Warsaw Business Journal October 2022 #73

OCTOBER

6 In Review

News

13 Lokale Immobilia

News

Region Spotlight: Silesia

28 Cover Story

Success creates a demand for more – An interview with Kinga Nowakowska of Capital Park by Morten Lindholm

36 Feature

Food Shortages by Anna Rzhevkina

Job Market by Anna Rzhevkina

Workcation by Anna Rzhevkina

Can exports be a remedy when the economy is slowing down? by ABSL

48 Opinion

Nightmare on the Odra River by Sergiusz Prokurat

Currency Wars by Sergiusz Prokurat

52 Interview

Karol Szmich, CEO of Delia Cosmetics Interview by Nikodem Chinowski

55 Tech

News

59 Life + Style

Zaremba Cafe

Review by Alex Webber

Fashion: Fancy Three by Krystyna Spark

62 Events

Cover photograph: Michał Pawłowski, Collab Studio

PUBLISHER'S NOTE

My 16-year-old daughter returned from a 2-week exchange trip to Stockholm yesterday. She was a bit unlucky with her stay with a local family, but what left an impact on me was her reflection on the experience. She said thoughtfully, “you know, dad, I have learned that I should really appreciate what I have – my school, classmates, and friends are amazing and my family support is a perfect base.”  I am sharing this with you because we are living through very difficult times. While we all take time to reflect on the positives in our life, I am also sure that we sometimes forget to appreciate everything that we have and the fact that we should treasure it while it lasts. (And this is something that all of us living in Poland are sadly and regularly reminded of when we meet Ukrainians at our work, on the street, and in the shops. We still stand with you Ukraine.)

Of course, this is a business magazine and I shouldn’t be philosophizing over these issues, but maybe I do it because I believe that we are still somewhat hampered by our tendency to engage in short-term thinking. I know that gas prices are increasing – it is sad and terrible, and I am afraid we will still see many closed, or temporarily closed companies, shops, and restaurants. It is sad for credit holders that interest rates are rising, stock markets are going down and recession is on our collective radar. But as a friend of mine says “your health, your family and your mind are the most important.”

We will eventually get through this. I would even say that this is a great opportunity – for Poland.

In times of difficulty, new business opportunities and models are created, and we should use these times to push our boundaries. Even though we are probably looking at 12 months of tough and challenging times, this is a good moment to review our business and our costs and look around for ways we can do things smarter, better, and more effectively. I do respect and sympathize with small and medium businesses (service providers and the whole gastronomic industry) who are facing a terrible battle, and I am well aware of how much these ‘battles’ can negatively influence our mental energy.

This issue is highlighted by the success story of Norblin Factory presented in this issue. Their story clearly shows how things can get difficult and yet still produce amazing results when issues are confronted with belief, engagement, and hard work. This is a great example of the Polish will to succeed.

We also bring you good news about Polish exports of business services, the inspiration for the work-cation, insights from Polish company business leaders, insight into unemployment numbers, a currency status update, and several other great reads.

Keep on fighting.

Remember to keep on the right side of history, be kind and appreciate what you have today.

See you again soon. Morten

ON THE COVER

CONTRIBUTOR

Sergiusz Prokurat

Our macro-economic and political commentator with over 15 years of experience in Europe and Asia as a lead manager, entrepreneur, PhD lecturer, project expert and journalist, Sergiusz is an IT-savvy economist and published author.

Sergiusz's opinion about the Odra river and the Polish currency start on Page 54

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

Szmich, CEO of Delia Cosmetics

The CEO of Delia Cosmetics since 2015, Szmich has been with the company since 2009, and previously served as COO.

Kinga Nowakowska COO, board member in Capital Park Group

Since 2007, she has been associated with the Capital Park Group. She is involved in the Group’s largest projects, including Royal Wilanów. Since 2009, she has been responsible for the implementation of the prestigious revitalization project of the Norblin Factory in Warsaw. She is the author of the Biuro Plus concept, which provides individual solutions in each of the Capital Park Group's projects to support the needs of tenants. The idea is based on design principles, ecology and sustainable development, art and culture in common spaces, and a creative approach to asset management. She founded and manages the Black Swan Fund which invests in start-ups managed by women. One of her most interesting investments is BioBazar - the first organic, certified food market in Poland.

Delia Cosmetics is one of the leading cosmetics producers in Poland, exporting to 60 foreign markets and employing 370 people in Poland. Szmich has also been a member of the Supervisory Board of the Polish Union of the Cosmetics Industry (PZPK) since 2021.

Nikodem Chinowski's interview is on Page 48

Dariusz Kubacki, Vice-President Business Intelligence & Thought Leadership, ABSL

Currently at KMD, an NEC Company, Dariusz is Managing Director of KMD Poland and Vice President of the Digital Transformation Services global unit. He leads the Polish subsidiary of KMD with 600+ employees onboard. Between 2013 and 2018, he led the Warsaw Chapter of Association of Business Service Leaders (ABSL) and in 2021 was appointed ABSL VP responsible for Business Intelligence and Thought Leadership.

Article begins on Page 36

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Karol

VISIT WARSAW

POLAND OPENS A NEW WATERWAY TO AVOID RUSSIANCONTROLLED WATERS

Poland has opened the Vistula Split, a new waterway that allows ships to pass from the Gulf of Gdańsk to the Vistula Lagoon, a shallow reservoir on the Baltic Sea. Ships will be able to bypass the Russian enclave of Kaliningrad. The opening ceremony took place on September 17, on the anniversary of the Soviet attack on Poland in 1939.

“Thanks to the Vistula Spit dug-through, Poland will gain a waterway which connects the Vistula Lagoon with the Baltic Sea and is independent of Russia. The canal will ensure Poland is safe and sovereign,” said the government in a statement cited by Money.pl.

Work on the Vistula Spit crossing began in October 2019, and the total cost is set to reach PLN 2 billion. The project’s second stage envisages the reconstruction of the existing shipping channel along the Elbląg River.

FOOD & BEVERAGE

More than one-fourth of breweries consider closure

A total of 26.6% of breweries are considering closing their operations, and 94% of breweries assess the reality of doing business as worsening, even compared to the lockdown period, according to the “Brewer Barometer” survey conducted by SW Research on behalf of the Brewing Industry Employers Association - Polish Breweries. "The new challenges that producers are now facing - rising prices, energy costs, and obstacles in obtaining raw materials –mean that despite the lifting of pandemic restrictions, the condition of breweries is not improving,”  said Bartłomiej Morzycki, CEO of Polish Breweries,

quoted in a statement.  He noted that an increase in excise duty on beer has put additional pressure on the industry.

AUTO INDUSTRY

Prices for new and used cars will fall in the coming months

The poor availability of new cars has paradoxically increased dealer margins and revenue in recent months. However, the unfavorable economic situation is likely to lead to a decline in the prices of new and used cars in the coming months, according to a report by EY Polska and DCG Dealer Consulting. Inflation, high interest rates, and the depreciation of the zloty are slowly reducing customer interest in new cars. As many as 48% of respondents believe

that the decline in demand for new cars is a bigger problem than their limited availability. As a result, almost half of dealers believe new car purchase prices will decline in coming months. Only 27% of dealers expect prices to grow.

LABOR Demand for the foreign labor force to grow - Ministry

The demand for foreign labor will grow by at least a few percent or even more than 10% per annum in coming years, estimates the Ministry of Family and Social Policy (MRiPS). The highest demand is for skilled manual workers in construction, industrial machine operators, workers in some service and trade sectors, and truck drivers.

UKRAINIE Poland spent about PLN 2,200 on each refugee from Ukraine - PM’s office

Poland is estimated to have spent about PLN 2,200 on each Ukrainian refugee, said Agnieszka Ścigaj, a minister in the prime minister’s office, when discussing spending on aid for war refugees from Ukraine.

The Minister for Social Integration Agnieszka Ścigaj, who was a guest of RMF FM on Tuesday, said that since 24 February, i.e. the beginning of Russia's invasion of Ukraine, around 1.3 million refugees from Ukraine have arrived and remained in Poland.

LABOR Foreigners make up on average about 6% of employment in Poland

The government has decided to raise the minimum wage to PLN 3,490 gross from 1 January 2023, and to PLN 3,600 gross from 1 July 2023 - said Prime Minister Mateusz Morawiecki. That represents an increase of 15.9% from January and 19.6% from July on a year-on-year basis. The hourly wage is expected to be PLN 22.80 gross from 1 January 2023 and PLN 23.50 gross from 1 July 2023.

UKRAINE

The majority of Ukrainian refugees learn Polish –survey

Every second Ukrainian citizen, forced to flee to Poland because of the war, is learning Polish, and every third refugee plans to study it in the near future, which indicates that they will stay in the Polish labor market longer, says a survey conducted by the Gremi Personal Analytical Centre.

According to the research summary, 52.8% of Ukrainians surveyed are already studying Polish, 35% say they intend to start learning it soon, and only 12.2% said their mother tongue is enough for them.

UKRAINE

More than half of Ukrainians are not planning to leave Poland yet

Only about 22% of Ukrainian citizens staying in Poland plan to return home in the next three months. As many as 35% are ready to remain in Poland for at least a year, 25.6% want to return at the end of the war, and 17% do not plan to return in the near future, the Gremi Personal employment agency reported.

Anna Dzhobolda from Gremi Personal expects most Ukrainians to return to their homeland as soon as the danger is over. However, a significant

proportion of citizens will remain abroad due to the loss of housing, low wages and poorer living conditions in the Ukraine. In her opinion, gloomy forecasts for the heating season are encouraging Ukrainians to spend the winter in Poland.

ACQUISITIONS

Wirtualna Polska buys travel platform Szallas Group for EUR 82 million

Wirtualna Polska has bought Szallas Group, which operates the largest national travel portals for booking accommodation in Hungary, the Czech Republic, Romania, Poland, and Croatia. The deal is worth EUR 72 million, plus net cash in the company of about EUR 10 million, as of the closing date of the transaction.

With this acquisition, Wirtualna Polska aims to create the largest tourism booking group in Central and Eastern Europe. Nocowanie.pl, Poland’s largest accommodation intermediary, is already in WP’s portfolio.

The Szallas Group currently offers 87,000 accommodation properties in five markets. Last year, customers made more than one million reservations for a total value of EUR 200 million.

ECONOMY

BIEC expects inflation growth to slow in the autumn

Analysts from the Investment and Economic Cycles Office (BIEC) expect inflation growth to slow down in autumn, but warn that it may accelerate again at the turn of the year.

The Future Inflation Index (WPI), fell from 100.6 points in August to 99.4 points in September. This is the second consecutive decline in WPI, and is slightly stronger compared to a month ago. The index decline, however, does not mean a decline in inflation, it only points to the possibility of a slower rise in inflation.

CULTURE A Pole eats an average of 5.6 kg of chocolate sweets per year

The average Pole ate 5.6 kilograms of chocolate sweets in 2021, putting the country in fourth place after Germany, the UK, and Bulgaria, according to the "World and Polish Chocolate Market" report. Poland maintains its 4th place among the world's largest chocolate exporters.

According to Wedel's "World and Polish Chocolate Market" report, last year the average resident of Poland ate 5.6 kilograms of chocolate sweets, and by 2027 this value is expected to rise to 6.2 kilograms. First place is held by Germany, whose citizens consume 8.5 kilograms, second place by the United Kingdom (7.3 kilograms), and the third by Bulgaria (6.1 kilograms).

TRANSPORTATION

Radom airport is ready to receive its first passengers in 2023

The construction of the Warsaw-Radom Airport has been completed in less than 2.5 years and will receive its first passengers next year. The facility's terminal is ready to handle 1 million passengers a year. The target will be 3 million passengers. It will take over most of the traffic from the existing Chopin airport.

It has already been announced that LOT Polish Airlines will fly from Radom airport to Rome, Copenhagen, and Paris three times a week.

The travel agency Itaka also announced the opening of seven new destinations from Radom to five countries - Albania, Bulgaria, Greece, Spain, and Turkey.

ECONOMY

Poland's economic growth in 2023 could be around 2%Borys from PFR

Poland's economic growth in 2023 could be around 2%, and around 4.5% in 2022, the head of the Polish Development Fund (PFR), Paweł Borys, told journalists on the sidelines of the Economic Forum in Karpacz.

"Economic growth will remain positive, I assume about 2% GDP growth next year. It should not lead to an increase in unemployment. (...) Economic growth this year is expected to be around 4.5%," the PFR president

said. According to Borys, Poland is not threatened by a stagflation scenario.

CORPORATIONS

Netflix opens office in Poland, looking for employees

Netflix’s hub for the Central and Eastern European region began operating in Warsaw on 5 September. Until now the Central and Eastern European region has been managed from the Amsterdam office, but the staff responsible for these 28 markets has recently moved to Warsaw, according to wirtualnemedia.pl. Netflix is looking for specialists from the entire CEE region and beyond, primarily professionals with experience in marketing and film production.

ENERGY EU Commission proposes to cut electricity consumption

The European Commission proposes to introduce an obligation to reduce electricity consumption by at least 5% during selected peak price hours as part of the emergency intervention in Europe's energy markets. Member States will be required to identify the 10% of hours with the highest expected price and reduce demand during those peak hours. The Commission also proposes that Member States aim to reduce overall electricity demand by at least 10% until 31 March 2023. According to a statement by the Commission, reducing demand at peak times would lead to a reduction of gas consumption by 1.2bcm over the winter.

ENVIRONMENT

Poland is among the countries most threatened by water shortages

There are currently about 100 retention reservoirs throughout Poland, and the level of this retention is 6.5%. This compares with as much as 45% in Spain, with 1,900 reservoirs. According to PGW Wody Polskie, to meet the needs of the economy and counteract the effects of drought, the level of retention in Poland should be at least twice as high. In Poland, there are about 1,800 cubic meters of water per inhabitant per year, but in periods of drought, the amount drops to as low as 1,100 cubic meters. In Europe, the average is almost three times higher, at around 5,000 cubic meters per person. Meanwhile, according to the definition adopted by the UN, the limit of "water stress," i.e. the threat of water deficit, is the threshold of 1,700 cubic meters per person.

BUSINESS

The wood industry could face declining margins in coming quarters

The wood industry in Poland is likely to face persistent cost pressure and much more difficult demand conditions, which could result in a decline in margins, according to a report by Bank Pekao. The wood industry experienced a boom last year when aggregated net profit of the sector increased by about 2.5 times compared to 2020, reaching a record PLN 4.6 billion.

Quote of the month

“There are two main factors behind the increase in wages: the continued high demand for employees amid record low unemployment and high inflation exceeding 15%. The dynamics of wage growth in the coming months is likely to weaken, however”

Anna Wesołowska of Gi Group

LOKALE IMMOBILIA

INVESTMENT

Poles massively buy houses in southern Europe

Poles are actively buying houses and flats in southern Europe. The most popular are Bulgaria, Italy, Spain, and Croatia. Poles often buy properties that Russians are getting rid of.

Buying a flat in the south of Europe is an investment strategy for many Poles, but also an idea for retirement, writes innpoland.pl. Some decide to take this step because prices in Poland are high, and loans are becoming increasingly difficult to obtain.

One of the most popular destinations is Bulgaria. For example, for the price of a one-bedroom flat in Warsaw, one can buy a two-bedroom flat with a sea view in Bulgaria. A few months ago, it was possible to buy such a property for just €35,000. Now the sums have doubled, but they still attract foreigners.

RESIDENTIAL Prices of studios in Gdańsk outpace Warsaw

For the first time, the average offer price on the rental market in Gdansk has been the highest among the ten cities analyzed by the real estate service Otodom. Gdańsk is even slightly ahead of Warsaw, where the average price for small premises, up to 38 sq.m., amounted to PLN 2,551 compared to PLN 2,577 in Gdansk.

The report also shows that in some cities the increase in offered rents was in double digits. Here again, the record holder was Gdansk - thus, the price increase for flats of 60-90 sq.m. on a month-on-month basis was 17.2%

HOSPITALITY

Hotels in Poland are considering closing for winter to cut energy costs

More businesses are on the brink of profitability due to increases in energy prices. Marcin Mączyński, general secretary of the Economic Chamber of Polish Hotel Management says some hotels are considering closing for winter to cut energy costs.

"Although hotels had a pretty good number of guests for the holidays this year, at a level comparable to 2019, unfortunately, we cannot say the same about profits. What hoteliers earned has been eaten up by rising electricity and gas prices," he said in an interview with propertynews.pl.

RESIDENTIAL Residential real estate prices in Warsaw in Q2 increased by 9.4%

The prices of Warsaw’s residential real estate grew by 9.4% in the second quarter, Knight Frank reported. This puts Warsaw in 72nd place in terms of price growth dynamics among the largest cities in the world. On average, prices grew by 11.7% in large cities globally.

Turkish cities stand out. Prices in Istanbul, Ankara and Izmir grew by  184.9%, 165.4%, and 150.9% respectively, fueled by inflation and low supply caused by high prices of building materials.

RESIDENTIAL Rental prices are stabilizing, but they will not get cheaper in autumn

The rise in rental prices has started to slow down. In July, average rates were only 0.6% higher than in June. It happened due to weaker demand, while the affordability of flats for rent has improved.

The number of rental listings increased for the second consecutive month. There were more than 50% more new ads than in April, according to a report by Expander and Rentier.io.

The report's authors argue that we should not expect to see a clear drop in prices on the rental market any time soon. This is evidenced by the situation in the housing market, i.e. high property prices and high loan installments.

PREMIUM FINANCIAL INVESTMENTS

Real estate is the most stable and reliable form of investment. However, it is worth noting that premium apartments, where location and quality of craftsmanship are paramount, are becoming increasingly popular. Of all of this class of apartments sold in 2021, as many as 30% of transactions were based in the Tri-City!

Many transactions were mediated by Invest Komfort – a developer with 27 years of experience, whose portfolio includes apartments located in prestigious Tri-City districts. With a wide choice of unconventionally designed real estate, created with the utmost care and designer trends in mind, each client can choose a top-class apartment, ideally suited to his or her own expectations and investment plans. Regardless of size and address – the property’s value will continuously increase.

Gdynia: a house overlooking the sea  Portova Apartments were built in Gdynia’s industrial district, at the junction of the city and port, and are a tribute to the city’s modernist traditions. The form and finish of the investment also echo this fascinating period, which shaped the city’s architectural and urban image. For residents at the top of the building, the architects have provided a private outdoor terrace with stunning views of the Gdynia panorama. Portova Apartments’ perfect location and convenient access to nearby infrastructure make it an excellent and fastworking investment, especially considering the growing popularity of Gdynia and its cultural offerings.

Sopot: in the vicinity of the Tri-City Landscape Park  “Smolna Sopot Apartments” is a dream investment for those who value nature as well as modern architectural design. The intimate estate combines Scandinavian minimalism with the Far Eastern philosophy of the coexistence of home and natural life. A great location for a so-called “second home” or as a rental investment – the estate is only a few minutes away from Niepodległości Avenue and the Oliwa business center. Lovers of active leisure have the trekking and cycling infrastructure of the Tri-City Landscape Park at their fingertips and Sopot’s bustling center can be reached in just a few minutes.

Gdańsk: time creates value  Gdańsk Oliwa is a district with a truly rich history. The Opacka estate, established on the site of the former gardens of a Cistercian Abbey, is no exception. This is a unique investment – much like a work of art, whose value will increase over time. It is perfect for those looking for a second home in a charming and quiet location, yet with good infrastructure and convenient communication. Opacka is worthy of consideration by all homeowners who want to find themselves in the city without losing their sense of privacy. In the newly created nearby park, one can relax by the pond while admiring views of the historic Oliwa Cathedral. For more visit: www.investkomfort.pl

OFFICE

Mindspace to open its second location in Poland in the Skyliner building

Mindspace, a global operator of boutique, flex office spaces, has signed an agreement with Karimpol Polska for 4,400 sqm of floor space in the 42-story Skyliner office building in Warsaw. This will be Mindspace’s second location in Poland, providing over 600 workstations, and is scheduled to open in spring 2023.

Currently, Mindspace has 40 locations in 20 cities and 7 countries in Europe, the United States, and Israel. Poland’s first Mindspace branch, Mindspace Koszyki, is located in Warsaw adjacent to Hala Koszyki, and spans nearly 5,500 square meters. The Mindspace offices offer 781 workstations in total.

“We have been closely monitoring the Polish market for a new location for several years, and the Skyliner building has turned out to be the best option. Its exceptional location and impressive architecture perfectly match our high standards and approach to design,” said Yotam Alroy, Co-Founder and Chief Business Officer at Mindspace.

LOGISITCS

Warehouse market with record results after H1 2022

In the first half of 2022, developers' and tenants' activity in Poland's warehouse market remained high. By the end of June, investments totaling some 2.42 million sqm had been completed, while gross demand totaled nearly 3.9 million sqm. These are the two highest results in their respective categories in the history of the Polish market.

Amid the war in Ukraine, a new trend has also emerged – the so-called "friendshoring", a term for shifting manufacturing to countries with shared values. Although the war in Ukraine has caused changes in the industrial and logistics space market, Colliers experts expect further dynamic development.

RETAIL

Retail Parks in focus for investors

Heavily weakened by the pandemic, the retail sector has gained a new niche among commercial real estate investors. There is now increased activity in investments centered mainly around retail parks in smaller regional cities. Recently, MNK Partners decided to buy retail parks in Piaseczno and Dobre Miasto near Warsaw.

"Retail parks have remained in our area of interest for several years. We see that their popularity continues to grow. These formats offer the opportunity to make quick purchases, and thanks to their wide offer of basic products at affordable prices, they are liked by consumers," said Małgorzata CieślakBelgy, a chief investment officer of MNK Partners.

The impact of the pandemic over the course of two years has increased the popularity of quick, everyday shopping among consumers. As a result, investor interest in retail parks and convenience facilities has increased as well.

SILESIA –WHERE THE FUTURE IS BEING FORGED

Have you ever considered investing in Silesia?

The Silesian region, located in a strategically important area in the south of Poland, is considered one of the most lucrative places to invest in Poland and even in Europe. It is a key economic center of the country, which, among other things, is well known for its solid export performance.

Silesia is known not only for its excellent location, but also for its convenient infrastructure, numerous business and investment opportunities, well-trained staff ready to respond to market needs, and the support of business environment institutions.

In the 2020 Warsaw School of Economics report, the region was classified as the second most attractive place for investments in Poland. In addition, the Financial Times Group’s fDi Intelligence magazine ranking selected Katowice Special Economic Zone, which is situated in Silesia, as the best economic zone in Europe in 2017, 2019, and 2021. It was also ranked fifth among the world’s best economic zones in 2021.

Moreover, Silesia holds the title of European Entrepreneurial Region for 2021-2022. According to the fDi Intelligence for 2022-2023, it ranks among the top ten European regions in terms of attracting foreign direct investments (FDI) and economic efficiency.

Silesia has enormous investment potential, especially in terms of human capital and an excellent academic and technological base. It is home to 30 institutions of higher education, including the prestigious Silesian University of Technology.

If you are considering investing in Silesia, the Silesian Investor and Exporter Assistance Center is available to provide information. The Center attracts investments in the region, knows all the intricacies and nuances of the market, and is ready to help investors facilitate the process by providing them with up-to-date investment proposals and organizing international cooperation with foreign partners.

More information can be found at: www.invest-in-silesia.pl

INNOVATION

POLISH CITIES OF THE FUTURE 2050

Armed with unlimited imagination and expert knowledge, students of the Faculty of Architecture of the Warsaw University of Technology are reimagining Poland’s capital city. Visitors discovered a range of new urban landscapes in the exhibit "Warsaw 2025 - the city of the future".

A GIANT AQUARIUM over Karski Boulevard, a green Silesian-Dąbrowski Bridge and a "hidden" Jerozolimskie Avenue – is this what Warsaw will look like in 2050? Up until September 18th, in front of the Zodiak in the city center, visitors had an opportunity to examine the visions of students from the Faculty of Architecture of the Warsaw University of Technology, who were inspired by the report “Polish Cities of the Future 2050”.

Students presented visions of the capital on several boards. Each of them were divided into two parts. One showing how a specific place in Warsaw looks like today, and the other showing what the same place could look like in 30 years.

In creating their vision of a future city, the students were

inspired by the report "Polish Cities of the Future 2050" prepared by the Saint-Gobain company in cooperation with the Polish Society for Studies on the Future.

The report was accompanied by a ranking of cities of the future. It takes into account the largest Polish cities and assesses which of them best implement solutions that make the vision of a city of the future a reality. Poland’s capital was ranked first in this list.

“The architecture of future cities will depend not only on architects, but also on social factors. Will we work at home or in an office? Will we move in zero-emission vehicles or in rail transport? Will we relax in a real or virtual space?” asks Karolina Zdrodowska, the Director and the Coordinator for Entre-

preneurship and Social Dialogue at Warsaw’s City Hall. “Ideas of specific solutions, but above all questions posed by students are a challenge and an inspiration for us to act. We want to leave [behind] an even better city to live, work and develop for the next generations of Warsaw citizens. Perhaps similar to the visions that the students present at the exhibition.”

According to Michał Ciesielski, Brand, Communication and Digitalization Director of the Saint-Gobain Group, “We are pleased that our report is slowly becoming a substantive standard to which other talented young architects refer in their works. They will decide about the appearance of our cities in the future. These visions seem very promising, and from the technological perspective, which we can easily assess, we know that they are achievable today.”

“Our vision of Warsaw of the future correlates with the world's observable trends. In this vision, we give the city to Varsovians. That is why, among other things, we hid today’s well-known Jerozolimskie Avenue, which is most frequently viewed from the perspective of the car. [We are] proposing a newer version dedicated to pedestrians. We proposed the development of Podmoście in the Old Town, because we wanted to combine the Mariensztat, the Royal Gardens and the Boulevards with the architecture of the Old Town. The SilesianDąbrowski Bridge, on the other hand, can be a beautiful,

friendly green link between the two banks of the Vistula River. Of course we have more proposals. I invite you to visit the exhibition,” says Michał Skowroński from the Scientific Circle of Architecture of Tomorrow, the coordinator of the project. The co-organizers of the exhibition in front of the Zodiak –the Warsaw Pavilion of Architecture – are the capital city of Warsaw and the Saint-Gobain Group. Full elaboration of the reports: Polish Cities of the Future 2050 and Polish Cities of the Future 2050 Through the Eyes of the Young, together with a description of the methodology of their creation and scenarios of the future can be found at:www.miastaprzyszlosci2050.pl

“Ideas of specific solutions, but above all questions posed by students are a challenge and an inspiration for us to act”

Photo above left, Jerozolimskie Avenue, 2022; above right, a vision of Jerozolimskie Avenue in 2050 by students of the Faculty of Architecture of the Warsaw University of Technology Image above right, Targowa Street, 2022, below right, the students’ vision for Targowa Street in 2050

REGION SPOTLIGHT SILESIA SILESIA - A PLACE WITH ENORMOUS INVESTMENT POTENTIAL

The Silesian region is the second most attractive region for investments in Poland. It is a key economic center of the country with solid export performance. It is also an important domestic market that generated 12% of Poland’s GDP in 2020.

Between 2010 and 2020, the region showed a GDP growth of 45%. There are 510 thousand enterprises in Silesia, and 10.6% of all Polish companies operate there. Many IT companies conduct their business operations in the region.

Silesia is a great place for business projects, including start-ups, which have become particularly popular in Katowice, Gliwice, and Bielsko-Biała.

Thanks to its innovative entrepreneurship strategy, Silesia is, among other things, entitled to be a European Entrepreneurial Region for the years 2021–2022. It also ranked among the top ten European regions in terms of attracting foreign direct investments (FDI) and cost-effectiveness according to fDi Intelligence for years 2022–2023.

Location and transport accessibility

Silesia is situated in the southern part of Poland and covers 4% of its territory. There are 13 European capitals with a population of 225 million within a radius of 1000 km from the Silesian region. It is considered the best-connected region in Poland, as the dense road network enables residents and tourists to move quickly and safely around the area. The region contains almost 400 km of motorways and expressways and over 2000 km of railway tracks.

Also, Silesia has Euroterminal, which serves traffic from China to Europe which is 9500 km long. Silesia is also home to Katowice International Airport in Pyrzowice. In 2019, before the pandemic, it carried 5 million passengers. In 2021, a record 32,104 tons of cargo were transported from and to Katowice airport, making it the second largest in Poland.

Investment potential

Silesia has enormous investment potential for multiple reasons. First, it has an excellent geographical location and convenient road infrastructure. The region can be considered a gateway to the European market. Among the largest investors in the area are Germany, Italy, the Netherlands, South Korea, France, the UK, and the USA. There are 2300 foreign

(2).,

companies in Silesia. It also offers high-quality management, employees with sought-after profiles, and an excellent academic and technological base. Apart from this, the unemployment rate in the region is the second lowest in Poland at 3.7% in July.

The Silesian region can boast a strong export-oriented strategy. The major export industries of the region are parts and accessories for vehicles, cars, metallurgical products, and plastics.

The Katowice Special Economic Zone, which is situated there, covers the whole Silesian region and part of the Opole region. The presence of one of the best economic zones in the world implies the total value of investments amounts to almost EUR 10 billion. More than 90,000 employees and 540 companies from Europe, North America, and Asia work here.

The economic zone offers certain benefits to investors, especially tax exemptions. It may apply when establishing a new plant, introducing new products, increasing production capacity, changing the production process, and acquiring a closed enterprise. Large companies may count on the exemption of up to 30%, medium-sized enterprises – up to 40%, and small companies –up to 50% exemption of investment expenditure together with two-year’s worth of labor costs.

Silesia also offers direct and indirect forms of support to people who plan to invest in the region.

Infrastructure for investors

Silesia offers a well-developed infrastructure for investors with more than 600,000 square meters of office space. More than one million square meters of office space is expected in 2023. Katowice, Bielsko-Biala, Gliwice, and Czestochowa are the places with the most notable development of co-working spaces in the region.

In addition, there are over four million square meters of modern warehouse space available, which is 1/5 of the domestic market.

Education and R&B

The region is home to a decent

number of educated people, which offers bigger opportunities for businesses. In 2019, 24.2% of the population in Silesia had a university degree, 2.2% more than on average in Poland. The number of people with higher education in the region increased by 28.5% compared to 2010.

There are 30 higher education institutions in the region. In the Perspektywy 2021 academic ranking, the Silesian University of Technology ranks third.

Among all fields of study, the most popular in the region are business, administration, and law - 22% of people study them. Health and social welfare (17%) are in the second place, and technology, industry, and construction (14%) are in the third place in terms of popularity among locals.

The region is also known for its strong research and development activities. In 2020, there were more than 700 research and development organizations operating in the region. These involved more than 26,000 employees, including almost 15,000 researchers.

A region to live

Silesia is a green, ecologically friendly place to live in, as 32% of the region is covered by forests. There are also 15 protected landscape areas and 65 nature reserves.

The largest city in the region is Katowice. It also holds the title of European City of Science in 2024, the capital of esports and the venue of major events. Intel Extreme Masters Katowice 2022, European Future Forum, Fest Festival, and Climate Change Conference COP24 in 2018 were held there.

The Silesian region is a popular place to visit with more than five million tourists a year.

Surface area: 12,333 km2 - about 4% of Poland’s territory

Population: 4.5 million people - second place in Poland

Urbanization rate: 77% - first place in Poland

Regional capital: Katowice

International Congress Centre

Katowice Airport

Images From Top: Katowice City Center

Facts about Silesia

Setting the strategy for sustainability

Tackling climate change today is a priority in every European industry. However, sustainability is not a one-size-fits-all solution. As Ewelina Jablonska Gryzenia explains, Raben has set the bar high for both itself and its partners in building sustainable industry-focused goals, including clear reductions in CO2 emissions by 2025 and expanded fleets of EV trucks.

You have updated your sustainability strategy. What key measures and changes should you take towards the 2025 plan?

The strategy sets the direction, like a guiding star, and the direction has been clearly defined – sustainability is the goal. As a European TFL (transport, forwarding, logistics) leader, we are aware of our responsibility for the environment and for society. Building a better, more sustain-

able future is our commitment to customers, financial partners, civil society, employees and other stakeholders.

Today, tackling climate change appears to be one of the most important challenges and failure to do so represents a key risk. At the same time, the COVID-19 pandemic has raised the importance of social issues and corporate resilience. It is these factors that have driven us to rebuild our sustainability strategy in 2021. During its formulation, we rethought all of our ESG material risks and opportunities, which allowed us to clearly define our sustainability goals.

Environmental protection, responsible organization and social impact are the core pillars of our Sustainable Strategy. Climate-change targets and initiatives are Raben Group’s most visible sustainability-related programs but our strategy also focuses on the circular economy, employee health and safety, and working conditions, as well as continuously improving corporate governance.

Environmental protection, responsible organization and social impact are the core pillars of our Sustainable Strategy

You have been approved for and granted a sustainabilitylinked loan by seven banks. What are your obligations under this commitment?

It is noteworthy that this loan has been one of the first sustainability-linked loans for the European logistics sector. The signing of the loan agreement was preceded by intensive discussions between Raben Group and bank representatives, whose priority was to define sustainable development goals and set up real goals in line with the Sustainability Strategy and the Raben Group Eco2 Way 2025 initiative. Under the agreement, Raben Group has committed to: reduce CO2 emission intensity from Raben facilities by 30% and from transport by 10%, increase the share of the fleet with at least a Euro 5 emission standard or LNG/CNG/electric/hydrogen drive from 73% to 96%, increase the participation of women in management positions to 34% by 2025, and, last but not least, confirm the advancement of the best ESG management practices by receiving a higher Raben Group EcoVadis rating every year.

Is Raben working with SBTi goals and what is your target and timing?

Climate change is one of the biggest threats we have ever faced and one of its causes is anthropogenic greenhouse gas emissions. TFL is responsible for around 25% of all emissions in the European Union, with both light- and heavy-goods vehicles accounting for 38% of these. Transport is also one of

the few industries that have seen emissions rise steadily since 1990. Decarbonisation is a great challenge for the entire sector. However, we must act now.

That is why we have decided to increase our ambitions and have set new reduction targets. To confirm they are in line with the Paris Agreement pathway, we have had them reviewed by SBTi experts.

Finally, we have committed ourselves to reduce absolute Scope 1 & 2 GHG emissions by 38.7% by 2030 (compared to the level of emissions in these scopes in 2020). And lastly, Raben Group has committed itself to engaging its regular carriers, collectively responsible for 77% of Scope 3 emissions, in climate action by 2026, and for them to set emission reduction targets in line with scientific knowledge.

Are you already using electric trucks and what is your vision regarding the total fleet and warehouses reaching zeroemission?

As members of the transport & logistic industry, we are at the early stages of reaching zeroemission transport. However, our long-term goal is to deliver sustainable services to our customers. In real estate, we have already significantly reduced emissions by purchasing green energy with certificates of origin. In addition, we have developed an action plan to go one step further. We signed a seven-year PPA (Power Purchase Agreement) with an energy supplier in Poland. Under the agreement, beginning in 2023, Raben Group

in Poland will use energy from PV power plants in our own facilities.

A vastly more challenging task is to transform the fleet to low- or zero-emission. Based on recent data, only 346 electric trucks had been registered in Europe in 2021. In Raben Group’s fleet, the first electric truck will start operating in autumn 2022 and the long-term plan is to expand the fleet with further EVs. This is the result of cooperation between IKEA Industry, Volvo Trucks and Raben Group to implement zero-emission truck transport between two IKEA factories in Poland.

Will all of these initiatives have a negative impact on your profitability and slow business development?

No, in fact I would say that a lack of sustainability efforts and ESGrelated initiative in the long term can make many companies less profitable and stunt their growth. Lack of action in this area makes companies vulnerable to risks and more sensitive to change. Commitment to sustainability is also valued by customers who are more likely to engage with responsible companies. And finally, the ESG risk assessment underpins the decision-making by financial and insurance institutions. It is an undeniable fact that ESG and corporate performance are strongly linked.

*Transport of the future - prospects for road transport development in Poland 2020-2030

For more about Raben, visit: www.raben-group.com

Ewelina Jabłońska-Gryżenia, Head of Sustainability Raben Group

New Retail Opportunities with EMKA Retail complex in Koszalin

In just a few months, residents of Koszalin will be doing more than just shopping in a modern retail project. EMKA Shopping Center’s second phase looks set to shake up retail in West Pomerania according to Justyna Małysko, Senior Leasing Manager at LCP Properties Sp. z.o.o.

What changes can we expect with the EMKA Shopping Center after the opening of the ongoing expansion phase of the retail park project?

The EMKA Shopping Center in Koszalin, currently under development, is scheduled to open in March 2023. In six months, LCP Properties will open the facility with a whole new size and look. Leasing levels have reached 96% and the latest contracts are now being finalized.

EMKA Center will gain a further 10,000 sq. m of retail and leisure space in the newly constructed part of the development. Eventually, the facilities will be integrated into a shopping complex with a total area of more than 25,000 sq.m.

EMKA Shopping Center Phase I

Expansion of the EMKA project is well underway but it has been on hold for the past few years. You started construction during the COVID -19 pandemic, when the economic situation of many companies and individuals was uncertain. Do you think that taking such a risk will pay off?

Today, EMKA Shopping Center is a compact shopping center with an area of 15,000 square meters, which includes more than 70 shops with a mixed offer - from popular fashion, shoe or beauty brands to service outlets and a rich gastronomic offer. Located within a residential area, the building has been extremely popular for years and

its inner-city location provides particularly good access both by car and public transport. Emka's Shopping Center is tailored to meet the needs of locals, who appreciate it not only as a shopping destination, but also as a place to enjoy free time with their family or to meet up with friends. We believe that having such a unique project in the region offers its residents a great opportunity to do their shopping without leaving the area. We welcome visitors from all over and we are delighted that the shopping center is being built right here on the seaside in Koszalin.

How is work currently progressing? Is there still space available for potential occupiers? The commercialization of the second phase of the shopping center is almost completed, and occupancy is currently at 96%. We are counting on the center’s established commercial presence and the new extended offer to increase customer traffic.

Among the future tenants will be well-known brands such as: Half Price with an area of over 2,500 sqm, the modern network fitness club Just Gym, Helios Cinema, featuring several screening rooms, including premium

classrooms, and one of the largest Sinsay stores in the region, with an area of approximately 1,200 sqm. We have also signed agreements with the popular JYSK network and the first pet store in the city, Zoo Karina.

To answer the question about the ongoing expansion process, I would say that it is proceeding according to schedule. EMKA Shopping Center Phase II is expected to be opened in March 2023.

What distinguishes EMKA from other shopping malls in Koszalin and the surrounding area?

I would refer here to my earlier comment. EMKA Shopping Center is exceptional because of its location, history, offer, friendly atmosphere and many other amenities. In addition, we are making every effort to ensure that EMKA is not just a place for shopping. We are also offering cultural events such as exhibitions, presentations and concerts, often targeted specifically at younger people, to attract customers who will be able to spend time there with their family and stay at the shopping center for longer.

What will the upcoming period

PARTNER SPOTLIGHT

look like for the EMKA project in the context of the challenges of the entire retail sector?

The next 12 months will be a breakthrough period for the EMKA project and a considerable challenge for the entire retail sector. It is difficult to predict how the market will react to the current uneasiness. But considering the current visitor traffic to the shopping center, we are optimistic. After the opening of the retail park, EMKA will offer even more complementary services which should result in a significant increase in customers, including those who previously visited the shopping mall only occasionally. Taking recent events into consideration, such as inflation, the war in Ukraine, and the rise of interest rates, it is clear that there are many variables that are adversely affecting consumer behavior and the industry as a whole. This is particularly evident in sectors that do not meet basic consumer needs. We should expect buyers to be more prudent in their purchasing decisions and to prioritize those that are most important

to them, such as first paying off home loans and everyday shopping, and only then buying luxuries. That’s why the tenantmix that EMKA will offer after the opening of Phase II in the spring is so important.

We hope that despite the uncertainty of the market, the wide range of services available at EMKA Shopping Center will enable customers to fulfil their most essential needs.

LCP Properties is an active player Poland’s retail park sector. The company is expanding its portfolio by acquiring new properties and carrying out investments under the development formula. At the beginning of 2022, the total area of properties owned by LCP in Poland exceeded 360,000 sqm and their value reached EUR 460 million. The company currently has projects in Koszalin, Bydgoszcz and Gdańsk. LCP invests for the long term, focusing on stable growth in property value through active management and maximizing profits.

For more about LCP Properties, visit: www.lcp.pl

The commercialization of the second phase of the shopping center is about to be completed and occupancy is currently at 96%

Justyna Małysko, Senior Leasing Manager at LCP Properties

EMKA Shopping Center Phase II is expected to be opened in March 2023.

– a two-day climate conference in the run-up to the COP27 Climate Summit in Egypt

Agenda will touch on the most important issues of today, such as:

• Green energy revolution

• Circular economy

• ESG – a call for responsibility

• Sustainable agriculture and the food crisis

• Hydrogen and the hydrogen economy

• Cities for the climate and more

SUCCESS CREATES A DEMAND FOR MORE –

An interview with Kinga Nowakowska

by Morten Lindholm

Norblin Factory is a well-known historical landmark that stretches across two hectares of Warsaw. It is also a highly successful mixed-use retail and office development that has energized visitors with its engaging mix of historical conservation and bold design concepts. Kinga Nowakowska discusses the Norblin Factory project and the ideas behind its development.

WBJ:

It took about 10 years to build the modern Norblin Factory project – did you expect that?

Kinga Nowakowska: It actually took longer than 10 years. We bought the plot and the factory in 2008, and we just opened last year in autumn 2021. So it was basically 13 years and obviously no one expects that anything can take so long.

Personally, I was really surprised. My background is in customer service in another industry from an operational site where things had to happen fast. This is a much bolder approach, requiring years to create and invest in something so big, while in the meantime so many things can happen.

Actually, in the case of the Norblin Factory project many things have happened since it was first conceived and the concept has changed several times. In the beginning, we worked with an architectural firm and started with the idea of a building that would also include residential apartments, but after a while we realized that living in such a busy place might not be particularly enticing and that the plot was also quite small in comparison, for example, to Browary.

From 2008, apartment sales were in crisis, and the office building business was taking off in Warsaw’s center. This finally changed our point of view and we prepared a project for offices and mixed-use. From the start, the mixed-use part was particularly focused on retail. Then COVID arrived and the market changed once again, as consumer buying behaviour drastically transformed, and shopping increasingly moved online.

workspace. Also, as you know, [during this time] the world ground to a stop and the delivery chain was broken. So we had to wait much longer for everything.

When entering a project, no one ever takes such a long view because it’s impossible to try to make an Excel budget for the next 13 years - you need to be more optimistic to invest in this kind of project.

Do you plan to sell it ?

Our mission is to develop investment project and add value to them. As you can see from our history, we like challenging projects, it is in our DNA.

When we originally bought Eurocentrum Office Complex on Al. Jerozolimskie in Warsaw it was a single tower that had an underground parking area sufficient for three towers. We completely redesigned the project, made it much more efficient and then developed it into a high class office center, still using the underground parking. It was quite a challenging project and required a lot of courage.

When we bought the plot for Royal Wilanów from Skanska in 2008 all our advisors said no, it's a stupid idea, people only sleep in the suburbs. However, today everything is occupied, every square meter is leased, and all of the retail and office spaces are full. We have companies and entrepreneurs waiting for the next space to open up.

But you did not sell Royal Wilanow?

Not yet. We want a good price. We were ready to sign an agreement, yes. But then the war started, and that changed the game a little bit, investors put their decisions on hold. Now rent is with indexation, this is a good inflation hedge and we are managing the building. Plus, people love it, especially everyone living in Wilanow. In contrast with other offices in the business district, the building was already full two months after the long lockdown ended. We didn’t have any problem attracting people back to the premises and none of our tenants have had any problem getting people to come into the office.

Of course, great retail brands need flagship stores in prime locations, but we couldn't compete with Westfield’s Galeria Mokotow or Arkadia, because we are smaller. So in order to differentiate our offer, we decided to become truly unique. And, at the end of the day, it's great because we have many completely new concepts that are exclusively available at Norblin Factory.

As a whole, the final project is a complex and creative solution that showcases unique art, design and entertainment ideas, and distinctive store concepts.

Getting the building permit took nearly a decade. Building during COVID times was a challenge, both with regard to protecting people from the virus and creating a safe

Again, with Norblin Factory, what started as a challenging and crazy idea has now, since the world has changed, become a big success. We bought a plot of two hectares in the central business district with 11 old buildings, 9 registered protected monuments and one listed monument plus nearly 50 machines from the old factory. Of course, at the moment of purchase, it’s difficult to calculate how long everything will take, what challenges will arise, and how much you will spend on protecting the monuments.

We had a lot of limitations with this project including the fact the new office buildings couldn't be taller than 42 meters high, requiring us to actually dig 35 meters down, almost the same construction up and down.

When you bring old buildings back to life and recognize their history, they become something more than they were before.

Did you re-use materials from the old building for the renovation?

We used materials and bricks from the 19th century. We conducted thorough research, consulting with expert conservators on every brick. It was really a special experience.

As a whole, the final project is a complex and creative solution that showcases unique art, design and entertainment ideas, and distinctive store concepts

900 tons

was the weight of one historic building which needed to be moved by 15 meters to enable building works and was then moved back

106 trees

have been planted within the whole complex on the ground floor and up to the eighth floor

350 bicycle spaces

200 are available for office workers, almost 100 are for Norblin Factory visitors in the first automated bicycle parking in Poland and around 50 other places are available in the bicycle racks

10 historic buildings

Make up the entire factory complex of the former silverware factory from the 19th century and were preserved as historical monuments according to the design

5 0 historic machines

Under the supervision of a conservationist, these machines needed to be preserved and incorporated into the final project

Even the wall around the plot is built and restored with the original bricks.

Some parts of the restoration were necessary because the buildings were registered as historical monuments and thus protected for conservation. But we did much more, because we wanted to re-use and maintain this heritage site as much as possible.

It's been a huge investment. There was a moment when there were approximately 100 conservators with different specialties working on the site. There was a specialist for the windows, someone else for the doors, conservators for the machines, and others for the bricks and the protection of the buildings. We conserved around 1.7 million bricks.

In BioBazar, you can see an entire bar made from materials salvaged from one of the old factory machines, in the Piano Bar you can find a lot of elements from the old buildings. The same goes for outside the buildings, where benches and tracks are made from old machines and leftovers from the factory buildings because we want to protect them and enrich them. And that is the whole reason behind our approach because a space like this becomes interesting when you give it new life.

Likely many investors and developers will question whether it is worthwhile to make all of these investments up front?

I think it will pay off. Let me explain why. The entire office part was immediately rented out, and we were able to charge slightly higher rent than the market average. This has never happened to us before. When you build something unique by paying attention to the details and creating a fulfilling atmosphere, it shows. People will flock to this type of development and are ready to pay a little bit more to be there.

This is a landmark in and for Warsaw. You must be very proud of it.

This is the kind of success that comes from the collaborative efforts of a creative team who spent their time together sharing ideas and engaging with each other. We also chose our tenants very carefully. We asked them to create something unique. We do not have the usual shopping center brands in Norblin Factory. We do have Medicover Dentists, but they were asked to create their clinic in style, which they did using industrial design elements. When you enter, you don't know if you are in an art gallery or a clinic. It is the same with PKO Bank Polski, when you enter, it's more like an art gallery than a bank. We appreciate that our tenants are willing to play along with us.

As I said earlier, we also have many partners and tenants whose presence is exclusive to Norblin Factory. The Art Box Experience is the first immersive and digital art gallery in Poland, and the Apple Museum Poland has the largest collection of Apple products in Europe. We also have KinoGram – a cinema complex with live music and an art gallery. Our food hall, Food Town, is the biggest gastronomic zone in Poland with 23 vendors, 6 bars and several separate restaurants. BioBazar is an eco-market with certified products.

In the middle of October, Smart Kids Planet will be open-

ing. This is a very good educational provider with a unique concept for education, games and play for kids and youngsters up to 10 years old.

You told me already that certain things during the project process were changed or optimized. Is there anything you regret?

No, I am extremely proud of what we created. What we didn’t have was luck. Because of COVID and the outbreak of the war – many consumer and working habits have changed things that neither we nor anyone else could predict. Let me give you an example – do you see the big outdoor poster on the full façade over there, promoting the new movie Broad Peak? It premiered in the cinema last week and, as of yesterday, you can see it on Netflix. This is a clear example of the fast changing environment. It is also a new challenge for cinema operators, and we must work with our partners to find a solution for it.

I attended your opening conference about one year ago in KinoGram, where you introduced many talented people from different associations with whom you work in the Norblin Factory Foundation. This organization has established visionary projects centered around art, design, music and film.

Yeah, this is a little bit my job and vision. But of course, the idea comes from many contributors. I'm not the only one

who thinks that we can do great things, something utterly unique, in this amazing environment. Because honestly, real estate without a creative spark is boring. Hopefully we can make an impact with our efforts and invite others to bring creativity and life into the buildings.

In Royal Wilanow, we created outdoor and sports facilities for kids and families to relax and enjoy. This was a great investment, it created a sense of attachment and connection to the building and its facilities. In Norblin Factory, we have no space for outdoor fields, etc., so we searched for another solution. But here we have the building’s history to lean on, so this became our focus point – the incredible history of the people who ran this factory in the past. German and French families set up the factory and produced the platters that were sold all over the world. They also

When you bring old buildings back to life and recognize their history, they become something more than they were before

promoted art. Jean Pierre Norblin, the first Norblin here, was a famous painter and his works are now in the Polish National Museum. The next Norblin, 100 years later, was Stefan Norblin, a very famous poster artist, whose posters are now available in the Museum of Posters in Wilanow. The families was highly focused on charity work, and also supported both art and education; as a tribute to the Norblins' and Werners’ cultural legacy we want to continue this. We want to continue their work and we try to re-establish the identity of the Norblin Factory out of the culture and history that remain here as the Norblin Factory Museum. That is why we are focusing on art and the promotion of talented young people.

What about the foot traffic in the buildings? Do you measure it?

Yes, we measure traffic at the entries to the buildings. Inside we have over 300,000 visitors per month, so in fact it is likely much more, as people not entering the buildings are not measured. However, it is quite important traffic. We have also big numbers through Google search, and the Norblin Factory is googled 1,500,000 times per month.

Furthermore, more than 66,000 people have downloaded our app on their phone so we can communicate with them.

I am positive that the numbers will continue to grow as we are adding more and more attractions. So we can easily double the number of visits.

What about the tenants of the food and entertainment part of the project in particular. Are they happy? During the summer, we had a lot of visitors. People came here, they spent time eating, having drinks and enjoying the music and entertainment. The tenants are very happy.

Now we are ready to create a promotion around the idea that you can come here for shopping also. We will start to regularly promote the BioBazar and all our shops as a place for shopping and family entertainment.

Due to our wide variety of mixed options, we also now invite schools to come during the day, because venues like the Apple Museum, KinoGram (cinema), the Artbox Experience, and the Norblin Factory Museum help schools give their students a rewarding experience.

Success creates the demand for more. What can we expect next from Capital Park?

We are now moving a little more in the direction of apartments and residential spaces. We have just bought a nice old building in Szczecin and we are also investing in Polski Hak which is a beautiful plot in front of the Gdansk Old Town. Situated right where the rivers meet, this is an exceptional place for apartments with unique views.

But we are also looking for something larger. We want to create places and whole parts of cities with different functions that are open to people. Right now we are still looking. We do have some ongoing projects and plot options but we are discussing them with investors.

Has the international media paid attention to your success?

We have won several awards both locally and regionally. We have some news from Europe and the world, but for now I have to keep it to myself. Yes, the international media also appreciate these kind of investments and we have really good feedback. So I think we will be seeing international appreciation of our work, which is great also for Poland, especially during this war, because now we are seen as a country that is a little bit too close to the action.

Can we talk a little bit about sustainability and your efforts in this space?

We did as much as we could. Of course, we are certified BREEAM and it was always our focus. All our new buildings were certified. We were one of the first to really focus on the ECO certification for buildings in Warsaw with Eurocentrum Office Complex. First it was LEED, and then we succeeded with BREEAM certification in Royal Wilanow.

Now we are evaluating whether to build solar panels on Norblin Factory. We can do it, we have the space, and it is the sensible choice.

Other than that, we have used sustainable technology such as low-reflecting glass and the walls feature elements visible to birds to avoid collisions. We have bees on the roof of course, like always. Other solutions include LED lighting and lighting control that adapts to dusk and the presence of users, there is heat recovery from the service and commercial part, energy storage, rainwater is collected and used for watering greenery and flushing toilets, there is energy recovery from elevators, and chargers for electric vehicles.

We are also very focused on bicycles, and encourage our tenants and visitors to use the bikes by offering an automatic underground parking and suitable infrastructure such as showers and lockers for those who come to work here by bicycle.

One last question, can you tell us something you haven’t told anyone about the Norblin Factory before?

We had a dream that an entire facade of the office buildings could be made of plants - a huge green wall. It was a former factory site and a heavily industrialized area, so it lacked an active ecosystem. We considered how to incorporate as much greenery as possible in our project. We took this topic to the workshop where we made analyses and valuations, but it turned out that our atmospheric conditions make it impossible to develop and maintain such a large area with living plants. However, we came up with another idea for introducing plants to the Norblin Factory, and, as a result, we have planted more than 100 trees there, which grow not only in the streets of the complex, but also on all the office terraces up to the eighth floor. And we also introduced green walls on smaller parts of the buildings.

65,000 sqm

GLA Is available in the multifunctional complex which offers both retail and office space

24,000 sqm

Of the complex are filled with unique entertainment, culture, service, health & beauty and retail concepts and are 85% leased

3,300 sqm

Cinema features seven screening rooms seating a total of 525 people 100

conservators with different specialties worked on the site, including a specialist for the windows, someone else for the doors, conservators for the machines, and others for the bricks and the protection of the buildings.

POLES FEAR DEFICITS IN STORES. What’s behind this consumer panic?

More than half of Poles fear goods shortages on the supermarket shelves, a recent study by UCE RESEARCH and BLIX Group has showed. The war in Ukraine, rising inflation, and supply chain disruptions are fueling this fear, especially among the elderly and people from small towns. According to Krzysztof Łuczak, chief economist at the BLIX Group, while concerns about possible shortages of goods are exaggerated, they are a sign of consumer uncertainty.

BY ANNA RZHEVKINA

anic buying episodes have occurred several times in recent years. At the beginning of the pandemic, Polish consumers stockpiled basic goods like rice, canned food, and toiletries. The situation was repeated again in March, after the beginning of the war in Ukraine.

During the COVID-19 outbreak, the panic in food markets lasted for about three weeks, while in March the situation normalized much faster and supermarket shelves were full again within a week. However, consumers react rather nervously to reports of possible good shortages. Andrzej Gantner, director at the Polish Federation of Food Industry, told the Warsaw Business Journal: “Feelings of food security, trust in the government, and in the entire system has been damaged.”

Psychologists explain panic buying as being driven by fear of the unknown and attempts to control an uncertain situation. Many simply look at what others are doing and follow the flock to soothe themselves. Galloping prices for groceries further worsen the situation. Worried that products will be even more expensive in the future, people rush to buy more than they really need.

Marek Kośny, chairman of the Scientific Council of the Polish Economic Society, however, warns that preparing for the worst-case scenario may cause more harm than good. “Increased demand, unjustified by current consumption needs, may lead to further price increases, periodical shortages of individual goods on the market and, consequently, to a growing panic,” he told Warsaw Business Journal.

SUGAR RUSH

A notable example of consumer panic occurred in July when Poles ran to buy sugar, fearing shortages and price increases. Photos of empty shelves on social media further fueled this sugar rush. Agriculture minister Henryk Kowalczyk announced that there was no sugar deficit in the country. However, his reassurances did not stop customers from buying up to 100 kilograms at once, according to Rzeczpospolita. In response, major retail chains introduced a limit of 10 kilograms per customer.

Poland, the third largest sugar supplier in the EU behind Germany and France produced 2.3 million tons of sugar in 2021-2022. This is more than the country needs for domestic consumption, and the annual export amounts to about 500,000 tons.

“The panic was not caused by a real deficit, but by logistical problems at one or two big retail chains, and then it spread to the whole market,” Gantner, of the Polish Federation of Food Industry, explained. He added that small stores started buying sugar from supermarkets instead of wholesalers because the prices there were lower.

“This was an artificial panic,” Gantner said, noting that retail chains were slow to inform consumers about ongoing logistics issues. As consumers rushed to buy, the sugar

prices jumped in stores amid the panic. “Clearly, later it was escalated by some market participants that saw an earning opportunity,” Gantner added. In local stores, sugar prices skyrocketed to PLN 7-10 per kilo, while after the panic calmed down, they went back to a regular PLN 5 on average.

Buying sugar in amounts that exceed actual consumer needs has led to a limited availability and to a sharp increase in prices, Kośny said. “At the same time, it looks like price increases have become a mechanism to stabilize demand and restore equilibrium to the market,” he noted.

The retailers that stocked up on products sought after by consumers benefited from additional profits. At the same time, consumers themselves provoked the price increases by sweeping away goods from the shelves, Łuczak, from BLIX Group, told the Warsaw Business Journal.

THE REAL RISKS

Poland domestically produces all basic products, such as grain, meat, dairy products, fruit, and vegetables. On top of that, about 40% of total production goes for export, and

“ BUT AS LONG AS ENERGY SUPPLIES ARE STABLE, THERE IS NO DANGER OF BASIC GOODS SHORTAGES

in case of an emergency, Poland could redirect these volumes to the domestic market. In comparison to many countries, such as the Czech Republic, which has to import about 50% of its food products, Poland is in a much safer situation.

The real struggle that manufacturers face is producer price inflation, which is much higher compared to consumer inflation. The prices of industrial production in July increased by 24.9% annually, according to the central statistical office. Firms are dealing with galloping electricity prices combined with higher material and labor costs. In practice, this means that producers must accept lower profits to cover the costs that they don’t pass on to consumers.

At the same time, demand slows down as consumers buy more carefully and look for cheaper products. “It could happen that some of the companies will not be able to lower prices at some point, and on the other hand, they are facing rising costs. The effect would

be stagflation on the food market – a decrease in demand amid constantly growing costs,” Gantner said. He added, however, that this is a longterm rather than an immediate risk, and it would not provoke an instant deficit.

Another big worry is access to electricity, gas, and coal. In the food and agriculture industries even short-term energy supply disruptions can hinder production for weeks. In August, sector representatives applied to Prime Minister Mateusz Morawiecki, seeking an improvement in procedures for energy supplies to entities involved in food production.

“Poland, as one of the largest food producers in the EU, is not only selfsufficient, but also guarantees food supplies to other Member States. However, maintaining this role requires ensuring the continuity of production, and this in turn is linked to ensuring the supply of energy carriers,” the letter said. The authors noted that access to electricity guarantees supplies of

food, while potential restrictions can cause panic and destabilize economy.

NO FERTILIZERS, NO BEER

At the end of August, Poland's biggest chemicals firm Grupa Azoty and PKN Orlen’s unit Anwil suspended nitrogen fertilizer production citing surging gas prices. The food industry warned that the resulting lack of carbon dioxide (CO2) - a byproduct of chemical production – could hinder food security.

Carlsberg warned that it may significantly reduce or even halt beer production in Poland if CO2 deliveries are not resumed. Beer producers use CO2 to add fizz to drinks, while the food industry needs it to cool products during transportation. A week after the suspension, Anwil announced the decision to restart its fertilizer production “for the sake of food security”, calming the situation at the market.

In September, Minister of Agriculture Henryk Kowalczyk said Poland is working on a support scheme that would allow farmers to buy fertilizers at acceptable prices. He added that the government wants to cap fertilizer prices at PLN 4,000 per ton.

Even though the fertilizer production crisis was resolved in just a few days, it exposed the vulnerability of the food industry amid the energy crisis. But as long as energy supplies are stable, there is no danger of basic goods shortages. Kośny says that while there are products with limited availability like sunflower oil or paper, there are relatively few of them.

While there are no risks of deficits, constantly growing prices can affect consumer moods. Łuczak expects the most notable price increases to occur for fat products, dry goods like rice and grains, dairy, and meat products. In his view, if panic buying episodes happen in the future, consumers are likely to rush for these products. “The most disturbing fact is that Poles only need a little impulse and a little information in the media, especially in social media, and panic may occur again,” Łuczak said.

JOB MARKET RESISTS ECONOMIC TURMOIL

Despite recent economic troubles and the cost of living crisis, Poland’s job market is still booming. Whether the current trend continues remains to be seen, however, as financial pressures are impacting new hires.

BY ANNA RZHEVKINA

The Polish job market has so far been remarkably resistant to the economic slowdown. The country’s unemployment rate is the second lowest in the European Union, and wages are growing at a double-digit pace. In the first half of the year, 97% of companies searched for new employees, a report by recruitment consultancy Hays has revealed.

“After a short pandemic slowdown, the Polish labor market has flourished, making talent acquisition and retention more difficult than ever before,” Alex Shteingardt, Regional Director CEE, Managing Director Poland at Hays told the Warsaw Business Journal. Employees are becoming more demanding, and companies often struggle to catch up with their expectations. Inflation-related pay rises were also common in the first half of the year. A Hays survey shows that as many as 83% of organizations increased their financial offerings.

The recent months, however, have marked the first signs of cooling in the labor market as companies face growing cost pressure amid rising inflation and skyrocketing energy prices. “The Polish labor market is not on the brink of a crisis, but rather returning to some form of stability. Employers will be less likely to increase employment levels, but will recruit in order to find replacements for workers who decide to leave,” Shteingardt said.

The marketplace platform OLX reported that the number of job offers in July declined by 9.3% compared to the previous month. In August, the downward trend continued, and there were 4.4% fewer offers compared to July. Paweł Świderski, Head of Jobs at OLX, says that the competition among candidates is growing. “The correction, although still quite insignificant, may already indicate changes in employers’ moods,” he noted. Competition has particularly intensified in the gastronomy and customer service sectors – roles which candidates often see as an additional source of income.

Rising inflation, and, as a result, a growing cost of living, higher interest rates, and geopolitical uncertainty may cause a temporary slowdown in recruitment processes, Łukasz Borowicz of OLX told the Warsaw Business Journal. In addition, the number of applications for jobs abroad has been growing steadily, indicating that more Poles consider emigration as a way to increase their income. In September alone, interest in vacancies in foreign countries jumped by 65% annually.

In the domestic labor market, the competition among candidates is now fiercer. Professional services network Grant Thornton reported that out of 40 monitored occupations in Poland, the number of job offers decreased by 26. The great-

est declines were for manual labor jobs, such as waiters and bartenders, cooks, construction workers, hairdressers, and drivers. Grant Thornton analysts note that declines are partially due to high base effects from the last year when firms were actively hiring service staff after the pandemic freeze.

At the same time, the number of offers for accountants and financial analysts jumped by 50% compared to a year ago. IT specialists and HR professionals traditionally remained in demand: the number of job advertisements for these roles increased by 39% and 29% respectively.

Overall, the slowdown in the labor market is rather mild so far. Even though the number of vacancies has been recently dropping, this applies mainly to blue-collar and low-skilled jobs. Specialist and skilled workers are still difficult to acquire and retain, Shteingardt said.

Competition for qualified employees

Professionals continue to expect their employers to adjust their pay levels to the current economic situation. “A raise of 5-10% for many is simply not satisfactory as it does not increase their real purchasing power,” Shteingardt of Hays said. In August, inflation in Poland accelerated to 16.1%, the highest level in 26 years.

The number of companies willing to make counter-offers to keep employees who consider leaving is growing. However, only 35% of firms consider this method effective, according to Hays. Apart from monetary motivation, employees nowadays expect flexibility, such as hybrid or remote work. For more than two-thirds of employees, dissatisfaction with their work model is a sufficient argument to change the job.

Qualified professionals do not hesitate to leave their workplace for a more attractive offer. In the second half of the year, as many as 82% of companies expect difficulties in finding specialists, which is an increase of 8 percentage points compared to the beginning of the year. Almost half of Hays survey respondents plan to search for a new job during the next twelve months. At the same time, almost one-third have changed their job in 2022.

Dissatisfaction with salary level together with the evergrowing costs of living convince many employees to look for new job opportunities. Shteingardt expects high turnover rates to remain an issue for many companies and organizations. At the same time, companies are aware that in uncertain times, qualified employees are more valuable than ever, and will make an effort to retain experienced and skillful specialists.

“It can be expected that in the upcoming months we will observe neither an employer nor a candidate market, but rather a situation where a candidate’s position relies on skills possessed. Workers who have the right skillset and professional experience will still have career opportunities to choose from,” Shteingardt said.

What do Poles expect from a job offer?

Polish employees value stability and security. Regardless of the profession, more than half of the candidates want to have an employment contract (59%) and a full-time job (55%), according to a study carried out by Kantar on behalf of OLX. Candidates also want to know how much they will earn. Four out of five survey respondents emphasize that information about earnings is important. OLX notes that adding information about earnings increases the number of applications on average by 36%.

Salary ranges are most often available for hostesses and marketing and PR specialists. At the same time, it’s hard to find information about earnings for positions with salaries close to the minimum wage, such as security guards.

The most popular ways to look for jobs are searching for offers on websites (95%), through friends (50%), and via social media (49%). Grey and white-collar professionals seek flexible working time and the possibility of remote work. Manual workers are more open to taking up part-time jobs and working shifts.

Polish women value flexible working hours and hybrid work

About three-fourths of Polish women prefer hybrid work, while only 8% would choose stationary work, a survey by Her Impact and PwC Polska showed. Most women prefer full-time employment, including the possibility of flexible working time (over 60%). Only less than 3% would choose a part-time job instead.

When looking for a job, women want to know the offered salary in advance (86.6%). Before submitting the application, the respondents pay attention to development prospects (71%), a detailed description of tasks (69.5%), and the form of employment (65.4%). Women are also interested in the organizational culture, values of the company (55.8%), and benefits (48%).

WORKCATIONS:

Tempted by the thought of taking your work with you on holiday? You are not alone. Working vacations are an increasingly popular option for busy professionals who are willing to pack their laptops when heading out for a change of scenery.

BY ANNA RZHEVKINA

blending work and travel comes into vogue

This summer, while on a hike in the Pyrenees Mountains, I met Vincent, a traveler from Spain, carrying a laptop in his backpack. Every morning Vincent worked several hours in a hotel or café and then spent the rest of his day immersed in nature. This is an example of a “workcation” or “working vacation,” a trend that has emerged during the pandemic and keeps gaining popularity.

At first glance, combining work with holidays crosses the line between a career and a personal life. However, while some people strive to achieve the perfect work-life balance, others prefer blending both personal and professional responsibilities. For example, business people can answer emails while waiting to collect their child from school or go to the gym between work hours.

During the pandemic, when most people switched to working from home, keeping clear boundaries between

work and other aspects of life became nearly impossible. Though lockdowns are now over, they have led many to discover that work-life integration allows for greater professional productivity and the simultaneous enjoyment of activities that one could not afford with a traditional 9 to 5 schedule.

In response, top international companies such as Google, Spotify, and Airbnb have adopted “Work from anywhere” policies, allowing employees to choose their location for several months per year. In Poland, this trend has only begun gaining pace. For example, in August, Danone Polska offered its employees the possibility to work up to 30 days from anywhere in Europe. The company has three requirements: a supervisor’s consent, stable internet access, and a safe and ergonomic workplace. It may sound simple, but not every holiday house is suitable for work. The most common issues are a weak internet connection and the lack of a desk.

IT'S NOT LIKE INSTAGRAM

Sitting with a laptop by the sea only looks great in photos. In reality, the sun shines in your eyes, the wind throws sand everywhere, and the internet is probably not strong enough to connect to a video call. Working from a bed or a sunbed is not the best strategy in the long term. It is unhealthy for the back and focus is difficult.

There are two simple ways to ensure that the location is suitable for a productive workcation. The first one is to get in touch directly with the owner and ask whether there is a convenient workspace. The second approach is to rely on properties selected specifically for travelers who seek to combine leisure and work. The Wrocław-based company Tripoffice offers a network of apartments for digital nomads and remote workers. The portal works similarly to popular rental services like Airbnb and Booking.com, but every apartment is equipped with an ergonomic chair, a height-adjustable desk, and a stable internet connection.

Major tour operators Itaka and Tui have a dedicated offer of hotels for workcations. There are both family-friendly options and adults-only hotels for professionals looking for a quieter atmosphere. Popular locations include the Canary Islands, Portugal and Greece, all known for their sunny weather and beautiful beaches. Other important criteria for choosing a workcation destination are the cost of living and time zone. Workcation is especially popular among IT specialists and creative professionals, such as designers, photographers, and writers. Many note that changing environments helps them come up with fresh ideas and find unconventional solutions.

Wojciech Szywalski, Nexelem Product Marketing Manager at Virtus Labs, says he found a workcation to be a great way to spend time with family without interrupting his work. His favorite destination is the Polish mountains, because it provides the infrastructure to work, rest and take care of children. Wojciech notes that a dream workcation can differ from person to person: families may want to ensure that there is a nursery service available, while singles often prefer remote places with wild nature.

Asked about workcation challenges, Wojciech said that the greatest obstacle is not the workspace setup, but the mindset: “I am really passionate about my job, and sometimes I promise to myself that I will work 4-5 hours and spend the rest with my family, but then it’s hard to stop.” He adds that a workcation helps him organize work efficiently because he has the motivation to get things done faster. For those who plan a workcation abroad, his advice is to buy a local sim card with an internet connection because roaming charges can add up quickly add.

Wojciech notes that blending work with holidays makes employees happier and helps with team-building. “It is easy to communicate and discuss everything when people travel and spend time together,” he noted.

Michael Opydo, Managing Director at the digital marketing agency KomuKoncept, went with his team to a villa in Szczyrk, a town in the Beskid Śląski Mountains in the south of Poland. They spent three days there, combining social activities, leisure, and work. However, instead of a regular workplace, they had a terrace with a stunning view. “I think

it was great for building relations, understanding each other and building the company's culture,” he told Warsaw Business Journal.

Michael noted that his company wants to maintain all the pros of remote work but aims to have a team that knows each other, so that a workcation can become a solution. “You don't need to go far – sometimes the best ideas for integrating your team require nothing else but a good idea, pen, and paper,” he said.

Hotels with co-working spaces, discounts for a longer stay, and companies’ flexible policies make the workcaction more affordable than ever. Previously, this was an option for the self-employed and freelancers, but now regular employees can blend work and travel, too. Workcations, however, aren’t substitutes for traditional vacations; they are an additional tool that allow for a break from the regular routine.

3 QUESTIONS ABOUT THE WORKCATION IS A WORKCATION LEGAL IN POLAND?

There is not yet uniform legislation for remote work in Poland and every company sets its own policies. If an employer agrees to a workcation trip for its employee then there is nothing to worry about, as long as it is in compliance with the Labor Code. Employees don’t need to take days off when combining work and holidays. However, they may consider taking a couple days of off in order to get to the destination stress-free and allow time for some sightseeing.

HOW TO ORGANIZE THE WORKING PROCESS?

When working from an unusual place, planning is crucial to avoid stress and overtime. Clearly define the projects and follow the schedule, so that tasks do not pile up. When travelling with family and friends, agree with them on working and leisure time slots in advance. Finally, multitasking is not an optimal strategy because it makes focusing harder and creates the risk of leaving tasks unfinished.

ARE THERE ANY DOWNSIDES?

For some, going to a new place is like taking a fresh breath, yet others may struggle to adapt and remain productive. Also, a workcation can be costly, especially if staying in hotels. Finally, one can never fully disconnect from work and must juggle to find a balance between keeping deadlines and travelling.

A RECORD LEAP IN THE EXPORT OF BUSINESS SERVICES

Can exports be a remedy when the economy is slowing down? This is one of the questions that came up frequently during the 31st Economic Forum in Karpacz in September. The forum featured many discussions on macroeconomic indicators, including exports. The value of exports is also a key indicator for ABSL, with the sector’s performance in this area breaking new records and exceeding expectations.

BY DARIUSZ KUBACKI

The latest ABSL report, Business Services Sector in Poland 2022, shows a higher than expected growth rate in the sector. In February this year, over 400,000 people were employed in 1,714 service centers. The sector’s estimated contribution to GDP is 4.4%, with the value of exports rising to US$26.4 billion, reflecting a record leap of 15.1% year-on-year. The surplus of exports over imports stood at US$11.3 billion.

ONE OF THE FASTEST GROWING SECTORS OF THE POLISH ECONOMY

More than 47,000 new jobs were created in the second year of the pandemic, an increase of 11.6% year-on-year. Consequently, the industry's share of total employment in the enterprise sector increased from 5.6% to 6.2% (year-on-year). Forty-six new centers began operations, creating 6,400 jobs. There is a visible increase in reinvestment which, despite a smaller number of new entities than last year (74), resulted in a significant increase in the number of jobs. Most new companies established operations in Warsaw, Tri-City, Katowice, GZM and Krakow. Currently 72% of all centers belong to foreign investors from 46 countries. One in five Fortune Global 500 companies have opened a service center in Poland.

A MULTI-FACETED IMPULSE

The influx of foreign investors launching new service centers or increasing their existing presence is one of the key impulses for the Polish economy. This impulse is multi-faceted. Poland is in a leading position among OECD countries in terms of the number of investments acquired, the driving force of which are de facto business services that are increasingly enhancing the image of Poland among global corporates. Poland has proved to be a location from which multiple business directions can be served, with the effect that an increasing number of centers located here have a global reach. This in turn has resulted in the transference of global roles, giving Polish managers the opportunity to manage global processes. At the same time, foreign investors employ over 80% of all employees in the sector, providing them with access to the latest global solutions along with knowledge transfer. The sector is providing more and more complex services, which also gives a strong impetus to education in the field of future competences.

A RECORD SHARE OF HIGHLY SPECIALIZED BUSINESS SERVICES

The modern business services sector in Poland currently has 1,714 workplaces offering business process outsourcing (BPO), shared services (SSC/GBS), IT and research and development (R&D) centers. The complexity of services provided is systematically increasing. The role of complex processes and a further shift to middle and front office environments that generate higher added value is increasing. Global functions are being transferred to Poland, with the share of highly specialized knowledge-based services (KIBS) now 6.5 p.p. higher than before the pandemic.

PUSHING BOUNDARIES

The sector has just passed another important milestone. For the first time in history the share of highly specialized services encompasses more than 50% of all services provided in Poland. This clearly shows that our market has significantly changed and matured. Taking into account that 130 workplaces are created in the sector every day, with around 75 of these jobs in highly specialized positions, these “competences of the future” are clearly important.

TALENT POOL AS A KEY CHALLENGE TO GROWTH

Executing increasingly complex processes and taking over global functions require advanced capabilities in both the digital area and soft competences. It is critical to join forces in order to introduce systemic solutions, which are a necessary condition for further development. The events of the last two years have additionally proven the importance of labor market regulations and legal predictability. In addition, global trends, such as changing work patterns and the increasing importance of employees’ well-being, combined with high inflation and wage pressures, require companies to take decisive action. As a result, 85% of companies are considering starting to look for employees outside Poland, and 20% of companies have already recruited abroad. More than half of the sector’s companies are investing in educational programs to improve employees’ skills or enable them to acquire new qualifications.

DRIVING BUSINESS THROUGH DIVERSITY AND INCLUSION

Currently, centers in Poland employ more than 55,400 foreigners, which accounts for 13.8% of all employees in the sector. In nearly half of these centers (47%), the number of foreign workers constitutes at least 105. The largest group among foreign workers are people from Ukraine (21.9%), followed by Italy (9.0 %) and India (7.9 %). India appears for the first time in the top three (replacing Spain). Data collected just before Russia's invasion of Ukraine indicated that 12,000 Ukrainian citizens were employed in the sector in Poland.

… AND BOOSTING CITIES

The latest ABSL annual report indicates that there are modern business services centers in 84 locations. In 18 of them, the total number of jobs in the sector exceeded 1,000 people, and in eight - 10,000. It is worth noting that Bydgoszcz joined this group of cities as it reached 11,500 sectoral employees. The report shows that smaller cities with over 100,000 residents are becoming increasingly attractive to companies from the business services sector. The city with the largest number of people employed in the sector is still Krakow, with nearly 93,000 people.

“

The influx of foreign investors launching new service centers or increasing their existing presence is one of the key impulses for the Polish economy

NIGHTMARE ON THE ODRA RIVER

The ecological disaster on the Odra river this year has shocked almost all of Poland and became a subject of ongoing public discussion in the country since the summer. The source of the contamination has not yet been identified, although it is known that poisonous pollutants have gotten into the river. Tens of tons of fish have already been killed, and this enormous environmental disaster has become highly political.

BY SERGIUSZ PROKURAT

british poet W. H. Auden once noted, “Thousands have lived without love, not one without water.” Indeed, our planet keeps reminding us that water is life. Even though we all know water is crucial for life, we trash it anyway. Water is uniquely vulnerable to pollution. Known as a “universal solvent,” water is able to dissolve more substances than any other liquid on earth. It’s also why water is so easily polluted. The most common cause of poor quality water is human activity and its consequences, and this is exactly what happened with the Odra River in Poland. Over the last 40 years, according to the data of the European Environment Agency, disasters related to the climate and the environment in Poland have caused losses of EUR 16 billion and contributed to the tragic death of 2,121 people. Although the causes of such disasters are often natural, when they are not, the perpetrators often get away with it. Nevertheless, such cases make a tremendous social impression – in this case: poisoned water, fish floating belly up – all this is strikingly visible. And it quickly becomes the subject of a political game in which it is no longer important to improve certain institutions, standards of infrastructure or procedures – the main goal is who will win or lose politically. Hence, we observed the phenomenon

of disappearing water samples sent to laboratory tests, ambiguous test results, disregard of the topic by officials, and the deterioration of relations with Germany, through which the Odra flows as well. This last situation came about after one of the politicians claimed that it was the Germans who had caused the catastrophe, although logic shows that it is impossible, since the poisoning took place more than 150 km upstream from the border.

It is difficult to accurately estimate the financial losses of the catastrophe, because how much does one dead fish cost? And how much more for a hundred thousand or several dozen tons of dead fish? How to estimate the losses accompanying 300 km of a contaminated river? Estimating environmental damage often takes years, and not all losses can be easily translated into money. Stocking the river has cost several million PLN, and this should also include the time spent on it. The poisoning of the river is a drama for all those who work on the river, as it is a waterway. The poisoning is a social loss –water from the Odra River is necessary for agricultural production, industry, meeting food needs, water transport, tourism and wetland ecosystems. Of course, the river will recover eventually, but it will take at least a few dozen years.

River ecosystem management in Poland is insuf-

ficient, and the disaster on the Odra River perfectly exposed this fact. We are used to widespread acceptance of the release of pollutants into rivers. Not to mention the legal chaos, which dilutes the responsibility of control institutions and leads to almost a total lack of punishment for any environmental poisoning. Rivers are a public resource for everyone in Poland, yet in the end they are victims of what economics calls the tragedy of the commons – the overuse and exploitation of shared resources to benefit a few while negatively affecting the public good.

Calculations by the employees of Polish Waters, a public institution that oversees rivers, is that there are 17,000 sewage outlets on Polish rivers, including 2,000 outlets made without permits – are symbolic. And some of them are municipal sewage outlets. Meanwhile, an EU directive from 1991 obliges our country to collect and treat municipal wastewater in a way that will not pose a threat to the environment. In Poland, this directive is still waiting to become law. It should have been introduced in 2015. This did not happen, so the European Commission reminded the Polish government of this obligation twice (in 2018 and in 2020). Many Polish agglomerations still do not comply with the directive, including: Warsaw, Poznań, Wrocław, Kraków, Łódź, Lublin and Gdynia. Local governments often lack money to build or expand their sewage systems and sewage treatment systems. The Odra River flows into the Baltic Sea. Will it have consequences? Well, the Baltic is already the most polluted sea in the world. Its self-cleaning ability is small because it is a nearly closed reservoir. Moreover, after World War II, ammunition, petroleum products and chemical weapons were sunk there. In the 70 years after the sinking of these ships and chemical weapons, no inventory of the seabed, i.e. mapping of the places, quantity, type and condition of hazardous materials contained in the Baltic Sea, has been carried out. Eating fish from the Baltic is dangerous to the health.

The Anthropocene is one of the names proposed for the era in which homo sapiens as a species have become a planet-shaping force. We use water, and 80% of the world’s wastewater is dumped – largely untreated – back into the environment, polluting rivers, lakes, and oceans. The Odra River is just an example. By supporting the river in the process of renaturalization, we must create institutions that will care for the environment and direct the power of capitalism towards the development of technologies aimed at improving the quality of the natural environment.

The most common cause of poor quality water is human activity and its consequences, and this is exactly what happened with the Odra River in Poland

CURRENCY WARS

In a way, the world of currencies resembles the world of animals. In nature there is no good and bad. It is people who endow non-human objects, concepts, phenomena, and animals with human characteristics and human motivations for behaviour. There are also no good or bad currencies. There are strong currencies and weak ones –as a consequence of economic and monetary policy conducted by a given country.

BY SERGIUSZ PROKURAT

since the pandemic, we have seen a change in the money demand function. Earlier, money was a desired commodity, but during the pandemic, markets everywhere in the world have been flooded with cheap money, reducing interest rates to historically low levels. Low interest rates were supposed to “salvage” us from the virus, however irrational it may sound.

The trigger for the outbreak of uncontrolled inflation in the world is the war between Russia and Ukraine. However, half a year after it was started, its ending in still not in sight and the environment of permanent high inflation may persist for a while longer. The US are in a much better situation, as, although the level of inflation is a huge surprise, the actions taken to fight it are also more decisive than on the Old Continent. In the United States, the slowdown is not drastic despite the technical recession, because, firstly, the war is far away across the ocean, secondly, there is no spectre of cutting off energy supplies for the winter, and thirdly, and very importantly, in the US, the priority is to fight inflation with the view of maintaining strong economic growth in the long run. In Europe, however, the large difference in the amount of debt between different countries continues to be a very significant political topic. The eurozone countries are characterised by different potential GDP dynamics and different abilities to bear debt servicing costs. An increase in interest rates would adversely affect some coun-

SHUTTERSTOCK

AS OF AUTUMN 2022, POLAND DOES NOT MEET THE MAASTRICHT CONVERGENCE CRITERIA:

1. Polish legislation does not fully comply with the requirement set out in Art. 131 TFEU – the deficits concern, among others the independence of the central bank.

2. Poland does not meet the price stability criterion. Inflation in a country that would like to adopt the euro must not deviate from the average in the three countries where prices are the most stable.

3. Poland does not meet the public finance criterion – i.e. the finance deficit should be no more than 3 percent GDP and public debt less than 60% GDP.

4. Poland does not meet the criterion of the exchange rate stability.

5. Poland does not meet the criterion of the convergence of long-term interest rates, calculated in accordance with the average value of the previous-year rates noted in three countries with the most stable inflation.

tries of southern Europe which live beyond their means. Thus, setting up a drip to the countries of the South seems to be – for the ECB – as important as caring for price stability. These three aspects have led to a situation, where we are witnessing an unprecedented increase in the value of USD against EUR. It is not surprising that the ECB was the last to start with interest rate increases, and the least daring, and this indicates that the EUR will continue to weaken against the USD at least until the end of the war, or until end of the winter and the time of securing the interests of the whole of Europe, i.e. in the medium term. The so-called reverse currency war that we are observing, i.e. the preference for a strong currency in order not to import inflation, goes off in favor of the United States. The vision of the crisis is much sharper in Europe.

The Polish currency is closely related to the EUR –most of the activities of economic entities are based on trade with EU countries. In normal times, the PLN should slowly appreciate against the EUR, as Poland would catch up with the economic gap towards other European countries. However, it is exactly the opposite. Firstly, the reasons for this include the fact that Poland is perceived as a frontier country. There is a war going on right on the Polish eastern border. The pandemic and the war have led to a sell-off of the PLN, so the end of the war could have a salutary effect on the Polish currency. Unfortunately, the end of the war does not necessarily mean better times.

The actions of the government and the central bank in Poland, instead of caring for the strength of the Polish zloty – which would help fight the very high inflation – focus on enchanting reality and continuing to give money away to political clients. This places Poland closer to economically ill countries such as Greece and Italy. Although, it should also be noted that the impact of the weak PLN, which has led to the high costs of inflation, has been borne primarily by households. Poland has still retained the profitability of exports and the ability to create jobs, which is evidenced by the second lowest unemployment rate in the EU. To sum up, it is the Polish society that pays the price, not the entrepreneurs, at least yet. Adoption of the EUR by Poland could be a solution to some of the problems. Poland pledged to enter the eurozone when joining the EU in 2004. This would be a natural step in the development of the common Europe project. Nevertheless, the euro is a solution for strong economies. The weak ones – as in the animal world – either need protectors or they ask themselves for trouble. Poland is no longer among the strong economies. Besides, in Poland, there is no political consensus on the adoption of the euro and we cannot expect any within the next decade. The EUR as currency of Poland is currently impossible for political, legal and, above all, economic reasons. Poland does not meet the Convergence Criteria for adopting the euro (more information in the table). This closes the way to joining Euroland, regardless of whether there is a political will to adopt the euro or not. Thus, the Polish currency will remain exposed to dynamic changes in the exchange rate as long as the war and the economic problems of Europe will last. Furthermore, Europe’s problems will be visible in the exchange rate of the Polish currency, as Poland and Europe are, if we use the language from world of animals, in mutualism.

When consumers are faced with financial difficulties, they tend to switch from more expensive goods, like a new dress, to more affordable categories, which still provide a sense of luxury, like lipstick

The cosmetics market in Poland is mature and less exposed to recession

According to Karol Szmich, CEO of Delia Cosmetics, the Polish cosmetics market is mature and its distribution and retail are sometimes at a higher level than in Western Europe. Additionally, he states that the beauty industry is likely to be less impacted during recessions than the general economy.

INTERVIEW BY NIKODEM CHINOWSKI

Nikodem Chinowski: In view of the very high inflation and expected recession, many industries are concerned about demand in the coming months and quarters. Is the cosmetics industry also preparing for a significant drop in purchases?

Karol Szmich: After going through several market downturns, we have learned that the beauty industry is less impacted during recessions than the general economy. This is partly due to the “lipstick effect”. When consumers are faced with financial difficulties, they tend to switch from more expensive goods, like a new dress, to more affordable categories, which still provide a sense of luxury, like lipstick. Secondly, many cosmetics are essential products: shampoo, toothpaste, and body wash are just a few examples. Makeup is considered an essential item by many women and positively impacts their well-being.

In addition, we are observing increased demand from our export markets. Consumers are looking for higher quality at a more affordable price, and Polish companies, especially Delia, excel exactly at that.

So you do not feel a reduced demand so far?

We have not observed a decrease in the quantity of cosmetics sold during downturns, only a decrease of value,

as consumers are seeking higher value for their money. For example, they would give up dyeing their hair at a professional saloon but instead buy hair color at a retail store and dye their hair at home, saving on the service. This means that while the professional segment is going to decline, the mass-market segment is likely to increase. We are already observing such results, mostly in the sales of our hair coloring products. The behavior of consumers in many countries is very similar in this respect.

You are exporting your cosmetics to over 60 countries. Do Polish consumers - in the area of the cosmetics market - stand out from other nationalities?

Indeed, we export our products to 60 countries on 5 continents, which provides us with vast knowledge and a broad perspective across the spectrum of various consumer groups. The needs of cosmetics consumers differ significantly between various countries. Delia’s strategy and competitive advantage is that we can quickly adapt to each and every market, which sometimes means redesigning the whole product portfolio. Big multinationals are not as willing to do this or are not as agile. What is specific to Polish consumers, and what we haven’t observed to such an extent anywhere else, is a love of novelties. This results in a shorter product lifecycle and the constant need to develop new products. Moreover, our consumers

love local Polish products from Polish companies, which encompass 50% of the market.

Except for the ability to quickly adapt to new circumstances that you mentioned, what is your company’s strategy to prepare for the downturn? We are adjusting our product portfolio and new product development to better match customer needs during the downturn. Additionally, we are decreasing our stock sizes, which were artificially inflated during Covid due to problems with the supply chain. In case of a negative scenario, the most important factor will be sufficient liquidity and cash reserves.

Do you feel supported by the Polish government? Or have any government programs targeted at companies in Poland also extended to your company or the cosmetics industry?

No, we are not aware of any government programs targeting companies. Current government programs are aimed at subsidizing households, which, in the short term, could positively impact our company by increasing consumer spending power and increasing consumption, but, in the long term, is likely to further increase inflation.

So what are the biggest challenges for the industry in Poland over the next few years?

The biggest challenges are proposed legal

changes concerning raw materials, which are currently being discussed at the EU level. According to various polls, up to 95% of all cosmetic formulations in the EU would have to be changed. We are dedicated to protecting the health of consumers, but the tendency to ban raw materials without performing sufficient studies may mean that the alternatives could be much worse. We have to consider: is it better to use a little amount of already proven preservatives or ban current preservatives and risk that the new ones will not be as effective, bearing in mind that bacterial and fungal toxins have already been already proven to be extremely harmful? Those are very difficult questions and decisions shouldn’t be rushed, as they currently often are, due to political reasons and not scientific ones.

How is the significant influx of Ukrainians - almost 2 million people - onto the Polish market influencing prospects for the market? Do large brands such as Delia view such an event as a gamechanger or does it not have a major impact on the overall prospect?

A significant Ukrainian population existed in Poland long before the war, and we will heartily welcome as many of our Ukrainian brothers and sisters as will be necessary. From a business perspective, Ukrainians make up a valuable part of the workforce and help to reduce labor shortages. But as consumers, they are not a gamechanger, as they are more conservative about spending their money, which is completely understandable knowing that many parts of their country will have to be rebuilt.

You have been present on the Polish market for over 25 years. The Polish economy and Polish customers have changed dramatically over these three decades. Is the Polish market now as mature

and professional today as the market of France, the USA, or the Scandinavian countries? I can only speak about our industry – in terms of cosmetics the market is mature, consumers have a broad knowledge about the products and choose them carefully. Distribution and retail is at the same level or sometimes even at a higher one. Obviously the purchasing power of the average household is not as high as in Western Europe or the US, but it is growing fast. As a result this will translate into an increase in the value of Polish market.

ABOUT DELIA

• Delia Cosmetics was founded in 1998 and employed only 3 people to produce eyebrow tint and a hair brightener.  Today, it owns 3 brands and employs almost 400 people in 2 production plants.

• Delia Cosmetics is a Polish cosmetics manufacturer and owner of three brands - Delia, Cameleo and Dr Szmich

• 2 production plants on 10,000 m²

• 5 specialized laboratories

• 400 Employees dedicated to producing high quality products

• Delia Cosmetics produces 40 million cosmetics every year

• Consumers can find Delia Cosmetics products on 5 continents, in 90 countries, and in 100,000 stores

You can find Karol Szmichw BIO on page 4

Consumers are looking for higher quality at a more affordable price, and Polish companies, especially Delia, excel exactly at that

TECH insights

CBRE: 75% of Poles buy online at least once a month

Three-fourths of Poles order online products at least once a month, including 27% who buy them at least once a week, a CBRE report showed. Most often Polish customers order clothes, electronics, household appliances, cosmetics, and perfumes. Online shopping growth was boosted by the pandemic and the war in Ukraine.

As many as 29% of people say that they order products online more often than before the beginning of the war. This applies to women slightly more often compared to men. The group that most willingly spends money online are people aged 25-44, among whom about 86% buy at least once a month. Out of all respondents, one-fifth of Poles (21%) shop online less than once a month, and 4% do not shop online at all.

ING Hubs Poland

WORKFORCE IT specialists are the second best-paid employees in Poland

With an average gross salary of PLN 18,843, Polish IT specialists are the second best-paid employees in Poland. Only managers receive more, according to Antal’s report "Why is it worth investing in IT in Poland".

Despite the great interest in specialists at mid and senior levels, beginners in the IT industry also have a very good chance of employment. Hiring juniors is a recruitment strategy that more and more companies are reaching for, according to Monika Kilianska, Team Manager at Antal IT Services.

“Many training programs are being established, academies that have dedicated special training to prepare for a specific role, for example, a Backend Developer can become an SRE Engineer. This is one way to meet the constant shortage of specialists in the IT market," she added.

CYBERSECURITY

KPMG: 69% of Polish companies were exposed to a cyberattack in 2021

Last year, 69% of Polish companies were affected by a cyberattack, according to a KPMG study titled “Cyber Security Barometer”.

Meanwhile, organizations currently face difficulties in adapting their security systems to today's challenges. The problem of finding and retaining qualified employees is among these obstacles and affects 64% of Polish companies.

TRANSPORTATION

Katowice invests PLN 88.6 mln in an Intelligent Transport System

Katowice will invest PLN 88.6 million in an Intelligent Transport System (ITS) to improve traffic flow in the city and increase public transport attractiveness. The modernization will cover 112 intersections in Katowice.

IST will include a mobile application, where residents will find information about traffic, road works, and free parking spaces, said the President of Katowice Marcin Krupa. There will also be boards with information about the number of available parking spaces in the downtown area.

The Olsztyn-based company Sprint won a tender to design and implement the system. The system is co-financed with approximately PLN 67.2 million from EU funds.

commerce market share may reach up to 23% and 24%, respectively. The lowest growth of e-commerce is recorded in Hungary.

In 2016-2021, the share of e-commerce increased by 9 percentage points, from 6% to 15%, The increases affect almost all product categories, but online sales of food and beverages increased the fastest. Its share in the entire e-commerce sector was previously negligible, yet at the end of 2021, it amounted to 5% of the market.

SALES

The share of online sales in CEE is expected to reach 20% in 2026 - CBRE

The share of online sales in Central and Eastern Europe has increased to 15% over the past five years and is expected to reach 20% in four years, real estate services and investment firm CBRE has forecasted.

Poland and the Czech Republic are the leaders in online shopping growth in the region. In these countries, in 2026, the e-

GAMING

CD Projekt announced expansion for 'Cyberpunk 2077' for 2023

CD Projekt plans to release an expansion for the 'Cyberpunk 2077' game called 'Phantom Liberty' in 2023, the studio has announced in an official teaser.

During the presentation of 'Night City Wire: Edgerunners Special', along with the teaser, information about the add-on was provided by actor Keanu Reeves, who plays Johnny Silverhand in the game. The actor revealed that his character would appear in the announced expansion, which is expected to be available on Xbox Series X/S, PS5, PC, and Stadia.

10 YEARS OF CYBERSECURITY AWARENESS IN EU

IN THE EU, OCTOBER IS A MONTH ASSOCIATED WITH CYBERSECURITY THANKS TO THE EUROPEAN UNION AGENCY FOR CYBERSECURITY (ENISA). DURING THIS MONTH, ENISA, IN COOPERATION WITH THE COMMISSION AND MEMBER STATES, PARTICIPATES IN AN ANNUAL CAMPAIGN DEDICATED TO PROMOTING CYBERSECURITY AWARENESS AMONG EU CITIZENS AND ORGANIZATIONS

BY KATARZYNA FULEK-SZAJKOWSKA, ING HUBS POLAND

While cybersecurity is a growing topic of public discussion, we can only understand its importance by learning more about it. Children at primary schools start their cyber journey by browsing the web as they learn. However, we, as citizens, employees, and clients of the financial system, must educate ourselves about the benefits and threats that the Internet entails.

One of the most fragile branches of the digital ecosystem which we deal with everyday is banking. We all have mobile apps to access our accounts. The financial system is almost fully digitalized. Banks collect huge amounts of data that is uti-

lized for many procedures, including ones that ensure the security of the money in our accounts.

So what are the greatest cyberthreats in the financial sector? We posed this question to Przemysław Wolek, Global IT Security Tribe Lead in ING Hubs Poland.

At the moment, one of the biggest threats – at least from ING’s perspective – is threat detection and how to increase its effectiveness. Of course, another bank may have other priorities. However, we want to counteract a range of threats. Certainly – from the perspective of a financial institution – these are attacks against the bank's customers and employees. [And] while it may already sound like

something of a "broken record", people will always be the weakest link in protecting against a cyber-attack. It always starts with human error, whether it is via social engineering, phishing, or some other, even relatively simple, type of deception. However, the result of any of these attacks is that they often unwittingly provide access to an organization’s internal resources.

We invest a lot in detecting threats and increasing the effectiveness of our IT security tools for many reasons, including the geometric increase in the complexity of IT environments. That is also why the challenges faced by the CyberSec department are growing.

Organizations like ING Hubs Poland need more and more talented IT specialists who will be able to keep their systems up and running (and the money safe). We must also be aware that the methodology of cyberattacks is continually evolving. We must remember that reckless usage of banking applications and system passwords is a gift to those whose purpose is not the theft of data but its destruction. Cyber criminals who attack financial institutions with this kind of goal do not care about the outcomes of their actions.

This year’s Cybersecurity Month started in Poland with a debate in the Polish Press Agency on “Cybersecurity challenges – how to detect, respond and prevent cyber-attacks”. During the entire month, a lot of awareness activities are planned for both professionals and ordinary citizens.

AT THE MOMENT, ONE OF THE BIGGEST THREATS - AT LEAST FROM ING’S PERSPECTIVE – IS THREAT DETECTION AND HOW TO INCREASE ITS EFFECTIVENESS

Life + Style

THE PERFECT FIT

The site of the legendary Zaremba atelier proves tailor made for the brand’s new café-bar concept…

WORDS BY ALEX WEBBER

PHOTOGRAPHY BY KEVIN DEMARIA

What’s In The Name?

Indelibly associated with the finest bespoke tailoring practices, the name Zaremba should already resonate with a certain class of gentleman. Founded by Edward Zaremba in 1894, the family’s first atelier was found in the Great Theater, an area which at the time was the nexus of Warsaw’s social life. Fitting out the stars of the era, as well as Tsarist officers, Edward’s fame spread even further when one such officer commissioned a suit with hidden armor for an upcoming duel. Quickly, word of his skills traveled and he found his work featured in press as far afield as London, Paris, Vienna and Moscow.

Staying in the family ever since, the studio even managed to thrive during Communism despite near constant harassment from the authorities. Relocating to Nowogrodzka 15 in 1956, business continued to be brisk, not least thanks to their carefully hidden stocks of British wool. When, in 1979, a deal was struck by the American TV producer Sheldon Reynolds to film the serial Sherlock Holmes and Doctor Watson in Warsaw, Zaremba were naturally selected to produce the outfits.

Why Does That Matter?

For decades, Zaremba could be found touting their services at Nowogrodzka 15 – however, with interest in their made-to-measure services cresting once more (not least after they won the competitive process to design a tie for Poland’s Presidency of the EU), their success demanded a larger location. Moving their HQ across the road, presented the problem of how to utilize their vacated premises. Choosing to diversify and develop the brand in a different way, it was on Maciej Zaremba’s prompting that a bar-café was opened in its place. Welcoming its first guests over the summer, it’s already become the talk of the town.

The Zaremba Look

Given the history of the brand, you expect something special – and damn right, it really is just that. With its entrance signaled by a towering brass palm, this is a place that feasts on its own sense of classic history –

to the point that even the retro lettering has been kept above the portal announcing it as the domain of Tadeusz Zaremba.

Inside, the history lesson continues, and it is almost compulsory to gaze at the black and white family photographs that adorn the walls and chart the successes of the family business. Dominated by shining golden surfaces, terrazzo floors and plush blue velvet finishes, these elements are further accented by features such as the rosette-shaped chandelier holder on the ceiling above. Small but luxuriously appointed, it’s a place of strong personality and impeccable taste.

Day & Night

Operating from Wednesday through till Sunday, inspirations were lifted from Italy – the kind of Milanese haunts that seamlessly blur the functions of café and bar. Bearing this in mind, perhaps the most interesting hour to visit is that 5 p.m. point where the number of coffee sippers are equally matched by those ordering cocktails.

Here, both come recommended. Cutting no corners, the coffee angle has already made waves with their espresso shots becoming something of a favorite. Matched with light bites such as salmon panini, daylight hours become a blissful affair of daydreams and gossip.

Neither do the cocktails let the side down. The Hemingway is the big seller (Maraschino, grapefruit, coconut sugar and Zaremba’s own rum blend), but with a shelf like theirs trust the staff to fix their own thoughtful takes on global classics – asking for a Dark & Stormy, we received a beautiful composition of Thomas Henry ginger beer served with Dos Maderas 5 + 5 triple aged rum-sherry. Gorgeous. Adding to the subtle Italian vibe, choose also from the likes of Limoncello Spritz or a crisp Birra Moretti lager.

Zaremba Café

Nowogrodzka 15, fb.com/zarembacafe

FANCY THREE

WORDS BY KRYSTYNA SPARK

this season Copenhagen fashion week experienced unprecedented interest. Whether it was Emma Chamberlain seated front row at GANNI or Sophia Roe launching her new label –the Garment – the capital of Denmark was on everyone’s radar (or rather phone screen).

While Warsaw may have to wait its turn before a set of comparably enviable fashion labels host a week of live, invite-only runway shows, it can already boast a range of innovative brands that are busy carving out their paths to stardom. Though you may not have heard of them before, you can be sure that these labels will be (or already have been) around for a while.

Couple Dansant

There Is No More!

Veteran Tomasz Ossoliński maintains a strong, unwavering position among Polish fashion brands. Though known primarily for men’s tailoring, the brand now includes both a menswear and womenswear line. Dressing Nobel Prize laureates and Academy Award recipients, Tomasz Ossoliński is a master of his craft. With over 25-years of experience, the designer debuted his first collection at the young age of 16. His subsequent placement at one of Poland’s most recognized state-owned tailoring factories led to the role of head designer – the youngest designer to be employed by the organization. Today the label focuses on batch launches of high-quality original designs as well as fulfilling orders for uniforms for some if the country’s most prestigious institutions. The 2019 launch of Ossoliński’s ready-to-wear line opened the doors to a wider customer base by offering readily available clothing online at friendlier price-points. ossolinski.com

Need to update your classic trench? Look no further than Couple Dansant – a young brand that is busy updating vintage outerwear. Recycling old clothing is nothing new. Few, however, have the creativity and unique fashion force necessary to launch such a personal project. Created by two friends, Couple Dansant has stolen hearts by lining the collars and cuffs of vintage blazers and trench coats with brightly colored feathers and faux shearling. Adding pizzaz to these traditional pieces immediately attracted interest and their resulting similarity to one or two expensive foreign brands was all that was needed to firmly establish this Polish label as one of today’s most desirable brands. coupledansant.com.pl

There Is No More! creates original handbags and accessories, all in keeping with zero waste practices. Calling to mind a Victorian reticule, the brand’s drawstring bag is a strong favorite among customers. Easily transitioning from day to night, its unstructured shape will add an air of effortlessness to any outfit or ensemble. Every piece by There Is No More! is handmade, lending each bag an air of mystery and adding to the original story that it carries within. Their unusual patterns and textures are a further expression of individuality, making sure that those who carry this small accessory are far from banal. thereisnomore.com

After Poland’s success at Copenhagen Fashion Week, the WBJ looks at three domestic brands that all style mavens should look for this upcoming season.

Tomasz Ossoliński

EVENTS

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

Valkea Marketing Event

for more visit: valkea.com

WROCLAVIA DRAWS SNEAKER FANS

The event’s main stage, resembling a basketball court, was additionally decorated with handpainted graffiti on the wall to serve as a background for photos and other activities on the stage. Four zones in front of the stage offered various workshops and activities, including shoe customizing, T-shirt and bag design, beauty, sneaker service, tattoo stands and make-your-own pins.

Organizers invited several popular internet creators who have a lot to say about sneakers to visit the Wroclavia center during Sneaker Fest, e.g. Bagi, whose sneaker collection adorned the Sneaker Gallery on stage. In one of the zones, CzugA customized and decorated sneakers for visitors. Attendees were treated to a three-dimensional mural before entering the center and were then presented with an art installation inspired by sneaker laces. Both artworks were a great background for photos that could then be entered into a competition on the mall’s fan page.

The whole event is a perfect example of experiential marketing that is impactful, a little wild, and extremely relevant to its visitors. Partnering with local creators also helped Valkea Media and Wroclavia create engagement marketing that drew a large audience and increased social media reach.

The Wroclavia Sneaker Fest, organized by Valkea Media, transformed the mall into a center of sneaker culture, art and entertainment. It was reportedly the first meeting of sneaker fanatics at a shopping center in Poland.

Coming soon

annual Climate Summit. The event will consist of two days of panels with more than 100 speakers. Together with a prestigious group of Polish and EU politicians, economists, and representatives of various institutions and organizations, we will touch on the most important issues of climate change, set in the context of the current world affairs, which have had a considerable impact on the dynamics of climate change.

“The pandemic, the war in Ukraine, and the looming energy crisis may all deal a blow to our ambitious environmental goals. And yet, the climate crisis continues. In 2021, UN Secretary General, António Guterres, stressed that key climate change indicators had reached record-high levels. Both COP 26, which took place in Glasgow, and the upcoming COP 27 in Egypt share a common goal: to step up and expedite the measures laid down in the Paris Agreement of 2015”, says Kamil Wyszkowski, national representative and executive director at UN Global Compact Network Poland.

PRECOP 27 CONFERENCE AHEAD OF THE CLIMATE SUMMIT IN EGYPT

Sign up now for the PRECOP 27 conference organised by the United Nations Global Compact Network Poland and the PTWP Group. The main goal of PRECOP 27 is to prepare guidelines and recommendations for the upcoming COP27 Climate Summit in Egypt in November. The event is organised in partnership with the European Commission.

The main objective of PRECOP 27 is to bring various communities together in a debate aimed at drafting a joint position on the main issues on the agenda of the

How should we shape our climate goals in a world of instability, tension and crisis? What will be the fallout of the pandemic and war in Europe? How will they impact climate policy and green transformation goals, their achievements, their hierarchy and the availability of tools? Can we now talk about a vision for rebuilding a low-emissions Ukraine?

How is global resource and raw material management changing in an era of geopolitical upheavals and fierce competition between global economic powers? These and other questions will be addressed by speakers invited to take the floor during the opening session, Strategy for the Earth.

The agenda of PRECOP27 will also cover such issues as: business vs the green revolution, ESG, climate technologies, sustainable transport, green construction, cities for climate, water resources and retention.

The conference will be held on 18-19 October at the International Congress Centre in Katowice. For more information, go to: precop.pl.

EUROPEAN FORUM FOR NEW IDEAS 2022 - THE ECONOMY, TECHNOLOGY AND GREEN TRANSFORMATION

What type of leadership is needed in the new era? How does Russia’s aggression against Ukraine impact international cooperation? What about green transformation? How do the war and the pandemic shape consumption? These are just some of the questions asked by the participants and panelists of this year’s 11th edition of the European Forum for New Ideas. Attempts to answer these questions will be made as well.

EFNI will be held at the Radisson Blu hotel in Sopot, from Wednesday, 12

October to Friday, 14 October. This year, all discussions will be divided into four thematic blocks. The first will be devoted to the future of Europe. The second will deal with the economy, the third with the green deal and energy-related challenges, and the fourth will focus on technology, artificial intelligence and the metaverse.

“This year’s edition of the European Forum for New Ideas will be dominated by the challenges faced by states, communities, the economy and markets which have been forced to tackle a number of broadly understood uncertainties. Those uncertainties are here to stay for a number of years and we all need to get used to them,” says Henryka Bochniarz, PhD, Chairperson of the Polish Confederation Lewiatan.

Guests of this year’s Forum will include the most prominent figures from the world of business, politics, science and culture. The following list of attendees have already confirmed their participation in EFNI 2022: John Keane, Professor of Politics, University of Sydney and Wissenschaftszentrum Berlin; Margaritis Schinas, Vice-President, European Commission; Radosław Markowski, Professor of Sociology, SWP; prof. Piotr Wachowiak, Rector, Warsaw School of Economics; Prof. Jerzy Buzek, MEP, former Prime Minister of the Republic of Poland and Speaker of the European Parliament; Mieczysław Struk, Marshal of the Pomorskie Voivodeship; Jacek Karnowski, Mayor of Sopot; Justyna Orłowska, Prime Minister’s advisor on innovation and finance, Director of GovTech Polska; Gertruda Uścińska, President of the Polish Social Security Institution; Janusz Lewandowski, MEP, former European Commissioner; Prof. Magdalena Środa, sociologist and philosopher; and Prof. Aleksandra Przegalińska of Koźmiński University.

For online registration, go to https://efni.pl/. You are invited to take part in highly inspirational conversations at this prestigious conference.

EVENTS

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

Event

Summary

RECORD-BREAKING ECONOMIC FORUM

The XXXI edition of the Economic Forum: "Europe Facing New Challenges," held September 6-8 at the Golebiewski Hotel has reported a record number of attendees from both Europe and around the globe.

Nic Robertson – CNN International Diplomatic Editor

Viktorija Čmilytė-Nielsen – Speaker of the Lithuanian Parliament

Piotr Gliński – Deputy Prime Minister of the Republic of Poland

Theo Bertram - Vice-President, Government Relations and Public Policy for Europe - TikTok

Andriy Sadovyy – Mayor of Lviv

Włodzimierz Wlaźlak – CEO of Lidl Polska

The Economic Forum was visited by a 5,050 participants from 59 countries and 450 media representatives from around the world. Visitors to the forum included, among others: Czech Prime Minister Petr Fiala, Prime Minister Mateusz Morawiecki, former Prime Minister and current Chairman of the Law and Justice party Jaroslaw Kaczynski, former UK Minister of Defense Michael Fallon, French journalist Guillaume Pitron, NASA Chief Economist Alexander Macdonald, Commissioner for Agriculture Janusz Wojciechowski. Agriculture Commissioner of the EC Janusz Wojciechowski, Vice President of the Austrian National Bank Barbara Kolm, Vice President of TikTok Theo Bertramoraz, Mayor of Lviv Andriy Sadovy, NASA Chief Economist Alexander Macdonald, Rector of New York University Andrew Hamilton, Minister of Science and Technological Development of Montenegro Bilijana Scepanovic, Chairwoman of the Seimas Viktorija Čmilytė-Nielsen, Vice Speaker of the Seimas of the Republic of Latvia Dagmāra Beitnere-Le Galla, and Vice President of GE Hitachi Nuclear Energy Jon Ball.

Economic Forum Awards

The Man of the Year Award was awarded to Volodymyr Zelenskiy, and was received on behalf of the President of Ukraine by Vasyl Zwarych, Ambassador of Ukraine to the Republic of Poland.

The Economic Forum Award went to Czech Prime Minister Peter Fiala. The Special Award of the Economic Forum was awarded to Thomas Bach President of the IOC. American organizations that support Ukraine were also honored. The award was received by Ann Lee, CEO of Core, and Thomas Tighe, CEO of Direct Relief. The Polish Forum Award went to H.E. Archbishop Mieczyslaw Mokrzycki. Company of the Year was awarded to Polsat Plus Group, while the SGH award went to Irena Eris.

The main topics of the XXXI Economic Forum

The plenary sessions focused on addressing the war in Ukraine and its consequences, the energy crisis, control of public opinion on the Internet and the need for leadership in a post-pandemic order.

It also featured a debate between Polish Prime Minister Mateusz Morawiecki and Czech Prime Minister Petr Fiala. During the conversation, the role of countries in military and political assistance to Ukraine was highlighted. " Our common outlook enables us to exert a more effective influence together, including with our partners in the European Commission," said Prime Minister Mateusz Morawiecki.

(Above from left to right)