Warsaw Business Journal November 2022 #74

6 In Review

News

12 Opinion

Will minimum wage fuel inflation? by Sergiusz Prokurat

Poland's wintertime worries by Sergiusz Prokurat

16

Cover Story

Raied Tanous, President of Asbud Group talks about Asbud’s 25 years of success.

Interview by Morten Lindholm

22 Partner Highlight

The WBJ talks to Jakub Matuszewski, co-owner and CEO of Wyjątkowy Prezent

25 Lokale Immobilia

News

Interview with Roger Andersson, Managing Director of Vastint Poland

36 Features

7-hour work day? by Anna Rzhevkina

Competition law by Karolina KlimekKaźmierczyk

Lithium ion batteries by Aleksander Rajch

46

Interview

President of the Association of Car Dealers, Paweł Tuzinek

Interview by Nikodem Chinowski

49

News

Tech

E-commerce Race by Anna Rzhevkina

57 Life + Style

Best of Warsaw

Words by Alex Webber

62 Events

PUBLISHER'S NOTE

NEW BEGINNINGS

Do you remember Poland in the 1990s? Well, I do. I visited Poland for the first time on a cold and grey January morning in 1996. In spite of the discouraging weather, the melting dark and dirty snow on the streets, and temperatures around zero, I still remember this visit with great fondness. It was a totally new world for a young western boy like me back then. The people that I met from my company were so nice, open-minded, and curious – I immediately felt at home.

Fast forward to 2022 – I have now lived in Poland for 23 and 1/2 years – and in this issue I have had the chance to meet others whose experiences go that far back as well – kudos to Asbud & Vastint for their great achievements and long term commitment to making Poland a better place in which to live and work.

Both Mr. Raied Tanous and Mr. Roger Andersson talk inspiringly about their journeys and how important it has been to focus on quality and sustainability, as well as the need to keep renewing oneself and taking risks when an opportunity arises. Enjoy our discussions on pages 16 and 30.

But back to my headline, “New Beginnings,” because I do feel that we are in the first moments of new beginnings. These are not just new beginnings for Poland, of course, but they can definitely bring a new wave of amazing opportunities here as well. I am thinking of obvious megatrends like digitalization, sustainable energy sourcing, and near-shoring of the supply chain. In so many ways, Poland is in the right place to benefit from these trends – the talent pool is here, confirmed by several global tech companies who have shared their research with me, the space is here for wind and solar energy projects, and its Central European location with its with good infrastructure extending eastward is also strategically important.

Do Poland and international entrepreneurs have the courage to start the kind of journey that saw 1990s Poland transform from a grey and communist country into a bright and bustling cosmopolitan one? I believe the answer is “yes,” and I think that right now is the moment to start.

I wish you a pleasant read of all the stories my accomplished team of writers has brought to you this month, and I look forward to feedback and insights and invitations to new interviews from you, my dear readers.

Stay positive & keep pushing the boundaries.

MORTEN LINDHOLM

CH CHCH CH 40 years

Cholewinski is a family-owned brand that has been creating unique leather goods since 1982. The brand celebrates its 40th birthday in 2022, while welcoming the autumn-winter 2022/2023 season with a new collection. The brand offers unique, handmade handbags, made of genuine leather & accessories such as wallets, suitcases and belts. Welcome to the world of CHOLEWINSKI. Discover true craftsmanship. LEATHER GOODS |

Karolina Klimek-Kaźmierczyk

– is an expert in the Family Enterprise Initiative (IFR), and an attorney-at-law in the law firm Brillaw by Mikulski & Partners. She deals with compliance, competition law, public procurement, and contract law, as well as day-today legal consulting for business.

Karolina's article about the competition law starts on Page 40

ON THE COVER GUESTS IN THIS ISSUE

Morten Lindholm

Editor-in-Chief/Publisher

mlindholm@valkea.com

Kevin Demaria Art Director kdemaria@valkea.com

Jessica Sirotin Editor

Krzysztof Maciejewski Business & Web Editor kmaciejewski@wbj.com

Contributors

Nikodem Chinowski Sergiusz Prokurat

Anna Rzhevkina

Krystyna Spark Alex Webber

Sales Izabela Kaysiewicz ikaysiewicz@valkea.com

Katarzyna Pomierna kpomierna@valkea.com

Print & Distribution

– is the Managing Director and a Member of the Management Board of Vastint Poland, a property investment and development company. He has lead the organization for almost 20 years, overseeing the expansion of the Vastint portfolio in the Polish real estate market. A graduate of IHM Business School in Stockholm, Andersson has almost 40 years of experience in the industry, and previously worked in senior positions at several construction and development companies in Sweden. Interview begins on Page 30

Raied Tanous

– is the chief executive officer and co-shareholder of Asbud Group, a leading developer in the Warsaw real estate market. He has over 17 years of experience in the real estate industry and has served as CEO of Asbud Group for over 9 years. Recent multifunctional and city-forming projects by the company include complexes of approximately 130,000 sqm at Prosta (Towarowa Towers) as well as the cross section of Grzybowska and Karolkowa near the Daszyńskiego Roundabout.

Interview begins on Page 16

– has been associated with the Association of Car Dealers since 2010, and has been its president since 2021. He is a lawyer by profession and is also President of the Automotive Market Lawyers Association. For many years, he has provided legal assistance to Polish car dealers, responding to the current legal problems of the industry. Interview begins on Page 46

Krzysztof Wiliński dystrybucja@valkea.com

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Roger Andersson

Paweł Tuzinek

IN REVIEW

SHUTTERSTOCK

CONSTRUCTION OF A POLISH WIND FARM IN THE BALTIC SEA TO START SOON

The port of Swinoujscie will be used to build one of the first wind farms in Polish Baltic waters. Before that, a factory for offshore wind turbine components will be launched in Szczecin. The agreement on the use of the port was signed in Swinoujscie by representatives of the Szczecin and Swinoujscie Seaport Authority and PKN Orlen.

According to the agreement, the port in Swinoujscie will be used to transport the farm's components as of 2025. Meanwhile, the turbine parts factory in Szczecin will be built in 2024.

PKN Orlen is implementing the Baltic Power offshore wind farm project together with Northland Power. It will be launched in 2026, north of Choczew and Leba.

WORKFORCE

Wages rose by 14.5% in September, and employment increased by 2.3% - GUS

In September, the average salary in the enterprise sector grew by 14.5%, while employment in enterprises increased by 2.3%, the Central Statistical Office (GUS) reported.

In monthly terms, the average salary increased by 1.6% and amounted to PLN 6,687.81. On the other hand, employment in enterprises decreased by 0.1% in the same period.

ECONOMY

Morawiecki: I am convinced that EU funds will come to Poland sooner or later

Prime Minister Mateusz Morawiecki is convinced that advances from EU programs under the 2021-2027 budget will reach Poland within months. He noted that agreements on specific programs, including, among others, cohesion funds or funds under the Common Agricultural Policy, have already been signed, and that the first funds for technical assistance are already coming in.

"I do not think that the funds from the European Union, those relating to agricultural funds, cohesion fund, innovation and many others, are at risk. On the contrary, the first funds are already coming in," Morawiecki said at a press conference.

ECONOMY Morawiecki: We want to make 14th pension permanent

According to Prime Minister Mateusz Morawiecki, the government plans to

40% aged 18-24

44% aged 24-34

WORKPLACE

Almost half of employees aged 24-34 feel bored at work

As many as 40% of working people aged 18-24 and 44% aged 24-34 say they often feel bored with their current tasks in the workplace, according to the Pracuj.pl and the JOBICON Job Festival survey.

The survey revealed that less than six out of ten people from Generations Z and Y declare satisfaction with their work, and more than four out of ten are tired of their current tasks. “The results of our study emphasize the scale of the challenge faced by employees of Generations Z and Y, and their employers,” Lewandowska-Bitkowska of Pracuj.pl said.

Percentages of working people who feel bored at work

make the fourteenth pension benefit permanent.

"We are trying to correct the injustices of the 3rd Republic and previous years step by step. They are symbolized by the 13th and 14th pensions, which we want to permanently introduce into our system," Morawiecki said at a press conference.

WORKFOFCE

Analysts expect double-digit wage growth to continue for several months

Analysts estimate that double-digit wage growth in the corporate sector will continue for the next few months, but will be lower than inflation. They note that in September, for the second consecutive month, the annual growth in average wages was below the inflation rate.

Increases in average wages in September versus August this year were the result of payments, such as quarterly and jubilee bonuses, salary increases, payment of bonuses due to inflation, and retirement benefits, the Central Statistical Office (GUS) reported. WORKFORCE

Pracuj.pl: 38% of Poles are actively looking for a new employer

According to the Work in Times of Change survey prepared by Pracuj.pl, 38% of respondents are actively looking for a new employer. The survey also found that earnings remain the primary motivation for changing jobs in times of high inflation.

"Almost 4 out of 10 Poles surveyed by Pracuj.pl say that they are actively looking for a new job. The youngest members of the job market, from Generation Z, are the most active. 52% of respondents in the 18-24 age group said they are currently browsing through job offers. Poles aged 25-34 (46%) and 35-44 (45%) also declare a high interest in changing employers. Poles over 45 are less inclined to actively look for a job (25%)," the press release says.

BUSINESS

to Poland from the East

One in three automotive industry representatives hopes that some car production from Ukraine, Belarus, or Russia may be moved to Poland. However, four out of ten respondents fear Poland will not be considered for the location of new car plants in the future, according to Exact Systems “MotoBarometer 2022” survey. Ukraine produces components that are sent to other factories, and, in the supply chain, the country is one of Europe's largest producers of harnesses and electrical cables for cars. On the other hand, Russia is home to many car manufacturing plants owned by major European corporations and investors from Western Europe. ENERGY

PGE will build an operating base for wind farms in Ustka

PGE Baltica will build an operational and service base for wind farms in Ustka. The first construction works are scheduled for 2024, and the launch is planned for 2026. The company has already started developing an optimal land development concept. PGE President Wojciech Dąbrowski underscored that the investment will provide 5% of Poland future energy needs. “This is an investment that will increase Poland's energy security,” he said. In 2026-2027, the Baltica 2 and Baltica 3 wind projects will be launched, constituting the Baltica Offshore Wind Farm and offering a total installed capacity of about 2.5 GW.

BUSINESS

Polish startup wants to save us from Zoom fatigue

The market for virtual assistants is growing at a rate of nearly 30% a year and SmartyMeet wants to take advantage of it. Their bot can transcribe a meeting, verify if it went through the sales playbook, and send a summary. In the future, it should be able to conduct meetings on its own.Microsoft conducted a study showing that with the outbreak of the pandemic, the time spent in online meetings by employees around the world increased by 148%. Among the challenges associated with the new work model, the most frequently cited is the need to talk, take notes, and search product and process knowledge bases simultaneously. All of this leads to Zoom fatigue and the fatigue associated with the intensity of a workday immersed in a digital world.

Consumer watchdog charges Telewizja Polsat for New Year's Eve SMS competition

President of the Office of Competition and Consumer Protection (UOKiK) Tomasz Chróstny has brought charges against Telewizja Polsat and Teleaudio Dwa for organizing a New Year's Eve SMS competition, the office said on Thursday. The UOKiK found that the organizers of the New Year's Eve contestTelewizja Polsat and Teleaudio Dwamay have misled consumers about the rules, the cost of entering the competition, its progress, and the prizes that could be won, the release said. Accord-

30% of car companies hope to move production

ing to the UOKiK, contrary to reports, sending one SMS (worth PLN 3.69) did not constitute participation in the game for the prizes provided. Participation in the next stage of the competition could only be confirmed by sending a reply to two additional paid text messages (for choosing the main prize and for the postal code). Therefore, in reality, consumers could not win the promised grand prizes on New Year's Eve.

BUSINESS

Sasin: Saudi Arabia expresses its readiness to invest in Poland's energy sector

On Wednesday, Saudi Arabia expressed its readiness to invest in Poland’s energy sector, Deputy Prime Minister Jacek Sasin said in Toruń. However, he added that cooperation with Saudi Aramco was only the first step. “Today we have access to unlimited oil resources in the Middle East – in Saudi Arabia –and we do not have to look at Russian oil," Sasin said. According to Sasin, this new partnership will increase the scale of investments in the energy sector because a significant energy transformation requires large amounts money.

pay by simply looking at the terminal. As enthusiasts of technological innovations, we could not pass by such an innovative solution. I am convinced that this form of payment will be very popular with our customers very quickly,” the director of the Komputronik sales network Marcin Mordak said in a statement.

CONSUMER More Poles want to buy a car within 2 years – EY survey

Within two years, 45% of respondents plan to buy a car - 12% more than in 2020. More than half of respondents indicated wanting to purchase an electric car, according to the EY Mobility Consumer Index 2022 survey. One in three people is thinking about buying a new car from a showroom. EY’s Michal Lesiuk says post-pandemic safety and health concerns are reducing the desire to use public transport. "Interest in public transport as a means of getting to work has fallen by 15% compared to the period before the first lockdown, and as a result, the car is becoming the preferred mode of transport," he said.

BUSINESS

Komputronik launches biometric payment with iris scanning

Consumer electronics chain Komputronik will introduce biometric payment with an iris scan in its Wrocław salon in the Korona Shopping Center on October 15. The technology developed by the Wrocławbased company PayEye uses iris and face biometrics, allowing customers to

ECONOMY

MPC hopes peak inflation is not far off - Wnorowski, MPC

The Monetary Policy Council (MPC) and the National Bank of Poland expect peak inflation to be just around the corner, MPC member Henryk Wnorowski told TVP3 Białystok. "The Monetary Policy Council and the National Bank of Poland expect that the peak of inflation is just around the corner. It is certainly

very close, and it should only get better from here," said Wnorowski.

ECONOMY Half of Poles finance their basic needs from savingsBIG InfoMonitor

Every second Pole with savings had to reach for them in the last six months to finance their basic needs, a survey by BIG InfoMonitor showed. Most often people used their savings to buy fuel, food, and pay fixed costs. On top of that, every third person with savings puts money aside less regularly due to high inflation. As many as 51% of  Poles have savings in the amount of at least three monthly salaries. Men save more often compared to women. Respondents under 25 reported saving less regularly than other age groups.

BUSINESS

PKN Orlen has no plans to buy Żabka

PKN Orlen has no plans to buy the Żabka convenience store chain nor is it conducting any talks, PKN Orlen President Daniel Obajtek said, commenting on speculation that Orlen may be among the entities potentially interested in taking over Żabka from the American CVC fund. PiS leader Jarosław Kaczyński suggested on Wednesday that Poland is close to finalizing the purchase of PKP Energetyka from the CVC Capital Partners fund. He also added that Żabka stores may be bought back from the fund. Operating in Poland since 1998, Żabka has over 8,000 stores throughout the country. (money.pl)

FROM TOKYO TO WARSAW

UNIQLO POP-UP WARS SAWA JUNIOR

MINIMUM WAGE RAISES WILL FUEL INFLATION IN POLAND

In September 2022, with inflation already exceeding 16%, the government decided to increase the minimum wage in 2023, first by 15.9% as of 1 January 2023 (to PLN3,490 gross), and then by almost 20% from July 1 (to PLN 3,600 gross). Inflation will keep rising if the minimum wage keeps growing. Could the disastrous scenario that has played out in Turkey happen in Poland?

BY SERGIUSZ PROKURAT

free market economists frequently see minimum wage legislation as a pure political intervention because it causes inflation and unemployment. However, some economic theories show that, under certain circumstances, increasing the minimum wage can be beneficial because it makes workers more productive.

Raising the minimum wage can be described both as relief for those affected by inflation and as a pro-inflationary factor. The real irony of the minimum wage regulations is that they are supported by well-intentioned groups who simply want to reduce poverty. Meanwhile, those who would seemingly benefit most from an increase in the minimum wage are those who will suffer the most from its negative impacts.

A significant increase in Poland’s minimum wage in 2023, during galloping inflation (anticipated to hit almost 20%) and an ongoing energy crisis, will negatively affect business activities. Due to higher labor costs and higher premiums, enterprises will shift some of their employment costs onto consumers, which will translate into higher prices and impact employees. A too-high minimum wage increase will

lead to further strengthening and long-term anchoring of inflation in the economy amid negative real interest rates.

Of course, the inflation is also driven by Russia’s war with Ukraine, rising energy prices, and the COVID-19 pandemic and the government’s responses to it–aid programs, and funds fueling idle time benefits. Moreover, there are studies confirming that during COVID-19 productivity decreased rather than increased. Raising the minimum wage in this type of situation could cause inflation. This is especially true when the increase in the minimum wage rises faster than the increase in labor productivity. Studies by Akgül, Bükey (2020) carried out on Turkey from 1987 to 2018, even before the current crisis, show that an increase in the minimum wage does, indeed, translate into inflation.

Recently, this dependence has become more visible in Turkey, even to the naked eye. In November 2021, inflation in Turkey was around 20%.

In December 2021, President Erdogan made a politically motivated decision to raise the minimum wage from 1 January 2022, by as much as 50.4% to 4,250 lira. The effect was an increase in inflation already in December 2021 (36% year-on-year),

and, in the following months, the upward trend continued: January 2022 (48.5% year-on-year), February (54.5% year-on-year), March (61% yearon-year), April (70% year-on-year). Moreover, in Turkey, in mid-2022, there was a second increase in the minimum wage in the six months following the previous one–by another 30%, from 1 July 2022. In September 2022, inflation in Turkey reached 83% year-on-year. These racing wages and inflation contributed to a massive decline in the purchasing power of the Turkish lira, amid dramatically negative interest rates (amounting to only 12%). Clearly, falling real wages and high inflation are spelling disaster for Turkish society. However, Poland is not Turkey. Even if Polish proponents of “Erdoganomics” (President Erdogan’s approach to economics in Turkey) exist, there is still an ongoing fundamental public debate about which policies are best for this difficult period. However, this does not change the fact that failure in the fight against inflation will translate into costs that will be borne by Polish society. This means higher interest rates in the future and a decline in the purchasing power of wages, including a decline in the purchasing power of the Polish zloty.

Failure in the fight against inflation will translate into costs that will be borne by Polish society

A DIFFICULT WINTER AHEAD FOR POLAND

The coming winter will be brutal for many Polish households due to the dramatic increase in heating and electricity costs. Poles are about to face the most difficult cold season in years. Many will be forced to burn whatever they can get their hands on. No one wants to freeze or go into debt due to rising energy prices.

BY SERGIUSZ PROKURAT

russia’s war with Ukraine, economic crises, rising fuel and electricity prices, inflation, and the constant pressure to abandon fossil fuels are impacting the daily lives of millions in Europe. Moreover, people know that the energy crisis is swiftly becoming a heating crisis because half of Europe’s energy consumption goes on heating (and cooling), and a large part of that energy has so far come from gas supplied by Russia.

Poland’s government has created mechanisms to shield customers against high electricity prices, freezing prices at the consumption limits of 2 MWh per year for a household, 2.6 MWh for households including people with disabilities, and 3 MWh for large families and farmers. After exceeding the indicated consumption limits, consumers will be billed for each subsequent amount of energy consumed according to tariff rates or price lists that will come into force in 2023. Gas regulations are still in the queue. Another problem the government has been

unable to deal with for many months is the coal shortage. The Governmental Strategic Reserves Agency was expected to bring 600,000 tons of coal for households into Poland. However, as of today, not a single ship carrying coal has arrived. The government is constantly reassuring citizens that Poland will not run out of coal and that by the end of April 2023, as much as 10 million tons of coal will be imported. The regulations also introduce various types of subsidies and energy allowances, which will keep society under the dome of these regulations. However, regulatory costs exceed PLN 25 billion. Who will pay for these subsidies and the price freeze? As always, taxpayers will bear the cost in the end.

It is not only consumers who are suffering. Expensive energy is hitting businesses in full force as well. Schools, universities, offices, and local governments are also highly affected. Basic aid for energy-intensive companies and public institutions has also been implemented. However, these are all ad hoc and short-sighted solutions. People want to survive the winter, and the government wants to survive until the next election in 2023 – thus, these two goals are aligned in the short term. It has even reached the point where regulators will be turning a blind eye to the smog in the winter – coal quality standards have been suspended, making it possible to sell fine coal, which has been banned until now. And it will now even be possible to burn lignite in domestic chim-

neys, which has so far been prohibited because it is the most harmful type of coal.

Aside from all the above, the root cause of the energy crisis in Poland is the centralist structure of the Polish energy sector. It consists of large stateowned corporations that operate on a monopoly basis, i.e., without competition. Action is needed, such as creating market mechanisms that would allow the private sector to be involved in implementing energy projects. Then, market institutions could create the right incentives for offshore wind investment and public-private approaches to nuclear projects. Moreover, investments in renewable energy sources and in developing distributed transmission and distribution networks, which, as of today, cannot absorb larger amounts of energy from renewable sources, are necessary. Recent and current events should accelerate the quitting of fossil fuels in favor of the development of home photovoltaics or by making energy efficiency a priority and promoting education focused on the need to save energy.

In his book “Energy and Civilization: A History,” Vaclav Smil discusses the impact of energy use on human life. Discoveries have almost always been related to energy and have consistently influenced humanity’s way of life, politics, and the environment. Thus, it is correct to say that energy is the foundation of everything and is the only universal currency that exists, thus we can do anything if we truly wish it, even transforming our world if we need to.

It has even reached the point where regulators will be turning a blind eye to the smog in the winter

TIMES OF CRISIS FAVOR VISIONARIES

Asbud has pioneered real estate development in Poland over the past 25 years. Despite recent market turbulence, the company still sees exciting opportunities for innovative and sustainable developments that will transform both the residential and office real estate segments

INTERVIEW BY MORTEN LINDHOLM

Asbud Facts

Established: Year 1997

Operations: Real estate developer in Poland

Type of developments: Residential and Office

Selected finished projects: Karolkowa Business Park, Flora, Młody Żoliborz, Twoje Osiedle Białolęka, Twoje Osiedle Konstancin, Grzybowska 85, Metropoint Apartments, Metropoint Office.

WBJ: Congratulations on your 25th anniversary of operations in Poland. Tell me about the development of your business. What has changed for the company over the last 25 years?

Raied Tanous: Thank you. This anniversary is significant, as, despite all the market turbulence, we appreciate being able to face current challenges with an outstanding premium portfolio, a highly experienced and agile team, and a solid financial base.

Over the last 25 years, many external factors have shaped the company's development. These include, among others, adjusting to changing regulations, fluctuating market dynamics and buyer needs, the economic situation, and the adjustment of operations and portfolios in times of crisis. During this time, we've learned that creativity and the ability to adjust to change are necessities in our business if you want to rank among Poland’s leading developers. That’s also why we've focused on creating an agile team and a flexible portfolio that allows us to adapt to market dynamics quickly and even, in certain aspects, become a pioneer.

For the last decade, our focus has been on quality and size rather than quantity. That’s why we have implemented the strategy of targeting a few large-scale multi-functional, sustainable, and city-forming projects at any given time. These projects must bring visible value to residents and contribute to the city’s development. Regardless of any roadblocks, this strategy has allowed us to efficiently use our full resources to deliver real results rather than empty dreams. Our approach has proven itself during turbulent times, particularly the 2008 real estate crisis and, most recently, COVID-19. We have never been strongly affected by any of these crises, nor have sales ever reached a standstill.

quite a lot during these past 25 years. According to your observations, what have been the most significant changes?

The Polish real estate market has positively revolutionized itself over the last 25 years, and the future still holds a lot of potential.

The first fundemental change that I could mention is the market standard, which has transitioned from a low standard to a much higher one. This early period lacked a sustainable vision and transparent regulations. During this time, products commonly served short-term needs, and in general, developers were primarily focused on maximizing saleable/leasable areas and profit, while clients mainly cared about the prices. Visible examples of this low standard are the unsustainable buildings less than 15 years old that have been demolished and replaced by new sustainable complexes. Clearly, the market is heading toward quality and sustainability standards that can serve long-term needs.

Other key changes include subsequent legislative amendments that have normalized the market for many years, giving customers a sense of security about their purchase and/or rent. The third is the increasing accessibility and transparency of data, thanks to changes in IT in both the private and public sectors, which have led to improved productivity, efficiency, and security.

All these were supported by access to the EU in 2004, a significant flow of foreign investment along with international experience, stricter and clearer development and construction laws and regulations, a growing economy and higher wages, and, most of all, solid domestic consumption, and stable demographics.

The increased maturity of this market can also be seen in the attitude of both developers and customers. Both

The Warsaw (Polish) real estate market has developed

Towarowa Towers and Towarowa Squareone of Asbud's multifunctional complexes

sides have become more professional. Developers – in terms of customer service, the adaptation of their product to customer expectations, new technological solutions, and different design quality. Also, more recently – although this is something that Asbud introduced many years ago as part of its strategy – is a growing awareness of how the investment design can support the development of the urban fabric. On the part of buyers, this means greater purchase awareness. The customer is more aware of this process and what they expect in the quality of the project. Additional amenities, such as environmental solutions, are also increasingly important. What was once a novelty or extravagance is now standard.

Interest rates are increasing, and uncertainty is growing. What is your expectation for the coming years, and will they influence your business or business model?

Higher rates and uncertainties have already had a significant negative impact on the market, mainly for the residential sector. Our business model prioritizes flexibility to allow us to adapt quickly to changing circumstances and, to a considerable extent, on premium projects. Premium properties are the obvious choice for buyers who value quality, as their capital is protected and rises in value more quickly than in other lower-standard properties.  Moreover, premium buyers normally possess stable creditworthiness even in such challenging times, granting them access to financing and cash resources that give them all the buying flexibility they need. From that perspective, we look to the future more positively than other developers.

The significant slowdown in sales does not mean apartments are no longer needed. JLL estimates that the housing deficit exceeds half a million apartments, excluding immigration factors from Ukraine and elsewhere, in only

six of Poland’s largest cities. Therefore, we may conclude that such a deficit will continue to increase during the slowdown period and will be deferred until a better time comes. This is a typical market cycle in which the next peaks will be determined by how long this slowdown lasts. It is certainly to be expected that the popular sector of the real estate market will have, and currently has, a greater problem with the sale of apartments. This slowdown in sales opens up a great opportunity to the Private Rental Sector (PRS) market. However, increasing interest rates and difficulties in accessing financing does not leave PRS players with any easy decisions.

COVID-19 not only brought a terrible pandemic, it also influenced or changed for good the way people work and offices are used. How will this influence your office business development segment?

The famous expression "what doesn't kill you, makes you stronger" perfectly describes the office segment during COVID-19. Enormous difficulties imposed on the sector have forced landlords/developers and tenants alike to become more innovative, economical, and efficient than ever before. They are now seeking more modern, high-tech technology, friendly and efficient workspaces, green patios, and installations encouraging sports activities. As a result, the office segment is not only returning to a healthy and stable position, but also doing far better than before.

The office segment has always been and continues to be part of our strategy of creating city-forming and sustainable complexes. When we design projects, we look ahead and assess the validity of its function in each location, whether it can fill a gap there and if it is needed in that part of the city. Our approach in this regard hasn't changed, and it's an approach that also reduces the risks >>>

View of the Wola district near the Daszyńskiego Roundabout in Warsaw, presented with Asbud's investments

associated with investment failure. Our office projects are part of complexes alongside residential developments or retail and service spaces.

You are finishing some massive city-forming projects for which you have consistently won awards. What projects or plans do you have in the pipeline?

We are currently focusing on developing the next part of our well-known city-forming complex near Daszyńskiego Roundabout in Warsaw, the two residential Towarowa Towers. This project received awards while still under construction. Towarowa Towers is a response to the market's demand for higher-quality premium investments in the city center and residential tower architecture – still relatively rare in Warsaw. It will fill a missing gap in the Polish real estate market.

We will also soon start another part of the complex –three apartment buildings named Towarowa Square. Towarowa Towers and Towarowa Square are examples of the transformation of this post-industrial site and its environs which Asbud Group has been involved in for about a decade, developing over 130,000 sqm.

Our plans also include another large-scale city-forming project – Nowa Praga, located in the district of Praga Północ at Jagiellońska Street. We are planning a multifunctional complex in this post-industrial area, which we could even call a new district. The first residential stage is being prepared for commencement.

Once we receive the relevant permits, we will also proceed with one of our most important and iconic projects that has been currently suspended, Central Garden. The buildings surrounding this unique project are designed as green relaxation spaces and recreational and utility zones available to residents all year round. The garden in which the project is situated will cover as much as 1.2 hectares and feature dozens of plants that will bloom in

different colors depending on the season. Saying it loud and clear, this great project will eventually be delivered to its clients, regardless of all roadblocks and damages done to this project by third parties .

In addition, we are also planning other projects and further expansions in new locations and cities. We intend to turn tough times into wins and exploit them smartly and profitably. Times of crisis favor visionaries.

Looking at the market from your long-term perspective –what is your greatest strength out of all the other developers in the Polish real estate market?

Looking back over these 25 years and assessing our operations versus those of other developers, I can say that one of our most important strengths is our flexible, diversified portfolio and our lack of fear of introducing something new. Despite corporate red tape, we can think outside the box and effectively adopt new solutions. In addition, we can operate quickly and efficiently with our quick decision-making process and agile team.

Not everyone knows this, but over our 25 years of operation in the Polish market, we have become pioneers in many ways. We were one of the first to complete a development with sports facilities – a swimming pool – and recreational facilities already in 2001, which today is nothing extraordinary. Our project Metropoint Apartment, our first residential development, received a BREEAM certificate at the Very Good level. We have recently heard a lot about PRS, and not everybody knows that we already conducted the sale of a residential estate in 2015 when the PRS market was barely understood! Our Towarowa Towers is also one of the first Class-A residential skyscrapers. I could list even more, but I want to say that fortune favors the brave, and that is how we continue to approach business as we enter a new and challenging period in the real estate market.

“

I want to say that fortune favors the brave, and that is how we continue to approach business as we enter a new and challenging period in the real estate market

Central GardenAsbud's project with a blooming garden planned between the buildings

Karolkowa Business Park - one of the most distinctive office projects in Warsaw's Wola

Experience is the key

The WBJ talks to Jakub Matuszewski, co-owner and CEO of Wyjątkowy Prezent, about how their B2B and C2C approaches make their company so special.

WBJ: Over the last 15 years, how many business customers has Wyjątkowy Prezent served?

Jakub Matuszewski: We have served over 8,000 unique business-to-business customers. We have six sales channels. Customers can reach us online, of course, and we also have more than sixty-four display islands in stores and commercial stands, as well as external retail networks, B2B, a customer service hotline, and a Voucher-o-Mat, which is a machine that prints out vouchers, enabling you to select a gift for anyone at any time, even on a nonworking Sunday.

What kind of gifts do business customers choose for their teams?

The range of gifts being given is huge, from personalized gifts for two or three staff members to gifts for over 10,000. The most important thing to note is that these are not simply gift vouchers; they are experiences that customers will remember for a long time, maybe even forever. We offer clients the option to buy individual experiences, such as a parachute jump, a super car ride, a massage, or a dinner in the dark. Or they can give their employee the opportunity to select their own experience from a hundred unique offers. This type of gift package is based on a general location or a theme, such as culinary degustation. Our clients can also select a nominal gift card, such as PLN 500, that their employees can apply towards any experience they choose.

Sometimes B2B clients choose to work with us to produce tailormade packages, especially if they do not want their employees jumping out of airplanes.

How has the pandemic changed the B2B segment?

We faced a challenge dealing with clients who didn’t want to lose out on events which were obviously restricted during the COVID pandemic. For example, Amazon Poland, a key client, came to us asking what could they substitute for the picnics that they would normally offer their employees? We proposed vouchers that their employees could enjoy with their own families or friends. This was a challenge for our team, but we overcame it by using customer surveys to find out what people truly wanted to do in their free time. During the pandemic, we discovered that people really valued being able to spend their time on high quality experiences. Clearly, the pandemic has changed their mindset; people are now realizing the fragility of life and how precious their time is.

One key value driver that we developed during COVID times, was extending the validity of our products from one year to three.

This was something that pleased so many of our clients that we decided to keep it as our new standard.

Can you name some of your long-term business clients?

Bosch, British/American Tobacco, Deloitte, Polska Press, Żywiec and ING Polska. ING Polska was a fabulous client who we collaborated with for many years. They had a lot of super ideas about how to utilize our packages to tailor their quarterly experiences by creating unique activities such as ropewalking, Go-Karting, and even workshops on things such as learning photography.

What do you guarantee to companies that decide to give a voucher experience to their teams or partners?

An individual approach. We are on the top of our industry in terms of new offers and we have a team who are able to work with clients to create tailormade packages from over 8,000 products. We personalize clients’ gift giving experiences so that they can do things such as print out the vouchers themselves. We also focus on understanding our clients’ needs. One time a client wanted a gift card that could be used more than once. So we worked with IT to create customized vouchers for them. We also work with clients to offer discounts.

Besides guaranteeing these things to our clients, I would like to say that it is also important to note that we guarantee each supplier’s performance for every experience. We constantly send out surveys to our clients and request honest feedback after each experience. If anyone is even slightly unhappy, and if the problem persists, then we will switch to a better supplier. Additionally, we keep the price the same as the supplier, and even sometimes lower, as we get volume discounts for the collaboration. So a client on a B2B or B2C level can be confident that they are not paying more when they purchase an experience through us.

How many business partners does Wyjątkowy Prezent currently have?

We have over 1,200 business partners and we are always growing, as our clients are looking for new and exciting experiences. For example, have you ever wing surfed on a Foil board?

No, I haven’t but I have seen people do it. Maybe I will check out your site to try it next summer. What does the cooperation with your partners and service providers look like?

Understand that we are not a grupping-type portal selling coupons.. We do not offer a supplier a quick turnaround and we

do not look for short-term validity in order to get clients. We build a long-lasting relationship with our suppliers, and they know that they can trust our brand. There are two types of suppliers who work with us: one type is excited for the opportunity to win sales with our long list of clients, and the other sees us as a marketing tool that can help them be seen in shops and with other suppliers in B2B sales. We cover the expense of advertising their experience and producing the vouchers.

How do you set up collaborations with suppliers?

When we started 15 years ago, there weren’t many companies creating unique experiences, but now the market is changing dramatically. We get over 50 enquiries a month from new suppliers who want to work with us because we have built such a strong brand. We do accept all of these, and we are in a good position to offer a range of prices for a single type of experience, such as spas. We can offer a really luxurious experience for more money as well as something more affordable, so that there is something for everyone. This is key to making our customers happy and keeping them coming back for more.

Our mission is to change gift giving culture, so that people receive less material things and more experiences as a gift. This goes in line with the philosophy of many businesses - so we will keep developing our offer and available products to serve their needs. On the top, experience gifts are more sustainable, which is also in line with trends followed by business. Overall it is all about caring for people and the planet.

For more about Wyjatkowy Prezent, visit: www.wyjatkowyprezent.pl

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OFFICE

Ghelamco brings a new VIBE to Warsaw

Ghelamco has announced that its newest project – the VIBE office complex – has begun construction near Rondo Daszyńskiego. The complex will feature an “audiosphere” – making VIBE “an exceptional project because it will be the first building in Poland to receive its own musical identity,” according to Jarosław Zagórski, Commercial & Business Development Director at Ghelamco Poland, VIBE will consist of two buildings – an eleven-story 15,000 sq m building at the corner of ul. Towarowa and ul. Kolejowa that will be handed over for use in Q1 2024. The second stage consists of a 95 m tower with planned delivery at the end of 2025, that will be built alongside The Warsaw HUB complex.

The “audiosphere” was designed by Super Super Studio in collaboration with Polish composer Wojciech Urbański and will provide users with a unique experience that incorporates 3D graphics, motion design, parametricism and sound design that will create an immersive environment that can adapt to the rhythm of life within the building.

VIBE will be Well, BREEAM, SmartScore, WiredScore and Green Standard Building certified, with the goal of achieving certification at the highest possible levels of “Platinum” and “Outstanding.”

Warsaw’s Norblin Factory wins the Global Awards for Excellence 2022

Warsaw’s Norblin Factory is among six developments from around the world that won the Global Awards for Excellence 2022 organized by the Urban Land Institute (ULI). Apart from the Norblin Factory, the winners are Anken Alley, Enabling Village, Essex Crossing, MÉCA, and St. Pete Pier. There are two winning projects from North America, two from Europe, and two from the Asia-Pacific region.

“ULI selected finalists in three regions. [They are] developments that show exemplary commitment to implementing best practices and building cities that are open to all, unique, and in tune with their surroundings,” said Sophie Henley-Price, general director of STUDIOS Architecture in Paris.

RESIDENTIAL Small but unique. Premium studio apartments are gaining in importance

You would have to pay almost PLN 2 million for a 38-meter studio apartment with a view of the Motława River in Gdańsk. In Krakow, for a property in the Old Town with an area of 26 sq m. we will pay PLN 1.8 million. On the other hand, in Warsaw's Powiśle and Sky Tower in Wrocław, 35-meter studios cost about PLN 1.5 million. When thinking about buying a premium studio apartment, you should expect an average expenditure of up to PLN 800,000. PLN at a price of up to 25 thousand. PLN / sq m - as much as 75% of the offer of such properties is within this budget. In small cities, it is rather in vain to look for premium apartments - they are the domain of the largest Polish agglomerations and central locations in the city.

RESIDENTIAL HRE Investments: around 60% of tenants live in units that are too small

Around 60% of tenants live in flats that are too small according to an analysis by HRE Investments published on Wednesday.

Citing Eurostat data, HRE Investment analysts estimate that up to 59% of tenants in Poland live in units that are too small. "This is one of the worst results in Europe," the report says.

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RESIDENTIAL

Kajima and Griffin Capital Partners complete largest student depot project in Poland

Kajima Student Housing and Griffin Capital Partners have completed the development of a 795-bed Student Depot dormitory in Kraków, its largest residential scheme in Poland since the partnership entered the market in 2019. The construction of the 11-story, 25,000 sqm building took only 17 months, making it one of Poland’s fastest large-scale residential development projects, including fit-out.

The building has been fully let upon completion, demonstrating the depth of demand for quality private dormitories in the country, with around half of the tenants coming from the domestic market and half from abroad, particularly Spain.

The project on Al. Pokoju, 1.5 km from the historic center of Kraków, provides high quality studio and shared rooms plus quiet co-working spaces, common kitchens, a gym, an entertainment space, a games area, and a movie zone. The building also benefits from a 120 sqm west-facing terrace overlooking the city's historic center. Each room is equipped with smart energy-saving software and all electricity in the building is sourced from a 100% renewable energy provider.

Erbud was the main contractor for the project. Echo Investment, one of Poland’s largest property developers, developed the project.

REPORT

House prices stabilized in October

In October, flat prices in the six major cities in Poland rose by an average of 9% year-on-year, but prices stabilized or decreased compared to September, according to Domiporta.pl. Flat prices in the primary market in six cities - Warsaw, Krakow, Gdansk, Lodz, Wroclaw and Poznan – rose by an average of 9% year-on-year, according to the website.

The situation on the secondary market was similar on a year-on-year basis, with an average increase of 8.3% in the six cities. However, compared to September, prices stabilized or decreased. In the primary market, prices did not change in Krakow and Łódź, while in the other cities they dropped.

In the secondary market, prices in most analyzed cities remained at September levels. Prices only decreased in Gdańsk and Łódź, falling by approximately 1% on a monthly basis.

OFFICE

Office space leasing grew in H1

In the first half of 2022, 828,000 sqm of office space was leased under new contracts. This is a significant increase compared to the same period last year, CBRE reported. However, CBRE says that demand for office space may not keep up with the supply, as there were about 490,000 sqm under construction in the key markets in the first half of this year. Seven office buildings have been commissioned in Warsaw alone, totaling 129,000 sqm of office space.

PLANNING FOR A HUMANISTIC

URBAN LANDSCAPE

Roger Andersson , Managing Director of Vastint Poland, sits down with the Warsaw Business Journal to discuss the company’s decadeslong investment in the Polish market on their 30th anniversary and the benefits of building sustainable real estate developments that meet the needs of Poland’s modern cities

INTERVIEW BY MORTEN LINDHOLM

WBJ: Vastint has operated in Poland for over 30 years. Has it been a straight growth line? Can you tell us about the journey?

Roger Andersson: Vastint is a real estate company with a clearly defined long-term strategy. Since 1992, when we began our exciting journey on the Polish market, we have been com-

mitted to our projects and our clients, focusing on the sustainability of the developments in which we are involved.

For many years, we were associated exclusively with the commercial real estate sector, but we have diversified our business, and it is currently based on three pillars - developing projects and managing assets in the office, hotel, and residential segments.

Upon entering the residential market, drawing from the Scandinavian experience, we decided to revolutionize it slightly. In all our residential projects, we start the sale process only after the completion of the construction works, and we hand over the apartments in a finishing standard that allows you to move in on the first day after the purchase. Thus, the sales model differs from that traditionally used on the Polish market, when the transaction is concluded at the "hole in the ground" stage. This strategy applies to all our residential developments.

Do you measure the total value of what you have built and how you have improved life in Poland? Do you keep all your projects, or do you sell some also? Could you share some numbers?

We have built an effective real estate portfolio with a current market value of 800 million

euros. We have also secured several new projects. There are over 500,000 m2 of space in the pipeline, including approximately 150,000 m2 of offices, nearly 20,000 m2 of hotels and more than 357,000 m2 of residential space. We plan to deliver nearly 6,000 apartments over the next five years.

As a rule, we keep completed properties in the portfolio for further management. However, in times of prosperity and increased investor interest, we can decide to sell. Four years ago, among others, we sold seven buildings constructed in the Business Garden's first stage in Poznań and Wroclaw. These transactions prove the attractiveness of Polish regional cities, which offer assets with excellent potential. By the same token, they are also a confirmation by the market of the high quality of the Business Garden projects.

I visited you in the Business Garden project in Warsaw when it opened in 2013, and I remember feeling ‘WOW!’ about the design, quality, and size. Was it one of the largest transformative projects at that time?

The concept of our business parks has permanently redefined the way in which modern workplaces are created. Our idea was innovative because we focused on users’ needs and environmentally friendly

The concept of our business parks has permanently redefined the way in which modern workplaces are created

LOKALE IMMOBILIA EXCLUSIVE NTERVIEW

solutions. The result has been unique projects with an abovestandard proportion of green areas, which create a pleasant atmosphere for the office buildings' eye-catching architecture and also provide employees with relaxation and sports zones. This is a completely new kind of work environment.

Even 20 years after the idea was conceived, Business Garden projects have not lost their appeal. On the contrary, they remain attractive to tenants because they not only offer high-quality office space and a wide range of amenities, but they also include emotional benefits and a sense of belonging to a larger community.

You have other and maybe even more impressive projects in the pipeline. Let’s talk about them one by one. First, my personal favorite - Stara Rzeźnia – the old Slaughterhouse in Poznan. Can you give us an idea of what the project entails, how big it will be, your ambitions for the project and when you expect it to open in its full scale?

Stara Rzeźnia has existed on the map of Poznan for more than 100 years, and we are thrilled that once it is put into use in the

next five or six years, it will continue to serve future generations of city dwellers.

We recently had the opportunity to present the project’s concept for the first time. This innovative new plan for the area’s development also reflects our respect for the location’s identity and history. Historic buildings, under the care of the conservator of monuments, will be meticulously restored. Brick facades will regain their former glory and original appearance. The interiors will be adjusted to suit new functions and any new construction. These post-industrial buildings will then be complemented by modern architecture.

The entirety will create a coherent framework for new workplaces, housing, crafts, cultural, retail, service facilities and restaurants. The scale of the investment and the heterogeneity of the project will create a space open to the public and friendly to everyone. It will be conducive to social integration and attract crowds of passers-by, regulars, friends, and entire families.

I look forward to the moment when I can go there for my morning coffee and stay until an evening dinner with friends.

Another huge project is Airport Village, what, and where is that?

Airport Village is a very special project for several reasons.

First, it will be built on Żwirki i Wigury Street near Okęcie Airport. Building near airports is not yet popular in Poland, but in our opinion, this very location is one of the advantages of this development. Secondly, the urban planning concept of Airport Village is based on Ebenzer Howard's idea of a Garden City.

A new local center with a diverse functional program will be built on a 15-ha site. There will be apartments, offices, restaurants, small service outlets, and educational and medical facilities thoughtfully arranged in individual zones. The open layout of the site plan will be integrated with greenery and recreational areas and centered around a central park. The project will not have a "bedroom" suburban character. On the contrary, we want it to be a people-friendly, open, functional and, above all, selfsufficient place.

We still have to wait for this project. There is a whole permit process ahead.

Gdynia Waterfront project

The Riverview II housing estate in Gdańsk

Your Gdynia Waterfront project. What an excellent location. Is the project finished? Is it for both residential and office use?

This is a particularly important project for the city and a future center for businesses, services, recreation and meetings for the residents of Gdynia and the many tourists who visit the area. In addition, its prestigious location with direct access to the water will make the complex a multicolored and vibrant heart of the area.

The essence of the complex is its multifunctionality, wellplanned architecture, its large number of public spaces, and the general accessibility of almost the entire area. Despite this diversity, the whole premise is functionally logical and visually consistent. This type of urban design has been a visible new quality in Polish architecture for several years. It constitutes a phenomenon whose significance for Polish cities can hardly be overestimated, and the involvement of one of the best architectural studios in the country and an experienced investor guarantees a sustainable and userfriendly development.

The part of the complex cur-

rently under construction includes two residential buildings and two office buildings, while the third and final phase will include two hotels, conference and spa spaces, numerous commercial establishments, and public facilities, including a cinema. An important element of the concept is the arcades with a public square and landscaping that highlights the various functional zones of the future development with an estimated area of 75,000 m2.

The time of ESG is upon us. How is Vastint preparing for the new requirements in sustainable building methods, modern technology and general care of our world and people?

As I mentioned before, we have a long-term perspective on our business, and we recognize a responsibility not only towards our coworkers and customers but also to suppliers, business partners, and the community as a whole. We know that long-term thinking, responsible business practices, and profitability go hand in hand.

As we develop our own portfolio, we actively manage the process to ensure a high level of

sustainability and other ESG considerations in our business activities. Our buildings are becoming part of people's lives, so they must respond to people's needs, be health-friendly and, most importantly, be sustainable.

The Vastint Group can boast over 70 certified properties in Europe, including five of the 30 highest-scoring LEED-certified properties in the world. Vastint has completed some of the first sustainable buildings in several of the countries where it is active. Business Garden Riga was the first office complex that received LEED certification in Latvia and the Courtyard Brussels EU hotel is the first LEED-certified project of this type in the Benelux countries. The Riverview housing estate in Gdansk is the first to receive LEED certification in its category in Poland. Altogether, 35 of our buildings have undergone an environmental certification process in Poland.

On top of that, we work actively on measuring and improving the use of different media, utilities, and services to ensure that the result is positive both for the economic competitiveness of the buildings, as well as reducing their carbon footprint.

Stara Rzeźnia – the old Slaughterhouse in Poznan

The scale of the investment and the heterogeneity of the project will result in the creation of a space that is open to the public and friendly to everyone

A Polish-style revitalization

The law on spatial planning will soon be amended. The draft reform is still in the review stage and work on the regulation is likely to gain momentum soon. Now is a good time to start considering Poland’s problems with spatial management over recent years and attempt to understand what an effective revitalization really includes.

WBJ: What is revitalization really?

Revitalization is the cohesive transformation of a city in its social, economic, environmental, spatial-functional, and technical spheres. Although it is usually only introduced in a limited area, it can impact an entire city.

An excellent example of a model revitalization is the Centrum Praskie Koneser – a unique complex located in the Praga district of Warsaw, which in 2019 was awarded the Architectural Award of the President of the City of Warsaw for the "Best Revitalization."

This project is impressive in many respects. It has managed to highlight the rich history of the Koneser Vodka Factory in Warsaw and incorporate it into the unique atmosphere of Old Praga.

As a result of its impressive size, the complex has in fact become a separate town. It offers visitors restaurants, a shopping mall, residential building and offices, recreational space

and a cinema. It can be safely said that this is an investment that has truly transformed the landscape of the right-bank part of Warsaw.

Problems with the spatial economy of Polish cities

Discussions about Polish urban space have been ongoing for many years at various levels with the expectation that solutions will finally emerge that will effectively counteract the general chaos and the lack of consistent space planning from a long-term perspective.

The problem with the quality of space may be due to two reasons. The first is the rapidly progressing urban changes, that have taken place in our country since the political transformation. The second reason is the still very visible dynamics of destruction resulting from the liquidation of many industrial plants related to less profitable sectors of the economy.

More and more often, as confirmed by the latest report of the Supreme Audit Office, the natural areas in cities are suffering the consequences of this poor quality of space. It turns out that spatial chaos also weakens the functioning of green areas.

NU! Warszawa Wola, a new idea for the revitalization of Kolejowa Street in Warsaw's Wola district

Fortunately, there are more and more investments on the Polish market that are not only a single spot development project, but are fully thought-out concepts that carefully integrate the area into the wider social, spatial and functional context of the city's development.

Many such activities are carried out by Skanska, which has noticed the potential in forgotten and degraded areas located in the very center of the city. Implementation of the newly emerging NU! Warszawa Wola involves the revitalization of a large quarter in Warsaw's Wola district. This project has integrated the transformation of this part of Warsaw with respect for the area’s history. As part of the investment, the developer will not only rebuild a fragment of Kolejowa Street, but will also build sidewalks, a bicycle path and a new street that will improve communication in this part of the district. There will also be a park within the estate, that will be accessible to all residents of the city. Thanks to this approach, these former industrial areas will gain new functionalities and become a "green" district.

“Our investment will significantly change this part of Warsaw's Wola district, making it a friendly place to live. In addition to the reconstruction of the existing section of Kolejowa Street, we will build a completely new street connecting Kolejowa with Szarych Szeregów. There will also be new pavements and bicycle paths, as well as areas for recreation and relaxation. For this reason, already at the first stage of our estate, we will build a public park with a graduation tower, a playground, and recreational equipment. The entire investment, as well as all our company's projects, will be BREEAM certified,” says Łukasz Witek, Senior Project Manager at Skanska Residential Development Poland. He adds, “We are creating a completely new quarter of the city in which we ensure the availability of services and commercial facilities, which is why we are designing premises on the ground floors of buildings that can perform

such functions and will facilitate everyday life not only for the residents of the estate, but also for the surrounding area.”

Currently, the first of the six stages of the estate is being built, which on the one hand will be harmoniously integrated into the dynamically developing, modern neighborhood of Wola, and on the other – will support the post-industrial character of Kolejowa Street. Skanska also wants to contribute to the preservation of historic buildings, which is why the project's plans also include the repair and revitalization of the wall of Wolski Hospital. The wall will run along one of the newly built streets and is intended to be a special symbol highlighting the rich history of this place.

Amendments to the Act on Spatial Planning: What will change?

The Ministry of Investment and Development announced that public consultations have started on the long-awaited amendment to the Act on Spatial Planning and Development, which is to replace the existing regulations in this area. Firstly, it is to introduce the concept of a general plan, which will be compulsorily adopted for each area within the commune. The plan will designate functional zones and the intended use of the area.

There will also be changes in decisions on development conditions, which so far, instead of relying on local structures, were created within the so-called “Exemptions”, which were originally intended to serve only as an exception, but have nevertheless become the rule on which the planning of many investments have been based for many years. They are to be linked to compliance with the general plan and also to introduce timeliness for its functioning.

Łukasz Witek, Senior Project Manager at Skanska Residential Development Poland

IS POLAND READY FOR A 7-HOUR WORK DAY?

Are you ready to work one hour less every day? A proposal to shorten the work week has sparked discussion amid claims that it can reduce burnout and improve efficiency in the Polish workforce.

BY ANNA RZHEVKINA

ould working one hour less per day improve productivity? Poland’s center-left political alliance the Left (Lewica) argues it would and is actively pushing to change labor regulations. In September, the alliance submitted a bill to the lower house of parliament to cut the work week from 40 to 35 hours per week. Left representative Magdalena Biejat underscored that the bill does not dictate to employers and employees how to spread the reduced working time over the week, giving them flexibility. Salaries would remain unchanged.

The alliance cited the experience of other European countries, such as France and Denmark, to prove that a solution would be beneficial for the economy and well-being of employees. The bill suggests reducing the number of working hours to 38 in the first two years, and moving to 35 hours in the third year. “We will work more efficiently and we will work better, and at the same time we will have more time for the family or education,” Biejat said.

Cutting the length of the work week is not a new idea in Poland. In 2018, left-wing party Left Together (Lewica Razem) gathered signatures for a bill draft to gradually shorten the working week, while keeping income unchanged. However, the proposal didn’t receive enough support to be considered by parliament. In July this year, opposition leader Donald Tusk said that his party would draw up a detailed pilot program for a four-day week before next year's parliamentary elections.

The benefits of a shorter week include a lower risk of burnout, more time to spend with family and friends, and better focus during work hours. On the other hand, there are industries, such as healthcare or transport, where reducing working time would require hiring additional staff.

Critics also argue that Poland is not ready economically for such a solution. Cezary Kaźmierczak, president of the Union of Entrepreneurs and Employers said that if Poland wants to catch up with Western Europe’s income level in one or two decades, the idea of a shorter working week is “dangerous and harmful”. "Poland is a relatively wealthy country compared to the rest of the world. However, compared to Europe, it is not,” he told PAP. Jacek Męcina of the Lewiatan Confederation said it’s crucial to ensure that a shorter working week does not increase labor costs and is safe for the economy before moving forward with the initiative.

HOW MANY HOURS DO POLES WORK EVERY WEEK?

Poland has the third-longest working week in the EU after Greece in Romania. Polish employees work on average 39.7 hours per week compared to the EU average of 36.4 hours. By contrast, the Netherlands had the shortest average working week of 32.2 hours, followed by Austria and

WGermany. The statistics, however, do not take into account the number of public holidays and vacations.

The average number of vacation days in Poland is 25, the same as the EU average. Taking holidays into account, employees on permanent work contracts (Umowa o pracę) actually work 4.42 days per week, according to the Polish Economic Institute (PIE). As a result, a Pole on a permanent contract works 35.4 hours per week, PIE calculated.

The Left, however, insists that a shorter working week is just one of the changes the Polish labor market needs. The alliance notes that most Poles work overtime occasionally, and sometimes the extra hours are unpaid. This results in stress, fatigue, and decreases any sense of security.

ON THE VERGE OF BURNOUT

People in Eastern Europe more often admit that they are struggling with burnout compared to Western Europe, according to the STADA Health Report 2022. An employee suffering from burnout syndrome usually feels tired, unhappy with their career, and gradually becomes less involved in their job. In Poland, 70% of respondents said that they had experienced feelings of burnout at least once in their lifetime - the highest result among European countries.

The authors of the proposal to cut working hours state that an 8-hour limit was introduced more than a hundred years ago by Józef Piłsudski. The six-day working week was gradually abandoned from 1973. Advocates of working seven hours a day argue that, since then, the efficiency of employees has increased more than wages have.

Rzeczpospolita’s survey in July showed that 46.6% of Poles were in favor of shortening the working time, 26.2% were against it, and 27.2% did not have a clear opinion. A four-day working week proposal, however, gained more support than the seven-hour working day.

A GLOBAL TREND

In several Western European countries, the shorter working day has already become a reality. France introduced a seven-hour day back in 2000 to counteract unemployment. Everything above the limit is paid as overtime. Last year, the country started rethinking the working hours further, considering whether to reduce it to 32 hours or four days a week. This has happened as companies around the world, such as Cisco, Unilever, Bolt, and Panasonic are playing with the idea of the four-day working week.

In the UK, more than 70 firms are taking part in a scheme where employees get full pay for 80% of their normal hours worked, but they must commit to giving 100% of their productivity. The trial, which started in June, will last for six months and will measure the impact of the four-day working week on productivity in various businesses.

Average number of actual weekly hours of work in the main job, 2021 (age group 20-64)

A shorter working week has clear benefits for wellbeing and allows people to focus more on other areas of their life, but the issue is whether the timing is right for Poland. Rising labor costs and energy prices have been putting pressure on businesses, prompting companies to limit spending. Cutting working time, while keeping salaries unchanged, in practice could mean even higher costs. In France, for example, most people, especially in the private sector, work more than 35 hours and get compensation for overtime in the form of extra payment or additional days off.

As many as 74.5 of entrepreneurs said that the Polish economy is not ready for a four-day working week yet, according to the Employers of Poland association survey. The survey has not covered the option of a seven-hour workday, but when it comes to working fewer days a week, representatives of the transport, medical, tourism, and energy sectors are clearly against it. In total, about onethird of respondents said a shorter working week could be a long-term possibility, with marketing, finance, consulting, and advertising companies being generally more open to the idea.

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The benefits of a shorter week include a lower risk of burnout, more time to spend with family and friends, and better focus during work hours

CHALLENGES GROW IN COMPLYING WITH COMPETITION LAW AND CONTROLS

Compliance with competition law in the Polish legal system has always been a challenge for businesses. Recently, however, there has been an increase in the frequency of inspections by the Office of Competition and Consumer Protection (OCCP) and greater diligence in the way they are carried out.

BY KAROLINA KLIMEK-KAŹMIERCZYK

Entrepreneurs must understand that proper, timely preparation for such an inspection will reduce both the risk of the detection of possible violations by the OCCP during an inspection, as well as any stress on the enterprise being investigated. This type of inspection is not limited to a random examination of the company's records, it includes a detailed audit of the business’ entire activity under competition law, the verification of documentation, as well as equipment belonging to the company - i.e. smartphones, company computers, and other information carriers, as well as the acquisition of other evidence, including from personal sources.

Why is it important to get this right?

Firstly, in the case of such an inspection, the company’s reputation is at stake. The inspection results and any

detected violations are made public, so the entire industry in which the business operates can learn about the results.

Second, penalties for noncompliance with competition law are very high. The President of the OCCP may impose a fine of up to 10% of the turnover achieved in the fiscal year preceding the year in which the fine is imposed, if that entrepreneur, even if unintentionally, has violated the prohibitions under the Competition Law. The President of the OCCP may also impose a fine of up to PLN 2 million on a member of management if that person intentionally allowed the company to violate the prohibitions set forth in Article 6 of the Competition Law.

Third, according to the experience of previously inspected entrepreneurs, once the OCCP detects serious violations in a specific enterprise, inspections may be repeated.

What is competition?

By the term "competition"

we mean, generally speaking, the whole process in which entities operating in the same market and carrying out their activities compete with each other to obtain the greatest possible percentage of the market and thus conclude the largest possible number of transactions by offering products or services under more favorable, i.e., competitive conditions. In general, competition is a very good and desirable phenomenon because where there is a monopoly on a given good or service, and there is no competition, consumers have fewer choices and less favorable price conditions. However, for competition to be a desirable thing, it must be fair, i.e., that competing entrepreneurs use only legitimate means when offering more favorable purchase terms to consumers. When examining competitive-

ness, it is also important to consider which share of the market each company has. It may happen that although there are many companies in the market, for example, only two of them have such a share in the market that only they can influence its development.

What influences fair competition?

First and foremost, fair competition influences the development of a given product or service. Each entrepreneur is interested in improving their products, as a result of which the consumer at the end of the chain has a chance to get a better quality product because in the case of a monopoly market, there is no competitor against whom the monopolist would need to compete. Under conditions of fair competition, we also observe such phenomena through a reduction in prices, an increase in the number of goods

on the market, an increase in the activity of entrepreneurs, greater care for the consumer, and an increase in the level of consumption and quality.

Inspections?

As for the inspections carried out recently by the OCCP, as was already emphasized at the beginning, there has recently been a marked increase in the activity of this body which leaves more and more entrepreneurs wondering how to prepare for this. The role of the OCCP is to ensure that the law of fair competition is observed and that some entrepreneurs in a given market do not take unfair advantage (this leads to monopolism and therefore generates adverse effects for consumers).

How to prepare for a possible inspection?

First, you should start with an internal audit of your company. We recommend that an external entity conduct such an audit. Why? Because doing business in a certain area for many years, and being influenced by other entrepreneurs operating in the same market, often blurs the line between fair and unfair practices. The entrepreneur, so to speak, loses objectivity about the actions of company employees and thus is unable to focus on and identify violations. For example, a practice that has been replicated over a long period simply becomes commonplace, and only an external assessment can point out the risk that this practice may bring.

Our experience shows that usually, the first conversations during an audit lead to a denial that something wrong is going

on in the company in question. This is not due to any bad will on the part of the employees, but precisely because they are most often unaware that a given action may expose the company to a negative outcome of an OCCP inspection. Thus, such an audit includes interviews with employees, documentation analysis, contracts and business assumptions. In the extended variant, such an audit can - and should, in my opinion - also involve verifying employees' business tools to learn about the habits of a given company and catch possible risks. When the audit is completed a report that

sanitation measures, i.e. creating a database of legally correct documents, drawing up guidelines for employees so that they are aware of, among other things, what type of correspondence generates the greatest risks and how to reduce them, and then eliminate them. It is also important to organize training courses or webinars for employees so that they are periodically made aware of which way the authorities' audits are heading. An external auditor can, of course, additionally engage in analyzing –or creating, if none is already in place at the company – a set of market practices (both those

prohibited contractual agreements between entrepreneurs horizontally or vertically – when entities cooperating with each other operate at different levels of trade and thus may also constitute competitors to each other in terms of competition law. In addition, it is also worth considering, in such a situation, the relief provided by the law – that is, the leniency program. If a company has, for example, entered into an unlawful agreement restricting competition (e.g., joint price-fixing), it will face consequences in the form of a fine. However, once a company or individual admits to the OCCP that he or she has engaged in such practices and presents information and evidence to the OCCP indicating the existence of the practice, they can obtain a reduction in the fine or even a complete exemption from payment.

identifies potential areas of risk is then prepared.

It is important to note that this is not a personnel audit, so it is not intended to identify the "weak link" in the company and eliminate them. Such an action is contrary to the objectives of this type of audit. The main objective is to analyze and formulate postaudit conclusions by the audit team, on the basis of which the business can move on to

permitted by law and those that constitute unfair market practices) to educate and raise awareness.

When conducting an audit, it is, of course, possible that the audit team will encounter serious violations. In such a situation, it is advisable to take steps to prepare documentation that will serve as draft positions and explanations in case of an inspection. The key is to identify the existence of

Some of the most recent audits by the OCCP that resulted in fines or charges against businesses included: Polska Grupa Farmaceutyczna (a fine of PLN 4 million), charges for Telewizja Polsat for violations in the organization of Polsat's New Year's Eve competition, UPC Polska (a fine of more than PLN 12.5 million), charges for Santander Bank Polska and charges for the OLX Group. There are many more such examples, so that is why a company’s awareness of competition law compliance and regular internal audits are essential.

Finally, we encourage you to follow the news on the OCCP website, where you can read, among other things, the current results of the authority's inspections: uokik. gov.pl

“ THE ROLE OF THE OCCP IS TO ENSURE THAT THE LAW OF FAIR COMPETITION IS OBSERVED AND THAT ENTREPRENEURS IN A GIVEN MARKET DO NOT TAKE UNFAIR ADVANTAGE

DEBUNKING THE MYTHS ABOUT LITHIUM ION BATTERIES

BY ALEKSANDER RAJCH

Overall, electromobility is developing well in the EU, with the CEE markets gradually catching up to the better developed zero emission transport states. In Poland, there are currently 52,881 electric passenger and utility vehicles, out of which 24,748 were battery electric vehicles (BEV). This is a 44% rise year to year, as the E-Mobility Index shows. With 4,431 charging points in Poland, those numbers are also on the rise as, in July 2022 alone, 104 new charging points were launched.

The state of sustainable transport is about to increase the pace of its development, as one of the key acts of the Fit for 55 legislative package – AFIR – will undergo a plenary vote in the European Parliament. The next step is the so-called trilogue phase, when the key institutions of the EU negotiate the final shape of the law. Another law (not part of the Fit for 55) which is already in this phase is the European Battery Regulation, which will concern a market sector of great

importance to the Polish economy and one which is strictly related to electromobility.

The Polish market still stands very strongly in terms of lithium-ion battery production; the country is ranked first in the EU and third globally. The value of this market still exceeds 2% of Polish annual exports. It is an economic and energy driver in more than one way.

Firstly, the lithium-ion battery market has the potential to support R&D capacity development in Poland, in areas related to software and sensory technologies (often based on graphene), as well as the rare metals recycling sector. These areas are developing well in Poland and since the manufacturing market is experiencing such high outputs, the potential to enhance innovation within the area in Poland and the Central-Eastern European region is vast. This industry will also have a good chance of addressing the challenge of the 280,000 of the 400,000 automotive market employees who are highly qualified engineers now involved in internal combustion engine technology. These skilled workers will need to re-adapt and transfer to new mobility industries, and the battery sector is a good option. Support programs in this area like the European Battery Alliance Academy, operated in Poland through cooperation between EIT InnoEnergy and

Increasing e-mobility in the EU depends upon convincing critics of the truth – that lithium-ion batteries are in no way as environmentally dangerous as conventional fossil fuel-based technologies.

the Polish Alternative Fuels Association, will play a crucial role in this reskilling effort.

Secondly though, the thriving lithium-ion battery industry in Poland provides a solution to the grid resilience challenge which has somewhat halted the development of the prosumer, the dispersed energy market, based on PV installations in Poland. State-of-the-art energy storage technologies will be the key solution for those consumers who produce an excess of electric energy from solar power, but cannot use two-way transfers back into the grid.

However, opponents of e-mobility often bring up the argument that it is the lithium-ion battery market that may render this entire revolution more impactful for the environment than conventional fossil fuel-based technologies. These arguments are bogus of course, but perhaps it’s worth discussing why. To begin, one should acknowledge that for the Polish market, conventional transport generates 24% of the CO2 emissions overall. Poland is the 4th most polluted country in the EU in terms of PM2.5 particles and out of Europe’s 100 cities with the most polluted air, 29 are Polish. While the GHG emissions from transport increased in the EU, on average, by 28% between 1990 and 2017, they rose by 206% in Poland. Meanwhile, electromobility has already reduced global CO2 emissions by 127 million tons, which was a year to year (2021 to 2020) rise of 16%. As EV’s are still mostly below 10% of new vehicle registrations overall, this shows the incredibly positive impact and potential of zero emission road transport.

As for lithium-ion batteries, one should understand what the discussion is really about. More technically, the sub-types of lithium-ion batteries are usually characterized by the chemical compositions of their active materials (in the cathode) and represented by abbreviations such as LFP (LiFePO4), LMO (LiMn2O2), NMC 333 (LiNi0.33Mno.33Co0.33O2) and others. In brief, the batteries are based on a structure consisting of stacked cathode, separator and anode, with electrolyte being the fluid which basically transports lithium ions between the positive electrode and the negative electrode. The basic materials making up the anode are usually aluminum foils and, for the cathode, copper foils. Graphite, silicon and other such materials are used as active materials in the anode. There are of course other materials in the battery (organic solvents, ceramics, lithium salts, etc.) but they are in small amounts and are irrelevant in terms of recycling challenges.

This last part is the key to the entire issue. This is because Poland, as one of the largest producers in the world, is incidentally also one of the leading markets for lithium-ion battery recycling. This process mostly entails recovering rare

metals from waste lithium-ion batteries. In this process, lithium-ion batteries are collected, discharged and dismantled, and then put into the full recycling process, which is called mechanical recycling. It involves the shredding, drying, sieving (the separation of “black mass” which contains valuable battery materials) and the separation of other fractions. The next step is refining battery metals (Lithium, Cobalt, Nickel and Manganese) through the processes of leaching (dissolving in sulfuric acid), precipitation, electrodeposition and, optionally, smelting. The raw materials derived from this process are copper granulate, aluminum granulate and black mass – which are to be reused. Foils which are amongst the wastes from battery production can be reused for new batteries.

This process shows the efficiency and highly advanced technology behind the recycling and resource management of the EV battery industry. It also shows that even the “difficult” components of the electromobility value chain are fully manageable and undergo recycling. This will be further enhanced by the European Battery Regulation. The think tank Transport & Environment supported these arguments with data which was presented in the findings of their 2021 study “Batteries vs oil: A comparison of raw material needs.” We learn that under the current battery regulatory framework of the EU, it is assumed that up to 30 kg of rare metals may be “lost” in the recycling process for an EV (the authors assess the size of this waste as a football). Whereas, a conventional ICE vehicle (petrol or diesel) burns 300-400 more fuel in terms of weight which would amount to 17,000 liters of fuel. If the barrels were stacked, they would be 90m high. In addition, by 2035, the EU will need only 20% of current lithium and nickel imports, as well as 65% of current cobalt imports because these materials will already be recycled in sufficient amounts for reusage.

Apart from the environmental advantages which vastly outweigh the incredible burden of the fossil fuel industry, data from the International Energy Agency shows that the volume and capacity of EV batteries grows annually by 4-5%, as the Agency noted a 60% growth of average EV range in the years 2015-2020 alone. Other forecasts show that by 2030 battery pack prices will drop to 75 dollars per kWh, which means that in comparison to 2021, the most expensive component of an EV will drop by 43% (by $132).

Clearly the growth of e-mobility is most desirable for the environment and hopefully all doubts regarding the rumored negative impact of lithium-ion batteries, including concerns regarding the environment, and ones regarding the economic value of the market segment, are resolved.

“

Poland, one of the world's largest producers, is incidentally also one of the leading markets for lithium-ion battery recycling

Prices of new cars will stop rising in the coming months

The situation on the manufacturers' side is slowly returning to normal, and the demand for new cars is also falling, so prices for new vehicles will likely stop rising in coming months, predicts the President of the Association of Car Dealers, Paweł Tuzinek.

INTERVIEW BY NIKODEM CHINOWSKI

Nikodem Chinowski: How has the Polish automotive industry handled recent turbulence on a global level and in the Polish economy?

Paweł Tuzinek: The situation has not been normal since the outbreak of the pandemic. Firstly, there were problems with semiconductors, which more or less persist to this day. Then came the outbreak of the war in Ukraine and issues with the production of wire harnesses, which are produced by hand, and the supply of neon, i.e., the gas used to power lasers, which is also used to make semiconductors. Nevertheless, an increase in the sales of new vehicles this year finally began in August and September. This is due to two factors: orders from about a year ago are now being finalized, and the market in Western Europe is growing. Polish and Western European markets are linked within the European Union’s common market. A certain percentage of cars from the Polish market go to Western Europe because there are lower margins in Poland and new cars here are a bit cheaper. This is why the volume of sales is growing at the moment.

You mentioned orders from the previous year, but can one see a significant drop in the current demand for new cars in our market? When it comes to current orders, a decrease is visible. As I talk daily to

dealers, they are at 30% compared to figures from a year ago. The reasons for this situation are high car prices and high interest rates, and therefore the high cost of loans and leasing. The uncertain economic situation also plays a role. Generally, when an economic slowdown is looming, people immediately stop buying cars. And when prosperity returns, people start purchasing them again. So cars can be a great indicator of the health of the economy.

What car brands and models are currently most popular among buyers in Poland?

The most popular brands – now and in recent years - are Toyota, Skoda, and Dacia. However, Poland is not unique when it comes to vehicle categories and mediumsized SUVs are the most popular.

And what does the Polish market look like when it comes to payment methods?

Due to the European Union's anti-money laundering regulations, almost nobody buys cars from a dealer for cash. So, regarding payment methods, I must say that some quite interesting changes are currently taking place. Due to the tax changes, loans have been growing in popularity since 1 January, and the share of leasing has decreased. Nevertheless, leasing is still a very popular method of financing according to the data for the first half of 2022 – the value of leased cars was PLN 1.3 billion, while the value of

ones purchased via loans – was PLN 0.7 billion.

In the face of very high inflation, is it clear that many Poles want to invest their capital in a car instead of waiting for their funds to depreciate? Is buying a new car the right idea for capital protection? It is said that a car loses 20% of its value immediately after leaving the showroom.

This is not actually true. Of course, new cars lose their value, but I think not more than smartphones or other electronics and much less in comparison to, for example, clothing. What’s more, we have had a very special situation over the last two years in the automotive market – many new cars bought a year ago may now be worth more as a pre-owned vehicle.

How much have the prices of new cars in Poland gone up recently?

Prices of new cars are rising rapidly but surprisingly less than the overall inflation rate. According to data for August 2022, the average cost of a new car was PLN 153,000, which means an increase of 13.9% year on year. Since the beginning of the pandemic in Poland in March 2020, the average price of a new car increased by about 22.4%. However, I think that in the coming months prices will stabilize. The situation on the manufacturers' side is slowly returning to normal, and demand is also falling. So sellers will have to start competing more and prices should stop rising.

There is more and more talk about changing the format of car sales. So, purchases will be made via the Internet instead of at car dealerships. Is this trend already emerging in countries such as Japan, the USA, or Scandinavia? Is this a realistic scenario for Poland over the next 10-20 years?

These are two different processes that can take place in parallel. In the coming years in Poland and Europe, there will be attempts to change the distribution model - the relationship between the car manufacturer and the dealer. In the current dealership model, the dealer buys the car, then sells it on their own behalf to the end customer. In the model that car manufacturers will try to implement, the dealer will no longer buy the car but will act as an agent and sell it directly on behalf of the manufacturer. Manufacturers from Europe will try to implement this model first. Asian companies will wait and see what the effect in Europe will be, and then they will decide. The second phenomenon that will run in parallel relies upon the increasing role of the Internet in the sales process. However, I have the impression that the Internet will be used much less in the retail car industry than in other industries. Each car is a very complicated and complex device that can be made of many materials. It would be best if you touched it before buying it and this has to be done in the showroom.

So what sales model will dominate in the coming years in Poland?

We will see some attempts to implement the agency model of sale, and time will give us an answer as to whether that will be a success or a failure. Certainly, an important process in the industry will be the transition to zero-emission transport. In public discussion, we talk mainly about the pros of that concept but there are also cons, for instance, the

"conventional" approach creates many more jobs - both in the production and servicing sectors. Certainly, the coming few years will not be favorable for personal transport. Unfortunately, cars are increasingly being prohibited from city centers, and people are being told that a car is not necessary. However, the recent pandemic situation and the war in Ukraine have shown how important independent and individual transport is. So let’s reconsider, are we really ready to deprive ourselves of personal transport so quickly in Europe?

ABOUT THE ASSOCIATION OF CAR DEALERS

The Association of Car Dealers is an employers' organization associating and representing authorized car dealers and authorized services. The Polish dealership industry consists of approximately 500 companies, employing a total of approximately 50,000 employees. The vast majority of them are family businesses with Polish capital.

You can find Paweł Tuzinek's BIO on page 4

When an economic slowdown is looming, people stop buying cars almost immediately, and when prosperity returns, people start purchasing cars again

TECH insights

Chinese giant Tencent invests in the Polish game industry

Chinese giant Tencent has made at least seven new investments in Polish gaming companies, Puls Biznesu has reported. The latest acquisitions include two Warsaw studios, but the investment was not disclosed. In addition, Tencent has recently invested in the gaming company Gruby Entertainment, acquiring 20% of the increased capital.

In February, Tencent completed the acquisition of 1C Entertainment Group (now Fulqrum Games), which includes QLOC, Cenega, and Muve. Before that, it had invested in the listed Bloober Team, the young Krakow studio The Parasight, and the Warsaw-based studio Exit Plan Games.

>>>

ING Hubs Poland

TECH

CONSUMER Deloitte: Every third Pole would like to spend less time on their electronic devices

More than a third of Poles see a need to limit the time they spend in front of the screen, according to the report "Digital Consumer Trends 2022" by the consulting company Deloitte. Over the last year, Deloitte has noticed a clear change in consumer preferences, as they are increasingly choosing to use devices with smaller screens. On the one hand, this means greater convenience, but on the other hand, it means that consumers are using electronic accessories for most of the day. Excessive use of electronic devices can negatively impact health, especially sleep: 52% of women and 47% of men have said that they go to sleep later than planned due to time spent in front of their screens. In Poland, most of those who want to change their habits are in the 18-24 age group.

DOMESTIC

Poczta Polska to start issuing crypto stamps

Poczta Polska plans to issue crypto stamps that will combine traditional postage stamps with NFT tokens, the postal company announced on Tuesday. The company added that the digital collectibles will be offered on the website nft.poczta-polska.pl. According to Poczta Polska, "the concept of issuing the Polish first crypto stamp is the result of combining a love of philately and modern technology."

GAMING Games Incubator postpones IPO

Games Incubator has postponed plans to go public until companies are adequately valued, according to the company's CEO Marek Parzynski at WSE Innovation Day. "Regarding plans to go public, we have promised our initial investors that it will happen, but the question is when. At the moment, we do not need financing. The

New IT research and Development Hub in Warsaw – GN Group

GN Group, a Danish manufacturer of specialized audio, video, and gaming software, has opened its IT research and development hub in Warsaw. The company has already hired more than 60 specialists at the Warsaw hub and plans to recruit many more.

Peter la Cour Gormsen, GN CFO said during the press conference at the office opening that “GN opened its first Poland-based office as far back as in 1917. At that time, it was for developing and expanding the telegraph – the technology that, at the time, tied the world together. Our new office today will help tie us together and fulfill our mission with modern day technology: We bring people closer through the power of sound and vision – letting you hear more, do more, and be more in life and at work than you ever thought possible.”

‘Our expectation for this new important office is to accelerate our possibilities to scale our software and IT solutions to meet GN’s digital ambitions. We at GN have a particular focus on strengthening our capabilities within IoT, Cloud, AI, DevOps and Embedded SW. Today, GN is primarily known for world-class hardware devices from brands such as Jabra, ReSound, Beltone, Lively, Falcom, SteelSeries, and more. But what makes our future hardware unique is the differentiated software content we will be able to provide’ announced Niclas Blohm, vice-president of global research and development at GN Audio, at the opening of the GN Poland hub.

The board has chosen Warsaw for its new IT & Development site because there is a huge population of skilled, ambitious and well-educated, and high-caliber talents in technology and software in Poland. The distance to Copenhagen and the common relationship with the EU make it easy to collaborate and create projects together.

company’s profits are growing. We have a very small free float of 7.8%. So far, I have not sold any shares and don’t plan to do so. However, I will probably need to do it in case of an IPO to distribute this free float properly. Consequently, if I do so, it will be at a time when the market is developing and valuations are adequate," said the CEO.

STARTUPS PwC: Polish startups raised 4.65% of climate technology funding in CEE

Polish startups attracted 4.65% of total climate technology funding in CEE

between 2013 and the first half of 2021, according to PwC's “Net Zero Future50” report, produced in partnership with Wolves Summit. According to the report, investment in climate technology in Central and Eastern Europe increased from $10.6 million in 2013 to $398 million in 2020 and reached over $502 million in the first half of 2021. Although more than $1.76 billion was invested in climate technologies in CEE between 2013 and the first half of 2021, these investments are highly concentrated in certain areas, so there are still further opportunities for growth and diversification in the region.

RISK HUB – A UNIQUE CENTER OF EXPERTISE AT ING GROUP

PAWEŁ HOLNICKI-SZULC, TRIBE LEAD AT ING HUBS POLAND, BUSINESS AND RISK SOLUTIONS TRIBE, SHARES INSIGHT INTO HOW ING HUBS POLAND IS SUCCESSFULLY CREATING A UNIQUE COMMUNITY OF BOTH GLOBAL AND LOCAL EXPERTS IN POLAND.

INTERNATIONAL CENTER OF EXPERTISE

ING Hubs Poland has developed a recruitment strategy to attract local and global top-tier talent. The Polish market is able to provide a sustainable supply of highly experienced and talented professionals. However, it is clear that ING Hubs Poland can also successfully recruit professionals from outside Poland who are attracted by our vibrant international environment and unique community. Risk Hub in Warsaw now has – more than 350 experts from 26 countries working on highly diversified and complex portfolios. Next year, this number should increase to 400 – strengthening our global role as a center of expertise.

RISK COMMUNITY

ING HUBS POLAND – WAY MORE THAN SHARED SERVICES

ING Hubs Poland has almost 20 years of experience in successfully providing technology, data, and risk services for ING businesses worldwide. One of four global hubs, ING Hubs Poland has offices in Warsaw and Katowice. The two offices have more than 3,000 employees organized into competency hubs that support the business through a range of complex and diverse services, technologies, and competencies. Besides tech domains covering IT security, remote, application, and hosting services, ING Hubs Poland also has operational units such as Cards Hub, Compliance Hub, Know Your Customer, Centralized People Services Hub, and Risk Hub.

RISK HUB ON THE ING MAP

Risk Hub’s primary focus as a center of expertise has been to shape the policy of risk modeling and data analysis in Poland, while also providing strong governance through a second-line validation framework. ING Group is increasingly using data-driven models to make better business decisions. However, the challenge is ensuring that these models deliver the best possible decisions and comply with rigorous regulatory expectations. That is why Risk Hub focuses on monitoring, calibrating, and developing regulatory and non-regulatory risk models that can cover credit, market, and operational risks. The goal is to implement the highest standard of model development, model validation, and risk management for all rating systems.

From the very first moment that Risk Hub was established, the goal was to create a unique risk-focused community that could attract top Polish professionals who wanted to grow their careers in risk management and data science related roles. That is why our culture and recruitment strategy has always been based on three pillars: trust, business development, and people and culture.

To support day-to-day workflows and ensure our team’s success, Risk Hub prioritizes efficient processes and optimized workflows for endto-end model lifecycle ownership. We also encourage our team to seek out learning opportunities and professional development within the Hub, which also supports the growth of other parts of ING Group. This approach has shown definite results – over the last three years, our Risk Hub community has developed a unique knowledge capital that now is regularly used to onboard new teams and support the onboarding of risk roles across the globe.

POLAND'S E-COMMERCE RACE HEATS UP

GLOBAL E-COMMERCE PLAYERS COMPETE FOR POLISH CUSTOMERS AS INFLATION PROMPTS THEM TO CUT SPENDING MORE CAREFULLY

BY ANNA RZHEVKINA

For many years, the Polish e-commerce market has been dominated by the domestic marketplace Allegro. However, as online shopping flourished during the pandemic, international players started challenging the status quo. In March 2021, Amazon launched a Polish website, offering 100 million products. A few months later, Singapore-based Shopee chose Poland to launch its European expansion.

“There have been several debuts on the Polish e-commerce market, which have a significant impact on the level of competition, offer, prices and value for end customers,” Maciej Bazyl, Director at PwC unit Strat-

egy&, wrote in the report “Development prospects of the e-commerce market in Poland in 2018-2027”. He notes that the competition for a slice of the market pie is ongoing, prompting companies to offer new services to attract new users and retain existing ones.

Rising consumer-centricity is a defining force in the digital-commerce landscape, according to the consultancy McKinsey. Consumers value a wide range of products, convenient delivery, and personalization. “Allegro, Alza, and Vinted have responded effectively to customer demands for wide product availability, InPost and Rohlik have developed exemplary solutions for conveni-

13% was the share of all retail sales of goods in Poland sold through the online channel in 2021

ence, and traditional leaders such as CCC Group are investing strongly in innovation,” the consulting firm said. Eastern European e-commerce markets are still much smaller compared to their Western European counterparts, but the number of users and sales are steadily growing. In the last five years, the share of online sales in Central and Eastern Europe grew by 9 percentage points to 15%, according to the CBRE. Poland and Czechia are leaders in terms of online shopping growth in the region. Online shopping in Poland is expected to reach about 23% of total retail sales by 2026, the CBRE forecast. Poles and Czechs usually buy online electronic goods.

54% is the share of the growth in the value of the e-commerce market that will come from the fashion, electronics, and health & beauty categories

POLAND'S E-COMMERCE MARKET IS FACING FURTHER GROWTH PROSPECTS, BUT THE SOURCES OF THIS GROWTH WILL SEE MAJOR CHANGES

Size of the e-commerce market in Poland (in billion PLN)

The second most popular category in Poland is clothes and footwear.

Online shopping flourished for all kinds of goods, but the food and drinks category grew the fastest in Central and Eastern Europe. Before the pandemic, its share was marginal, while at the end of the last year it reached 5%.

The gradual return of customers to brick-and-mortar stores has not restrained e-commerce development. Most companies came to the conclusion that offline stores are only an addition to online sales channels, according to the Polish Agency for Enterprise Development. “The development of e-commerce and multi-channel sales is nowadays a necessity, without which survival on the market is at risk,” the agency noted.

Fierce competition drives customer centricity

The e-commerce platforms introduced new features, promotional offers, and catchy advertising campaigns to stand out from their competitors. At the end of August, Allegro launched a same-day delivery service to parcel lockers. The platform also offered a buyer protection program, extending the time for filing a complaint to two years from the purchase. Consumers could receive a refund for a missing delivery or damaged goods within 48 hours from the complaint’s approval.

Amazon.pl bet on its discount program Amazon Super to increase sales of basic products, such as household goods, personal care products, books, toys, electronics, and office supplies. When choosing five to twenty products from the “Super” category, customers receive

PLN 187 bn

a 5-10% discount. The company also launched its Prime membership program last year, offering members free next-day delivery with no minimum order.

Customers always want a better choice, great prices, and the best convenience, Mourad Taoufiki, Country Manager at Amazon.pl told the Warsaw Business Journal. “We will continue to add more products and more services as part of an everimproving experience for Polish customers,” she emphasized.

Despite their best efforts, both Allegro and Amazon recently experienced a monthly decline in the number of users, according to Mediapanel Gemius Polska data prepared for PAP Biznes. The number of Allegro users decreased in August to 21.91 million from 22.08 million in July. Amazon saw a sharper decline, with its number of users dropping to 6.73 million from 7.29 million in July. As the competition increases and consumers spend more carefully amid rising inflation and the economic slowdown, players are struggling to retain their margins and market position.

At the end of September, Allegro cut its full-year forecast, saying adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) will rise in Poland by 10-12% instead of the 10-15% expected previously.

“With the prospect of a significantly more challenging environment driven by high inflation and the rising cost of living, we are putting increasingly more focus on cost efficiency on our side, while we continue to drive growth through strong trading performance in Poland,” Allegro CEO Roy Perticucci said in a statement.

Inflation reshapes online shopping

Southeast Asia's largest e-commerce platform Shopee said rising inflation has transformed the way people shop. “We have seen increasing demand for fast-moving consumer goods (FMCG), as costs of living continue to increase and Poles seek more affordable options for their everyday needs,” Michal Tykarski, Business Development Director told the Warsaw Business Journal.

In response, the company recently launched the Anti-Inflation Basket –a selection of essential goods, such as home cleaning supplies, foods with a long shelf life, and childcare products at affordable prices. In September, the retailer had its signature 9.9 Super Shopping Day offering three weeks of huge price drops and promotions.

Aiming to go beyond the conventional product-purchase model, Shopee bets on strong promotion and creative marketing. The retailer hired the singer Sławomir as a brand ambassador and launched the game Shopee Shake, where users can play to earn coins to save on their shopping.

Despite economic challenges, large sales platforms such as Allegro, Amazon, and Shopee are set for further growth. Strategy& analysts forecast marketplace platform model share to increase versus e-commerce stores from 45% in 2021 to more than 55% in 2027. The consultancy firm says that to meet growing client expectations, e-commerce firms should focus on personalization, a deeper understanding of the consumer decision-making process, building strategic partnerships, and improving supply chain efficiency.

PLN 94 bn

is the projected value of the e -commerce market in Poland in 2027

the e -commerce market in Poland will grow by more than this amount by2027

Life + Style

BEST o f W ARS AW

20 22

SIMPLY THE BEST

Here are the Warsaw Insider top stars in Warsaw's culinary world for this year

WORDS BY ALEX WEBBER

BEST RESTAURANT NUTA

Nuta isn’t so much about the restaurant as it is the man in the kitchen. Who is he? 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 has stunned all ever since debuting at the start of the year.

Despite eyewatering offers from abroad, Camastra never considered leaving Poland when Senses found itself guillotined by Covid. “Why 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 alium 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 upper cut,” says the chef, and he’s completely right.

A world class experience, Nuta has no peer. Aimed at people who want to enjoy the very best that life has to offer, the financial trade-off made by dining here is definitely worthwhile. Extraordinary in every respect, Nuta is a place where the impossible happens. A complex odyssey that engages every pleasure receptacle in the human body, it is absolutely unthinkable that anyone can leave without being staggered by the quality. Camastra himself says he’s no longer chasing Michelin stars, and that’s principally because he knows they will arrive regardless of his goals – and yes, interpret that not as a sign of arrogance but for what it really is: a statement of fact. Pl.

Trzech Krzyży 10/14

BEST RESTAURATEUR

LINH NGUYEN

Warsaw has long displayed not just an appreciation for Asian food, but something of a mania – and the number of restaurants bear witness to that fact. Many, though, are mired in mediocrity. Punching through the lackluster imposters, restaurateur Linh Nguyen, however, has brought us closer to exotic climes with her string of restaurants. Numbering such award-winning ventures as Vietnamka, Koreanka and most recently Japonka and Azjatka, these have complemented her existing stable of addresses.

“Poles go out more than they used to,” she tells the Insider, “they’re more curious about different flavors – they’re also more aware about ingredients and want their food experience to be an adventure. Additionally, they do pay attention to the design before picking a place to eat.”

At her venues, all deliver on the above criteria and while Nguyen admits that product availability remains a problem when striving for authenticity, her restaurants have proved a deliciously pleasing bridge to the Far East. Although she warns that next year will be one of caution when it comes to the F&B industry, her winning streak is likely to remain unchallenged. No-one has done more to open Warsaw’s taste buds to the east, and for that this culinary entrepreneur merits our recognition.

TOP TALENT WITEK IWAŃSKI

The foodie press went into meltdown when, over summer, Witek Iwański launched his own capital city venture: hub.praga. Occupying a discreet spot on upcoming Jagiellońska, it’s all you ever want from a top class restaurant – a stunning dining room with high ceilings, long windows and an interior that’s effortless in its understated elegance – tan, beige and white, these seemingly neutral colors are brought to life by some statement art, moon-shaped mirrors and gleaming light fittings of different shape and size.

As welcoming as the ambience might be though, it was Iwański’s kitchen miracles that made our visit one of the most pleasurable research trips we’ve had for a while (it’s a tough job, but someone’s got to do it, right?). Purposefully offering tiny servings, this concept not only limits wastage, but also encourages diners to order three, four, or even five micro-mains – this way, you see the depth of Iwański’s skill.

Looking like miniaturized works of art, each course is a micro bomb of sophisticated goodness with the offer, of course, adjusted to suit the season. For us, that meant an exquisite beetroot salad; a subtly refined tartar topped with crunchy perilla leaves and a pair of marinated Mirabelle plums; and veal with walloping big tastes and a side of savoy cabbage.

Harking back to that pre-covid time when chefs sought to thrill their audience rather than simply play it safe, Iwański’s project deserves every accolade it receives. Naturally, so too does the man himself – displaying his adaptability, summer saw him take the Nocny Market by storm with a weekend pop-up whose crowd-pleasing raves included yakitori duck donuts. hub.praga, Jagiellońska 22

OUTSTANDING ACHIEVEMENT

JACEK GROCHOWINA

Ten years is a long time whichever way you wish to look at it –but in gastronomy, it’s even longer. That Nolita has outlasted other premium experiences of its caliber is a testament to Jacek Grochowina’s talent, strategy and underpinning vision. “The night before we opened I remember how stressed my wife and I were,” he tells the Insider, “but from the very beginning we knew we were in it for the long-term.”

Having ridden the lockdowns and other force majeures, Grochowina’s project has become enshrined in foodie folklore, a place where discreet, understated luxury meets world class tastes. “Over time I’ve definitely matured,” he says, “but the passion remains the same. At Nolita, we’ve achieved a synergy between our own goals and the expectations of our guests, and finding that medium has been key.”

Clearly, so has the food. An ode to Grochowina’s skill, there is a mastery at play that makes itself known in the clutch of iconic mainstay dishes: bluefin tuna tartare, kohlrabi, yuzu prove an explosion of freshness; equally memorable, grilled octopus coated with wasabi mayo and tapioca crisps works in cohesion with a surprising, adventurous hit of chili that comes with the creamy potato. “I once took this off the menu,” he admits, “and was told by a regular he wouldn’t be back until I reinstalled it!” Whoever this mystery guest is, he merits our gratitude.

These classics aside, the menu is a dynamically evolving work that treasures details and finesse: razor thin cuts of venison loin are served in the style of mille-feuille with boletus mushroom carefully layered in between. It is exquisite, and perhaps one of the best examples of Nolita’s devotion to technique and product. But like the food itself, this is a restaurant to savor.

Nolita, Wilcza 46

The WBJ relives or looks forward to the most important events in the world of business and economy

EFNI 2022: EUROPE DEALS WITH UNCERTAINTY

The Mayor of Sopot Jacek Karnowski, speaking at the European Forum for New Ideas (EFNI), called the war in Ukraine “an exam for Europe.” The war has deepened existing issues, such as energy security and supply chain disruptions, leading to questions about whether Europe can stay united during the crisis.

BY ANNA RZHEVKINA

The eleventh edition of EFNI in Sopot on 12-14 October brought together more than 1,400 people, including economists, business representatives, policymakers, and scientists, who shared their strategies for tackling uncertainty.

Firms go green despite the energy crisis

The energy crisis has put enormous pressure on businesses, elevating costs as companies are already struggling with double-digit inflation. The majority of firms in Poland have called rising energy prices an important or very important barrier to their operations, a July survey by Polish Economic Institute (PIE) and Bank Gospodarstwa Krajowego (BGK) showed.

Michał Obiegała of the British Polish Chamber of Commerce said that after a hundred years of relying on fossil fuels, the time has come to invest in various sources, including wind farms, photovoltaics, and hydrogen. “We must not focus on one energy source as we do not know which of these technologies will become the leading one in the future,” he explained.

The Country Energy Manager at IKEA, Mariusz Podgórski, said that green energy sources are currently the basis for business competitiveness and security. When describing the strategy of IKEA, which aims to become climate positive by 2030, Podgórski underscored the importance of measuring the corporate CO2 footprint and setting tangible targets for

Event Report

its reduction.

Radosław Kaskiewicz, Managing Director at 3M East Europe Region, underscored that more than two-thirds of consumers are willing to pay extra for ecological products. According to him, the market demands that companies go green or leave.

Apart from energy solutions for businesses, conference participants discussed how to create greener and more sustainable cities. Deputy Mayor of Gdańsk Piotr Borawski said the first step to developing micromobility is introducing a regulatory framework for cooperation between transport operators and local government.

Mariusz Sokołowicz, a professor at the University of Łódź,

drew attention to insufficient cooperation between the cities, saying every municipality relies on its own strategy and terms. Mathieu Deloly of the e-scooter sharing provider TIER agreed with him, underscoring that the lack of clear standards in Poland stops companies from investing.

Gig economy reshapes the labor market

Adapting to major changes in the economy is challenging for both authorities and businesses. The pandemic has transformed people’s lifestyles and prompted them to reconsider their values. The war has deepened these reflections. While the government tries to control the cost of living, businesses struggle to keep their employees motivated and satisfied.

EFNI speakers discussed changing attitudes towards work and the growth of the gig economy, in which companies rely on contractors and online platform workers instead of hiring full-time specialists. Fabian Pietras, Business Director at Antal Poland, said that 65% of companies nowadays use outsourcing services.

While some people treat freelancing as a source of extra income, there are gig workers who choose it as a lifestyle.

They value freedom, the diversity of projects, and being their own boss. According to EY, the statistical Polish GIGer lives in a big city and recommends this model of work to friends.

The growing popularity of remote work means specialists can get paid in foreign currency while working in their home countries. In this environment, more than half of companies in Poland struggle to find and keep employees, Pietras of Antal noted, adding that after gaining experience, professionals often switch to freelancing.

Marek Żółtowski, Senior Regulatory Manager at British-American Tobacco, noted that regulatory changes often do not keep pace with changes in the market. Joanna Tabor-Błażewicz from the Warsaw School of Economics underscored that employees’ relationships with managers are also changing, and bosses no longer have the power to tell subordinates how to build their careers.

Will the war unite or divide Europe?

Conference participants agreed that economic slowdown, increasing military spending, and skyrocketing energy prices demand innovative solutions and prompt actions. The key question, however, is whether the war in Ukraine and

its consequences will unite or separate European member states.

Konstantinos Diamantouros, Permanent Delegate of the Hellenic Federation of Enterprises to BusinessEurope, said that when a crisis hits, countries tend to look at it nationally before discovering that such an approach doesn’t work. “There are too many interconnections, and clearly, the answer is that we have to find the way to go forward together,” he said.

Member of the European Economic and Social Committee Antonio Garcia del Riego underscored that inflation is an “aggressive cancer in Europe.” At the same time, Evgeniy Ivanov from the Confederation of Employers and Industrialists in Bulgaria called for prompt joint actions to save the business community.

Although most participants agreed that Europe has been slowly coming together since the beginning of the war, Ewa Ruminska from the Warsaw School of Economics said that the dynamic is not genuinely straightforward. According to her, the crisis also drives populist and nationalist movements in Europe, and only time will show how member states can collaborate in old and new ways.

EVENTS

The WBJ relives or looks forward to the most important events in the world of business and economy

Event Summary

EXPO REAL 2022 –EUROPE’S MUST-ATTEND EVENT FOR PROPERTY AND INVESTMENT

EXPO REAL 2022, Europe’s most important international trade fair for property and investment, took place on 4-6 October in Munich, Germany. The event hosted more than 40,000 visitors and exhibitors across seven halls.

The Warsaw Business Journal editorial team was delighted to attend again this year and distribute our magazine at key Polish stands. The overall mood among participants was good, but the general opinion was that the next year or two would be very uncertain and that many things are being postponed or parked as a result.

Polish cities and regions were a very visible presence among the exhibitors, as usual, and provided strong communication about the great investment opportunities that Poland offers.

Several Polish real estate companies also made an impressive appearance at the event, including White Star and Cavatina, although Panattoni stole the show with strong outdoor promotions and a constantly busy stand.

EVENTS

The WBJ relives or looks forward to the most important events in the world of business and economy

PRECOP27 PLANS FOR THE CLIMATE SUMMIT IN EGYPT

The PRECOP27 conference on 18-19 October in Katowice was organised by United Nations Global Compact Network Poland and the PTWP Group to bring various communities together to draw up a joint position before the Climate Summit (COP27) in Egypt.

The two-day event kicked off with keynote speeches by special guests: Sanda Ojiambo, Assistant UN Secretary General, Executive Director of United Nations Global Compact (UNGC); Jens Wandel, Undersecretary General and Acting Executive Director of UNOPS, Special Advisor to the SG on Reform in 2018-2021; Maimunah Mohd Sharif, Executive Director of UN-Habitat; and Hatem Tageldin, Ambassador of the Arab Republic of Egypt in Poland.

“PRECOP 27 comes at a critical time, because the climate crisis affects us all. Droughts and floods destroy our ecosystems and climate change is one of the greatest threats

to our Sustainable Development Goals. The good news is that there have been many developments in the private sector, which now seems to be able to take the lead in this area”, said Sanda Ojiambo, Assistant UN Secretary General, Executive Director of United Nations Global Compact.

PRECOP 27 featured panel debates and meetings with more than a hundred speakers, including representatives of business, science, institutions, government officials, NGOs and EU politicians. The goal was to bring various communities together to hammer out a joint position on the most important themes on the agenda of the next Climate Summit. PRECOP 27 will also publish a “White Book”, including its main conclusions, guidelines and recommendations, scheduled for release just before the COP27. The recommendations of PRECOP27 will be relayed to the European Commission, the European Parliament, the Polish COP27 delegation, relevant UN agendas and programmes, local governments and youth climate organisations.

The conference attracted more than 1,200 attendees and a live online audience of over 2,500. It featured a total of 21 sessions devoted to issues such as green construction, sustainable transport, climate education, sustainable fashion, ESG, climate technologies, cities for climate and water resources and retention.

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