APRIL/MAY 42
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6 In Review
WSE stats Exclusive Interview: Michał Olszewski, Deputy Mayor of the Capital City of Warsaw News
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17 Lokale Immobilia
News City Spotlight: Szczecin Events: MIPIM Interview: Bogusław Kośmider, Kraków, Deputy Mayor Interview: Piotr Trzcinski,Savills IM
28 Cover Interview Asli Ertonguc, BAT
34 Features
ESG by Serigiusz Prokurat Russian Sanctions by Nikodem Chinowski
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42 Talking Points
SenatorZygmunt Frankiewicz, head of the Association of Polish Cities (ZMP)
47 TECH
News Google in Warsaw
57 Life + Style Nuta Classic Wines
62 Events WBJ.PL
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PUBLISHER'S NOTE If there is one positive thing to say about the terrible events that have befallen us in the last weeks, it is Poland (and its eastern neighbor and close friend Ukraine) have garnered the sympathy and positive attention of the whole world, especially the western part of it. If I had access to a “sentiment barometer” for Poland vs. other countries in the eyes of the world’s population, I think Poland during the last month would have qualified as a safe runnerup to the heroes in Ukraine. Poland needs this. But also Poland deserves this. I must say that the unity, engagement and unbelievable support Poles, Polish companies and institutions have delivered has been second to none. While you hear other EU and western countries wondering how to manage thousand of refugees, Poland has been providing shelter to millions of refugees and doing it with a humanitarian and open-hearted spirit. When I met the Warsaw deputy mayor recently he told me, on the “refugee-acceptance” index, Poland had climbed from the 100th spot to the 3rd rank in a matter of two weeks – behind Turkey for Syrian refugees – and the US.
Three observations from the past weeks:
1. Understanding the new reality for the Polish economy, when its population has risen by over 6% in six weeks
2. US President Joe Biden’s visit to Poland highlighting the credit Poland has been getting in these tough times
3. You are never too old — I made a new personal best at Warsaw Half Marathon in March
Meanwhile, although the World Bank has cut its forecast of Poland's GDP growth in 2022 by 0.8 percentage points to 3.9 percent owing to the impact of the war in Ukraine, I don’t think it’s too bad. And with that, I hope and pray for peace soon. And in the spirit of this issue’s cover star, I will say, there are still so many things we influence that can be better — let us work for a better tomorrow!
MORTEN LINDHOLM
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public Walutomat API,
CONTRIBUTOR Ewa Boniecka Ewa is a journalist and author of “Bliżej polityków” (1996) and “Dziennikarki w poszukiwaniu swoich dróg” (2018). She never polemises with her interviewees and asks questions that a common man would like to ask politicians. Portraying a few generations of female journalists, Ewa sheds light on various economic, cultural and social issues with courage and sensitivity. Ewa's interview with Senator Zygmunt Frankiewicz on Page 42
Morten Lindholm Editor-in-Chief/Publisher mlindholm@valkea.com
Sankhyayan Datta Managing Editor sdatta@valkea.com
Krzysztof Maciejewski Business & Web Editor kmaciejewski@wbj.com
Kevin Demaria Art Director kdemaria@valkea.com Contributors Ewa Boniecka Nikodem Chinowski Sergiusz Prokurat Anna Rzhevkina
ON THE COVER
GUESTS IN THIS ISSUE Bogusław Kośmider, Kraków Deputy Mayor He is the deputy mayor of Kraków for residents' services. He is also an economist, local government official and politician, and a long-time Kraków councilor. From 2010 to 2018, he was the chairman of the Kraków City Council.
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Izabela Kaysiewicz ikaysiewicz@valkea.com Katarzyna Pomierna kpomierna@valkea.com Print & Distribution
Krzysztof Wiliński dystrybucja@valkea.com Event Director, Valkea Events
Magda Gajewska mgajewska@valkea.com
Interview on page 24
Asli Ertonguc, BAT She joined BAT in 2002 as brand manager in Turkey. Since then, she has held a variety of brand, trade and strategy roles in Turkey before moving to BAT’s London headquarters holding key roles like regional head of trade EEMEA, head of brands EEMEA. Then she moved to Romania as marketing director for the Central Europe South area. In June 2018, Asli was appointed as area marketing director firstly for the DACH area which then expanded to become the Central Europe North area. On July 1, 2021, she was appointed general manager, Poland & Baltic countries. Interview on page 28
Michał Olszewski, Warsaw Deputy Mayor On behalf of the mayor, for the Polish capital, he manages matters concerning architecture, spatial development, policy related to obtaining European funds, urban policy and metropolitan policy, investment policy, mobility policy, traffic management and road infrastructure. Interview on page 10
APR/MAY 2022 WARSAW BUSINESS JOURNAL
phone: +48 22 257 75 00 fax: +48 22 257 75 99 e-mail: wbj@wbj.pl
WBJ.pl For subscriptions-related enquiries, please email us at wbj@wbj.pl WarsawBusinessJournal @wbjpl All photographs used in this issue are courtesy of partners and companies unless specified otherwise.
Piotr Soroczyński Since February 2018, he has been the chief economist at Poland’s National Chamber of Commerce (KIG). He has over 20 years of analytical experience as an economist and chief economist in the financial sector. Interview on page 38
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IN REVIEW
What started off in mid-March as a personal initiative handing out candies for free in a dinosaur costume to traumatized and travelworn children arriving at Warsaw Central train station from Ukraine, Tomasz Grzywiński has since set up a fundraising campaign on zrzutka. pl crowdfunding website so that people can buy candies and spread more smiles. His online “viralability” has drawn more “dinosaurs” to help him out, and since the end of March, he has focused mostly on visiting reception points set up all around Warsaw to aid refugees. Follow his t-erriffic effort on facebook and search Dinozaur-zCentralnego.
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PHOTO COURTESY OF TOMASZ GRZYWIŃSKI
MAKE ROAR NOT WAR!
IN REVIEW
News [According to the Warsaw Stock Exchange]
Investors' share in trading in financial instruments on the WSE in 2021 In 2021, individual investors were responsible for 22% of turnover on the WSE Main Market (-3 p.p. y/y). Foreign investors were responsible for 57% of turnover (+1 p.p. y / y) and Polish institutional investors for 21% (+2 p.p. y/y)
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38
38
37
34
31
29
25
19
21
12
12
22
13
16
25
15
13
12
18 48
47
49
51
53
53
59
63
56
57
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Table 1. Structure of investors on the Main Equity Market (percentages) Source: WSE data, based on broker's orders of the Exchange Members
Individual investors are still in the lead on the NewConnect market, with a turnover share of 88% (-4 p.p. y/y). The share of institutional investors increased to 7% (+3 p.p. y/y) and the share of foreign investors up to 6% (+2 p.p. y/y). 17
73
24
23
19
19
16
14
11
4
7
69
70
74
73
76
83
86
92
88
10
7
7
7
8
8
3
3
4
6
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Table 2. Investor structure on the NewConnect market (percentages) Source: WSE data, based on brokerage orders of the Exchange Members
On the futures market in 2021, for the first time in 10 years, Polish institutional investors played the most important role. Their share was 41% (+5 p.p. y/y). The share of individual investors fell by 9 p.p. y/y up to 32% of turnover and foreign investors increased by 4 p.p. up to 27% and was historically a record-high result for the WSE Main Market.
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33
37
38
36
30
35
35
36
41
47
50
45
47
46
51
48
47
41
32
17
17
18
15
18
19
17
18
23
27
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Table 3. Structure of investors on the futures market (percentages) Source: WSE data, based on brokerage orders of the Exchange Members
Institutional
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Individual
Foreign
>>>
FOLD
Exclusive Interview
Five questions for... Michał Olszewski Deputy Mayor of the Capital City of Warsaw The WBJ catches up with the Deputy Mayor at the end of March to gain insight about how things have changed since the war in Ukraine started.
Your normal workday and the city plan must have gone to pieces since February 24? Yes, on February 25 we forgot about everything “normal.” We are now living in a different reality and the scale of the challenge we are facing in our current work is huge. Today we have over 300,000 new city users. Based on the estimation from the statistical office and our data, we worked with an assumption that Warsaw will grow as a city by 250,000 inhabitants in 25 years. The current status shows what kind of miscalculation we have now in the strategy and what kind of miscalculation also will exist in the local economy assumption for this year
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What other consequences will this have for Warsaw and its residents? We didn't calculate, for example, the crisis we will have in housing. We have a reserve for 350,000 inhabitants without changing our strategy, though. This means that if we unblock, from the property point of view, every plot, which is in the city, which is already covered by the master plan, then we can construct apartments for 350,000 new residents. But the real potential of the construction market per year is 20,000 units (apartments).
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So far during this crisis Poland has shown an amazing and welcoming attitude – a little unusual – is it sustainable? I am analyzing data about the crisis. Before the war, we were on the 101st spot on the list of countries accepting refugees. This is data from UNHCR. On March 15, we were in the third position! Only Turkey has a bigger number of refugees than we do, those fleeing Syria, and the US. But the US is a country of emigrants, so it is a tradition for this country. In Europe, we’re an exception.
PRESS PHOTOGRAPH
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IN REVIEW
BUSINESS
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Do you think it is realistic that we can handle the situation? It's something that is not very obvious. Because frankly speaking, this is an abnormal size of crisis — hard to handle. Of course, I am optimistic, so I believe we can handle it. The question though is time and the costs which we (and humanity) are paying for the crisis. Of course, nobody wanted to have such a crisis and nobody wanted to have a war. Everybody knew that Russia might occupy the southeastern Ukrainian regions of Donetsk and Luhansk, but I think nobody could imagine that this crisis will develop in such a way.
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Are you receiving any support and financial help? We have to spend a huge part of our reserves as a city. But we must also praise the help. I believe there is no other place in the world like this. We have been offered great assistance by private companies. The list comprises thousands of the companies that offered abandoned buildings, office buildings, mattresses, beds, food and so on. We sometimes readied buildings in two days and turned them into accommodation centers. It shows that sometimes this collaboration in business is not about money but about resources.
IN REVIEW
News
Biggest drop in beer sales continues The year 2021 was the third consecutive year of decline in beer consumption in Poland, and what's more – the deepest in a decade. During this period, the market shrank by as much as 5 million hectoliters. Last year, consumption was one billion bottles lower than in 2018. At the same time, for the first time since 2017, the brewing industry recorded a decline in the market value. Weaker sales were accompanied by soaring production costs and excise tax increases.
Action’s growth going strong Action achieved sales of €6.8 billion in 2021. This represents a growth of 22.7% compared to 2020. Thanks to 267 new stores, including stores in Italy and two new distribution centers in Poland and Slovakia, Action approached the 2,000-store milestone, which the chain reached in January. This makes Action the fastest-growing non-food discount retailer in Europe. At the same time, Action is making progress with its sustainability program. By the end of 2024, all stores will be gas-free. By 2030, Action expects to reduce absolute emissions from its operations by 50% compared to 2020. In addition, Action is working on initiatives around the circularity of its products, especially items with the highest sales volume.
New energy policy According to the government's announcements, Poland will abandon purchases of Russian coal in May and will stop importing oil and gas from Russia by the end of the year. The changed "Poland's energy policy until 2040" pays more attention to the country's energy independence, assuming looking for new directions of raw material supplies and accelerating the development of renewable energy sources. The war in Ukraine, which pushed up energy and fuel prices, also prompts companies to seek energy security and invest in
green sources. Luneos, which plans to build wind and photovoltaic farms and wants to become a supplier of green energy for business, wants to benefit from this trend.
Polish apple exporters hit The war in Ukraine has affected agricultural markets throughout Europe and its effects have been felt by Polish apple exporters. They have already lost the opportunity to sell their fruit to Mongolia and Kazakhstan and the situation has additionally been made more difficult by the lack of containers that would allow apples to be shipped by sea, for example, to Egypt, which in recent years has become one of the main importers of Polish apples. Analysts indicate that the current season will most likely be lost to Ukrainian producers and exporters of agricultural products.
ECONOMY
Poland rated 'A-/A-2' S&P Global Ratings recently affirmed its “A-/A-2” long- and short-term foreign currency ratings and “A/A-1” local currency long- and short-term sovereign credit ratings for Poland. The outlook is stable which reflects the balance between macroeconomic risks stemming from the Russia-Ukraine conflict and the buffers provided by the country's strong external and government balance sheets.
Economic growth In a recently published analysis, BNP Paribas bank forecasts that the dynamics of economic growth in Poland may be lower by about 1 percentage point this year and will amount to 3.5%. However, this forecast is subject to high risk due to the high uncertainty about the economic consequences of the war in Ukraine. If, as a result, activity in the eurozone weakens significantly, economic growth in Poland may turn out to be even lower this year. At the same time, rising commodity prices, weaker exchange rates and disturbances in supply chains will further fuel the already high inflation.
>>> WBJ.PL
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IN REVIEW
News
The economic climate index (ESI) in Poland amounted to 97.3 points in March compared to 100.3 points in the previous month, the European Commission (EC) reported. The business climate index for industry amounted to minus 16.6 points against minus 14 in the previous month, for the services sector it amounted to minus 9 points against minus 4.1 points in the previous month. The consumer sentiment index was minus 12.5 points against minus 11.4 points in the previous month, while the retail sales index was minus 4.2 points against minus 0.6 points in the previous month. The business climate index in the construction sector reached minus 20.6 points in March from minus 19.6 points a month earlier. The Employment Expectancy Index (EEI) for Poland was in March this year 95.9 points against 99 points in the previous month. ‘Dark clouds hanging over Poland’ The Polish economy started this year well, but the war in neighboring Ukraine, which has already been going on for the second month, may have negative consequences for Poland, say economists from Capital Economics, a consultancy that analyzes the markets for investment funds and institutional investors. Experts expect the war in Ukraine to hit exports, disrupt the supply chains and further increase inflation in the country. As is the case in many CEE economies, the reasons for these events may be the sanctions imposed on Russia after it invaded Ukraine.
‘Weaker growth and higher inflation’ The macroeconomic outlook for emerging markets (EMs) in Europe, the Middle East, and Asia (EMEA) has changed considerably since end-November 2021 due to the Russia-Ukraine conflict, according to the new report by S&P Global Ratings. Emerging Europe is highly exposed to the fallout from the conflict because of its geographical and economic proximity. The economic fallout from the conflict is interrupting strong growth momentum in Poland as well.
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ENERGY
PGE and Ørsted enter next stage
PGE and Ørsted have launched a tender procedure for the construction of onshore infrastructure necessary to generate power from both stages of the Baltica Offshore Wind Farm, i.e. Baltica 2 and Baltica 3. The tender results are set to be announced by the end of this year. The onshore connection infrastructure for the Baltica Offshore Wind Farm will be built in the vicinity of Osieki Lęborskie in the Choczewo commune in the Wejherowo district in Pomerania. Two adjacent land stations will be built there. The task consists not only of the construction of transformer stations and export cable lines in the land area but also access and internal roads, water and sewage network for the station, its lighting and fencing.
Bitcoin still the most popular among Polish individual investors In the first quarter of 2022, individual investors picked up the pace investing in the so-called workhorse cryptocurrencies, choosing tokens often based on the ethereum blockchain, but with concrete, alternative use cases. Eight out of ten tokens with the highest growth in Q1 are tokens present on the eToro platform for less than a year. Tokens such as The Sandbox (+185 percent), Axie Infinity (+42 percent), as well
as Celo (+34 percent) and SushiSwap (+26 percent) were highest in the Polish ranking in Q1. "It is exciting to see many of the smaller, booming cryptocurrencies among the biggest gains in the last three months. Market conditions have been tough and valuations have stalled, but activity on the eToro platform suggests that investors are focusing most of their efforts on utility tokens. It is gratifying that investors are diversifying and leaning towards newer cryptocurrencies while keeping their token holdings in place," Simon Peters, eToro's cryptocurrency market analyst, commented.
UNSPLASH
ESI falls
Robots are the future of logistics Six months ago, an IT team for robotics and process automation was established in Raben Group to oversee the development of the Robotic Process Automation technology and operations performed by robots in the company. So far Raben uses the services of 18 robotic units which carry out more than 60 processes, and all of them are supervised by a proprietary myRobot platform. However, the comprehensive benefits of RPA in logistics make Raben's plans in this area much more ambitious
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R
obotic Process Automation (RPA) in logistics is actually already a necessity given the nature of many tasks and processes in this sector combined with the labor shortage. Alongside the development of robotization and automation in logistics, Raben Group is implementing various solutions to increase the efficiency of warehousing and transport processes, e.g. shipment measuring devices, autonomous or semiautomated forklifts, “cobotic” arms, the Internet of Things (IoT) sensors or automatic sorters. It is also important that for the past two years, the Group has been equally engaged in process robotization and focused on the so-called software bots that mimic user actions in IT systems. Currently, the team of virtual robots consists of 18 units that carry out more than 60 processes, and they are centrally
controlled, they require no user interaction and they actually assume their roles. Zbigniew Kępiński, IT team manager for robotics and process automation at Raben Group, says: “Unattended robots are hightech, virtually autonomous entities that operate in IT systems. They require task scheduling and supervision but beyond that, they also work when the human user has already left for home. Overall 18 robotic licenses that we can use 24 hours a day, seven days a week, effectively means at least 50 full-time jobs. In addition, the RPA robot is able to do the job several times faster than the user, which is a huge improvement, especially with the current problems of employee availability in logistics. If we additionally consider the flexibility, efficiency, reliability and attractive costs of RPA, there is no doubt that automation will be the future of our industry.”
PHOTOGRAPHS COURTESY OF RABEN
PARTNER SPOTLIGHT
Automation of office processes allows the company to develop faster and increase the number of handled operations with the same level of employment
Development of the RPA technology in the structures of the logistics operator can be credited to this very unit. In September 2021, it was spun off from Genius Lab, Raben Group's department dedicated to the widely understood innovation and logistics of tomorrow, but the company had already taken an interest in RP in 2019 when the first robotic processes were developed as part of cognitive and R&D activities, which was followed by their deployment. For the needs of RPA, in 2020, the team built its own process management platform called myRobot, which works with bots on multiple levels. It allows users to control their work directly and run a certain group of robotic processes on demand and also contributes to RPA optimization and helps maximize license utilization around the clock. These 18 robotic units are “employed” in most of the company's areas of business activity. They support planning, loading and unloading operations, as well as billing, quoting and invoicing. RPA in logistics is a relatively fresh trend, however, it meets the unchanging business expectations and priorities of operators over the years, i.e. maintaining profitability, engagement or risk mitigation. Nowadays, it is possible to plan a robot's work in such a way that if everything runs smoothly, it goes through
the whole process of processing the order by itself and a human decision is required only in critical situations (e.g. delay, accident, theft), which happen really seldom. “Automation of office processes allows the company to develop faster and increase the number of handled operations with the same level of employment. It is a simple and costeffective way to optimize current processes, but also to create a reserve “capacity” for the future, in case of increasing the scale of operations,” adds Kępiński. RPA is ideal as a system load testing tool. Instead of having users run various tests: regression, change, load, you can delegate robots to do this work. This is yet another proof of the versatile application of robots in logistics and for Raben Group another argument to invest in this area. The company plans to at least double the number of robotic licenses within two years and its IT infrastructure is ready for it today. Robots are able to fill dozens of jobs in Raben Group, which is invaluable in the situation of staff shortages. Their operations should be considered not only in quantitative but also in qualitative terms: they perform human work on average four times faster, without error, according to an algorithm and without the need for changes in IT systems,
which translates into very concrete, measurable savings for the company. Robots allow for better use of the potential of employees because they are able to take over from them tedious, repetitive tasks, which are the cause of work fatigue and burnout. At the stage of the first robots, some skepticism and distrust of the technology were evident among users. Today they appreciate them, acknowledging that they are a great help and free them from tedious duties. They can spend the time they save on more creative and rewarding work. It should be emphasized here that the human factor in the company is and probably will remain irreplaceable in certain areas. Finally, it is worth mentioning that the described way of using RPA is an element of a bigger undertaking in Raben Group structures, which is aimed at hyper-automation. It involves greater use of AI, machine learning techniques, engagement with other platforms and systems in addition to RPA and integration of more components, such as information from different sources: robots, IoT sensors, CCTV cameras or GPS systems. Hyperautomation is the future that will create a new and hugely automated way of working in IT applications and systems, not just in the logistics sector.
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25-27 April 2022 — #StandforUkraine
International Congress Centre in Katowice
XIV EUROPEAN ECONOMIC CONGRESS The biggest business event in Central Europe
Key topics: Digitisation / Artificial intelligence / Investments and challenges / Energy, green transition, and independence / Succession in family businesses
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LOKALE IMMOBILIA REAL ESTATE INDUSTRY NEWS (covering)
Hospitality Investment Market Logistics Mixed-use Office Residential Retail Find more daily at wbj.pl/real-estate
REAL ESTATE
Warsaw UNIT among the safest buildings in the world To ensure the health and safety of employees, Warsaw UNIT uses state-of-the-art technologies developed by Ghelamco together with scientists from the Warsaw University of Technology. UV lamps have been installed in the lifts and the building's air conditioning system to effectively disinfect the space and air, ensuring maximum sterility. Additionally, in the so-called “pandemic mode,” the air conditioning system can only run on fresh air. The building's water quality is also regularly tested by laboratory tests, while numerous filters and sensors carefully monitor the air quality, ensuring that the interiors of Warsaw UNIT remain smog-free. Employees of the complex are informed about all related procedures via a mobile application, which is part of the building operating system Signal OS, developed by Ghelamco. The app is also used to grant access and invite guests, preventing uninvited people from entering the building.
>>> WBJ.PL
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LOKALE IMMOBILIA NEWS
LOGISTICS
GLP launches logistics projects GLP, a leading investor, and developer of logistics real estate plans to implement projects in Poland in 2022 with a total area of approximately 240,000 sqm. The two newest investments started this year are the third stage of Poznań Airport Logistics Center and a new building next to the A2 motorway junction in Grodzisk Mazowiecki near Warsaw. Both projects will be ready in autumn. The newest building in the GLP logistics park, located five minutes from the Poznań Ławica airport, has over 28,600 sqm, and the new GLP Warsaw V Logistics Center investment – 23,400 sqm of the warehouse, production and office space. Both facilities are being built in accordance with the requirements of the BREEAM ecological certification at the "Very Good" level.
LOGISTICS OFFICE
Two floors for Capital.com Capital.com has leased nearly 3,000 sqm of office space in the Skyliner building at Rondo Daszyńskiego in Warsaw. The tenant will move into its new offices in August. Capital. com is a high-growth investment trading platform empowering people to participate in financial markets. Its intuitive award-winning platform, available on the web and app, offers investors a seamless trading experience in over 6,000 world-renowned markets. Capital.com has clients in over 180 countries with offices located in the UK, Gibraltar, Australia and Cyprus. In 2021, the platform reported a 350% growth in its client base, making it one of Europe’s fastest-growing investment trading platforms with more than 4 million registered users.
Raben takes over Bexity Raben Group has signed an agreement to take over 100% of the shares of the Austrian company Bexity from its current owner Mutares. As a result of the transaction, over 500 employees and 16 branches of Bexity, whose headquarters are in Vienna, join the Raben family. The transaction was initiated in December 2021 but only recently approved by the antitrust authorities.
OFFICE
Savills named sole adviser
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RETAIL
Galeria Veneda becomes even more eco-friendly Galeria Veneda, managed by EPP, has signed a lease agreement with the omnichannel retailer Carrefour. The opening of a new grocery store in the center of Łomża, distinguished by a wide range of fresh products, including organic, is planned for the beginning of June. The tenant will occupy the premises with an area of approx. 1,200 sqm.
PRESS MATERIALS
Warimpex, a real estate development and investment company based in Vienna, has appointed Savills as the exclusive leasing adviser for office space in its new office complex located in Białystok at the junction of Bohaterów Monte Cassino and Wyszyńskiego streets. The phased project is expected to break ground this year. The planned project, called MC55 Office, will have a combined area of approximately 36,000 sqm. It will comprise three fivefloor buildings with retail, services and F&B outlets on the ground floor, as well as an underground 390-space car park. The office complex has been designed by architectural studio Kubatura as a group of buildings seamlessly blending into its current setting and landscape as they are similar in height to nearby developments.
LOKALE IMMOBILIA NEWS
EVENTS
CEEQA is back! CEEQA, the main annual industry awards for business, construction and ESG leadership in commercial real estate in Central Europe and Southeast Europe (CEE Quality Awards) looks set for a triumphant return this summer. Commencing with awards entry with a deadline of April 29, followed shortly by the announcement of the reconvened CEEQA Jury & Judging itinerary, Lifetime Achievement award (already announced in 2020, no change), the Gala Entertainment and of course full details of the 2022 CEEQA Gala itself – how to book, where to go, what to expect. The 2022 edition of the awards will, as usual, recognize all buildings delivered and all business performance from the previous calendar year. To recognize activity during the pandemic in 2020, CEEQA will present two unique awards, for Resilience Building and Resilience Company (full details of these awards will be released in the coming week).
Book Tickets! CEEQA Gala – June 29, Wyscigi Warsaw Each year the CEEQA Jury is selected from the most experienced and influential operators across the CEE and SEE property markets.
2022 Awards Entry 2022 Awards entry deadline: April 29
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LOKALE IMMOBILIA
CITY SPOTLIGHT SZCZECIN
Above: Philharmonic Hall designed by Estudio Barozzi Veiga, awarded Mies van der Rohe Prize in 2015
From innovative projects, surprisingly large amounts of office space and proximity to the German and Scandinavian markets, Szczezin is a city with a lot to offer.
Location and logistics
By Anna Rzhevkina
Selected distances from Szczecin in kilometers 1,248 877 564 374
461 238
Warsaw Wrocław Poznań
127 Łódż
Berlin
SOURCE: ANTAL
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London
Oslo
Szczecin is a city on the River Oder in northwest Poland, a few kilometers from the border with Germany and about 100 kilometers from the port of Świnoujście, a key transshipment hub in Poland. The city is situated at an intersection of the region’s transport routes. It forms a transport node in the European corridor, connecting Scandinavia, the Czech Republic and Austria with ports on the Mediterranean Sea. Another trade route that runs through Szczecin connects Russia and Finland with Western Europe. In a 45-minute drive from the city, there is a SzczecinGoleniów Airport with regular international flights to Norway and the UK and domestic flights to Warsaw. The distance to the Polish capital is 566 kilometers or about 75 minutes by plane. In 2019, city authorities allocated PLN 2.5 billion for improvements to the city’s transportation network. Investment plans include work on the Szczecin Metropolitan Rail and
the revitalization of one of the main streets, Aleja Wojska Polskiego. New cycling paths and roads are under construction to ease the congested traffic in the city and suburbs. On top of that, there are projects to deepen and widen the Świnoujście-Szczecin fairway, construct the S10 expressway to Bydgoszcz and build the Szczecin western bypass — a new 51.5-kilometer two-lane expressway.
Innovative projects
Szczecin has two special economic zones (SEZs) — the Euro-Park Mielec, operating in Szczecin since 2010 and Kostrzyn-Słubice established in 2013. The city’s major industries are maritime, renewables, medical technology and business services. Foreign investments in the city come mainly from Germany and Scandinavia, according to Marek Kubik, chairman of the Szczecin Metropolis Development Agency (ARMS), cited by Antal. The city bets on technologies to drive its eco-
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A SPOT FOR BUSINESS BY GERMAN BORDER
nomic growth and has various centers, supporting innovative entrepreneurship. Technopark Pomerania has operated since 2000, providing services, such as business mentorship and consulting for the information and communications technology (ICT) sector. There is 13,000 sqm of office space with conference and meeting venues and a coworking area. The West Pomerania ICT Cluster aims to foster the development of the local IT sector and to help companies gain know-how. The Cluster is a non-profit organization that collaborates with more than 80 IT companies in the West Pomeranian region. The Regional Center for Innovation and Technology Transfer, administered by the West Pomeranian University of Technology in Szczecin, is engaged in the commercialization of technologies, and assistance to businesses and academic entrepreneurship. The Innovation Center at the Maritime University of Szczecin aims to transfer the results of research and R&D projects to business and industry. It cooperates with entrepreneurs, investors and consultancy agencies to address those who want to implement new technologies.
Office space
Although Szczecin is one of the major Polish cities with a population of more than 400,000 people, its office market is still at a nascent stage. But in the last three years, it has been growing at a fast pace. The largest cluster of office space is located in the center and in the central-south section of the city. At the bank of the Oder River, there is the Lastadia Office Center – a block with six floors and a total area of 13,400 sqm with designs that echo the pre-war architecture of Zbożowa Street and its surroundings. Other popular office spaces are Brama Portowa I and Brama Portowa II on Niepodległości Street and a nine-story office building Oxygen that is reachable from the main train station in 10 minutes by car. Apart from a few international players, such as Echo Investment and Vastint,
Szczecin’s office market is dominated by local investors. The city offers about 200,000 sqm of office space and due to soaring demand, it has the lowest vacancy rates among major regional markets in Poland. At the end of 2021, the vacancy rate in Szczecin was 5.3%, while in Wrocław it was as high as 16.7%, according to the Polish Chamber of Commercial Properties (PINK). Companies, such as Carlsberg, Ikea, Zalando and Asseco Poland, the largest IT company listed on the Warsaw Stock, chose Szczecin for their business operations.
Warehouse and residential
The dynamic expansion of warehouse space in Szczecin began in 2014 when developer 7R invested in a logistics park there. In 2020, the total supply of modern warehouse space in Szczecin reached 762,000 sqm, placing the region seventh among 11 major warehouse markets in Poland. In terms of space, Szczecin is comparable to the Tri-City (802,000 sqm) and is larger than Kraków (566,000 sqm). In the residential market, the average price per sqm increased in March by 2.61% compared to a year ago and reached on average PLN 7,415. This is still more than a third lower compared to Warsaw, where the average price is about PLN 11,630/sqm, according to real estate company SonarHome.
Type of business operation SSC
24%
R&D
15%
IT
38%
BPO
24%
SOURCE: ANTAL
Local employees in demand
The city has been developing as a spot for business services, especially for IT and financial industries, thanks to its proximity to German and Scandinavian markets and educated employees, many of whom speak more than one foreign language. Many of them are graduates of local universities. The University of Szczecin is the biggest university in West Pomerania with nine faculties and more than 30,000 students. Overall, there are 12 higher education institutions in the city with fields of study, ranging from business and law to engineering and technology. The availability of HR and administration candidates as well as professionals and managers with analytical skills are
Szczecin’s points of strength. Such candidates are in demand for shared service centers focusing on finance, accounting and customer service. “Access to the office space of high standard, well-qualified employees with knowledge of foreign languages, investments in modern technologies, as well as low labor costs — these are the main advantages of Szczecin,” said Tomasz Klek, ARMS spokesperson.
Above: Lastadia Office Headquarters of many regional startups and advanced IT companies.
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LOKALE IMMOBILIA
EVENTS
MIPIM – A MECCA FOR REAL ESTATE ENTHUSIASTS Every year real estate investors meet developers, owners, and representatives of cities, regions and countries in Cannes, southern France, to discuss possibilities for business and real estate projects. 2022 was no different as more than 6,000 representatives met at MIPIM – an international property event – to showcase the best and upcoming trends in offices, logistics, residential, retail and technology.
So how was MIPIM in 2022, held in its original formula against a backdrop of the war in Ukraine and the ongoing pandemic? I must say that my impression was very positive. The atmosphere was full of engagement. It was obvious that visitors had been looking forward to finally meeting in person again. The number of footfalls, exhibitions and events wasn’t far from the “good ol’ days.” So fair to give credit to MIPIM for organizing a good event. What did people say? Well, the big issue, especially in the Polish community was, of course, the
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situation in Ukraine: both the uncertainty and the lack of security the war has generated. And also the humanitarian crisis that affects Poland where millions of Ukrainians have sought shelter and how this influences the day-to-day priorities and short-term goals. Time for Business? Of course, we didn’t go to MIPIM just to look nice, worry about the war in Europe and chit-chat. We went to form business relations and talk business. The main topics on the agenda were digitization and ESG for real estate investors, owners and developers.
How was the sentiment then? Very unbalanced. Is this a good time to sell or buy, or is this a moment to stay put? I heard many voices that certain big funds are waiting right now. At the same time, costs are going up rapidly for owners and developers as interest rates increase. Wages are growing, but lately, the whole energy crisis has been influencing costs on a high scale. Kraków – A European metropolis I met Bogusław Kośmider, deputy mayor of Kraków, to find out what the historic city had planned for MIPIM.
PHOTOGRAPHS BY MORTEN LINDHOLM
BY MORTEN LINDHOLM
It’s rare you find in a city like Kraków options to invest and develop key parts of the center. But that’s what the city offers. “Kraków has prepared plans for new investments that shall increase its area and ensure constant development of the city and offer a platform to push its population from the current 850,000 to 1.1 million in 15 years' time. It is part of our ambitious plan to make Kraków a super attractive city, with attractive work and creative possibilities for future generations,” Kośmider told me. Wrocław – people first My talks with Jacek Barski, director, Department of City Strategy and Development in Wrocław, were first based on a deeper understanding of how the Ukrainian situation very much influences the heart of Wrocław’s residents and how they are connected. We also discussed Wrocław’s people-first approach, where the city evaluates many parameters to ensure the highest level of living quality – in terms of greenery, infrastructure and community aspects – when new housing districts are being developed. Barski also underlined that the city is investing a lot in infrastructure: public places, transport and bridges, to further enhance the attractiveness of the city which attracted more than 5 million tourists in 2019.
Savills investment management, and discussed his point of view on the present situation and trends and opportunities. Trzcinski underlined that logistics is clearly a priority for them, especially with interest in sub-sectors of the logistics market, like last mile or whole storage. Trzcinski sees possibilities in Poland in the residential sector – student housing + resi for rent. But with reservations about how Savills will operate in this market, maybe not necessarily as a first mover in new investments.
Last-mile delivery & logistics I also met Piotr Trzcinski,
Details in the following pages…
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LOKALE IMMOBILIA
INTERVIEW
A NEW KRAKÓW
A historic city that's all about its people aims to become even more alluring for businesses. By MORTEN LINDHOLM
Above right Wining project in the international competition for the Krakow Music Center designed by Baumschlager Eberle DDJM Architekci.
BOGUSŁAW KOŚMIDER Kraków Deputy Mayor
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WBJ:
Kraków is a historical city with immense prestige. What are the plans for developing Kraków so as to meet the challenges of future generations and to keep its attractiveness? Bogusław Kośmider: The city is about its people. This is why all development scenarios for Kraków are based on this most valuable asset: the activity, knowledge and creativity of our inhabitants. The local government’s objective is to empower them and release their energy so as to help the city to develop sustainably through cooperation with all partners. Kraków’s economy is one of the key areas in which our planning is directed, which is why building a “knowledge-based economy” is the strategic priority for the city. The city is executing and supporting many smart initiatives thanks to the extensive scientific and research facilities of our universities and the quality of our academic staff, as well as thanks to the activity of numerous companies focusing on modern technologies. Our main objective is to help businesses develop in a friendly and safe city, to help young people find at-
tractive offers of education and employment and for all inhabitants to be proud of a Kraków that is skilfully combining its rich history with modernity. WBJ: When will we see the “new” Kraków and what are the key themes Kraków will then stand for? “New City” is a comprehensive project for the creation of a sustainable multi-functional district occupying almost 700 ha in the southeastern part of Kraków. To make the execution of the project possible, a specific local zoning plan is being developed for the area. It assumes transformations of the existing land development into a new representative urban fabric to create a new center with high rises as dominant features. It will be possible to locate buildings up to 150m high there. Regeneration projects will be implemented in the “New City” to transform the existing extensively-used warehouses and storage into properties for commercial, office, service, high-tech industry and other functions combined with the residential function. The forecast net
THIS SPREAD SHUTTTERSTOCK (3)
Above and middle Visualizations for for “New City” project a new river park, has been designed along the banks of the Drwina River and will occupy about 65 ha.
usable area of multi-family housing will amount to about 2 million sqm for about 100,000 inhabitants, while the service-related development will occupy about 3 million sqm. New areas for public services relating to administration, education, religion, health, science, culture and sports are planned for the inhabitants’ comfort of life. When it comes to sustainable development, significant emphasis is being put on the environmental aspect while creating the “New City” project: a new river park, one of the largest in the city, has been designed along the banks of the Drwina River and will occupy about 65 ha. For many, Kraków is recognized as a student city with an amazing international mix and blend – is it the city’s mission to keep it this way? Definitely! The Kraków Scientific Academic Center consists of 23 higher education institutions, nearly 130,000 students, including about 8,000 foreign students (in 2020), highly qualified academic staff and more than 650 years of university tradition. Such historical aspects make us, as the city
authorities, obliged to continue to take care of this priceless inheritance. More and more Kraków universities offer and continue to add new courses taught in English, organize international scientific conferences and participate in international research programs. Are there some areas or industries that Kraków wants to develop particularly in the coming years and how? The economy is one of the key areas in city development and it necessarily includes communication and information technologies related to the digital transformation that we can currently observe. We will continue to support the development of the sector of modern business services. Indeed, Kraków has already become an important center on the world scale in that respect. Another important development direction is to reinforce the city’s offer for congress and business tourism that has come about thanks to our extensive and continuously developed hotel infrastructure, gastronomy, as well as congress centers, entertainment arenas and
exhibition halls and modern sports venues. The city is also trying to modernize its procedures and activities by expanding access to public information (Open Data), as well as by building the Electronic Public Service System and local geographical information systems (GIS). WBJ: Kraków is burdened by smog and air pollution. What are your plans for improvement? Our key objectives when it comes to air quality improvement include enabling low emission reductions, developing renewable energy sources, investing in green public transport and reducing demand for energy. For example, we have subsidized the purchase and installation of systems using renewable sources of energy such as photovoltaic systems, heat pumps and solar systems under a few special strategic programs in the last few years. We have also financially supported thermal efficiency improvement works in single-family houses and heating system modernizations implemented by the inhabitants in
connection with the ban on the use of solid fuels (effective September 1, 2019). Moreover, we are implementing a shielding program addressed to low earners who incur higher costs after the heating system change. There is a “Kraków Energy Advice Centre” in our city where experts help the population, e.g. to learn about the rules of subsidy programs, issues related to renewable energy sources, energy-efficient retrofitting, thermal efficiency improvement of buildings, possibilities of connection to the heating network or the use of infrared cameras. Beyond this, we cooperate with the Kraków Metropolis Association (Kraków + 14 adjacent communities) in a project allowing for the employment of eco-advisors (the ELENA instrument under the Horizon 2020 Program) in connection with the implementation of the anti-smog resolution for the Małopolska region. We publish the daily information about air quality in Kraków online and monitor the situation continuously. In addition, we offer free public transport whenever air quality is particularly bad.
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LOKALE IMMOBILIA INTERVIEW
WBJ:
How does the current situation with the war in Ukraine and the high level of uncertainty influence your business? Piotr Trzcinski: Our approach was always a risk-off approach, so there is no need for a pivot in the strategy we have historically had. Probably we will become a little more selective in terms of location, quality and ESG enhancement/profile in the asset we are buying. Our biggest concern at this moment is inflation. However, it is still too early to say whether the situation will be a permanent factor to influence lease costs for tenants. On top of this there is an increased currency risk due to high volatility as we speak. But we still believe that a fundamentally well-located defensive asset still remains that way. Let’s not forget that by definition an investment in real estate assets is a long-term investment. The war [in Ukraine] is a huge shock but we have been through shocks before and the real estate market as a whole survived and certain sectors have emerged as clear winners.
STRATEGY IN THE TIME OF UNCERTAINTY Newly promoted as Head of Poland for Savills IM, Piotr Trzcinski shares his insights on real estate, logistics and ESG during these shocking times. INTERVIEW BY MORTEN LINDHOLM
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So what asset classes are you investing in now? We have established two main pillars of our activity. Logistics is clearly one of them, and I can see us moving into sub-sectors of the logistics market, like the last mile or cold storage, rather than the more generic asset we have been buying for the last five years in Europe and Poland. We also did a number of BTS schemes, that fits the defensive approach that I have mentioned earlier. The second strategy is related to the living sector — student housing + residential for rent. In this sector we would usually invest in standing assets but some of our equity can consider forward commitments in certain core markets like Spain. But we are investing in setting up internal know-how dedicated teams – pan Europe – that specialize in such investments. Being focused on the strategy of two sectors does not exclude making tactical acquisitions in other sectors. We would very much like to see opportunities in convenience retail that we believe have emerged as a winner out of the pandemic. It has been relatively less volatile than other sectors. My personal favorite is also discount stores given high inflation in the midterm and given people will be warier about their expenses and will be price sensitive. That sort of real estate will have an appeal. On offices, we will definitely look at the core prime office. We have not done much in that segment in the last two years but I do see the potential on the back of the supply gap occurring in the next 2-3 years in Poland, especially Warsaw. Also in the long term, I am positive about offices. I believe the offices will remain a social
“THE WAR [IN UKRAINE] IS A HUGE SHOCK BUT WE HAVE BEEN THROUGH SHOCKS BEFORE AND THE REAL ESTATE MARKET AS A WHOLE SURVIVED AND CERTAIN SECTORS HAVE EMERGED AS CLEAR WINNERS”
hub for employees to exchange information, onboarding and create a corporate culture. We are already seeing the trend of going multifunctional about the space, where people can meet where they like and sit down in surroundings they prefer, this is what tenants want and I am very far from saying that the traditional office model is dead. We will need offices. There has been a boom in logistics, especially in Poland, in the last couple of years. Are there still more opportunities in this sector? Last-mile delivery, we define it as an important unit within the supply chain that serves as the last step before the goods reach end-users. We think it has a bright future, based on the trend of how we spend our free time, how we shop and what we expect in terms of delivery. When we look at Amazon’s constant needs and growth, Allegro expanding its network of last-mile units in Poland, you have other retailers following the same pattern. This is for us a fundamental trend, the low e-commerce penetration in Poland. This will be one of the key growth drivers for the sector. More importantly, the land value under that sort of asset is substantial. It is challenging to get land to build closer to cities and it is going to cost more because often the land needs repurposing or there are existing structures that need adaptation (demolishing, replacing and infrastructural changes). Is this a trend for all of Poland or just Warsaw? I think this is the trend wherever the urban population is large enough, I think we will get into a situation where even populations of smaller cities will expect the same standard delivery as larger urban areas. How does ESG influence your business and situation? It has been a prevailing theme for us and not only in Poland. We knew that SFDR (Sustainable Finance Disclosure Regulation) requires the financial industry to disclose risks related to ESG. To mitigate risks we had to introduce many changes to our investment process and asset
INFO AuM has grown from
c. €230m in 2017 to over
€1.7bn
in logistics, office and retail sectors as of December 31, 2021 Piotr Trzciński has 17 years of experience in key real estate sectors gained in international private equity and real estate companies such as Blackrock (MGPA) and CA Immo. Over his career Piotr has completed over €600m in real estate transactions and has had asset management responsibilities for €2.6bn AuM across the risk spectrum from core to valueadded.
management. That becomes even more important now with the growing commodity prices on existing assets. Regarding asset management, ESG is a prime topic for us. Helping tenants, aiding tenants to reduce their occupation costs and improving the ESG profile on assets we manage. In terms of ESG considerations in our investment process, we have prioritized this in the effort to understand the embodied carbon footprint of an asset we would acquire, ESG features and potential. I think we are going to see a divergence between ESG-labeled and non-ESG-labeled assets, the latter being probably older buildings with significant capital expenditure required to add ESG features. They are going to suffer in terms of liquidity. Especially in logistics, I would agree with the observation that we might see assets being labeled like white-good labels in terms of energy efficiency usage from A+++ to D. Investors will price in the ESG risk. The UK and France are ahead in the curve. Poland is still not there. This will be triggered by tenant demands. Tenants want to meet their net-zero target by a specific date, meaning they will have to occupy assets that will help them meet these targets. If we see a push from all sides — investors, tenants as the actual users and lenders who support us with greener financing at competitive pricing — it will be a win-win for all, better for investors and better-quality assets for lenders. So, we need the push from all sides. Maybe developers are not there yet. It is a learning curve for all of us. It takes time to respond to new regulations and trends. We are in the adjustment phase but in the right direction. Last six months seem to have speeded up the process? Yes, there were regulations, and yes, there is no choice anymore. But it is good. Because if you let investors and market participants choose themselves, some wouldn’t opt for what we need. Now we are all in the same boat — a change for the better.
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Cover Interview: Asli Ertonguc
Responsible Leadership Having joined as general manager BAT for Poland & Baltics almost a year ago, Asli Ertonguc sits down with the WBJ to talk about business, responsibility, leadership role model and diversity. INTERVIEW BY MORTEN LINDHOLM PHOTOGRAPHS BY KEVIN DEMARIA
WBJ: You were the first woman to hold a senior sales management position in a corporation in Turkey. Tell us more. Asli Ertonguc: Yes, I was the first woman as a sales director in our organization in Turkey. The reality is that sales roles are still generally associated more with men. I believe I owe my success in the Turkish organization to having good people skills, being able to motivate teams and at the same time, being self-driven and focused on results. What’s your favorite part of the job? What is it that you like most about what you do? Working with people, helping them grow and become leaders! I learn from people in my team and I also develop, thanks to them. I take a lot of satisfaction from these contacts and at the same time, I try to motivate others effectively, because everyone should be aware of their personal contribution to the realization of the goals and feel like a co-creator of a bigger project. I am an advocate of sustainable leadership, where we manage to unite people around a common idea that becomes important to them to some extent, when they share the same values, which is, of course, impossible without the conviction of authenticity and commitment of the leader. The pandemic uprooted a lot of traditional management strategies. What have you learned from it? For most leaders, the pandemic was a time to test and verify their
management style. A test of whether they can adapt quickly to a changing environment, new developments and unexpected situations, whether they are flexible enough to react in an appropriate way. These skills seem crucial to me today and I believe they are part of my management style. Just look at recent experiences, where having an open dialogue with the organization about how to adapt to new realities and how to respond to the concerns and needs of employees has proved even more critical in times of pandemic. Your strategy “A Better Tomorrow” could not be more apt than now. What’s your goal? Just before the pandemic, at BAT we introduced our new mission statement, which is “A Better Tomorrow.” One of our goals is to create a new generation of products that will reduce the impact of our operations on consumers’ health and the environment. At the same time, we are very active in achieving environmental neutrality. Every year we commission an independent assessment that determines the current level of ESG indicators in the abovementioned areas. We work with a wide range of stakeholders to understand what is most important to them and we continuously monitor risks and conduct research and benchmarking. This keeps us abreast of emerging themes and stakeholder expectations. ESG is at the heart of our “A Better Tomorrow” strategy. In terms of social aspects, I would mention, for example, increasing the proportion of women in management positions or, in the area of governance, topics such as business ethics and responsible marketing, in particular the protection of minors from access to nicotine.
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Cover Interview: Asli Ertonguc
build a flexible, authentic leadership style and HR tools and career development opportunities that contribute to the organization. Sustainability is not possible if it only involves leaders. I believe that the more sustainable the whole organization is, the more sustainable the leadership is. As a female leader with 20+ years of business experience, how do you see the difference between being a woman leader now and in the future? I have been working for BAT for most of my career and BAT is definitely an equal-opportunity organization, where cultivating diversity, including gender diversity, is part of our DNA. Over almost 20 years that I’ve been with the company, I’ve seen more and more women get to top positions, such as the general manager role that I’m in now. I believe, that companies such as BAT expect their employees to have the capabilities required for the job and to respect certain values which are the backbone of the company’s culture. In such an environment, both women and men have the equal opportunity to achieve, grow and find job satisfaction and ultimately have a successful career in the organization.
I have a lot of determination and enthusiasm to pursue these goals. Each department, each individual in our organization has personal objectives which are linked to our global mission and my personal goal is to help our people “walk the talk,” i.e. think about how we can literally fulfill it on a practical, everyday work level. Can you define what sustainable leadership means today? What is going to be the key for companies to think about the future of the whole world together? In my opinion, sustainable leadership involves three things — uniting people around an important mission, self-awareness to
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Zelensky has shown the world what it means to be an inspirational world leader. What do you think makes an effective leader in the business world? There are a number of effective management styles, but let me share something about the way I enjoy working with my teams. I would describe my leadership style as transformational. I love to mobilize the organization I work for by setting ambitious goals, driving change, taking it out of its comfort zone and driving performance. As general manager of BAT for Poland and the Baltics, I implement our company mission statement which refers to creating "A Better Tomorrow." I want to support innovation and engage employees. I try to adapt my leadership style to the task entrusted to me and to the specifics of the team I lead because it is important for me to be authentic in what I do. I believe that creating an environment that fosters creativity and a sense of responsibility leads to both good results and organizational development. Would you go as far as saying you are a mentor? Absolutely. I’ve found mentoring to be very rewarding. In fact, it is
“We are moving from a business where sustainability has always been important to one where it is a priority an essential part of who I’m as a business leader. For me, mentoring is a relationship based on trust, in which you do not give readymade answers, but provide the opportunity to see perspectives for development. I have had mentees in all the countries I have worked in and we still remain in contact, which perhaps is some proof that I’ve helped them with their work and personal development. What is something you would change if you could in your career? I enjoyed every stage of my development. With every assignment, every opportunity, with every team I worked with, I learned a lot. Even in some cases, I didn't appreciate the experience enough at the time. Now, when I look back, I see that it was worth every moment. Additionally, I have worked and lived in five countries and got to know different cultures. Perhaps, I would have started my international journey even earlier? How do you face challenges? It might sound surprising but I like challenges! I like moving out of my comfort zone, to force myself to be more focused on the priorities specific to the given project or situation. What I find particularly useful when facing challenges is keeping an open mind, being open to different points of view but at the same time being able to quickly analyze available information and find possible solutions. Poland is the fifth country I have worked in and I expect I will find many challenges here but I will draw on my experience from the other markets and countries I’ve worked in and rely on my Polish team to help find the best possible solutions. Your Polish BAT factory has implemented green sustainability projects. Tell us more. What else have you planned? Our company mission "A Better Tomorrow" is about ensuring sustainable development, which is why we want to meet a number of environmental and social commitments, among which is achieving carbon neutrality by 2030. Our plant in Augustów is one of our company's most important production facilities in the world. Thanks to the hybrid “Lean Green” approach or the lean management methodology for identifying factors having a negative impact on the environment, we have been able to introduce measures leading to the reduction or complete elimination of the harmful
effects of production activities on the environment. As evidence of specific actions taken to achieve the strategic goal of reducing water consumption by 30%, we built a central water treatment facility that makes the water flowing in the pipes of the Augustów factory fit for direct consumption. This made it possible to stop buying water in plastic bottles and reduce waste. We are also introducing a new AWS (Alliance for Water Stewardship) standard at the factory. As a result, we are moving from a business where sustainability has always been important to one where it is a priority. It is my personal ambition that our company mission of “A Better Tomorrow” is not just a slogan, but is realized through concrete, measurable actions.
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Cover Interview: Asli Ertonguc
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BAT POLSKA FACTS ASLI ANSWERS FIVE FUN RAPID-FIRE QUESTIONS What has surprised you the most about living in Warsaw? Before I came to Warsaw, I had very little experience with Polish people. What surprised me very positively was their hospitality and willingness to help. I’m also observing this now when almost all of Poland is helping Ukrainians who had to flee from their country and Polish people are helping with open hearts. What do you like to do when you are not working? I love to learn about new places and the culture of the countries I live in. Curiosity about new things is the common denominator in my professional and personal life. Besides, I love practicing sports, regardless of whether I’m talented or not. Do you already have a favorite place(s) in Warsaw? Warsaw offers many interesting, fascinating places, for example, where you can celebrate art, but I realize that there is still much to discover, also outside the capital. If you weren’t doing what you are doing, what could you see yourself doing? I’ve been with BAT for over 20 years. I have never gotten bored as BAT offers so many opportunities for personal and career development. I certainly have never felt burnt out, as they say, as the various projects I’ve managed, in different markets, have given me great satisfaction and the possibility to continue expanding my experience. Being where I am now has been another career step for me with great challenges that assure me every day that I’m in the right place. Nevertheless, it has not always been so obvious. In high school, my classmates were convinced I could be a lawyer, since I was a very outspoken personality and advocate for my classmates. Instead, I chose marketing and management and today I am very happy with my choice. What is something that our readers do not know about you? You may not be aware that my name – Asli – in Turkish means authentic and genuine. As I mentioned before, I not only value authenticity in leadership, but also in interpersonal relationships. I want to believe that I live up to my name.
BEGINNING BAT started cooperation with the Polish state-owned tobacco plant in Augustów in 1991. The acquisition of Mazurska Wytwórnia Tytoniu Przemysłowego, took place in 1992 (initial stake in the company). Currently, BAT employs around 3,600 people in Poland. PRODUCTION BAT’s plant in Augustów is currently one of the biggest in the EU, with exports that reach approximately 50 markets around the world. The plant produces 50 billion cigarettes annually and employs over 1,400 employees. MANAGEMENT, SALES & MARKETING: special initiatives and changes BAT in Poland has a truly international team, with extensive experience in the FMCG sector. The company’s special initiatives include: “Masz Wybór” (in English: You Have a Choice), which is a marketing initiative directed at adult nicotine consumers, whom BAT offers a very wide portfolio of nicotine products, alternatives to combustible ones, with a potentially reduced-risk, like e-cigarettes Vuse ePen, Vuse ePod and tobacco heating products with its recognizable brand GLO. Our portfolio includes also products from the modern oral category, such as VELO nicotine pouches. It is worth stressing that BAT is strongly dedicated to its “Zero Compromises” campaign, the objective of which is to ensure that nicotine products are not sold to minors. BUSINESS DEVELOPMENT: results and plans BAT has a wide range of nicotine products, including a wide offer of smoke-free alternatives to traditional cigarettes, products with potentially reduced-risk, such as electronic cigarettes, THP, as well as the modern oral category. The company continues research around reduced-risk products, also in Poland, at the eSmoking Institute and the production of liquids for electronic cigarettes at the eSmoking Liquids plant in Ostrzeszów. What is also worth mentioning, our electronic cigarettes distribution network is being modernized to better suit consumers’ needs, in line with the “Masz Wybór” concept. The production site in Augustów, on the other hand, has been running several ESG initiatives under the umbrella project called “Green Factory,” which is directly connected with the company’s vision, namely building “A Better Tomorrow.” For example, BAT is currently introducing a new AWS (Alliance for Water Stewardship) standard at the factory. As a result, we are moving from a business where sustainability has always been important to one where it is a priority. COMPANY VALUES AND CORPORATE MISSION: “A Better Tomorrow” This inspiring vision was introduced in 2020. It’s based on BAT’s bold plan to reduce the health impact of its business by offering a greater choice of enjoyable products for consumers. BAT’s values are captured in the company’s “Ethos” which includes the following guiding principles: being bold, fast and empowered, as well as being diverse and responsible.
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FEATURE ESG
ESG reporting – a step towards environmental awareness
Until a few years ago, there was no EU regulatory framework for sustainable development. Now there is and it works. The value of being proactive with sustainable development strategies can not only lead to increased corporate revenue but also respond to social changes. BY SERIGIUSZ PROKURAT
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I
EXPLAINING ESG
It is worth explaining what the three letters, the importance of which has grown in recent years, mean. ESG stands for challenges related to environmental, social and corporate governance issues. The growing demand for sustainable products and services is a response to the changing consumer behaviors. The increasing consumer interest in the issues of broadly
Key legal documents
GOVERNANCE
ENVIRONMENTAL
f CSR (corporate social responsibility) — a management strategy according to which enterprises voluntarily combine their operations with social interests, environmental aspects and relations with various groups of stakeholders, in particular with employees — could, hypothetically, have a child, it would certainly be ESG. CSR has been treated by many companies as a good marketing strategy to warm up the company’s image. Years later, it turned out to be of too little value, while ESG now plays an increasingly important role in making business decisions — investors and consumers often choose companies that meet their values. The role of business in society has been discussed for over 50 years since Milton Friedman’s epochal essay, “The Social Responsibility Of Business Is to Increase Its Profits,” was published in 1970 in the New York Times Magazine. Since then, and picking up exponential speed in the last two years, there has been a shift towards a wider understanding of how corporate decisions affect all stakeholder groups and not just shareholders. There is even a nowwidely discussed idea of conscious capitalism, that was coined by marketing professor Raj Sisodia.
Directive 2014/95 / EU of the European Parliament and of the Council of October 22, 2014, on the NFRD (Non-Financial Reporting Directive). Regulation 2019/2088 of November 27, 2019, on
Deals with how a company is governed
Considers how a company performs as a steward of nature.
E.g., executive pay, shareholder rights, board diversity, and structure audits
E.g., climate change, energy emission, waste management, and resource depletion
SOCIAL
Examines how a company manages its relationships with employees, suppliers, customers and the community E.g., health and wellbeing, building safety, employee relations, diversity, and impact on communities
understood environmental friendliness (e.g. choosing cosmetics containing natural ingredients, electric or hybrid cars, vegetarian or vegan food, energy-saving devices) may pose a risk to both sellers and buyers. You can clearly see the growing social awareness of non-financial aspects, which turns into a need for action and an overwhelming desire for knowledge. This is reflected in the plans of enterprises. From 2024, all large companies and large capital groups as well as listed companies (employing over 250 people) will be subject to the obligation to report activities for sustainable development in the EU. SMEs will have three additional years to prepare because the obligation to report non-financial factors will apply to them from 2026. The work on EU legal edicts: firstly, regarding the disclosure of non-financial information (NFRD/CSRD), and secondly, the EU taxonomy, which will create a framework to facilitate sustainable investment is still ongoing, but the need for a shift to uniform European
SFDR disclosure of information related to sustainable development in the financial services sector. SFDR Regulation is effective in Poland from March 10, 2021. Regulation 2020/852 on the establishment
of a framework to facilitate sustainable investment, amending Regulation 2019/2088, known as the EU Taxonomy, is a unified classification system for sustainable development activities intended to
support investors in making investment decisions. Regulation 2018/848, according to which, from January 1, 2022, the standards of ecological certification will be additionally tightened.
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FEATURE ESG
reporting standards in this regard is a pressing one. Among other things, the normalization of annual reports is ongoing as well. This could mean a revolution in terms of transparency.
EU TAXONOMY
The EU taxonomy requires large companies that are public interest entities, as defined in the NFRD, to disclose the percentage of turnover, investment (CAPEX) and expenditure (OPEX) in a given reporting year in relation to assets or processes contributing to the achievement of the objectives specified in the taxonomy. Businesses offering “green” or “sustainable” financial products and services within the EU will also need to disclose to what extent their activities contribute to the taxonomy objectives, similar to the percentage of investments (turnover, CAPEX and OPEX) that complies with its requirements. Increasingly, key ESG issues are comprised in annual activity reports. ESG reporting requires choosing a reporting method. However, this type of information is usually limited to a few of the most important topics and indicators. Another frequently chosen method
Core elements of recommended climate-related financial disclosures Governance The organization's governance around climate-related risks and opportunities Strategy The actual and potential impacts of climate-related risks and opportunites on the organization's businesses, strategy, and financial planning Risk management The process used by the organization to identify, assess, and manage climaterelated tasks Metrics and targets The metrics and targets used to assess and manage relevant climate-related risks and opportunities
SOURCE: WWW.FSB-TCFD.ORG/RECOMMENDATIONS
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Governance Strategy Risk management
Metrics and targets
of reporting in companies around the world is a separate sustainability report. It enables gathering all information on environmental, social and corporate governance issues in one document. The choice of this reporting method gives companies greater freedom to present the undertaken ESG activities and their results in a way that best suits their needs. NFRD companies can publish a non-financial information report that covers only the topics required by the directive or a full-fledged sustainability report. It is good practice to include an explanatory table in the report, which would indicate where the information required by the directive has been given in the report so that users can find it quickly. According to the NFRD directive, companies have six months from the date of publication of annual reports to publish a sustainable development report. The integrated report comprises both the elements of the financial report and the sustainable development issues in one document. For this reason, this format is a preferred choice of more advanced companies with a well-developed approach to ESG. We can also compare reports from companies that disclose ESG information. It is possible when such reports are prepared in accordance with commonly accepted reporting standards and frameworks (GRI, IIRC, SASB).
A METHODICAL APPROACH
ESG reporting requires a methodical approach to the content of the report. After determining the purpose and recipients of the report, a materiality analysis should be conducted, which would indicate important areas for potential users of the report, including the company’s business model, ESG risks and opportunities arising from the business sector and stakeholder expectations management. The financial, environmental and social significance will work together. Then, it is necessary to assess how the organization’s activities are related to the minimum guarantees (e.g. UN, OECD guidelines) so that the economic activity is classified as sustainable. The report requires selecting appropriate indicators from several categories: environment, society, corporate governance (e.g. water consumption, diversity in supervisory bodies and the equal pay index, anti-corruption policy) and its preparation is based on the collected data, in accordance with the NFRD directive and the EU taxonomy.
How does the implementation of ESG principles work in our favor? It allows companies to maintain constant and long-term cooperation with customers, showing respect for the adopted principles. It also responds to the expectations of employees and investors, as there is less and less interest in companies that do not take into account environmental issues. It increases the company’s value and prepares for future changes, including the announced European Green Deal. It facilitates access to capital — banks and financial institutions that make capital support dependent on the approach and activities of companies in the field of sustainable development. In the era of social media, which enables almost instant disclosure of various types of abuse and neglect, it will be easier for companies and governments of countries that care about ESG to manage a potential image crisis. It can be said that ESG protects against issues that are difficult to define and which can stand across the organization’s way. The new regulatory requirements are an opportunity to improve the quality of reported information and to better adapt it to investors’ expectations.
FIGHTING AGAINST GREENWASHING
It is also worth mentioning that ESG may contribute to the fight against greenwashing, which consists in making consumers think that a given product or the company producing it operates in accordance with the principles of sustainable development. If such information is in fact untrue or unverifiable, the consumer thus becomes a victim of unfair market practice, i.e. greenwashing. Environmental fiddle will become more difficult to hide, especially when irrespective of ESG standards, regulations on the production and certification of organic products come into force (in 2022) in Poland. Producers will have to reckon with penalties for the misuse of “bio” and “eco” labels, which can mislead consumers and falsely imply the organic origin of the products. Ultimately, environmental protection is not costly and demanding but needs to be properly organized, in the form of well-thought-out incentives and not just various forms of coercion. After all, we would like to live in an ecological, nature-friendly environment. Creating a world where people are happy and wealthy, without a damaged natural environment is an important challenge for humanity.
New markets & geographies New customers & market share Product & service innovation Long-term strategy
Revenue growth from sustainability enchanced or advantaged products & services
Operational efficiency Human capital management Reputation pricing power
Total cost saving + avoidance from sustainability-related initiatives
Operational & regulatory risk Reputational risk Risk Management Suplly chain risk Leadership & adaptability
Measurable reduction in exposure to sustainability-related risks to revenue and reputation
Growth
Return on equity or capital
Productivity
= S/G
= S/P
= S/R
SOURCE: PRI AND UN GLOBAL COMPACT. THE VALUE DRIVER MODEL: A TOOL FOR COMMUNICATING THE BUSINESS VALUE OF SUSTAINABILITY. (2014). WWW.UNGLOBALCOMPACT. ORG/LIBRARY/811
ESG Benefits •E SG can help bolster the bottom lnie •R unning operations responsibly in the most carbon-efficient fashion •B etter positioning companies to proactively manage risks •B uilding trust with stakeholders and shareholders, providing increased visibility into planning, identification, and management of operational risks •H elping oil and gas companies make better informed business decisions •A tracting talent •S timulating innovation •L ong-term value creation •M itigating risk of litigations
ESG Challenges •R eadiness of companies to intergrate it into operations • I dentifying the right standards and metrics for consistent measurement •A ligning ESG with other company priorities •C ultrual business norms in host countries •U pfront costs •R esource cycles
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SANCTIONS ON RUSSIA MAY DIRECTLY AFFECT UP TO 10% OF POLISH SMES Piotr Soroczyński, chief economist, Poland’s National Chamber of Commerce (KIG), points out the factors that will affect Polish imports and exports amid economic sanctions against Russia. INTERVIEW BY NIKODEM CHINOWSKI
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FEATURE POLISH SMEs
WBJ: How serious can the repercussions of the sanctions imposed on Russia and Belarus be for
Polish companies? Piotr Soroczyński: Polish enterprises will have problems for many reasons. The most obvious and immediate consequences are associated with a formal ban on the export of strategic goods and deep difficulties in making payments. But that's just the beginning of all dominoes. More and more countries are also deciding to significantly limit imports — Poland is also following this path. There are further counter-sanctions imposed by Russia, which will also hinder the activities of Polish companies. Another serious threat to companies is the seizure of property, trademarks and patents of Western companies. In addition to these formal sanctions, Polish entrepreneurs will also be hit by the progressing significant deterioration in the financial situation of households and companies in Russia. It will be due to declines in sales and employment, but also a significant weakening of the rouble. Even if a given Polish company will be formally able to export its goods or services, Russian customers will be able to buy much less than before the war. Polish importers are also in trouble, due to possible import bans and problems in the settlement systems. To sum up, KIG estimates that the above-described problems will affect 8-10% of SMEs in Poland — both exporters and importers.
Poland is an important link in the global, and especially European, supply chain. It may turn out that the sanctions against Russia will result in lower demand for Polish products in and EU countries? Yes, we have to take into account that the worldwide disruptions in supply chains will also affect Poland. From the point of view of Polish entrepreneurs, the most important problems here will be transport and logistics — due to connections with the Far East going through the territory of Russia — and the problems of global exporters selling to Russia for whom Polish entrepreneurs were suppliers of materials, components and finished products. I mean mainly companies from Germany, France and Italy. These problems may affect another 20-30% of companies in the Polish SME sector. Fortunately, these problems will be slightly less important for them compared to the problems that will be faced by entities directly involved in trade with Russia. So it turns out that in total 40% of Polish companies may feel the sanctions backfiring. Which sectors and subsectors may therefore be particularly vulnerable to trade restrictions? A good answer to this question is provided by the structure of Polish trade in goods with Russia. In 2021,
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of €286.4 billion of Polish imports, Russia accounted for €17.0 billion, i.e. 5.9%. These were mainly energy resources and fuels, metals, plastics and, to a much smaller extent, wood, food, machinery and equipment, and means of transport. At the same time, of €285.8 billion of Polish exports, Russia accounted for €8.0 billion, i.e. 2.8%. Our sales consisted mainly of machinery and equipment, including household appliances and audiovideo devices, means of transport, base metals and products made of them, chemicals, plastics, food, furniture, construction and interior decoration products. A particularly serious problem for Polish companies from the car and automotive parts industry as well as household appliances and electronics will be the overlapping of two important constraints: disturbances in the supply of delicate, small components and problems with the supply of steel products. The chemical
Polish Foreign Trade with Russia 2005
2010
2015
2020
2021
3.171
5.031
5.125
7.157
8.001
Import (m EUR)
7.216
13.730
12.884
10.215
17.013
Balance (m EUR)
-4.045
-8.699
-7.760
-3.059
-9.012
2017
2018
2019
2020
2021
6.177
6.763
7.431
7.157
8.001
Import (m EUR)
13.093
16.277
14.454
10.215
17.013
Balance (m EUR)
-6.916
-9.514
-7.023
-3.059
-9.012
Export (m EUR)
Export (m EUR)
Source: Central Statistical Office (GUS)
“
Poland, like many countries of the EU and NATO, has found out that many risks are materializing. Risks that for decades were considered marginal
Poland Exports to Russia in 2021
Value
Machinery, nuclear reactors, boilers
$2.21B
Vehicles other than railway, tramway
$822.12M
Electrical, electronic equipment
$615.92M
Plastics
$497.96M
Essential oils, perfumes, cosmetics, toileteries
$388.75M
Pharmaceutical products
$337.70M
Source: tradingeconomics.com
industry will also have serious problems, for which the shortages of several key substances may block a wide range of production. Chemicals are important for food processing, agriculture and construction. The furniture industry will also experience severe problems. Problems with supply chains and sanctions will also be experienced by those entrepreneurs who worked to support exports to Russia by cooperating with industrialists from Germany, Italy and France. How should Polish SMEs with exposure to the Russian market behave now, wait, or look to circumvent sanctions through third countries and try to keep trade partners from Russia, or maybe look for other markets in Asia or Africa? All of these three moves are important. First of all, you have to take care of acquiring new recipients. For some companies, it will be possible, because they export to many markets and their goods are prepared in a fairly universal way. Some of the new customers will buy the goods for their own needs, but also for resale. In such a supply chain, certain batches of goods — let's say in a roundabout way — will also go to former recipients in Russia. It is important to emphasize in business contacts with Russian partners that today's decisions to break cooperation are caused by the war and not by hostility on our part. In the event of Russia's withdrawal from aggression, there will be a chance for a gradual restoration of trade contacts. We mainly talk here about the negative consequences of the sanctions. Are there any sectors that can benefit from this situation? Poland, like many countries of the EU and NATO, has found out that many risks are materializing. Risks that for decades were considered marginal. We have a lot to do in the field of security and defense — there will be very large expenses and very large tenders. Individual countries have also learned that they need to be better protected in the event of crisis situations. This crisis resilience must be realized on many levels. It must be implemented by the administration but also by enterprises and households. We need strategic stocks, places of refuge, strong civil defense, access to distributed energy sources, fuel depots and stockpiles of goods necessary to sustain the economy in times of crisis and disruptions in international supply chains. This means a serious package of expenses, tenders and investments, the beneficiaries of which may be Polish companies. And the last thing, the global supply chain is also moving toward European markets and additional suppliers located closer to recipients, from EU countries, will be needed. This is another opportunity for the Polish economy.
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Talking Points
Kyiv, Ukraine - April 15, 2014: People’s protests, manifestations and fight for freedom and democracy on Maidan Nezalezhnosti square
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DECENTRALIZATION IS KEY In view of the ongoing war in Ukraine, the importance of building strong self-governing local communities can’t be stressed enough, believes Senator Zygmunt Frankiewicz, head of the Association of Polish Cities (ZMP). INTERVIEW BY EWA BONIECKA
SHUTTERSTOCK
WBJ: Poland has long-
standing ties with Ukraine and experience in international cooperation not only at the central level but on the sub-national one. Is this significant in politics? Zygmunt Frankiewicz: Certainly, yes! For a long time now Ukrainians have greatly appreciated Poland’s assistance in developing selfgovernment bodies in their country, all the more now since this help was offered to our eastern neighbor. Ukraine’s 30th anniversary – on August 24, 2021 – of gaining independence also marks 27 years of cooperation between ZMP and the Association of Ukrainian Cities (AUC). Both organizations promote the idea of coop-
eration between twinned cities and implement joint projects to support the processes of decentralization and the development of self-governance, as set out in the cooperation agreement which was signed in Ostrowiec Świętokrzyski in 2000. In the years 20112019, ZMP together with various partners and with the help of external funding was involved in many projects strengthening self-governance and decentralization in Ukraine. It is thanks to the activities undertaken by ZMP and AUC that approximately 500 partnerships have been established so far between Polish and Ukrainian municipalities, towns, provinces and oblasts. There
is also active cooperation at the level of regional unions or self-government bodies. As a former chairman of the Silesian Union of Municipalities and Poviats and former mayor of Gliwice, I can tell you from my own experience about the many meetings and even training sessions that we have organized for representatives of self-government bodies that were being established in Ukraine. Such activities intensified after 2014. I think that thanks to all these activities there is a greater chance of reaching lasting rapprochement, reconciliation and friendship between our peoples despite the difficult history between our two nations.
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Talking Points
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All dictators fear decentralization and strong self-governance
SHUTTERSTOCK
We know from our own experience how important true decentralization is. Do you think that actions undertaken by the West can lead to progress in decentralization in Ukraine? We appreciate the efforts made so far by our Ukrainian friends to reform their state and administrative structures. As I already mentioned, Ukrainians, particularly after Euromaidan, were very determined to build a modern and decentralized state. They could also see for themselves that the administrative model adopted by Poland is much more effective when it comes to managing state structures than the eastern authoritarian model. I think that to some extent this is the essence of the dispute between Ukraine and Vladimir Putin. The Russian dictator does not want to accept Ukraine’s ambitions of becoming a modern state. All dictators fear decentralization and strong self-governance. After all, Ukraine's success could show the Russian people that another way is possible and beneficial to society. In what way will the growing number of Ukrainians in Poland and the friendship between our two nations influence — once this barbaric war is over — the development of cultural ties and knowledge of the history and culture of our peoples, as well as foster-
ing a deeper knowledge of Ukraine in the West? If our heroic neighbors succeed in holding off the aggressor, also due to the unprecedented pressure from the international community, it is certain that the current willingness to help, which so many Poles are expressing today, should develop into long-term cooperation for the reconstruction of a country destroyed by war. I am convinced that all Polish self-government bodies are willing to become actively involved in this process. How will the actions, aspirations and political and military ambitions of Putin's Russia affect the democratic world order in the future and to what extent will they frighten Poland and the whole eastern part of NATO? So far Putin's actions have paradoxically had many positive effects as well. In less than a week’s time since the invasion of Ukraine began, Putin managed to “accomplish” the following: unify Ukraine and rearm it with equipment from the West, unite the West to a degree not seen since the end of WWII, strengthen NATO's eastern flank, make a former comedian [Ukrainian President Volodymyr Zelenskyy] a statesman and hero of Europe, expel Russia from virtually all sports competitions, cause a sharp drop
in indexes on the Russian stock market, induce the West to abandon the Nord Stream 2 project, bring Ukraine closer to EU membership, win praise (fully justified) for Polish President Andrzej Duda around the world and make him one of Zelenskyy’s most important partners, expel Russia from the Swift banking system, induce the West to freeze Putin’s bank accounts and those of Russian oligarchs, prompt Switzerland to abandon its neutrality and make Sweden and Finland think about joining NATO and induce Germany to change its defense policy and its attitude towards Russia by 180 degrees. What will be the effects of the current war on the world's economic situation, economic development and international trade? Will it encourage Poland’s large and small cities to strengthen their mutual ties, thus contributing to the development of the whole country?
I am not an expert in economics, so it is difficult for me to comment on such matters. After periods of war there is always a time for reconstruction, and not only in economic or commercial terms. I represent Polish self-government bodies and we will certainly stress the importance of building strong self-governing local communities which are focused on cooperation and solving problems efficiently. This has worked very well in Poland since the 1990s and this decentralized model is the only one that can succeed in Ukraine after the end of hostilities. Building the unity of the West and supporting development cooperation, as well as punishing and imprisoning Putin and other leaders of authoritarian Russia will put an end to the current black scenario, which is unfolding in such a large part of the world. I believe that after this we can enter a new democratic and free era, though, of course, it will take us some time to get there.
Former mayor of Gliwice, Senator Zygmunt Frankiewicz is head of the Association of Polish Cities (ZMP), the biggest such organization in Poland, representing at least 300 cities inhabited by over 70% of the country’s urban population.
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TECH i n s i g h t s TECH NEWS Allegro goes international Allegro has launched its English-language service, allowing European customers and merchants to benefit from EU-wide access to one of the world’s top ten e-commerce websites. Customers will now be able to search and buy merchandise on Allegro in English and pay in euros, with Allegro helping to handle international deliveries and payments through its partners. The move is one of Allegro’s organic steps in pursuing international expansion. Together with the planned purchase of the Mall Group, which operates across CEE, it solidifies Allegro’s European footprint.
PRESS MATERIAL
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TECH
GAMING
LeoVegas center in Warsaw A Swedish company from the iGaming sector, LeoVegas AB, has recently launched a modern technology center in Warsaw. It wants to build a team of 60 developers in Poland who will work closely with the company's international hubs around the world. The opening of a new office in Warsaw is a response to the growing demand for technology development in connection with the international expansion of the LeoVegas Group. Currently, the Group employs over 850 people in Europe. In addition to the recruitment at hubs in Sweden, the UK and the Netherlands, the Group wants to build a team of 60 programmers in Warsaw. The new technology center of the LeoVegas Group will be located in Mindspace Koszyki.
munication and data exchange. By the end of 2025, the company plans to hire 100 employees. The company is working on innovative solutions in the field of cybersecurity. The data in their products is not only encrypted in a standard way but additionally secured with LIQRYPT technology. Information systems protection issues require the involvement of high-class specialists. When selecting the Tri-City by WETOG, the region's access to appropriate human resources was important as 24 universities and numerous companies developing the latest technologies can provide employees with the required qualifications. Gdańsk is also a favorable location for WETOG due to the close location of the company's headquarters in Germany.
COMMERCE
E-mediation center at Ultima RATIO At the Ultima RATIO arbitration court, an online mediation center has just been set up. It offers buyers protection program that is perfect for online stores. It assumes that disputes with buyers will be settled by independent court mediators and complaints will be submitted at shop windows. Similar buyer protection programs have long been operating on trading platforms including Amazon and Allegro. However, they were not available in online stores so far. As a result, customers often chose platforms because they felt safer there. The new Ultima RATIO program will change that. CRYPTOCURRENCY
Vercom sums up breakthrough year The technology company providing cloud solutions in the CPaaS (Communication Platform-as-a-Service) model, Vercom, recently summarized 2021, which turned out to be record-breaking, both in terms of results and the increase in the number of customers. Revenues at that time amounted to PLN 179 million, which means an increase of 53% y/y. In turn, the gross margin increased by 52% and reached the value of PLN 54 million. The number of customers also jumped by 64% y/y exceeding 18,000. The record results are due to both the dynamic organic growth and the acquisition of FreshMail and PushPushGo. CYBERSECURITY
WETOG enters Tri-City WETOG GmbH, a German startup in the cybersecurity industry, chose Tri-city as the location of its Polish headquarters. Thanks to the revolutionary encryption technology, the company offers customers the possibility of secure com-
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CYBERSECURITY
Data security breach up The number of attacks on corporate networks increased by as much as half last year compared to the previous year, according to Check Point Software. In turn, the Vecto report indicates that almost 70% of Polish companies found a data security breach in 2021. This is 8 percentage points more than a year earlier. Phishing remains the dominant type of attack. According to experts, the response to the actions of hackers should be the implementation of concepts based on very limited trust, both towards users of devices within the corporate network and those working in remote locations, for example as part of a home office.
In the first quarter of 2022, individual investors invested in the so-called workhorse cryptocurrencies, choosing tokens often based on the Ethereum blockchain, but with concrete, alternative use cases. Eight out of ten tokens with the highest growth in Q1 were tokens present on the eToro platform for less than a year. Tokens such as The Sandbox (+185%), Axie Infinity (+42 percent) as well as Celo (+34 percent) and SushiSwap (+26 percent) were the highest in the Polish ranking in Q1. "It is exciting to see many of the smaller, booming cryptocurrencies with the biggest gains in the last three months. Market conditions have been tough and valuations have stalled but activity on the eToro platform suggests that investors are focusing most of their efforts on utility tokens. It is gratifying that investors are diversifying and leaning toward newer cryptocurrencies while keeping their token holdings in place," Simon Peters, eToro's cryptocurrency market analyst, commented.
SHUTTERSTOCK
Bitcoin still popular
CLOUD STORAGE
PA R T N E R H I G H L I G H T S
THE SANCTIONS WILL COST US A LOT
HOW DID THE WAR INFLUENCE CURRENCIES?
IN THE LAST WEEKS, THANKS TO MODERN TECHNOLOGY, WE ARE ALMOST DIRECT SPECTATORS OF ONE OF THE MOST TRAGIC EVENTS IN THE LATEST HISTORY OF EUROPE. THE HUMAN ASPECT IS SURELY THE MOST IMPORTANT ONE, BUT THERE ARE ALSO OTHER REPERCUSSIONS OF THE RUSSIAN AGGRESSION. IN THIS TEXT I WOULD LIKE TO FOCUS ON THE FINANCIAL MARKETS, ESPECIALLY CURRENCIES.
ILLUSTRATION BY SHUTTERSTOCK, PHOTOGRAPH COURTESY OF THE AUTHOR
BY MACIEJ PRZYGÓRZEWSKI
What happened after the attack? At the beginning of the Russian invasion, a lot of investors panicked. We cannot blame them, as it has been the first war in Europe since the Balkans in the 1990s (assuming Russian aggression against Ukraine in 2014 wasn’t a war). Horrified investors made rushed decisions exaggerated. At first, a lot of analysts believed that the attack was just a quick operation based on terror that would end quickly with some kind of forced agreement. As this scenario remained false the panic continued. That is why investors withdrew from currencies and assets that were vulnerable to war. On the global market, the most visible change was the 4%
fall in euro against the dollar. Investors assumed that Europe would pay more for the costs of the sanctions as they would be more impactful there. Return of the hope The turning point in the markets came in the middle of the third week of the fights. Massive support for the Ukrainians helped them defend their home country and since the Russian military failed to achieve their goals some enthusiasm returned. We cannot call the situation “normal” while writing this text. But we are much closer to the pre-war price levels than during the first two weeks of the aggression. This is especially true for local currencies
of countries close to Ukraine. Those currencies lost the most at the beginning of the war and now they have regained most of their value. The Russian rouble’s story is a bit different as due to the sanctions most of the Russian banks were cut off from the global financial system. That is why Russians managed, thanks to some shady actions, like changing the currency of energy sources settlements to roubles, to manipulate its rate. What to expect next? Even if the conflict ends soon (the author hopes peace will return at the time of publication) we have to be aware of future problems. The sanctions will cost us a lot, especially if they were to be imposed on gas and oil. Another problem goes for Ukrainian Hryvnia. Ukraine already suffered major human and material losses. They have to add the emigration of skilled workers. Some of them might not return to the country. It would be even harder for the Ukrainian economy to rebuild after the war without those specialists despite the help from western countries. This might be a serious problem for the Hryvnia rate.
Currency One is one of the largest company on the online currency exchange market in Poland. Maciej Przygórzewski is the COO at the company.
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TECH
GOOGLE INVESTS A RECORD $700M IN WARSAW OFFICE THE TECH GIANT HAS SHOWN THAT WARSAW IS THE THRIVING CAPITAL IN ECC TO ESTABLISH THEIR LATEST OFFICES WHILE PUTTING WARSAW ON THE TECH MAP.
SHUTTERSTOCK
BY ANNA RZHEVKINA
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F E AT U R E
I
n March, Google bought The Warsaw HUB office complex from European real estate firm Ghelamco in a $700 million deal, the largest single office transaction in the history of the Polish and CEE market so far. The Warsaw Hub, situated at the Rondo Daszyńskiego roundabout in central Warsaw, comprises three buildings: two 130-meterhigh towers with 75,000 sqm of office space and a hotel building. The hotel section will be still owned by Ghelamco, while office towers now belong to Google. Google has been present in Poland for more than 15 years, growing from a small office room to a space for more than 1,000 employees. The company moved into The Warsaw Hub in the Wola district as a tenant last year, opening there a new office – a working space for teams involved primarily in cloud services, an industry worth hundreds of billions of dollars. In 2021, the company launched Polish Google Cloud Region — a $2 billion data hub — that became the first such investment not only in Poland but in CEE, according to Magdalena Kotlarczyk, country director, Google Poland. Today, the Google office in Warsaw is the largest Google Cloud Technology development center in Europe, serving global customers, such as Spotify, Snapchat and Twitter. After the acquisition of The Warsaw Hub complex, Google has space for 2,500 employees, with potential for further expansion, the company said. Google expansion in Poland comes at times when investors are concerned about the
“
The main investment criterion is invariably the remuneration of employees
country’s economy as the war in Ukraine is expected to hit exports, create supply-chain disruptions and further accelerate inflation, which is already at record-high levels. “As we continue to invest not only in infrastructure but also in talent and knowledge, we are confident that Google can continue helping Poland’s economy use its advantages and the power of technology to support its future economic growth,” Kotlarczyk said in a statement. Mark Brzezinski, the US ambassador to Poland, praised the investment on Twitter, saying he was glad that US companies appreciate Poland and make use of its potential.
The tech capital
Warsaw’s attractiveness to international investors is fueled by the growth of the business services industry, access to an educated workforce with knowledge of foreign languages, especially in the IT sector and relatively low labor costs. “The main investment criterion is invariably the remuneration of employees – the minimum wages oscillate at a level similar to that of our southern neighbors,” said Iwo Paliszewski, CEE marketing & employer branding manager at Antal. “However, if we plan to attract qualified workers, we must be prepared to pay salaries not much lower than those offered in the West,” he added. Google rival Microsoft, which has its own cloud service, announced a $1 billion digital investment plan in 2020 in Poland, which includes its first data center in the region. The company signed a strategic partnership
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TECH
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Cloud services on the rise
Google has invested billions of dollars in cloud services in Poland as the cloud computing market is expected to grow by 15-20% annually, according to Boston Consulting Group (BCG) estimates. Apart from Google, the main global players include Amazon Web Services, Microsoft Azure and Alibaba Cloud. The key driver for the market is cost benefits compared to conventional physical storage. Dan Decasper, head of the Google Cloud engineering center in Warsaw, who was appointed in March 2021, called the expansion of the Warsaw office a priority. “Many of our most important products and technologies are developed here, which are used by the world's largest customers of Google Cloud,” he said. Google Cloud Region allows quicker data transmissions for Polish companies and institutions, the possibility of conducting real-time data analytics and faster back-ups, according to National Cloud. The Region offers a portfolio of key Google products, including Compute Engine, App Engine, Google Kubernetes Engine, Cloud Bigtable, Cloud Spanner and BigQuery. Apart from Warsaw, Google has a center in Wrocław in an office complex on Bema Square. In March 2021, the company established there a team involved in the implementation of cloud technologies for customers from Europe.
GOOGLE PRESS MATERIALS / BY JACEK WASZKIEWICZ'
with Chmura Krajowa (National Cloud), an organization established to accelerate the digitalization of businesses and public administration. “Poland has the opportunity to be the digital heart of Europe,” said Mark Loughran, general manager, Microsoft Poland. Google, which opened its first office in Poland in 2006, calls Warsaw its regional hub for both engineering and business and one of the fastest-growing sites in the EMEA region. In 2015, it opened Campus Warsaw, a place where startups can access workspaces, events and a community of entrepreneurs. The project, created as a business incubator, is now open as temporary office space for Ukrainian start-ups, mostly run by women. “Ukraine has a strong and vibrant startup community. Of the roughly 2,000 startups in Ukraine, 126 startups have raised venture capital funding since the beginning of 2021,” Agnieszka Hryniewicz-Bieniek, global director, Google for Startups, wrote. In March, the company announced a $5 million Google for Startups Ukraine Support Fund to allocate cash awards throughout 2022. Selected Ukraine-based startups will receive up to $100,000 in funding and Google mentorship. In addition, Google allocated $10 million to local organizations helping asylum seekers who arrive in Poland.
F E AT U R E
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TECH Summary of Features
• Foldable 2K 13.3” OLED Screen • Engineered chassis and torque hinge • Intel Core Processor with Intel Hybrid Technology • Authentic black leather cover with built-in kickstand • Mode Switcher software • Lenovo Fold Mini Keyboard • Lenovo Mod Pen • Wi-Fi 6 and 5G WWAN optional • Dolby Atmos Speaker System with Dolby Access App
UNFOLDING NEW POSSIBILITIES
OF COURSE THE THINKPAD X1 FOLD PROVIDES A SPLIT-SCREEN EXPERIENCE, JUST AS THE NAME SUGGESTS. FOLD IT LIKE A BOOK FOR TWO SIDEBY-SIDE DISPLAYS — PERFECT WHEN YOU WANT TO COMPARE SOMETHING, TAKE NOTES, READ, OR JUST MULTITASK. TURN IT SO THE SPLIT SCREEN IS DISPLAYED FROM THE TOP TO BOTTOM, AND YOU CAN SKETCH, JOT NOTES, OR USE THE ON-SCREEN KEYBOARD TO TYPE.
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Multiple Modes and Ultramobile Design
One of the main advantages of the X1 Fold is the multitude of modes that it can be used in. Along with a leather cover with a built-in kickstand, the X1 Fold offers both style as well as function. Remove the keyboard and utilize the kickstand to present information in standing the mode, hold it like a book to read e-books comfortably, keep the keyboard attached for the experience of an extra small laptop system and then pop the keyboard off to take notes from a video in dual screen mode. Lay the X1 Fold flat and mark up documents and sign contracts as if you would be using a tablet with the Lenovo Mod Pen. Folded, the X1 Fold is roughly the size of a standard book at 158.2 x 236.0 x 27.8 mm (6.23” x 9.3” x 1.09”) and can be carried in a smaller bag than the typical clamshell system. At only 2.2 lbs. (999g) it’s easily carted from the office to the airline tray
table. When at your desk, the unit can be docked with peripherals like any Type C device.
Intel Processor with Intel Hybrid Technology
The X1 Fold features an Intel i5-L16G7 Core processor with Intel Hybrid Technology. These processors provide a hybrid CPU architecture for power and performance in a dime-sized ultramobile form factor. As some of the smallest processors to provide Intel Core performance, the Hybrid Technology allows for productivity, content creation, and casual gaming experiences on ultra-light and innovative form factors such as foldable screen systems and optimizes for the longest battery life possible.
Mode Switcher Software
To accommodate the many modes of the X1 Fold, the Lenovo Mode Switcher software has been added to the device. Mode Switcher works on
PHOTOGRAPHS COURTESY OF LENOVO
T
he Lenovo ThinkPad X1 Fold is the world’s first foldable PC; it is a chameleon of personal computing devices, adapting to its environment and intended for those looking for on-the-go computing in an ultra-mobile form factor. A first in its class experience, the foldable 2K OLED display allows the user to tailor the X1 Fold to utilize a 13.3” screen size within a small novel-sized footprint. Using Intel’s latest Hybrid technology processor, the X1 Fold offers efficiency on-the-go and along with the built-in kickstand, pen, and removable keyboard, allowing the user to be productive in a wide variety of modes. Its WiFi 6 capabilities allow for a faster throughput at home, while optional 5G capability allows you to be connected anywhere. The leatherclad X1 Fold is run through ThinkPad’s durability and reliability tests, maintaining the standards set by the ThinkPad brand.
SPECS top of Windows 11 to allow the user to transition between modes, and have applications displayed properly on the screen, whether it be split-screen or single screen content.
ThinkPad Toughness
Like any ThinkPad, the X1 Fold makes no compromises when it comes to toughness and durability, even with its one-of-a-kind form factor. ThinkPad aspires to be rugged and tough and is tested against 12 militarygrade certification methods and 27 procedures (MIL-STD 810H). Additional testing was conducted on the X1 Fold to make sure the screen could handle the stresses of being opened and closed thousands of times, the effects of objects wedged between the screen and more.
X1 FOLD MODES ADAPT TO YOUR DAY
Lenovo Mod Pen
The Lenovo Mod pen has a removable cap exposing a USB-C charging port; just a 5-minute charge will give you 250 minutes of use, while 2 hours charge will last for a month. At <18g, it’s light and the form factor makes it easy and comfortable to hold while note-taking on the X1 Fold. Included on the pen there are 2 side buttons that are customizable via the Lenovo Pen Settings App, and the pen uses Wacom Pen protocol along with low latency, precise pressure, and tilt detection.
Lenovo Fold Mini Keyboard
The X1 Fold Mini keyboard is BlueTooth compatible and located inside the system, charging simply by being magnetized to the screen when the system is closed. (Note: It can also be charged via Micro USB cable.) You never have to worry about running out of power in the middle of an important task with 8 hours of battery.
Hinge Technology and Foldable Display
The ThinkPad team spent years developing the hinge of the X1 Fold to accommodate for the foldable OLED screen and find a way to prevent the screen from creasing or bubbling when folded for extended periods of time. This required multiple layers of mechanical support underneath the screen that allow the user to see the benefits of the folding technology. The layers provide all the extra support and durability required to be used as someone’s main PC.
Dolby Atmos Sound
The X1 Fold comes equipped with Dolby Access app that uses Dolby Atmos technology to simulate 3D
Premier Support is professional 3-year 24/7 technical support available as standard for the ThinkPad X1 Fold, delivered by highly trained technicians. It provides comprehensive support for hardware including software (OEM), prioritized parts availability with on-site repair, advanced technical support provided 24/7, and a single point of contact for end-to-end case management without the need to switch hotlines.
sound — that is hearing sound in front of and behind you, but also above you. (Tip: This works best with headphones.) Different sound profiles allow you to customize the sound for the correct content (Music, Movies, Games, etc.) or simply allow Dolby Access to identify it and provide automatic adjustments with the Dynamic profile.
WIFI 6 and Optional 5G
Packed with 6 Antennas in a limited space, the X1 Fold is optimized for WiFi 6 connectivity and optional 5G WWAN connectivity despite its small size. With WiFi 6, you can take advantage of advanced data throughput, reduced latency, and higher performance in signal-dense environments.
As standard, ThinkPad X1 Fold comes with Co2 offset service. The CO2 OFFSET SERVICE is your guarantee of making a real contribution to creating sustainability and reducing your global carbon footprint. By selecting the CO2 offset option when purchasing the device, you can reduce carbon emissions right from the start, thanks to lighter packaging that reduces fuel burn in transit by 6.7 percent.
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Life + Style
GREAT EXPECTATIONS Andrea Camastra returns with a bang! BY ALEX WEBBER PHOTOGRAPHY BY KEVIN DEMARIA
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DINING OUT
WHO’S COOKING Step forward Andrea Camastra. Raised in Bari, Andrea Camastra’s visionary approach to cooking saw him claim his first Michelin star in 2016 for his Warsaw fine dining venue, Senses. Singled out by Hervé This, one of the founding fathers of molecular gastronomy, as the natural successor to Ferran Adrià, Camastra later found himself inducted into Le Chef’s rundown of the world’s top 100 chefs. Commonly understood to be the biggest gastronomic talent working in Poland, his new restaurant Nuta looks set to conquer all.
would I,” he shrugs, “I love this country.” This much is apparent via a menu that has sought to celebrate his newfound life in Warsaw. Of course, there are cheeky references to Italy (the mini pizza, for instance, which mixes Tuscan and Neapolitan styles and is enjoyed with garlic foam), but these are outweighed by the heavy Polski slant. Take the chłodnik as an example, a dish made with fermented beetroot juice and served in a chilled gazpacho style with 12-year-old balsamic vinegar, goat cheese foam and a fresh hit of horseradish ice cream. Next, sea trout that’s been barely cooked and served with sour cucumber gazpacho, daikon pickle, compressed cucumber, mustard ice cream and a miso leaf wheel. Locally caught, we’re told, the fish is, but such is its texture that it could have been sent from heaven. And from there, the going gets even better. Nordic sea mackerel comes with a Polish teriyaki glaze (sour cucumber and sour cabbage juice) and a broth of allium to represent the onion and garlic family. But the biggest win of the night comes from the duck, a beautifully-cooked bird in a sauce of such oomph that it might knock you sideways. “It gives a real uppercut,” says the chef, and he’s completely right. So good as to be almost overwhelming, the eel also delivers a high-impact response. Cooked “po grecku,” it swims lightly on a broth made from the wriggly fish’s bones and skin. Palette cleansed with a lemon cube of ice that dissolves in the mouth, dessert is the final treat and a triumph of happiness – panettone dipped into a glorious ooze of chocolate and petit fours that left us so floored we forget to take notes. What we cannot forget is the gratification they gave.
WHAT’S THE PLACE Camastra’s previous gaffe, Senses, did have the capacity to intimidate: just entering meant walking down a red-carpeted flame-lit corridor that had you thinking you were attending the Oscars. Plush and painfully posh, it wasn’t a place for the casual interloper. Nuta, on the other hand, is far more accessible in its style and spirit. This openness is emphasized by the vast floor-to-ceiling windows and a design that feels sophisticated but never ceremonial. Still not fully complete due to the challenges of Covid (remember that!), we’re told future plans will include bold splashes of wall art sometime in the future. But this should not be taken to mean that the restaurant isn’t ready – as it is, it looks perfect. Adorned with orb-like lights suspended from the ceiling and images of the cosmos projected onto the far wall, there’s something about this place that speaks of defined ambition and easy-going affluence. All that ignores the most important element of all – the open kitchen. Without wishing to labor the comparisons too much, this makes a massive difference when thinkAND THE PRICE? ing of Senses. There, you kind of got the idea Nuta is a world-class experience, and as such that Camastra was locked far back like some it’s easy to reach dizzying figures where your precious bird in a gilded cage. Contrast that bill is concerned – for the full pleasures of to Nuta where Camastra isn’t just on display this restaurant, the Maestro menu tots up to but is often to be found jiggling between the a cool PLN 590 per head with service from tables and chatting to the customers – and if the first to last dish lasting around threethey’re lucky, having a quick drink with them hours. Comprised of approximately seven as well while pondering the finer points of life. Allowing him the free- to eight dishes, the Virtuoso menu is priced at PLN 450 and will swaldom to express his personality lends Nuta a valuable vitality that was low around two hours of your time. However, for lighter wallets, the lacking in the straitjacketed formality of Senses. Being here is fun! Compositore menu (available from Tuesday through to Thursday) is tagged at a more affordable PLN 295 for three dishes of your choosing. Yes, that might sound pricey at first glance but remember this: Nuta GUIDING PRINCIPLES? Foodies immediately connect Camastra with the weird and the wonder- has no peer. Aimed at people that want to enjoy the very best that life ful. Celebrated for his creative use of science, he was previously hailed has to offer, the financial trade-off is definitely worthwhile. Give them for his note-by-note philosophy, an artistic process that saw him extract your money, give it all! flavor molecules from some foods before adding them to others. Things have changed and now Camastra is keen to push his artisanal creden- FINAL THOUGHTS tials. “Anyone can learn science,” he says, “but using artisanal methods Extraordinary in every respect, Nuta is a place where the impossible takes real skill.” This much is evidenced by the bread, the choice of happens. A complex odyssey that engages every pleasure receptacle which includes Barese-style focaccia, garlic butter layered brioches and in the human body, it is absolutely unthinkable that anyone can leave two types of sourdough. Accompanying it is in-house butter that evokes without being staggered by the quality. Camastra himself says he’s no the taste of the Polish karczma with its emulsion of smalec and pickled longer chasing Michelin stars, and that’s principally because he knows cucumber. Frankly, with this kind of perfection, you’d be happy to tell they will arrive regardless of his goals – and yes, interpret that not as a them to forget all the rest and bring you a sandwich. sign of arrogance but for what it really is: a statement of fact. Visit here and you will be grappling with the spectacular. MENU HIGHLIGHTS Despite eyewatering offers from abroad, never did Camastra consider Nuta leaving Poland when Senses found itself guillotined by Covid. “Why Pl. Trzech Krzyży 10/14, nuta.com.pl
“Extraordinary in every respect, Nuta is a place where the impossible happens”
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WINE
A TASTE OF THE CLASSICS Aimed at the classic wine fan, a new initiative finds itself launched as a sign of the times. BY ALEX WEBBER PHOTOGRAPHY BY KEVIN DEMARIA
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A
N EXCLUSIVE offshoot of the popular dobrewina.pl chain, an ambitious new project that aims to showcase the world of fine wine to the Poland-based drinker and make it more accessible than ever before — co-founded by Peter Pulawski, a Danish citizen of Swedish-Polish background, and his brother, Jan — Classic Wines was seen as a logical step forward given the health of the market. BACKGROUND Having left the Danish wine business in 1990, Peter Pulawski founded his first Warsaw store in 2001 – over two decades on, six stores now operate under the dobrewina.pl banner, as well as an online shop delivering around the country (and beyond). “The original idea was based on my experiences selling in Denmark,” says Pulawski, “so it was a less exclusive approach to wine consumption – you could definitely describe it as a Scandinavian approach that was more down-to-earth and practical, one that would avoid complex wine talk if required.” Though thriving, the brothers were encouraged by trends that emerged as a result of the pandemic. “The average price of wine went up, so too did salaries,” says Pulawski. “People became more assertive in their consumption habits.” Buoyed by this, the brothers saw a niche that demanded further exploration. “Generally speaking, in Poland we understand fine wines as wines costing above PLN 100 and as having better-known origins such as hailing from Chablis, Bordeaux, Burgundy, Tuscany, Piedmont and so on. With the pandemic in its full thrust, we noticed more Poles were asking for classic wines. We’ve seen more money on the market and, likewise, more willingness to pay more for wine. Be they Poles or expats, my brother and I decided to cater to that segment.” CLASSIC WINES “Until Brexit, many people were ordering from England. Now they’ve switched to German, French and Swiss e-commerce platforms,” says Pulawski. “What we’ve done is to give them another option, one that sources wines as directly as possible from wine districts in France, and some in Italy, and then create a place where we could present them in an optimal way and combine that with sommelier workshops and wine evenings.”
TWINS! Inherently sharing the same DNA, classicwines.pl and dobrewina.pl bear many similarities – and also differences. Though different in their choices and options, both share the same basket for online purchases and, via their system of different price bands and configurations, allow for considerable savings to be made. “We’ve got a four-tier pricing structure with different prices applying for purchases of one bottle, six, 30 and 60,” says Pulawski. “But the way we’ve structured that enables people buying more moderate bottles from dobrewina.pl to top up with an expensive bottle from classicwines.pl and make a saving.” With classicwines.pl, the target is two-fold, continues Pulawski: those who are already buying fine wine but doing so using options based outside of Poland, as well as the growing number of passionate wine enthusiasts who are looking for the occasional treat. “Quite often they’ve enjoyed a great wine in Italy or France, and they’re looking to enjoy this superior taste experience a few times a year when they’ve returned back to Poland.” THE EXPERIENCE Sure, you can order the wines to pick up or to be delivered, but doing so should not be at the cost of overlooking Pulawski’s other angle. To be enjoyed at the HQ of classicwines.pl, wine tasting evenings have been designed to feature a personal touch, expert guidance and, of course, no shortage of wine. “Such tastings or sommelier workshops are ideal for special occasions, birthday gifts or for company events such as management integrations or to host key clients,” says Pulawski, “and though right now this is a private offer, we do plan on introducing group tastings that individuals can sign up for.” Customized to suit client preferences, these evenings take place inside a comfortable room seating 11 (or around 20 standing) and are conducted using hand-blown Zalto glasses in prime conditions: “Lighting conditions are important when tasting wine, so here we’ve installed LED panels with a high degree of lumen – with a temperature of 4,000 Kelvin (with an impressive color rendering index of 95), you’ve basically got conditions that resemble the afternoon sun in the Mediterranean,” says Pulawski. “There’s also a special lamp with three different temperatures of light so you can assess the colors.” Moreover, with Coravin wine preservation gadgets on hand, drinkers have the chance to experience the best wines around without shelling out for the entire bottle. Complete with nibbles, it’s an evening that’s educational and illuminating whilst never losing its engaging sense of fun.
“THE AVERAGE PRICE OF WINE WENT UP, SO TOO DID SALARIES,” SAYS PULAWSKI. “PEOPLE BECAME MORE ASSERTIVE IN THEIR CONSUMPTION HABITS
TASTING NOTES 2019 Chablis Grand cru, Les Preuses, Domaine Ventoura
A ripe and creamy wine that perfectly reflects the richness of the vintage. Full notes of sweet, yellow fruit complemented with delicate floral accents, slowly give way to the flavors of almond and grapefruit before stepping into a long mineral finish that builds the appetite for more.
2017 Meursault-Charmes 1er cru, Bouzereau-Gruere
Rich, elegant and well-balanced on the palate, the ending is long and very pleasant. It was created from clusters of the Chardonnay grape growing on two plots with a total area of 6,000 sqm on clay-calcareous soil.
2014 Chateau Leoville Poyferre, Saint Julien
Delighting with its ruby color, in the nose, apart from ripe fruit such as plums, blackberries or blueberries, you can also feel violets, licorice and wood notes. In the mouth, it is wellbuilt, fleshy, but also elegant and subtly fruity. Characterized by spicy tannins and pleasant acidity, the finish does not disappear quickly. “I’d call this among the best 20-25 Medoc wines,” says Pulawski.
Classic Wines ul. Wyczółki 46, dobrewina.pl / classicwines.pl
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EVENTS
The WBJ relives or looks forward to the most important events from the world of business and economy
The agenda of the Congress focused on the professionalization of family business, building a sustainable company for generations and the current geopolitical situation and challenges that Polish entrepreneurs are now facing. “Now, when times are unpredictable, the things that make a person rich inside become his strength! There is no family business that can last for generations without a strong, healthy, loving family! It is the power of relationships, of attentiveness, of dedicated time… in the name of building those bonds. On the other hand, the shared history, the importance of the decisions our ancestors made while taking business risks and the strength of the values we remain faithful to. It is the responsibility of generations, professionalism in action and courage to implement the necessary changes,” said Dr Adrianna Lewandowska, IBR head. The axis of this year's MKFR was focused on the wealth,
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but not only the material wealth such as property and assets, but most of all the wealth of knowledge, goods, traditions, relationships and shared values that unite the family and communities, building a strong family business that will last for generations. There were also current topics, references and comments on the current geopolitical and market situation faced by family businesses. The main theme of the meeting was family, persistence and well-being. For the organizers of the meeting it was important not only to talk about the current situation of family businesses in the Polish market, but also to look for real support for family businesses from Ukraine during the convention. In a special block, the current situation of Ukrainian family companies was presented and possibilities of support and cooperation between Polish and Ukrainian companies were discussed. Staying in the spirit of the idea of "family businesses
to family businesses", in recent weeks IBR has established cooperation with Family Business Network (FBN) Ukraine to support Ukrainian family businesses during the war and help them secure their family businesses. Being in constant contact with the Ukrainian team, IBR's team collected a list of companies with information on what their current most important needs are and how they can be supported in a difficult situation. The special guest of the Congress was Patricia Gucci — granddaughter of Guccio Gucci, the founder of the Gucci Fashion House Guccio Gucci, and the only daughter of Aldo Gucci, the chairman of Gucci (1953-1986). Patricia, the heir to the Gucci family legacy, presented the extraordinary history of the family business, talked about the values that are passed on to the next generation and about the lessons Polish business families can learn from the Gucci family history.
PRESS MATERIAL
THE INTERNATIONAL FAMILY BUSINESS CONGRESS (MKFR) WAS HELD IN POZNAŃ ON MARCH 28-29
II FORUM CFO STRATEGIES New directions for safe growth
May 12-13, 2022 | Courtyard by Marriott, ul. Żwirki i Wigury 1, Warsaw Strategic, cross-industry, key forum for financial directors in Poland! Register now and receive a 50% discount!
Among speakers, CFO/directors from: CAPAROL, CCC, COLLIERS INTERNATIONAL, DISCOVERY, DR MAX, E.ON FOTON, FAKRO, GEDEON RICHTER, GRUPA KROTOSKI, H.CEGIELSKI POZNAŃ, HENKEL, IMPERIAL TOBACCO POLSKA, KONE, LOTOS KOLEJ, LUBELSKI WĘGIEL BOGDANKA, MAKARONY POLSKIE, MEDICOVER, MERCEDES-BENZ MANUFACTURING, MOLIERA2, OBI, ORANGE, PGNiG, SAINT GOBAIN, SANTANDER BANK, SOLAR, STORA ENSO, SUPER-PHARM, UNILEVER, VEOLIA ENERGIA, ŻABKA
Contact us and receive a discount code. Email anna. banas@braveconferences.pl or call +48 787 092 566
https://www.cfo-strategies.pl/prelegenci/
Agenda https://www.cfo-strategies.pl/program-1-dzien/
For WBJ readers, a 50% discount on the current price https://cfo2022.registration-form.online/
Organizer: www.braveconferences.pl
THE INTERNATIONAL MBA CONGRESS The International MBA Congress organized annually by the Cracow School of Business of the Cracow University of Economics is the greatest conference in Poland integrating students and MBA programs’ alumni. It is an event dedicated to middle and senior managers from various sectors, operating for international and Polish companies. Previous editions have gathered more than 200 participants each time. This year’s edition “Toward a Better Business – New Development Trajectories” will be held on May 13-15. It will be dedicated to the topics regarding new ways for managing and developing business, which adds value not only to company owners but also to the community. The Congress participants will meet with successful professionals, leading experts, entrepreneurs and researchers whose work support the business world. They will be sharing their knowledge and experience. Participants will have enough time to initiate discussions and pose difficult questions to which we will be searching for answers together. More information: kongresmba.pl/en/
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EVENTS
The WBJ relives or looks forward to the most important events from the world of business and economy
Entrepreneurs, European commissioners, politicians, presidents and experts have joined the pool of speakers of the 14th European Economic Congress. The ongoing war in Ukraine, the pandemic, discussions about future trends, the latest subjects and analysis of events shaping the European economy – the largest business event in Central Europe will be held on April 25-27 in the International Congress Centre in Katowice. The agenda of the conference has modified dramatically recently. New sessions devoted to the latest events related to the situation in Ukraine have been added. The agenda includes around 150 debates, presentations and keynote speeches revolving around leading subjects: war in Europe, plans for Ukraine, green transition and recovery of the economy, global trade and geopolitics, digitalization, science and competences in a changing world. For the first time in its history, the event will be accompanied by the European Forum of Young Leaders. The mission of the Forum is to provide space for youth activists from European member states, Western Balkans, the Eastern Partnership and Poland, willing to share their experiences, establish relationships and discuss subjects that matter to young people all over Europe. In April, for the seventh time in its history, the stage of the European Congress will be taken by founders and leaders of Europe and Poland's most interesting startups. The winners of the Start-up Challenge will be given airtime, enter the world of big business and receive support for the development of their companies. The summit will also include subsequent editions of competitions such as Top Municipal Investments, Investor without Borders and the Ranking of Decarbonization Initiatives.
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PRESS MATERIAL
A KEY DEBATE ABOUT THE FUTURE OF THE EUROPEAN ECONOMY
