In Focus:: Germany - October 2024

October 2024

Germany

Hamburg Sustainability Conference

ALEKSANDAR VUČIĆ

Exclusive interview

H.E. ANKE KONRAD

President of the Republic of Serbia

Ambassador of Germany to Serbia

OLAF SCHOLZ

Federal Chancellor of Germany

INTERVIEWS

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NEWS

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GREEN

ENERGY

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BUSINESS

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he 35th anniversary of the Fall of the Berlin Wall in 2024 marks a significant moment in history, symbolising the end of the Cold War and the reunification of Germany.

The fall of the Wall on November 9, 1989, not only led to the collapse of the East German regime but also paved the way for democratic movements across Eastern Europe.

It remains a powerful reminder of the triumph of freedom over division and oppression.

Photo: graphia / Shutterstock

THE FALL OF THE BERLIN WALL

N AT I O N A L D AY

TAG DER DEUTSCHEN EINHEIT

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Celebrating Freedom and Reunification

he Day of German Unity (Tag der Deutschen plex negotiations between the two German states and the Einheit), celebrated on October 3rd each year, four Allied powers of World War II. It is a powerful reminder of marks the official reunification of Germany in the significance of freedom, democracy, and unity in shaping 1990, following the fall of the Berlin Wall. It is modern Germany.

Germany’s national holiday and commemorates CELEBRATION IN BELGRADE the moment when East and West Germany were On October 2, 2024, the Federal Republic of Germany Emformally united after decades of division during the Cold War. bassy in Belgrade hosted a celebration to mark German Unity The day is celebrated with official events, including a state Day, the country’s national holiday. This year’s event also comceremony, speeches from political leaders, cultural festivals, memorated the 35th anniversary of the fall of the Berlin Wall, concerts, and fireworks. Each year, one German federal state a pivotal moment that led to Germany’s reunification. hosts the main national festivities, rotating the responsibilThe event, hosted by Gerity among them. For many, man Ambassador to Serbia, the day symbolises political THE DAY OF GERMAN UNITY H.E. Anke Konrad, took place reunification and overcoming at the restaurant “Jezero by separation, oppression, and COMMEMORATES THE HISTORIC Azzaro” on Ada Ciganlija. Disthe Cold War-era divisions REUNIFICATION OF EAST AND WEST tinguished guests gathered between East and West.

The reunification came GERMANY, SYMBOLISING THE TRIUMPH to reflect on these significant milestones in Germany’s hisafter peaceful protests in OF DEMOCRACY, FREEDOM AND THE tory and their lasting impact East Germany, the opening END OF COLD WAR DIVISIONS on global relations. of the Berlin Wall, and com3

AMBASSADOR’S INTERVIEW

BUILDING STRONGER TIES BETWEEN SERBIA AND GERMANY Exploring the future of cooperation and shared goals on Serbia’s path to the European Union grade two years ago. My diplomatic career in Berlin, in bilateral functions, and a multilateral environment at the United Nations in Geneva has provided me with a good foundation for my new position. The warm welcome I received upon my arrival in Belgrade has transformed into an overall openness from all sides to exchange, debate, agree or disagree and continue the dialogue despite different opinions. This is one of the experiences that I cherish the most. And so, overall, I look back at two years that were challenging and rewarding at the same time.

H.E. ANKE KONRAD Ambassador of the Federal Republic of Germany to Serbia

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n this interview, the German Ambassador to Serbia discusses the strong and evolving partnership between the two countries. She reflects on the deep economic ties, with Germany being Serbia’s most significant economic partner, and highlights the progress Serbia is making on its path to joining the European Union. The Ambassador also touches on key issues such as sustainable development, cooperation on energy transformation, and the importance of aligning policies with EU standards. Through this dialogue, a vision of strengthened cooperation and shared goals emerges, positioning Serbia for a brighter future within the European framework.

In your long career as an Ambassador, you’ve worked in many different embassies worldwide, including the time you spent in Côte d’Ivoire, Zambia & Poland. How much of a change was it to come to Serbia in 2022, and how would you describe the time you spent here as an Ambassador in Belgrade?

First of all, this is the first time I have worked as an ambassador. So, this was a significant change when I arrived in Bel4

How do you see the current state of bilateral cooperation between Serbia and Germany? Are there any potential areas for improvement?

I can confidently say that our bilateral cooperation is longstanding and very close.

Trade volumes between our countries are increasing, making Germany Serbia’s most significant economic partner. German invest-

TRADE VOLUMES BETWEEN OUR COUNTRIES ARE INCREASING, MAKING GERMANY SERBIA’S MOST SIGNIFICANT ECONOMIC PARTNER ments have created more than 80,000 jobs. As the largest bilateral donor in development cooperation, Germany has provided 2.3 billion euros since 2000 with a focus on areas at the heart of Serbia’s development: energy and economic transformation, vocational training, support for the private sector, good governance rural development, and support to socially disadvantaged groups. All our endeavours are guided by one goal: to support Serbia and the citizens of Serbia on their path to the EU. The German Embassy in Belgrade’s website says that you aim to improve the exchange between the two countries and help Serbia join the EU. Would you say that the exchange has seen overall improvement today, in 2024, G er m any

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Ambassador Konrad with Brankica Janković

and is Serbia getting any Ukraine, it’s even more of SERBIA CAN BE THE REGION’S closer to joining the EU? a pressing necessity to act FRONTRUNNER IN TERMS OF Since arriving in Serbia in in unison. This necessity is 2022, I have witnessed firstreflected in our expectation MEMBERSHIP IN THE EU, AND hand the strides Serbia is that candidate countries will making towards EU member- GERMANY WILL CONTINUE TO SUPPORT align with the EU’s Common SERBIA ALONG THIS ROAD ship. 22 out of 35 chapters in Foreign and Security Policy. the accession negotiations You’ve been vocal about the necessity of lithium have been opened. It is not a secret, that in some areas we in achieving the green transition in Serbia. Public would have liked to see much more progress. Serbia can opinion is quite polarised on this topic, including many gain significant support for its reform ambitions with the EU environmental activists who claim this project could Growth Plan for the Western Balkans and the Reform Agenda harm the environment. Do you consider this to be a linked to it. Serbia can be the region’s frontrunner in terms of legitimate concern? membership in the EU. Germany will continue to support SerIf we want to be serious in Europe about tackling climate bia along this road. change, reducing greenhouse gas emissions, and reducing To what degree does the lack of alignment of specific our reliance on fossil fuels, we need to consider the resources Serbian foreign policies with the EU foreign policies afnecessary for a successful energy transition. Lithium is a fect the “pace” of Serbia’s accession to the EU? crucial part of our path towards zero net emissions by 2050, a Membership in the European Union is a package deal. You commitment shared by the EU and Serbia.

The EU’s Critical Raw Materials Act, which entered into force can’t cherry-pick some aspects of it and leave the rest aside. on 23 May 2024, addresses the extraction, processing, and Only together the European Union and its Member States can recycling of raw materials in a way that will allow companies to make their voice heard internationally, act globally in addressreduce their strategic dependencies on overseas suppliers and ing global challenges. This is why the Common Foreign and ensure that environmental Security Policy is one of the risks are properly addressed. critical pillars of the European Concerns associated with Union. We can only play a the environmental risks of meaningful role in preserving lithium mining exist everypeace, strengthening internawhere. And we take these tional security and promoting concerns very seriously. international cooperation Regarding the strategic partthrough joint action. Member nership on sustainable raw states and candidate counmaterials between the EU tries must be able to speak and Serbia. Germany is ready with one voice on fundamento provide expertise on how tal foreign policy issues. At to apply the highest possible a time of many international Ambassador Konrad at the opening of environmental, social and challenges, one of them bethe European House with her collegues governance standards. ing the Russian war against 5

CORPORATE INTERVIEW

LEONI SERBIA 15 YEARS OF SUCCESS AND GROWTH

An exciting period lies ahead as LEONI Serbia embraces growth and innovation

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his autumn, LEONI Serbia celebrates 15 years of operation. With four factories and around 12,000 employees, it is the largest employer in Serbia’s industrial sector. It produces cable systems for premium-class cars of the world’s leading automotive manufacturers. LEONI Serbia is part of the German LEONI Group and represents the largest German investment in Serbia. We speak with Miloš Manić, General Manager of LEONI Serbia, about the company’s journey and plans.

How does LEONI Serbia, with 12,000 employees and one of the top five exporters last year, contribute to the Serbian economy?

The export figure is even more significant considering that our exports are double our imports, thus providing a net foreign currency inflow to the national budget. Through taxes and contributions, the company pays €48 million annually into the budget of the Republic of Serbia and local municipalities. The state uses these funds for infrastructure, education, healthcare, social protection, and culture... which means that the funds stay in the areas where we operate and reach all citizens of the country. LEONI also significantly contributes to the development of small and medium-sized enterprises. Over the years of working with us, many small businesses have grown into medium-sized ones, and some medium-sized ones have grown into large companies. We have developed a network of about 700 local suppliers with LEONI Serbia, which generates €40 million in turnover annually.

Could you remind us of LEONI Serbia’s production capacities?

Our company has gone through a fantastic and almost unbelievable journey. We started in 2009 with only 350 employees in an old factory in Prokuplje. Probably not even the greatest optimists could have imagined what followed: just two years later, a new hall was built, and 3,500 people were employed— 6

MILOŠ MANIĆ LEONI Serbia GM

ten times more than the initial number. From Prokuplje, our further expansion began: in 2014, we opened a factory in Malošište, followed by one in Niš in 2017 and another in Kraljevo in 2019. Today, we have four factories, exporting the entire production of cable systems, with our products being purchased by the world’s most famous premium car manufacturers.

What enabled such rapid development?

Three equally important and inseparable factors enabled the rise of our company. The first is the willingness of our headquarters, the German company LEONI AG, to invest in Serbia.

We are grateful that they recognised the potential of our

LEONI SERBIA IS THE LARGEST EMPLOYER IN THE INDUSTRIAL SECTOR, WITH AROUND 12,000 EMPLOYEES AND FOUR FACTORIES G er m any

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country and invested subsocial groups. During LEONI’S STRATEGIC PARTNERSHIP able stantial resources. However, the winter holidays, we diswe would not have achieved tribute over 600 packages to WITH LUXSHARE WILL SIGNIFICANTLY such growth if the Serbian children in hospitals, social ENHANCE MARKET ACCESS AND government at all levels had institutions, and remote rural TECHNOLOGICAL INNOVATION not opened doors to invesschools, visiting and prepartors and provided favourable ing them for the start of the conditions for implementation. And third, but certainly not school year. We have helped repair schools, kindergartens, least, is the readiness and capability of our people to meet the and hospitals, and we support sports clubs in small comhighest quality standards set by our customers. munities. This spring, we organised Easter games for all the children in Prokuplje and distributed toys to kids in Kraljevo.

It is a great responsibility to have 12,000 employees.

We also pay great attention to ecological initiatives: in ProkuHow does LEONI Serbia manage this? plje, Malošište, Niš, and Kraljevo, we organise environmental An interesting fact is that our company has more employees clean-ups and tree planting. Corporate social responsibility than 40 individual municipalities in Serbia have residents. will continue to be one of our priorities in the future.

This is truly a huge responsibility. Besides being the largest, LEONI Group changed ownership last year and recently we also want to be the best employer. In addition to regular entered a strategic partnership with the Chinese compawages, which have never been delayed in 15 years, we prony Luxshare. What is your outlook for the future of LEOvide transportation for employees, with 90 buses engaged NI Serbia? daily. We have contracts with 80 companies that offer special We look to the future with optimism. Since last year, LEONI discounts on goods and services to LEONI employees. Every Group has been owned by Mr. Stefan Pierer, owner of the New Year, we give gifts worth €200,000 to the employees’ Austrian Pierer Mobility Group. We are proud of this, and over children, making over 3,000 kids happy. We also equip the the past year, our company has been successfully undergofirst-graders of employees for school. Striving for a higher ing transformation. Additionally, in September, LEONI entered standard for our employees remains one of our priorities. a strategic partnership with the Chinese company Luxshare, How do you collaborate with the local communities which will significantly improve access to markets and techwhere you operate? nological innovations and ensure financial stability. This is a Through various initiatives and projects, we work to improve major step forward and a privilege. Behind us, we now have the quality of life for our fellow citizens. Over 15 years, we not only a giant from Europe but also one from China, which have allocated more than €1 million to socially responsible is the most technologically advanced industry and the most and humanitarian actions—for the most vulnerable children, desirable market. An exciting period lies ahead, and LEONI youth, sports, culture, and ecological actions. When we gift Serbia is ready for hard work and new achievements as part our employees’ children, we also remember those from vulner- of the LEONI Group.

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CONFERENCES

Germany Backs Green Transition for Serbian SMEs Serbian small businesses to receive support for eco-friendly innovations

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irect financial assistance and support in harnessing the potential of the green economy through improving the business framework and capacity building was announced for domestic micro, small, and medium enterprises at the first conference of the “Green Economy in Serbia” project. This project is financed by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, in partnership with the Ministry of Economy and the Chamber of Commerce of Serbia. Micro, small, and medium enterprises make up 99% of Serbian businesses, and this project encourages and motivates them to adapt their business models and processes to the principles of the green and circular economy, creating innovative products and services for the global market, to decarbonise the economy and protect the environment.

State Secretary in the Ministry of Economy of the Republic of Serbia, Andrea Horvat Kiralj, expressed her belief that the “Green Economy in Serbia” project will be another example of the longstanding successful cooperation between Serbia and Germany.

“Following the vision of becoming a regional leader in green economy implementation, Serbia has already embedded principles in its most important strategic documents related to the economy, industry, and the development of micro, small, and medium enterprises. Aligning with environmental business requirements, reducing greenhouse gas emissions, using renewable energy sources, improving energy efficiency and resource use, reducing air, water, and land pollution, and promoting circular economy – these are now relevant topics for every enterprise in Serbia, due both to the immediate impact of rising energy costs and the necessity to meet the demands of 8

Andrea Horvat Kiralj, State Secretary in the Ministry of Economy of the Republic of Serbia

Judith Hoffmann, Head of the Economic Cooperation Department at the Embassy of the Federal Republic of Germany in Serbia

the European Union market, with which many domestic enterprises operate directly or indirectly,” said Horvat Kiralj, calling on representatives of the business community, academia, and civil society to contribute to Serbia’s transition to a green economy.

Judit Hofman, Head of the Economic Cooperation Department at the Embassy of the Federal Republic of Germany in Serbia, reminded the audience that by signing the Green Economy Declaration in 2020, Serbia became part of the Green Agenda for the Western Balkans and noted that the transition to a green economy is a prerequisite for competitiveness in the European market.

“The transition to a green economy, while challenging, also offers opportunities to develop new products and sustainable, climate-neutral business models and practices. With its significant experience in this area, Germany is ready to offer micro, small, and medium enterprises applicable advice, education, and training related to the green economy. We will support institutions such as the Chamber of Commerce of Serbia in implementing environmental protection measures and encourage dialogue between decision-makers, NGOs, and other relevant stakeholders. Through the ‘Green Economy in Serbia’ project, we will select micro, small, and medium enterprises in certain key sectors to provide them with concrete support, paying particular attention to female entrepreneurs and other groups that may face challenges due to the transition to a green economy,” said Judit Hofman.

This project will be implemented until the end of 2026. It will focus on small and medium manufacturing enterprises and micro-enterprises in agriculture and tourism, especially those led by women, to improve their competitiveness and enable their integration into international supply chains.

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NEWS

HAMBURG SUSTAINABILITY CONFERENCE

All photos: The Presidency of Serbia / Dimitrije Goll

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Aleksandar Vučić and Olaf Scholz

President Vučić Attends the Hamburg Sustainability Conference and Meets Chancellor Scholz

he Republic of Serbia President, Aleksandar Vučić, attended the Hamburg Sustainability Conference in the Federal Republic of Germany. He participated in a panel titled Negotiations on a New Alliance—Responsible and Circular Battery Supply Chain. During his stay in Hamburg, President Vučić also met with the Federal Chancellor of Germany, Olaf Scholz, and other officials.

At the conference, President Vučić met with Chancellor Scholz to discuss Serbia’s European path, the situation in Kosovo and Metohija, and to reach agreements on various global issues.

On the conference’s second day, President Vučić participated in the panel Negotiations on a New Alliance – Responsible and Circular Battery Supply Chain. He emphasised that in today’s world, where political precedents are often discussed, it is crucial to address economic issues that will help define the future, create a better economic environment and combat poverty.

“When it comes to mining, raw materials, minerals, and rare metals, we need to talk to PRESIDENT VUČIĆ HIGHLIGHTED SERBIA’S our people about social cohesion and the entire value chain. This is not just about mining COMMITMENT TO BEING A RELIABLE PARTNER IN but our shared future, as we must produce GLOBAL SUSTAINABILITY EFFORTS everything necessary. This is important for Germany, the world, and all of us. We must remember that we will all face energy shortages, which we your support economically and politically as we face various must prepare for. Serbia has always been and will remain challenges. We must look to the future and not focus on daily a reliable partner, and we expect the same from others. We problems. I believe that together, we can solve all issues. look forward to cooperating with our friends from Zambia Thank you for hosting us, and you can count on Serbia, just as and Africa and our German hosts. I hope we can count on we hope we can count on you,” President Vučić said.

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CORPORATE INTERVIEW

NELT’S STRATEGIC GROWTH IN LOGISTICS AND SUSTAINABILITY We are planning major investments in logistics infrastructure and modern technologies.

VUK MIJANOVIĆ Business Development Manager of Logistics, NELT

WE ARE PLANNING MAJOR INVESTMENTS IN NEW LOGISTICS INFRASTRUCTURE AND MODERN TECHNOLOGIES ACROSS MULTIPLE MARKETS, FOCUSING ON AUTOMATION AND DIGITAL TRANSFORMATION 10

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uk has over 20 years of experience in supply chain management and logistics. He was key in establishing Nelt’s logistics, leading network design, optimisation, software integration, and performance improvement projects. He manages logistics operations, implements supply chain strategies, and focuses on intermodal transport and digital innovations.

How would you describe Nelt today?

Nelt is now a multinational company in 13 markets across two continents. We have a system of 5,500 employees, of which we are most proud. We are one of the most successful and modern business systems in the Adria region regarding the supply chain, consumer goods, tobacco, pharmaceutical, and cosmetic products, and the development of our brands.

Nelt’s three decades of successful business are built on trust, established through introducing best practices, maintaining high business standards, and open communication with employees, logistics clients, distribution principals, and institutions across all our territories.

What is Nelt’s recipe for success, and what would you say is its biggest competitive advantage?

The people who work at Nelt are certainly our biggest competitive advantage, and that’s true. Our corporate culture and values, which we all genuinely live by, set us apart from other companies, though many other factors contribute to Nelt’s uniqueness. We strategically and continuously invest in our employees through various programmes at all levels. At Nelt, our success depends on the organisation’s health. We conduct extensive employee satisfaction surveys every two years using globally recognised methodologies to gather feedback, which we then implement. These initiatives are carefully selected to improve organisational health, with participation from all employees, from the executive board to operational positions. We foster an environment of trust and allow employees to create solutions, thus developing individuals capable of innovation while building personal and professional integrity. People have always been, from an employer’s perspective, more than ever before, a strategic resource. Those who find the best way to recruit and retain quality employees will win in the market.

You achieved revenue growth in logistics services, and at the recent Nelt Customer Day, you announced the largest investment cycle in Nelt’s history. What does that mean?

Logistics services have been a focus for the past few years.

This has led to success in terms of results, but we are aware that our potential is much greater. For some time, we have been working on the prerequisites that can ensure the success of our “Accelerate” strategy. We focus on digital transformation, the company’s organisational health, and improving processes and competencies. In the coming years, starting

OUR SUSTAINABILITY EFFORTS HAVE REDUCED CO2 EMISSIONS BY 300 TONS AND SAVED OVER 1,000 TREES THROUGH DIGITALISATION AND RENEWABLE ENERGY INITIATIVES from today, we plan major investments in new logistics infrastructure in Serbia, Bosnia and Herzegovina, North Macedonia, Montenegro, and Zambia. However, these investments are not just about new warehouses; we will significantly increase logistics capacities. Many of these investments will be directed towards modern technologies, which will automate our operations, following the example of companies in Western Europe and the world. We aim to implement technologies such as “high bay,” “ASRS shuttle” systems, and robotic systems for sorting goods. Besides these investments, the plan is to redesign and optimise the logistics network. We want to offer a wider range of logistics services, create an environment for B2B or B2C e-commerce services, and make our operations even faster and more efficient. The goal is to create the most modern logistics hubs in the region, combining intermodal, powerful fulfilment, and our recognised last-mile service all in one place.

How important are data exchange and digitalisation in integrating the supply chain, and what are the challenges and opportunities associated with these practices?

Saying digitalisation is essential is an understatement—it is a fundamental part of all our lives today. Nelt has been engaged in digital transformation for many years. We started with projects to build the foundations of a digital environment, particu11

market leaders. We work with all shipping companies and freight forwarders in the region. In the meantime, we have expanded our terminal capacity in Dobanovci, opened a new one in Kruševac, and launched a rail service. In addition to Nelt, many domestic and foreign companies have recognised this trend and invested significantly in infrastructure. I believe this is a positive development that contributes to Serbia’s economy. Strengthening infrastructure is key to increasing the flow of goods. Still, our idea from the start was that the terminal should be just one link connecting all the capacities we can offer our regional partners. All our storage capacities, systems, digital infrastructure, and first-mile and last-mile services are available. Through intermodal, we aim to create a dry port hub to optimise and improve the supply chain for our clients and principals.

Sustainability is becoming a key factor in almost all industries. How does Nelt integrate sustainability into its operations and supply chains?

THROUGH INTERMODAL TRANSPORT, WE AIM TO CREATE A DRY PORT HUB THAT WILL OPTIMISE AND IMPROVE THE SUPPLY CHAIN FOR OUR CLIENTS AND PRINCIPALS larly databases. The “Data Management” project was crucial for our development, as it allowed us to create a unique database and gather all data in one place. This has enabled us to use the data easily to make faster conclusions and decisions and to create reporting tools that are now an integral part of our business. We have also laid the groundwork for using machine learning and AI tools and creating digital products like our B2B platform, NELT Market. This has established an environment that will integrate with all participants in the supply chain—our clients, principals, customers, and suppliers. Data exchange and transparency have no alternative in today’s world, as this is how we understand how we impact each other and where the potential lies to create additional value at every link. The biggest challenge is the data itself—its quality and structure. The more successful we are at consolidating, cleaning, and storing this data precisely, the more benefits these systems will provide us.

Nelt has opened the first private intermodal terminal within its business complex and launched a public rail service, for which you are the operator. What does this service portfolio mean for the supply chain?

We recognised intermodal services as an increasingly prevalent logistics concept trend over seven years ago. We started as a “start-up” with modest capacities and have become 12

We are one of the first companies in the region to voluntarily publish a sustainability report using the most relevant global sustainability reporting methodology, the Global Reporting Initiative (GRI). This methodology provides all stakeholders with a comprehensive picture of the impact of our organisation on the environment, with standardised and precise performance indicators. Together with our partner INFORA, in 2021, we worked on developing software solutions to achieve greater efficiency in optimising sales and delivery routes. The automation provided by this new solution has resulted in greater efficiency, optimisation, and time and resource savings, ultimately improving service quality. This solution has reduced fuel consumption, which has reduced CO2 emissions by 300 tons. We implemented digital delivery notes in the Serbian market in 2022, reducing paper consumption by 65%, equivalent to 40 tons annually. This initiative alone has saved over 1,000 trees. The project was also implemented in compliance with local regulations in other markets where we operate. We invest in renewable energy sources, with our logistics centres and factories equipped with solar panels, and we continue to invest in solar power plants. Part of our fleet is also electrified.

Our focus on intermodal transport, specifically rail, is key to sustainability in the supply chain. Our terminal and logistics centres can help us and our clients create solutions that significantly contribute to sustainability and global ESG goals.

What do you see as the future of logistics, and where do you envision Nelt in, say three years?

We must look at what is happening maturely and without prejudice and understand what we need. I see the future of logistics through integrating the End-to-End supply chain, with Nelt as the epicentre of regional logistics and the supply chain.

Trade is transforming rapidly, primarily through e-commerce, which puts logistics—and Nelt—to a serious test. We need to transform our mindset to integrate fully. The changes we are experiencing today require strong infrastructure, which means significant investments, time, and a workforce currently in short supply. Technology and automation certainly help, but it will not be enough unless we all integrate and work together as one stable chain.

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AHK

According to a study by the Global Reporting Initiative (GRI, 2023), 86% of investors state that high ESG standards would be key in their investment decision-making. Companies also face increasingly strict regulations and legal requirements, such as the European Green Deal and legislative initiatives that demand reporting on CO2 emissions and sustainable practices (EU Green Deal, 2024). Companies are also under pressure from consumers, who increasingly prefer products and services aligned with sustainability principles, as confirmed by a Nielsen report showing that 66% of global consumers prefer brands that demonstrate environmental responsibility.

THE AHK GREEN ACADEMY SERBIA AIMS TO EMPOWER SERBIAN COMPANIES TO MEET SUSTAINABILITY GOALS AND COMPLY WITH EUROPEAN MARKET REGULATIONS THROUGH PRACTICAL TRAINING IN GREEN ECONOMY PRACTICES

German-Serbian Chamber of Commerce Launches Innovative Education Platform

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he German-Serbian Chamber of Commerce is pleased to announce the launch of AHK Green Academy Serbia, a platform dedicated to educating and training employees on topics such as the green economy, sustainable development, and the circular economy. This initiative aims to empower companies in Serbia to achieve sustainable development goals and respond to the challenges of doing business with partners from the European Union.

In today’s dynamic business environment, sustainability is increasingly imperative for competitiveness, while continuous training is crucial for maintaining competitiveness for both companies and their employees. A growing number of companies are striving to achieve sustainable development goals, and the issue of sustainability is becoming more relevant not only for positions such as ESG managers but also for key sectors like procurement, human resources, and logistics.

Jasmina Trbović, Project Manager of the Education and Qualifications Department at the German-Serbian Chamber of Commerce and Training Coordinator at AHK Green Academy Serbia, emphasised that raising environmental awareness and employee training play a vital role in the transition to sustainable business practices and that AHK Green Academy Serbia provides a unique opportunity to acquire practical knowledge through training led by prominent experts from Germany and Serbia.

AHK Green Academy Serbia allows companies to better prepare for key regulations such as the Carbon Border Adjustment Mechanism (CBAM), the German Supply Chain Due Diligence Act, and the EU Corporate Sustainability Due Diligence Directive (CSDDD). These regulations require companies to identify, mitigate, and prevent business practices that negatively impact the environment and human rights, especially if they wish to collaborate with the EU. “These training sessions are designed to give participants a deeper understanding of European market requirements, focusing on conditions and standards for doing business with partners from Germany and the European Union. Participants will hear firsthand from German and domestic experts about the typical mistakes in CBAM reporting, how to avoid them, and the comparative advantage of our training over others available on the market. These programs are not just theoretical but offer practical solutions tailored to the needs of companies aiming to improve their business in line with the latest environmental standards,” said the AHK Green Academy Serbia training coordinator, highlighting that the Academy offers education in areas such as decarbonisation, green skills, and the circular economy.

One notable program is the EUREM European Energy Manager, which starts in late October 2024. This program allows professionals to further enhance their skills in energy efficiency through standardised training.

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CORPORATE INTERVIEW

ADNAN IMAMOVIĆ VM2 COSMETICS Member of the Management Board

What is the background and core business of VM2 COSMETICS?

VM2 COSMETICS is a specialised company engaged in the distribution and promotion of makeup products, with a focus on affordable, high-quality brands such as essence and Catrice. It was established as a joint venture with the German company Cosnova, a leader in the decorative cosmetics industry, ensuring a solid market position and a continuous focus on innovation in the beauty world. The growth and success of the Cosnova group are also impressive. Cosnova, a family-owned business entering its third decade, has seen significant growth. Their net sales reached €817 million in 2023. “The key to conquering new markets and achieving top sales results is understanding each market and having partners who have been in those markets for many years, as well as recognising new opportunities, applying Cosnova’s German business model,” says Imamović.

How does VM2 COSMETICS distribute the makeup brands essence and Catrice?

PIONEERING AFFORDABLE BEAUTY AND SUSTAINABLE GROWTH IN SOUTHEAST EUROPE Expanding Across 10 Markets with Innovative Makeup brands essence and Catrice

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n this interview, Mr Adnan Imamović, Member of the Management Board of VM2 COSMETICS, shares insights into the company’s successful expansion across Southeast Europe, its partnership with Cosnova, and the driving forces behind the popularity of brands like essence and Catrice.

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VM2 COSMETICS uses an extensive distribution network, including retail chains, drugstores, specialised beauty stores, and online platforms. Interestingly, all distribution for the countries we operate in is handled from Zagreb, enabling centralised and efficient logistics.

In which markets does VM2 COSMETICS operate, and what are their primary focuses?

VM2 COSMETICS currently operates in 10 countries: Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Montenegro, North Macedonia, Albania, Kosovo, Bulgaria, and Romania.

Our primary focus is on the countries of Southeast Europe, where we successfully offer innovative and affordable makeup products, with a special emphasis on a youthful audience seeking trendy and quality products.

What is the company’s approach to expanding into new markets, and what is their working philosophy?

Our approach to expansion is based on thorough market research and understanding consumer needs. We nurture a philosophy of close cooperation with local partners to adapt our products and marketing strategies to the specificities of each market. Flexibility and adaptability are key to our success. Employees are VM2 COSMETICS’ most valuable resource, and continuous investment in their development is the foundation of long-term G er m any

READ THIS ON WEB success. The company is committed to creating a stimulating work environment and providing opportunities for the personal and professional growth of all employees. As I often emphasise: “If you’re not getting better every day, you’re becoming average.” This motto motivates us daily to develop, learn, and strive for excellence.

What are the key success factors for VM2 COSMETICS in selling the essence and Catrice brands in regional markets?

Our success rests on product quality, affordable prices, and the ability to follow global trends in cosmetics. Additionally, continuous presence on social media and communication with our audience is key to building brand loyalty. Moreover, operating in 10 countries allows us to gain insight into different regional consumer needs and preferences, while centralised distribution from Zagreb ensures optimised logistics and fast delivery.

MAKE TY BEAU FUN

How popular are essence and Catrice makeup brands in the markets where VM2 COSMETICS operates? essence and Catrice are trendy brands, especially among young people. Their combination of quality products and affordable prices provides them with a stable market position.

In contrast, the regular release of new collections and products keeps consumer interest both globally and in the countries where we operate.

What challenges and opportunities does VM2 COSMETICS face in different markets?

Challenges include increasing global instability and changes in consumer preferences, but opportunities lie in expanding the range and introducing new, innovative products that appeal even to the most demanding consumers.

Furthermore, the growing demand for sustainable and environmentally friendly products presents additional growth opportunities in the Southeast European markets.

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What role do sustainable initiatives play in the company’s strategy and its brands?

Sustainable initiatives play a key role in our strategy. VM2 COSMETICS, along with the brands essence and Catrice, continuously works on reducing its environmental footprint by using eco-friendly materials in packaging and supporting cruelty-free policies. Our consumers in the region appreciate our commitment to sustainability, contributing to longterm brand loyalty.

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1. CATRICE Holiday Skin 4 in 1 Luminizer 010; 2. CATRICE Blush Affair Cream & Powder Palette 020; 3. CATRICE Glam & Doll Endless Lash Mascara; 4. CATRICE Prisma Illusion Effect Top Coat 040; 5. CATRICE Invisible Cover Foundation 035C; 6. CATRICE Care In Colours Lip Balm 040

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CORPORATE INTERVIEW

20 YEARS OF JOINT VICTORIES Serbia’s culinary diversity offers excellent opportunities for METRO to support HoReCa professionals

You recently joined METRO Cash & Carry Serbia after an outstanding career in METRO France. What were your first impressions of the country?

From day one, I felt welcomed as part of the family. I knew this coming in, but experiencing this level of openness and warmth of the people firsthand makes it even more special.

Serbia has genuinely impressed me. It’s an exciting and inspiring place for me and my family.

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How would you describe the Serbian HoReCa sector? What potential do you see in this market, and what makes it unique?

I was immediately amazed by the market’s vibrancy and its incredible potential. There’s a deep culture of service that aligns very well with METRO’s values. Serbian restaurateurs are passionate and dedicated. I’ve noticed a deep connection to local traditions while embracing innovation, especially with the growing presence of Michelin-recognized restaurants, which is evidence of this evolving culinary landscape. It’s exciting to see the level of passion that goes into it.

There’s a strong entrepreneurial spirit here, and the market’s flexibility allows it to adapt quickly to new trends. Our customers’ demands for unique products and tailored solutions reflect this. Serbia’s diversity in its culinary culture, combined with a focus on quality and innovation, provides a fantastic opportunity for METRO to continue offering solutions that meet the needs of HoReCa professionals.

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All photos: METRO Srbija

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adir Kadji, the newly appointed CEO of METRO Cash & Carry Serbia, arrives with a rich background from his time at METRO France. In this interview, Kadji shares his impressions of Serbia’s vibrant culture, the potential within the HoReCa sector, and his strategic vision for METRO Serbia as it prepares to celebrate two decades of successful operations in the country.

You mentioned being warmly welcomed by the METRO Serbia team. How did this reception help you adapt to your new role?

Their deep understanding of the local market has been invaluable as I transitioned into my new role. What I admire the most is their passion for and commitment to ensuring METRO remains the key wholesale partner for professionals in the hospitality and retail sectors.

READ THIS ON WEB METRO has a strong presence in Serbia and is regarded as a key partner for professionals in the HoReCa sector and independent retailers. In your opinion, what has been the most crucial factor in achieving this position?

As the first authentic wholesaler in Serbia, METRO is uniquely positioned to support the growth of the local market by being dedicated to the success of our customers through tailored solutions, a vast product offering, and competitive pricing. Since entering the Serbian market nearly 20 years ago, we have grown alongside our customers, building a strong, long-term, and sustainable relationship as a trusted partner to hospitality professionals and independent retailers nationwide. We see them as our business partners, and by working closely with our customers to understand their needs, we are co-creating solutions that will foster mutual growth in the years to come.

Let’s take our “Jutro” franchise program as an example. It was created to empower small, independent retailers with the necessary resources and tools to thrive. With over 50 stores, the franchise is growing, demonstrating our commitment to supporting local retailers across Serbia. They play a crucial role in sustaining and developing local communities and enhancing the diversity and sustainability of the national economy.

Time is also approaching when we will focus on Expo 2027 and how to contribute to presenting Serbia in all its glory. The period ahead of us will also be dedicated to building more partnerships, developing innovations to support HoReCa sector development, and helping maintain small traders’ independence. We will continue strengthening our delivery to provide our customers with the most efficient multichannel solutions in the Serbian market.

SERBIA’S VIBRANT CULINARY SCENE PRESENTS EXCITING GROWTH POTENTIAL FOR METRO

As we approach the end of the year, could you share your vision for METRO Serbia in 2025?

2025 will be very special to all of us in METRO as we celebrate our 20th anniversary of doing business in Serbia. This significant milestone reflects METRO’s success and the legacy of our strong customer relationships. We plan to reflect on that and mark it by further deepening our partnership with the HoReCa and retail sectors by recognising and honouring the customers who have been with us on this journey—many of whom we’ve grown alongside from day one. This celebration will be about them and their victories, which we have been trying to back up for two decades, and our joint victories.

Nadir Kadji has been appointed as the CEO of METRO Cash & Carry Serbia. He joined the company from his previous role as Director of Operations and Sales for METRO France. He began his career at METRO France in 2006, spending the next ten years in various senior positions in the Human Resources department. With extensive professional experience from a country where the hospitality industry is at an exceptionally high level, he will contribute to the growth of the company in the domestic market, where METRO Cash & Carry has been the only true wholesaler and a reliable partner to professional customers in the hospitality and retail sectors for nearly 20 years.

One of METRO Serbia’s significant developments is opening a new logistics and distribution centre. Can you tell us more about this project and its significance to your business?

The new logistics and distribution centre in Dobanovci will greatly enhance our operational efficiency, allowing us to provide even better service to our customers. The centre will improve product availability, expand our assortment, and enable faster deliveries nationwide. It’s a significant step toward sustainable growth for METRO in Serbia, as it will allow us to meet the needs of our growing customer base more effectively, ensuring we remain a reliable partner as their businesses grow.

As someone with a strong background in human resources, how do you approach leadership? What is key to ensuring the success of a company like METRO? We are a business people. We need to take care of our customers as they are our associates. Also, leadership is about empowering your team and creating an environment where people can thrive. For METRO and me, it’s critical to nurture a culture of open communication where everyone feels valued, their work has meaning, and they see a clear path for growth.

That drives success for us - passion and openness, but the secret ingredient is to be there for each other. And that is what I recognised in METRO Serbia.

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C U LT U R E

OPTIMISTICALLY DISORIENTED Exploring Reality and Identity Through German Cinema

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oetheFEST 2024, held in Belgrade, captivated audiences with seven new German films that delve into real and imagined lives, marking their Serbian premieres. The festival’s theme, “Optimistically Disoriented,” challenged viewers to reflect on the nature of reality and question how much of what we perceive is truly real. The films presented a variety of perspectives, each telling its unique story.

The festival opened with Chris Kraus’s powerful drama 15 Years. The film tells the emotional journey of a former pianist who confronts her violent past, balancing between a revenge thrill18

GOETHEFEST 2024 NOT ONLY ENTERTAINED BUT ALSO INVITED ITS AUDIENCE TO QUESTION REALITY, IDENTITY, AND THE WORLD AROUND THEM, PROVING ONCE AGAIN THE POWER OF ART TO INSPIRE THOUGHT AND REFLECTION er and a tragic character portrait. Lead actress Hannah Herzsprung delivered a compelling performance, bringing depth to her role as a woman battling be-

tween mania and depression. The film explores universal themes of revenge, grace, and acceptance.

The festival concluded with Blind Spot, directed by acclaimed German-Kurdish filmmaker Ayşe Polat. This sensitive, poetic drama touches on transgenerational trauma and is set against the backdrop of a political thriller. The film masterfully combines social drama with found footage and media meta-reflection, creating a tense atmosphere that keeps the audience on edge.

Franky Five Star by Birgit Möller mesmerised viewers with its dreamlike, slightly experimental aesthetic, perfectly complemented by timeless songs and cinematography. Lena Urzendowsky’s portrayal of a character grappling with multiple personalities left a lasting impression with her remarkable performance.

Urzendowsky also starred in Beyond the Blue Border by Sarah Neumann, a story about three young protagonists under the GDR regime. Their attempt to escape across the open sea draws parallels to today’s refugee crises, making a poignant connection between past and present struggles for freedom.

Anika Mecke’s Jonja was another highlight. It is a socially relevant yet entertaining film that offers an intimate look at what truly drives us. Mecke’s slow, observant storytelling provides a deep, human perspective.

For fans of exceptional cinema, The Devil’s Spring, an Austrian-German coproduction by Veronika Franz and Severin Fiala, stood out as a haunting critique of religious dogmatism. Set in 18th-century rural Austria and filmed using 35mm analogue techniques, the movie transposes the atmosphere of Dutch painting onto the big screen, making it Austria’s candidate for the 97th Academy Awards.

Lastly, Out of One’s Skin by Alex Schaad explored identity, love, and the human body in a fascinating and thought-provoking narrative. The film raises the question of what would happen if we could exchange bodies with others, addressing themes of gender, identity, and sexual orientation with minimalistic visual effects and deeply emotional performances.

GoetheFEST 2024 not only entertained but also invited its audience to question reality, identity, and the world around them, proving once again the power of art to inspire thought and reflection.

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