinks about the future and not just about its future but the future of the surrounding environment. It is necessary for all businesses to gradually switch to the principles of green economy, since the trends that are in the world, including increasing use of resources, even by an ordinary business, will ultimately lead to catastrophic consequences for our future generations. Q. When companies try to become sustainable, what is the hardest part of the process for them? How are you supporting them? A. The most difficult part, in general, is the level of education and level of knowledge in the field of green economy. Unfortunately, many believe that green economy and implementation of entrepreneurship in green economy principles is associated with less profit, which is an absolute falsehood and which indicates incompetence. If the company is working on a long-term perspective and not a short-term onetime success, the principles of green economy are especially attractive to them. That is why our committee’s aim is to maximize awareness. Also, our goal is to support the Government in creating legislative initiatives and directives in terms of green economy, to become more attractive and interest-

KAKHA KUCHAVA, Chairman of the Committee on Environmental Protection and Natural Resources ing for local and foreign companies. Q. What steps has the Environmental Protection and Natural Resources Committee taken to become more sustainable itself? A. We have very interesting processes in the committee. There are working groups with regard to the green economy in which all interested parties are involved and they will be particularly active from September. Meetings with private sector representatives are planned. Our main goal is to raise awareness and search for a solution to make it easier for the private sector and entrepreneurs to move to green economy principles. Q. Which industries have the worst impact on the environment? A. These are of course companies extracting and mining natural resources. Mining companies are causing the biggest harm to the environment and this fact requires considerable attention. Q. What is Georgia doing in order to improve the environment and reduce pollution? A. I know what Parliament and our committee are doing in this regard. One of the most recent issues we have started is to improve the air quality in Tbilisi, but as the working

group shows, these recommendations will be very interesting for Georgia as a whole, not just for Tbilisi. There are many problems in the process of being investigated and come September we will have completed the most interesting legislative initiatives. Q. What kind of fines or limitations have been imposed on companies having a negative impact on the environment? A. Unfortunately, an early, regulatory base for companies who have had a negative impact on the environment was so diminished that it was hard to institute criminal proceedings against damaging companies. Today, one of the main issues the Government and Parliament are working for is a reform that radically changes the approach of responsible companies to environment protection. The existing system will guarantee environmental protection in the case of accidental damage or by purpose. Q. Do you think that the existing law is eﬀective in terms of protecting Georgia from environmental oﬀenders? A. Today we are actively working on stabilizing legislative amendments to the environmental damage industries. This is a bit of a painful and not pleas-

ant process for many, but the fact is that if we think about the future and the sustainable development of the country, the environmental component is one of the most important, together with the economical and social. Nowadays, it is an active work process in order to maximally harmonize existing laws with international and EU standards, as well as working on new laws. Q. Solar energy is actively supported by governments in the USA and EU countries. What is the Georgian Government doing to support green energy in Georgia, especially wind farms and solar panels? Renewable energy is becoming a top priority for Georgia. Last year, we became members of the Energy Community and we drafted the legislation that includes Law on Energy Eﬃcient Construction and Law on Renewable Energy , which will be discussed in the autumn sessions. This law will be the main base from which to promote renewable energy in Georgia. In terms of wind energy in Georgia, we can truly be proud of the 6 huge wind electric power stations located on the way to the West, working successfully.

As for solar power, I had very interesting discussions lately, even last week in Kutaisi Parliament, and our last meeting was related to this issue. We met with a very interesting group that wants to build solar power stations in Georgia, and I believe that the Government should support the implementation of such kinds of projects. Georgia has this potential. If solar energy was previously a more expensive luxury, now it is cheaper and more aﬀordable. Q. From your point of view, why does Georgia not support the popularization of bikes and scooters? In major EU capitals the number or cars are limited and this does not aﬀect the economy badly. A. Everything needs its time, but we do not have the right to spend as much time as Europe and other countries to promote it. However, we are making many interesting legislative amendments, on the basis of which a tendency of growth is evident. I was one of the authors of the draft law that relieved all electric bikes and electric vehicles from taxes. I registered a new draft law a few days ago that will also exempt electric buses in Georgia from taxes. According to the statistics, the number of electric and hybrid cars in Georgia is growing rapidly, and the rate of increase will continue to grow. Q. What are the main challenges the Environmental Protection and Natural Resources Committee is facing at present in the field of environmental sustainability? A. In general, we face a lot of environmental problems. I can underline two ongoing hot topis we are working nowadays. One of the challenges we are trying to stick to is the forests reform and the absolutely new concept, which is based on the sustainable management of forests. The reform includes an increase in the number of foresters, to increase their qualifications, trainings, knowledge and equipment, preventive measures for forest problems. The second challenge is waste management. We have received a very high law, but first is the adoption of the law and second is its execution. The next year will be particularly important in this direction, in terms of implementation of municipal management plans, and it is very interesting in this regard that Parliament will be involved. Our committee is going to meet representatives of municipalities in all regions and talk about these challenges with them.

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Green Standards of Life Interview with Evgeny Nesterenko – Chief Administrative Officer of MAQRO Group Eva BOLKVADZE

The FINANCIAL

coDevelopment is a complex subject based on design and construction standards. Its development level directly depends on achievements of science and technology, industrial engineers’ activities, and public awareness of environmental principles. Eco-Development standards are designed to accelerate the process of transition from traditional and nowoutdated systems to a more sustainable system and are based on the following principles: Safe and healthy living conditions; Reducing adverse environmental impacts; Considering future generations’ interests.

EVGENY NESTERENKO – Chief Administrative Officer of MAQRO Group

Q. What role does environmental sustainability play in Maqro Construction’s overall strategic plan? A. Despite the fact that the technology of ‘green construction’ is constantly improving, the main purpose of the idea remains unchanged – that is, reducing the overall impact of the construction process on environmental and human health. This is achieved through factors such as efficient use of energy, water and other resources; caring for the health of residents; creating a comfortable working environment for employees; and a reduction of waste and environmental pollution. It is also important to consider the situation we have in the world today. One of the main directions of the global problems of the new millennium is ecology, and it holds a special place in the list of these problems. Getting out of polluted air has become a daily concern for our population. Surveys conducted by various organizations and public opinion polls show that environmental pollution for Tbilisi’s population has become one of the most serious problems. This directly reflects on the real estate market and trends in this field. If we do real estate market analysis, the highest priority of residential neighbourhoods in Tbilisi is changing because of high pollution levels. Local customers have new requirements, have changed their tastes, behavioural trends and preferences in the acquisition of real estate. By accommodating the abovegiven factor, our company tries to maximize the development of residential complexes that will enable residents to enjoy maximum comfort, whether in the city centre or in the suburbs.

Green cover; greening of residential complexes; and an ecologically clean environment – these are issues that we attach great importance to. An example of this is our multi-complex ‘Green Budapest’ in Saburtalo, on Panjikidze Street, and ongoing project ‘Green Diamond’ in Digomi, near the American Embassy. During the selection process for new housing complexes in Saburtalo and Dighomi, a priority of ours was the respective area’s ecology, greenness, clean air, and infrastructure – all of which contribute to the establishment and promotion of a healthy lifestyle among residents. This is the main motivator of “Maqro Construction” and this is how our slogan Green Standards of Life plays out. In addition, in the process of construction, we use modern, heat-based materials that maximally provide minimal costs for heating apartments, hence resulting in less resource consumption and air pollution. Q. What are the main social and environmental challenges and opportunities at Maqro Construction? A. Our company is trying to respond to all of the challenges that exist today in the world and in Georgia. Our activities are totally oriented towards our customers, which are no less important than our employees’ satisfaction and well-being. With these factors in mind, we created the ‘Smart Living’ and ‘Smart Working’ concepts that envisage improved standards in every aspect of life and employment and this is not just an image, it’s a credo for Maqro Group. Considering that one of the key factors in eco-development is to care for the health of one’s employees and to promote the eﬃciency of their activities at all stages, these concepts help us to oﬀer

them all the conditions that promote a healthy lifestyle, a stimulating environment and a safe one. For our residents, our complex is equipped with a green yard, treadmill, sports grounds, swimming pools, open and closed fitness spaces – in essence, all of the benefits that people seek out from different locations in different areas, are available in one space here and absolutely free for them to use. As for the employees, all safety standards are maintained in the construction process: strict norms of safety; insurance; uniform; feeding; various bonus systems for stimulating staff, etc. In a word, all the conditions are designed for them to feel maximally comfortable in their working environment. I would like to emphasize another important factor for ecodevelopment – the reduction of waste and environmental impacts – along with everyone else, this remains one of the major challenges for us. Essentially, there is no waste management system in Georgia, and this is one of the main factors in environmental pollution. We are trying to create a habit of waste sorting among the residents of our projects; we want to offer them different containers for the disposal of different types of waste. A few days ago, the Mayor of Tbilisi made a statement in which he said that in the nearest future Tbilisi will move to such a principle of waste management, which will be very useful for environmental protection. We welcome this initiative and will do our best to support our residents in the matter of waste disposal. Q. What are the objectives and targets of Maqro Construction’s sustainability efforts? A. In countries where so-called

‘Eco-Development’ is developing rapidly, they are creating a national standard for ‘eco-building’ based on aspects of the country’s socio-economic conditions. Such conditions include: legislation; country policy; energy and ecology issues; climatic conditions; energy eﬃciency and environmental issues pertaining to the degree of awareness across professional circles and wider society. We are working actively on trying to get comprehensive information on eco-development, technological innovation and successful experiences. We want to create a platform for sharing the experiences that promote the growth of green development. Ultimately, our company aims to create a national standard in Georgia following the example of successful foreign experience. This will help to increase the number of green constructions in our country and will have a positive impact on our environment. We also plan to introduce aspects of eco-development in our future projects, which are not present at this stage – such as effective use of energy, water and other resources. We will actively consider such alternative ways of heating and ventilation, such as geothermal systems, recuperation, and solar energy. Although modern technologies are quite expensive, the social benefits obtained by these initiatives are so significant that it would be unthinkable to ignore them. Alternative ways to minimize negative impacts on the environment reduce costs by 25% on average – another important detail about eco-development. All of this is positively reflected on the environment, as well as on people and their health, therefore caring for people is absolutely our company’s credo!

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“Going Green Is a New Trend With a Variety of Benefits” Interview with Samson Pkhakadze, President of Wissol Group Eva BOLKVADZE The FINANCIAL Q. What role does environmental sustainability play in your company’s overall strategic plan? A. Through the successful business activities of Wissol Group, we want to contribute to the economic development of Georgia and social well-being of its population. A strong business in turn means employed people, technological and infrastructural development, highly professional human capital and sustainable development of the local economy. Quality represents the core value of our business. By means of introducing innovative standards in business management and services, we contribute to development of the living standards of the society we live in, as well as to the industries we are operating in. Wissol feels responsibility for environment protection and undertakes social investments, does charity, and implements community projects for the social well-being of society at large. Wissol Group is focused on economic growth with environmental sustainability, basing its action on a strong commitment to the protection of environmental values, which translates to an in-depth analysis of risks and impacts as well as investment in eco-efficient technologies and practices. Q. What are the main social and environmental challenges and opportunities at Wissol? A. The main environmental challenges at Wissol are to reduce the risk of impact on the environment by establishing sound environmental management policies and promoting best practice. Wissol Group Environmental Policy applies to all of its direct operations and to services delivered by associated organizations. The amount of relevant environmental impacts, including air pollution, emissions, land and water pollution, waste generation etc. are being eliminated and reduced to a minimum by establishing and sustaining an effective programme for the management of environmental performance. According to our Environmental Policy we are developing and maintaining staff and supplier awareness of environmental sustainability. We ensure that best practice with respect to energy consumption, material usage, recycling and waste disposal is adhered to. Q. What are the objectives and targets of your sustainability efforts and what progress has been made in meeting your goals? A. To monitor the effects of its sustainability activities, Wissol updates its corporate objectives every year and provides incentives for outstanding performance. The integration of sustainability objectives with operational and economic-financial targets enables the company to build long-term success. Every year Wissol defines its strategies and objectives regarding sustainability issues and monitors their progress. The main environmental objective and target, with standing impact reduction, is to improve energy efficiency and research for alternative energy. Q. What business value have

SAMSON PKHAKADZE, President of Wissol Group

you seen from your environmental sustainability efforts? A. Increasing the efficiency of energy consumption seems to be the most straightforward and practical way to mitigate global climate change. Energy is so much a part of life that we often use it without thinking about the sources and impacts on the environment. In developing countries, including Georgia, energy efficiency is an important issue, especially conserving natural resources that are the main source of energy in Georgia. Additionally, reducing energy consumption leads directly to reduced carbon output and pollution. Q. How will you measure your progress toward environmental sustainability? Do you have milestones? A. Wissol has already determined Key Performance Indicators to measure the progress of our environmental sustainability. The Indicators include the amount of total energy use, total water use,

greenhouse gas emissions in tons of CO2 equivalent, total waste, and suppliers’ performance. These indicators are monitored permanently on a pre-defined basis and mitigation measures are implemented to reduce these numbers to as low as reasonably practicable. Q. Will individual companies put themselves at risk if they follow environmentally sustainable practices and their competitors don’t? A. Embracing sustainable and green principles is not just a trend. Cultivating sustainable and green practices helps organizations become more eﬃcient, competitive and profitable. We must understand that this is the number one problem in the country, because it directly aﬀects the health of our children and the health of our community. Everybody should take care of our country to become one of the greenest countries. Q. What advice would you

give to organizations who are interested in going green? A. As I already mentioned, developing sustainable and green practices leads to being more profitable, competitive and eﬃcient. There are numbers of reason why one should go green. Going green may seem to be the latest trend, but it is a trend with a variety of benefits for business owners. Applying green processes to the workplace creates a healthy environment, reduces unnecessary waste, reduces GHG emissions and air pollution, conserves energy sources and recognizes the role that businesses play in leading the way for social change. To help your company become greener, assess your environmental impact and identify areas for improvement. These could include reducing waste, recycling more, and using less energy. Set realistic goals for your green initiatives, track your progress toward achieving them, and celebrate your successes. This can raise awareness, add credibility

to your actions, and inspire others to join you in taking action. Q. What is Wissol doing to improve the environment around AGS? A. We used to have lot of actions for the improvement of environmental issues at our sites. According to our Environmental Policy, we are carrying out assessments of each site on environmental impacts and determining preventive measures. Preventive measures include fulfilment of the Pollution Prevention Procedure, Waste Management Plan, and reducing air pollution. Monthly audits are conducted by the HSE Department and reports are discussed to plan improvement measures in case of any findings. Our underground fuel storage tanks are double walled with leak detection gauge and an automation system which is alarmed in case of leakage. The underground fuel storage tanks are installed with reinforced concrete walled secondary containment, with waterproof coating on wall surfaces. An automation system allows for permanent control of the fuel level inside the tank. The tank vent pipe system is equipped with modern hydrocarbons and flame arrestors. Fuel pumps are equipped with a Variable Speed Drive system allowing one to reduce power as much as possible; the Pollution Prevention Equipment is inspected on a daily basis, with other firefighting systems and equipment; Hydrocarbon emissions are monitored on a quarterly basis and results are submitted to the Ministry of Environment Protection and Agriculture of Georgia. Site staff are trained and aware of environmental regulations, including pollution prevention, waste management and housekeeping. Waste segregation and Management has been updated according to Governmental requirements. Lighting has been swapped with LED lights, reducing power consumption by 30-40%. New office buildings are energy efficient. Q. Will Wissol develop renewable energy? Have there been any investments done in this already? A. We are striving to develop solar energy systems on our sites. On this basis Wissol is negotiating with renewable energy companies, operating in Georgia and abroad. Some of our site has been assessed to install solar panels. At this stage, assessment outcomes require additional reviews and design improvement for better results. Q. How much has Wissol invested in electric car charging stations? Or are there any planned investments? A. Last year we launched the installation of electric car charging stations at our sites. Two sites have been equipped with public electric vehicle charging stations. Additionally, two more chargers will be installed during the current year at different locations in Georgia. Q. What is the responsibility of Wissol towards air pollution? A. We are carrying out strict monitoring of air pollutants produced during our operations. The main air pollutant is hydrocarbon emissions, produced during fuelling activities. To reduce emissions as low as reasonably practicable, we use modern technological equipment: Variable Speed Drive Pumps; a tank vent pipe system equipped with modern hydrocarbons and flame arrestors. Hydrocarbon emissions are calculated on a quarterly basis according to local regulations and results are submitted to the Ministry of Environment Protection and Agriculture of Georgia.

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is the Which Capital Goods companies are What future for driving the low-carbon transition? majors?

Tarek SOLIMAN and LUKE FLETCHER

CDP CONSULTING

he shift to a low-carbon world presents the question of what role oil and gas companies will play in this transition, and what their strategic options are in the more immediate and longer term. Some of these are discussed below. These options are not mutually exclusive; it is likely that a combination of some of the below elements presents the best path. However, companies will need to formulate their specific strategies over the coming years.

Short-term:

The FINANCIAL

his is CDP’s initiation report on the Capital Goods sector. It ranks 22 of the largest publicly listed Capital Goods companies on business readiness for a low-carbon economy transition. The companies fall into three sub- categories within the sector: { Electrical Equipment { Industrial Conglomerates { Heavy Machinery It covers around 22% of the listed global Capital Goods companies in these sub-sectors by market cap. These companies have global activities covering all regions including the growing end markets in emerging markets. The Capital Goods sector is not an emissions intensive sector from direct emissions (Scope 1) and indirect emissions from energy use. However, like Autos, this is a sector where Scope 3 emissions really matter, particularly in the Use of Sold Products and it is this intensity that needs to be measured and targeted for reduction for the sector to play a key decarbonization role. The Capital Goods sector provides the products, processes and technologies to key high emitting sectors: power generation, building products, transportation, industry and consumer appliances. All the end markets supplied to by the sector face increasing regulation and decarbonization targets, from building and appliance standards, to mandated technologies for power generation. This oﬀers significant scope for the sector to use technology trends in electrification, digitalization and autonomy to change the emissions profile of end markets. Companies with business models aligned particularly to electrification, should continue to benefit from a move to meet

HIGHEST RANKED COMPANIES IN ELECTRICAL EQUIPMENT ARE: SCHNEIDER ELECTRIC, MITSUBISHI ELECTRIC AND ABB. HIGHEST RANKED IN INDUSTRIAL CONGLOMERATES ARE: VESTAS, SIEMENS AND HONEYWELL. HIGHEST RANKED COMPANIES IN HEAVY MACHINERY ARE: CNHI, KUBOTA, AND HITACHI CONSTRUCTION. targets set by the Paris Agreement. There are three key areas assessed in the League Table, which are aligned with recommendations for company reporting from the G20 Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD): Transition risks: It assess companies’ disclosure and exposure to Scope 3 emissions intensity, manufacturing emissions and their business resilience. Transition opportunities: It assess companies’ positioning to capitalise on the significant revenue potential for decarbonization themes, diﬀerentiating models aligned to incremental vs. transformative change. Climate governance and strategy: It analyses companies’ governance frameworks including emissions reduction targets and the alignment of governance and remuneration structures with low-carbon objectives.

Key findings - Emissions in the value chain are key for the sector, with over 90% of emissions in Scope 3 and the major-

ity of these related to Use of Sold Products. - Disclosure and management of Scope 3 emissions is low and lagging the Autos sector where Scope 3 emissions (fleet emissions) are directly regulated. - 32% of companies have a Scope 3 emissions reduction target compared to 81% for Autos. - Scope 1 + 2 emission intensities remained flat over 2012-17 but are relatively small. - Significant revenue opportunities are available to the sector based on low-carbon technologies aligned with mega-trends in transitioning to a low- carbon economy. - The biggest opportunity set available to the sector relates to electrification, with products linked to micro-grids, energy storage, distributed renewable generation and connectivity expected to see fast growing end markets. - A number of companies in the sector have products and solutions (hardware and software) with the potential to be radical and transformative, enhanced by digitalization platforms – these include smart technologies, behind the meter solutions and precision agriculture. - Automation is another big opportunity for the sector to drive in-

dustrial efficiency including energy efficiency, however, this does not offer a step change for industry to decarbonize. - R&D expenditure as a proportion of sales is high at 3.5% on average compared to other industrial sectors and closer to autos – another sector being driven by technology opportunities. - For a sector that is set to benefit from low- carbon revenues, board level climate expertise is low. - The sector is not directly regulated for Scope 3 emissions. Regulatory pressure will come through its end markets – power, transport, buildings and major industry sectors – all high carbon emitters. - Products with short cycles combined with high margins offer the most business resilience – the electrical goods sub-sector is positioned well for this trend. - Highest ranked companies in Electrical Equipment are Schneider Electric, Mitsubishi Electric and ABB. - Highest ranked in Industrial Conglomerates are Vestas, Siemens and Honeywell. - Highest ranked companies in Heavy Machinery are CNHI, Kubota, and Hitachi Construction.

Improve capital discipline – continue to cut costs and focus on projects that are low on the cost curve which deliver a sufficient risk-adjusted returns to shareholders. Improve operational efficiency – eradicate routine flaring, measure and reduce methane leakages and drive down emissions intensity of hydrocarbon production. Adapt business models – incorporate robust climate risk modelling into strategic decisions e.g. time-adjusted discount rates to account for long-term negative externalities and tightening climate policies over time (and resulting changes in demand dynamics) This can also entail rebalancing company asset portfolios to natural gas to take advantage of its role as a bridging fuel in the medium term or investing in shorter life assets to increase flexibility. Invest in CCS – become leaders in the technology and help accelerate its commercialisation. Oil and gas companies have the expertise to drive forward the commercialisation of Carbon Capture and Storage (CCS) and have access to hydrocarbon reservoirs which are ideal to serve as storage sites. Many climate scenarios rely on material deployment of CCS technologies to achieve less than 2°C of warming (see our recent CCS report for further details). Expertise in this technology may form part of the oil & gas industry’s social license to operate in coming years. Oil and gas service provider – as the distribution of economical hydrocarbon reserves continues to tilt in favour of sovereign states, international companies can utilise their expertise in the field to become the partner of choice to national oil companies by supplying technical and engineering knowledge. Invest in specialist technology – re-establish technological advantages and utilize competitive expertise in cutting edge areas including: advanced fluids, advanced materials, energy efficiency, digital technology and other innovations.

Medium to long-term: Managed decline of fossil fuel production – as projects with acceptable risk-adjusted returns on capital reduce over time, oil and gas companies can return capital to shareholders gradually through share buy-backs or special dividends from cashflow as the existing reserve base is produced, becoming a smaller, leaner company over time. Diversified energy company – become a wider energy provider and expand operations to the low-carbon and renewable energy space through both in-house development or acquisitions of companies and expertise (see below ‘A pathway to a 2-degree world’). Ørsted (formerly DONG Energy) is an example of such a transformation, having shifted its business from oil & gas production to oﬀshore wind. Downstream products and petrochemicals – oil and gas companies can shift focus to producing valueadded downstream chemical products which use natural gas feedstocks.

HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | 30 JULY, 2018

Weekly Market Watch

markets Green Business WEEKLY MARKET WATCH EXCLUSIVELY PROVIDED TO THE FINANCIAL BY GALT & TAGGART

ECONOMY NPLs at 2.4% in June 2018 In June 2018, the banking sector loan portfolio increased 18.4% y/y after growing 18.6% y/y in previous month, excluding the exchange rate eɣect. In unadjusted terms, loan portfolio was up 19.8% y/y and up 1.0% m/m to GEL 23.1bn (US$ 9.4bn). Deposits were up 19.2% y/y excluding the exchange rate eɣect. In

International ranking, 2017

Ease of Doing Business s# 9(Top 10) Economic Freedom Index # 16 (mostly free) Global Competitiveness Index # 59 (improving trend) Source: O௻cial data, IMF 1) As of 1Q18 2) As of 5M18

unadjusted terms, deposits were up 20.4% y/y and up 1.2% m/m to GEL 20.2bn (US$ 8.3bn). Deposit dollarization declined to

60.8% (-6.8ppts y/y and -1.5ppts m/m). NPLs stood at 2.4% in June 2018 (-1.1ppts y/y and -0.2ppts m/m).

Source: Rating agencies

FIXED INCOME

Source: World Bank, Heritage Foundaition and World Economic Forum

policy rate NBG reduced the by 0.25ppts to 7.0% monetary

Source: NBG Note: Index growth means appreciation of exchange rate, decline means depreciation of exchange rate.

Source: GeoStat

Corporate Eurobonds: Bank of Georgia Group Eurobonds (GEBGG) closed at 6.0% yield, trading at 100.1 (+0.3% w/w). Bank of Georgia GELdenominated Eurobonds (GEBGG) were trading at 100.5 (unchanged w/w), yielding 10.7%. Georgia Capital Eurobonds (GEOCAP) were trading at 94.4 (-0.1% w/w), yielding 7.4%. GOGC Eurobonds (GEOROG) were trading at 101.7 (-0.2% w/w), yielding 6.0%. Georgian Railway Eurobonds (GRAIL) traded at a premium at 106.4 (+0.4% w/w), yielding 5.9%. Georgian Sovereign Eurobonds (GEORG) closed at 106.8 (+0.1% w/w) at 4.2% yield to maturity.

Source: GeoStat Note: Rapid estimate for 4Q17

At its meeting on 25 July 2018, NBG’s monetary policy committee decided to reduce its key rate by 0.25ppts to7.0%. Inflation was 2.2% in June, below the 3.0% target. The policy rate cut was mainly due to the reduced inflationary pressure stemming from higher than expected appreciation of the nominal exchange rate. The committee also decided to increase the minimum reserve

NBG continues to build reserves On July 27, 2018, the NBG intervened on the FX market and purchased US$ 10mn to curb GEL’s appreciation. YDT, the NBG purchased US$ 70mn and GEL strengthened 5.5% against USD.

EQUITIES

Source: Bloomberg

Bank of Georgia Group (BGEO LN) shares closed at GBP 18.15/share (+2.40% w/w and -4.95% m/m). More than 238k shares traded in the range of GBP 17.68 – 18.57/share. Average daily traded volume was 65k in the last 4 weeks. FTSE 250 Index, of which BGEO is a constituent, lost 0.43% w/w and lost 0.05% m/m. The volume of BGEO

Source: Bloomberg

shares traded was at 0.49% of its capitalization. Georgia Capital (CGEO LN) shares closed at GBP 10.00/share (+2.46% w/w and -9.26% m/m). More than 304k shares traded in the range of GBP 9.70 – 10.32/share. Average daily traded volume was 88k in the last 4 weeks. The volume of CGEO shares traded was at 0.64% of its capitalization. TBC Bank Group (TBCG LN) closed the week at GBP 17.00 (-1.39% w/w and -0.12% m/m). More than

103k shares changed hands in the range of GBP 16.92 – 17.50/share. Average daily traded volume was 20k in the last 4 weeks. The volume of TBCG shares traded was at 0.19% of its capitalization. Georgia Healthcare Group (GHG LN) shares closed at GBP 2.59/share (-0.58% w/w and +2.17% m/m). More than 172k shares were traded in the range of GBP 2.50 – 2.67/share. Average daily traded volume was 17k in the last 4 weeks. The volume of GHG shares traded was at 0.13% of its capitalization.

MONEY MARKET * Source: Bloomberg *GWP 12/21 bonds and GEBGG 06/20 bonds are in Georgian lari **Coupon rate 3.5% over the NBG’s re¿nancing rate

Source: Bloomberg

requirements on shortterm foreign currency funding from 20.0% to 25.0%.The next committee meeting is scheduled for 5 September 2018.

Re¿nancing loans: National Bank of Georgia (NBG) issued 7-day re¿nancing loans of GEL 790mn (US$ 322.6mn).

Ministry of Finance Benchmark Bonds: 5-year GEL 30.0mn (US$ 12.3mn) Benchmark Bonds of Ministry of Finance were sold at the auction held at NBG on July 25, 2018. The weighted average yield was ¿xed at 7.69%. The nearest treasury security auction is scheduled for August 1, 2018, where GEL 40mn nominal value 1-year T-Notes will be sold.

Source: NBG *Note: As of latest auction.

Source: NBG

WEEKLY MARKET WATCH EXCLUSIVELY PROVIDED TO THE FINANCIAL BY GALT & TAGGART Investments (or any short-term transactions) in emerging markets involve signi¿cant risk and volatility and may not be suitable for everyone. The readers of this document must make their own investment decisions as they believe appropriate based on their speci¿c objectives and ¿nancial situation. When doing so, such recipients should be sure to make their own assessment of the risks inherent in emerging market investments, including potential political and economic instability, other political risks including without limitation changes to laws and tariɣs, and nationalization of assets, and currency exchange risk.

GALT & TAGGART Address: 79 D. Agmashenebeli Avenue, Tbilisi 0102, Georgia Tel: + (995) 32 2401 111 Email: gt@gt.ge

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HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | 30 JULY, 2018

| places we strongly reccommend to visit |

hotels

15 Lubliana Str.

Tel: 251 00 01 Fax: 253 00 44 info@zarapxana.ge www.zarapxana.ge

GREEN BUILDING

CITY AVENUE Hotel Email: info@cityavenue.ge; Web: www.cityavenue.ge

HOTEL SPUTNIK BATUMI 

P: (+995) 322 555 888 M: (+995) 596 555 885 E: info@vinotel.ge, reservation@vinotel.ge W: www.vinotel.ge

A Class Business Center

Agmashenebeli Ave.140B; 0112, Tbilisi, Georgia; Phone: +995 32 2244 144

28, Shervashidze Ascent; Batumi/Georgia Tel: +995 (422) 27 60 66; +995 577 65 08 08 E mail: sales@hotel-sputnik.com; www.hotel-sputnik.com

6 Marjanishvili Street

Hotel River Side +(995 32) 224 22 44; Right bank of Mtkvari , Brosse Street Turn info@riverside.ge

HOTEL PUSHKIN

Bochorma street N 3 Tel: (+995 32)2 19 23 53 E mail: info@hotelpushkin.ge

Addr: # 14/14 I.Kurkhuli Str. Tel : 55 66 55 http://www.laerton-hotel.com/

4 Freedom Square, Tel: +995 32 254 70 30 Fax: +995 32 254 70 40 tbilisi@citadines.com

13, Rustaveli Avenue.; Tel.: 2 779 200 www.TbilisiMarriott.com tbilisi.marriott@marriotthotels.com

4, Freedom Square, Tel: 2 779 100 www.CourtyardTbilisi.com courtyard.tbilisi@marriotthotels.com

13 Shavteli Str. Tel: 2439494 info@ambasadori.ge www.ambasadori.ge

Because life is about living

45a M.Kostava St., 0179 Tbilisi, Georgia;

Tel: +995 422 229000 E-maill: info.batumi@ sheraton.com www.sheraton.com/batumi

Radisson Blu Iveria Hotel Rose Revolution Square 1 Tel.: 240 22 00; Fax: 240 22 01 info.tbilisi@radissonblu.com radissonblu.com/hotel-tbilisi

Betsy’s Hotel 32-34 Makashvili Street, 0108, Tbilisi, Georgia

Tel.: 293 14 04, Fax: 299 93 11 info@betsyshotel.com www.betsyshotel.com

GEORGIA PALACE HOTEL

275 Agmashenebeli Ave., Kobuleti, Georgia Tel: 2242400 Fax: 2242403

Radisson Blu Hotel Batumi 1, Ninoshvili str., Batumi Tel/Fax: 422255555 info.batumi@radissonblu.com radissonblu.com/hotel-batumi

Address: Jordania/Z. Gamsakhurdia Str. 8/15 (422)255 522 info.batum@divan.com

6 Kavsadze Str. Tel: 2 25 15 45 2 55 44 55 www.lottravel.ge

HOTELS & PREFERENCE HUALING TBILISI

Tel: 2400 400; 2400 040

Addrr: 26 May Square Tel: 2300099 E-mail: info@hi-tbilisi.com www.hi-tbilisi.com

Divan Suites Batumi

E-mail: info@gph.ge, www.gph.ge

The tickets are available at tbilisi international airport freedom square 4 courtyard marriott hotel, 1st floor

Tel.: (+995 32) 219 11 11 www.hotelcoste.ge

Tel: 2 50 50 25; 2 97 32 97 Fax: 2 50 50 26 Email: info@hotelspreference.ge

Addr: Hualing. Tbilisi Sea New City

Address: 1/3 Melashvili Street 6000 Batumi,Georgia | +995 422 225790 www.batumiworldpalace.com info@batumiworldpalace.com

http://www.tbilisiinn.com/ info@tbilisiinn.com

8, Vakhtang Gorgasali Str. Batumi, Georgia Tel: +995 422 27 48 45 info@hotelgalogre.com www.hotelgalogre.com

Tel: 31 99 99 hotel@tifilis.ge addr: #9 Grishashvili Str.

Best Western Tbilisi № 1 Kheivani street 12/13; Tbilisi, Georgia Phone: (+995 32) 2 24 23 21; Phone: (+995 32) 2 24 23 22 E-mail: reservation@cronpalace.ge

Addr: 11, Apakidze str. Tel.: 2 300 777

Hotel “Tiflis Palace” 4 Freedom Square Tel: 2988 988, Fax: 2988 910 E-mail:gmt@gmt.ge, www.gmt.ge

3 Vakhtang Gorgasali St, (+995) 32 2000245 reservation@tiflispalace.ge

5 Chavchavadze Ave. Tel.: 222 44 17 577 22 99 22 plasticsurgerygeo.com

BETSY’S HOTEL Tel: 277 00 40/50 Addr: 20 Metekhi str.

Hotel “O. Galogre”

Tel: +(995 32) 2931404 E-mail: info@betsyshotel.com; reservation@betsyshotel.com Address: 32-34 Makashvili St.

For advertising please contact: 558 03 03 03 marketing@finchannel.com

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HEADLINE NEWS & ANALYSIS 30 JULY, 2018 | FINCHANNEL.COM

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HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | 30 JULY, 2018

| places we strongly reccommend to visit |

dining

Red Café Bistro & Cafe 4, Besiki Str. Tel: 2 519 966 Literary cafe “MONSIEUR JORDAN” V. Gorgasali st.,17 Tel.: 275-02-07

Respublika Grill Bar

37 Chavchavadze Ave. Tel.: 291 30 26; 291 30 76

# 71 Vazhaphavela Ave. Tel: 2201 211 info@redcafe.ge

PREGO

PICASSO

84, Barnovi Str. Tel: 225 22 58 15, Erekle II. Tel: 293 14 11 19 Pavle Ingorokva str. Tbilisi +995 555 004151 https://www.facebook.com/RespublikaGrillBar/

SIANG-GAN

2, MarjaniSvili Str. Tel: 2 999 723

4, Vashlovani Str. Tel: 298 90 86

BUREGERCLASICO

Book Corner

13b, Tarkhnishvili Str. Tel: 223 24 30 contact@bookcorner.ge

2 24/ 41, Gamsakhurdia Str. Tel: 237 96 88

40, Chavchavadze Ave. Tel: 229 42 30

ENGLISH TEE HOUSE

Addr: 3 Vekua Street. (Trade Center GTC) Tel.: 2 93 61 38

Tbilisi 13 Taktakishvili Street, Tel.: (+995 595) 90 71 80 19 Petriashvili Street, Tel.: (+995 595) 33 82 10 7 Pekini Street, Tel.: (+995 591) 19 39 68 78 Chavchavadze Avenue (Bagebi), Tel.: (+995 599) 09 56 70;47 Kote Apkhazi Str (Leselidze), Tel.: (+995 599) 095670 12 Amaghleba street (Sololaki), Tel.: (+995 599) 08 34 53 1 Ateni Street, Tel.: (+995 591) 70 90 22 25 Gagarini street, Tel.: (+995 591) 19 39 68 24A Pekini street, Tel.: (+995 591) 96 19 90 7 Mtskheta Str.

Tel.: 599 21 53 83

CAFE CINEMA 5, Marjanishvili Str. Tel: 294 16 20

1. 7 Sandro Euli St. Tel.595 99 22 77 hello@stradacafe.ge Each Day 10:00 – 01:00 2.#5 Marjanishvili Str. 595 99 22 88

1 Brother Kakabadze Str.

Mrgvali Baghi Square; 7a Pekini Ave.34 Kote Afkhazi Str;125 David Aghmashenebeli Ave

Tel: +995 322 380802; info@lucapolare.com www.lucapolare.com; LucaPolareOriginal

Tel: 292 29 45; Fax: 292 29 46; tk@mcdonalds.ge

LE MARAIS

MEPETUBANI

Addr: 3 Erekle II square Tel: +995 598 77 09 68

32 Abashidze Str. Tel: 222 40 83

PROSPERO’S BOOKS

34, Rustaveli Ave. Tel: (+995 32) 2923 592

TWINS - gift store.

Exclusive decor, designer Items from U.S. 25 Akhvlediani str. Tbilisi

La Brioche

TEKLA PALACE Phone: +995 599 27 60 67 / (032) 2 15 85 90

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BUSINESSTRAVELCOM HOTEL AND AIRTICKET BOOKING: 2 999 662 | SKY.GE

Addr: Erekle II’s square 10

TIFFANY BAR AND TERRACE

Addr: Batumi, Georgia, Parnavaz Mepe №25

Tel.: 260 15 36 info@piazza.ge, www.piazza.ge

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