Green Business 2022 by The FINANCIAL

SPECIAL EDITION

"We have planted under 50 000 trees and seedings" See on p. 2

Leading the way for Green Corporate Culture See on p. 6

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July 25, 2022

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GREENBUSINESS The Role of the Public Sector in Promoting Green Business

SOLOMON PAVLIASHVILI:

GREEN BUSINESS IS A KEY INSTRUMENT TO SUPPORT BUSINESS DEVELOPMENT IN A SUSTAINABLE WAY Continued on p. 5

In an interview with The FINANCIAL, she, talked about the projects implemented in the committee, the challenges in the country and the future plans that will support the development of green business in the country.

Buy Green and Save the Planet – ECO Drive

Continued on p. 4

ProCredit Bank as Leading EcoFriendly Bank’s Role “Beyond Zero” Philosophy - Toyota Caucasus

Georgian Industrial Group Energy Efficient Projects Running an environmentally friendly business Hilton Garden Inn

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"We have planted under 50 000 trees and seedings"

"When we speak about green business it is not just about energy efficient houses or more green zones, first of all it is more responsibility and if we will have more responsible business in our country it will have only positive effect", says Nodar Adeishvili, CEO, Lisi Development. By The FINANCIAL

isi Development’s total investment in sustainable urban development has exceeded USD 150,000,000. The company continues to attract local and international investment to contribute to the development of the country’s economy. Lisi Green Town is a successful example of what proper urban planning is all about. A properly planned district and greenery sets it apart from other projects and makes it interesting to citizens. "From the day one our company had responsible approach to our country, city and of course to our residents. We took a risk established 20/80 concept and we were pioneers who stared urban development which had detail and clear future vision. Along with leading Georgian and top international architects all our building with in our urban development are all state of art architecture. We are proud to see that our success model today is already being copied by many other developers on Georgian real estate market. On annual basis we are promoting our business model on international scale which big success", Adeishvili told The FIANNCIAL. What kind of environmental issues take into consideration Lisi Development in the project planning process? Despite the fact that we are mainly developing at this point very rocky territory with very small green zones, as first step we are conducting numerous geological, dendrology and other researches, only after this our architectural, urban & landscape designers step in. Main consideration of Lisi Development is to develop much more green zones and plant more trees than it was before. From start of the development till today, we have planted under 50 000 trees and seedings in Green town's and its surrounding areas. which made the territory more suitable for leaving and lowered the temperature, which is more noticeable during summer and gives a difference of up to 3-4 degrees compared to the city center. This positive change in local nature even brought the new breeds of birds to the area which were never seen before. What sets Lisi Developments projects apart from other companies' projects? Our competitive advantages are; green urban development, top quality and world class architecture . The natural layout of the project and the way that we are building our residential blocks or townhouses brings the breathtaking view over Tbilisi from each and every balcony or terrace of our project. Biggest meditational zone of our city - Lisi lake is part of Lisi Green Town where we have developed additional parks, squares, cafes, restaurants, mini football field, sulfur baths and more. Must be noted that on average there is a 150 square meters of space per resident in Lisi Green Town, 70 of which is green-

ery. This greenery on vicinity per capita exceeds WHO's (world Health Organization) minimum standard of healthy living by 7.7 and ideal standard by 1.4. What challenges do you see in Georgia in terms of environmental care and development of green business? Despite the fact that there are some positive movements towards promoting less cars in central streets and new more regulations along with approved master plan of our city, I would look forward to see more precise & strict regulations for developers which are oriented within very city center and have big responsibility to towards our cities visual, esthetic and urban aspects. Tell us about your progress in 2021-2022, what are the main projects that you have implemented and made your contribution in green business development? We have developed several energy efficient blocks within our districts also several several parks, thousands of new trees were planted. Along with our districts numerous projects were developed around Lisi Lake, must be noted that more than 5,000 different type of fishes were released. For you as a business, what are the impediments to being more positive about green business development? For every business main impediment to be more green is cost and only cost. By being number 1 green developer in Georgia Lisi Development was able to prove that only by investing in green will it be construction, landscape or urban development success can be reached. How you see the role of the public sector in

promoting green business. What kind of support do you have, as development from the public sector? Public sector is becoming more and more active, we will be only happy to see more activity in this direction. What does Lisi Development do in terms of energy efficiency? Well from the beginning of development energy efficient and eco-friendly measures were implemented in Lisi Green Town. As an example all houses are energy efficient, street lights in and around the buildings are LED system, result is low consumption. Some of our residential block's internal ventilation, cooling and heating methods will be controlled by central HVAC system. That significantly decreases energy usage. We are harvesting the rain water and using it in our plants and trees irrigation system. Garbage separation bins have been placed at Lisi Green Town in order to support recycling processes. Eco friendly solar panels, low emission glass panels, façade windows and doors are installed to reduce overall energy consumption. Electric chargers were installed within the district to promote electric cars. · What are Lisi Development’s short and medium term plans and projects you’re going to develop in terms of green business? Our plan was and always will be development and promotion of green and at the same time responsible business on Georgian real estate market, by establishing new international high standards and by bringing top world class architectural players to our county. Our goal is to create value to our City & our country.

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The Role of the Public Sector in Promoting Green Business By The FINANCIAL

"The public sector plays an important role in the development of green business. Creating a legal framework adapted to the needs and goals of the country and acting within it contributes to the proper development of the country’s economic, social and political sectors", Maia Bitadze,. Chairwoman of the Committee on the Environment and Natural Resources of Georgia at Georgian Parliament. In an interview with The FINANCIAL, Maia Bitadze, Bitadze, talked about the projects implemented in the committee, the challenges in the country and the future plans that will support the development of green business in the country. Q. What is the role of implementing a green business concept in the development of the country? Does it respond to the UN’s Sustainable Development Goals? A. The implementation of the concept of a green economy plays an important role in the development process of the country. As is known, the goal of a green economy is to improve human wellbeing and social equality by reducing environmental risks. At the 2012 United Nations Conference on Sustainable Development, states agreed to establish a green economy as an important tool for sustainable development, insofar as it is inclusive and enables economic growth, along with employment and poverty eradication by maintaining the functioning of the earth's ecosystems. Thus, we can consider a green economy to be one of the vital mechanisms for achieving the goals of sustainable development. Q. What is the role of the Committee on Environment and Natural Resources in promoting green business? A. The Environmental Protection and Natural Resources Committee actively works in the direction of promoting green business, However it is one of the main priorities of the Committee and is included in the Committee’s 2022-2024 action plan. To promote the growth of a green and circular economy, the Committee aims to: Facilitate the implementation of appropriate reforms and incentives to encourage the introduction of the best environmental technologies in production, which is integral part in the process of the adoption of the “Industrial Emissions” law and the implementation of appropriate measures for its effective enforcement . The law will establish obligations related to the introduction of “Best Available Techniques” (BAT), which is particularly important from the point of view of green business development; Improve legislation for sustainable extraction and the supervision of forest, water and mineral resources, however biological resources are key input in economy and will play even more important role in the formation of circular economy in nearest future. Due to this and taking into consideration that circular economy itself can significantly reduce the negative impacts of resource extraction and use on the environment and contribute to restoring biodiversity and natural capital of our country, sustainable and effective management of natural capital will be one of our main priorities during our course of actions. Refine legislation in the direction of the effective use of household inert and green waste, the inclusion of recovered waste in the economic turnover and prevention of environmental pollution. We should realize that recycling

process leads to creation of new applicable resources in nature in the form of waste that are inert, both household and green waste, due to this we plan to provide incentives as for the businesses as for our citizens, who will express willingness to separate at source, in addition to encourage sharing of information and good practices in waste recycling as well as on waste-free production, in order to make products fit for a climate-neutral, resource-efficient and circular economy. The Committee actively cooperates with the business and non-governmental sector to promote a green economy, which is manifested in the discussion of the challenges with the representatives of the relevant sector within the scope of the committee meetings. In addition, in order to ensure effective communication with the business sector, within the Committee we have created a working group with the business sector, on issues of environmental protection and natural resources management, which works on challenges in the process of carrying out ongoing reforms and introducing new regulations or applicable incentives in the field of environmental protection and natural resources. Q. What legislative changes were made in 2021-2022 that contributed to the development of green business? A. In 2021-2022, the Parliament of Georgia

“The Environmental Protection and Natural Resources Committee is actively working on the draft law ‘On Water Resources Management’ and on waste management issues, which are two the most important key elements in the process of developing green economy .” adopted important legislative changes that are contributed to the development of the green economy in the country. Among them are: Legislative changes implemented in the Environmental Assessment Code, as a result of which: The limits established for the extraction of minerals stipulated by the annexes of the Environmental Assessment Code were reduced, however as mentioned before natural resources are often viewed as key assets driving development and wealth creation, due to this it is crucial to take into consideration all aspects and encourage formation of legal framework that leads to their sustainable management and reduction of negative impact on natural capital, as this is only way how green business can be developed. Therefore, this legislative

change is one step forward to this objective and is contribution to green business development. Based on same intention comes next legislative change which are : Screening criteria were specified, as a result, the component of proximity of activities to landscape, recreation and forest areas will be taken into account when making decisions; Legislative changes implemented in the Forest Code of Georgia and subsequent laws aimed at promoting the sustainable management of forest resources. The project, among other changes, integrated the procedures related to the relevant auction and removed bureaucratic barriers. Also, the regulation for sustainable extraction of non-timber resources was clarified. These changes were contributed to mitigate negative impact on environment and to avoid risk of resource depletion, however we strives for balance between these dimensions: maintaining the long-term use of resources while maximizing social benefits and minimizing environmental impacts. As we know effective communication, information sharing and high level of participation in decision-making procedure from the public and the private sector is one of the key elements in the process of formation of green economy. Due to the pandemic situation, this become challenge as well, however on site meetings became nearly impossible, so based on the changes now we have opportunity to hold public hearings in a hybrid format. Adoption of the Law on “Environmental Liability”. Its purpose is the legal regulation of environmental damage issues, in accordance with the “polluter pays” principle. The draft law regulates legal relations related to the prevention of significant damage to the environment, and in case prevention is impossible, the mitigation of significant damage to the environment, by the measures that needs to be implemented in the event of damage, including remedial measures for significant environmental damage and compensation for environmental damage. It is important to note the amendments made to the Law of Georgia “On Ambient Air Protection”, according to which, from 1 June, 2021, the operator of the activity is obliged, for the purpose of self-monitoring, which implies to carry out continuous determination of the actual amount of organised emissions of harmful substances from stationary sources of pollution into the atmosphere, using an instrumental method (self-monitoring of emissions).

Q. How do you regulate the harmful effects of business on the environment? What sanctions exist in this regard in the country? A. In order to minimise the regulation of the harmful effects of business on the environment, the starting principles of the Committee’s lawmaking activities are the regulation of activities with possible significant impact on the environment in accordance with modern environmental standards and the establishment of appropriate responsibility measures in case of damage to the environment. On the other hand, the adequate attitude of the business is also important and it is welcomed that the business thinks and expresses its readiness to conduct its activities in compliance with environmental requirements. This is an important factor for the development of the green economy. Thus, the imposed fines are the framework that in turn encourages companies to use modern technologies in the production process and therefore, at the same time, to save the expanses they are facing in the long-term perspective , however modern technologies in addition to the fact that they are more environmental friendly they are as well more cost effective. This is a prerequisite for their integration in the modern and global space.

continued on p.15

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Leading the way for Green Corporate Culture, With 100-step Environmental Program Completed RMG enters the New Phase of Green Development

By Gela MEGENEISHVILI

Being the outlier in implementing cutting-edge technologies and ensuring environmentally friendly business operations, RMG has accumulated a vast resume for green projects and initiatives. The Financial reached out to Sandro Devidze, Deputy Environmental Director. Q. How would you evaluate the company’s environmental performance so far? And From your experience, how has the environmental state shifted within the last decade? We believe that supporting the development of the green economy stands as a crucial priority, both for businesses and our country. Since 2017, we have started implementing a 100-step environmental program, which was completed in 2022, with the total investment amounting to 30 million GEL. One of our accomplishments is the completion of three fully-operational modern chemical treatment facilities, that clean the water

generated in the enterprise operations and ensure the safe discharge of the purified water into the river. In addition to the water protection measures, we have minimized the emission of dust and harmful substances into the atmosphere and initiated the protocol for soil protection and reclamation. For the first time in the last decade, the company has reclaimed and rehabilitated one of the quarries located in our license area. Ultimately, the analysis of the past 5-6 years reveals that the effects of our environmental projects are dynamic and noticeable. This is confirmed by the results of the state inspection, as for the first time in the last decade, the inspection of the activities of RMG Gold (in the quartzite area), showed not a single violation of the environmental legislation and requirements. The company's results are recognized by various credible groups that constantly monitor our environmental performance. The results have been outstanding, however, we are keeping our aims high and continue to initiate numerous new interesting projects related to the environment.

Q. What are the major priorities in your working area? Environmental protection stands as the major priority for our company, therefore, after the implementation of the 100-step program, we have moved to a new stage. By the end of 2022, the company will have implemented the new environmental policy document that will help guide our activi-

ties in line with the UN Sustainable Development Goals. Together with the state, the business has a significant role in achieving the goals set for 2030. Additionally, by the end of 2022, we will join the UN Global Compact Network Georgia and partake in the important initiative that proves that responsible business activities, cooperation, and innovation can make a difference both in our sector and in society. The new policy aims to encourage green procurement as much as possible, therefore the company will continue to promote local entrepreneurship, especially the Bolnisi winemaking and women entrepreneurship.

Q. What do you think is RMG's communication with the public regarding environmental and new projects, and their feedback? We proactively provide information to the public about all of our projects. The environmental monitoring results are consistently published on our website. According to numerous non-governmental sector representatives, the public hearings for the local community regarding our projects meet the highest standards. We firmly believe that transparency and partnership are essential for the sustainable development of our company.

Q. What are the plans for the future and upcoming projects?

At RMG, we believe that that path of progress can only be paved through constant upgrades, therefore we have initiated an unprecedented scale of investment in upgrading the company's infrastructure and introducing new technologies. There are several important projects in that regard. The first is the complete renovation/modernization of the RMG’s copper processing plant built in the 1970s, while the other is the construction of a new Tailings Storage Facility The new TSF project is based on the strictest requirements of modern international, environmental, and safety standards. Within the project framework, we have planned several environmental initiatives, including forest restoration. And lastly, I would like also to mention the project of the new modern polymetallic ore processing plant, which will be completed in 2023. All these projects were developed with the assistance of leading international consulting companies, including Finnish and Canadian companies. In the end, modernized technologies will help the company to ensure rational processing of natural resources with minimal impact on the environment, as well as saving energy. Our activity is important both for the 3700 company employees and for the economic development of the Region and the Country. The vision of the RMG team is that it is all beneficial when the company has a high environmental and social responsibility.

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ProCredit Bank as Leading EcoFriendly Bank’s Role in Promoting Green Business in Georgia For many years, implementing ecofriendly initiatives has been one of the priority topics on the agenda of ProCredit Bank. All this is expressed both in the Environmental Management System used by the bank and the executed projects, including providing financial opportunities – ECO loans - for SME businesses that help to improve energy efficiency, increase competitiveness, and reduce a negative impact on the environment. ProCredit bank has been operating for 23 years in Georgia, emphasizing excellent customer service to small and medium enterprises and private individuals who prefer to do their banking through electronic channels. In an interview with The FINANCIAL, Giorgi Kardenakhlishvili - Head of Medium Business Development of ProCredit Bank, Bank talked about the ProCredit bank's role in the green sustainable development of the country through its unique business model the German bank has been applying over a decade, with underlying main achievements of ProCredit bank in green business direction and important projects the bank is working on to enhance "a green development" of the country.

Q: What is the role and contribution of ProCredit bank in promoting green business? Promoting green business has been among the top priorities of ProCredit Bank for many years. We offer access to financing to both Private Individuals and small and medium-sized businesses by offering specialized green loans to promote investments in energy efficiency, renewable energy, and environmental protection. We provide technical advice to customers, share our experience, and help them achieve their efficiency goals and improve the environment around us. In financing these projects, we also try to incorporate several incentives, including preferential collateral requirements and cashback. We are committed to funding environmentally and socially sound projects and work only with businesses that comply with environmental regulations and do not endanger the population's health and safety.

Q: What does ProCredit bank do in terms of energy efficiency? One of the main tasks of ProCredit

"If each of us will realize our role in protecting the environment, the country will become greener, more developed and eco-friendly, and this will positively affect our well-being and healthy life in a safe environment". Bank is to be an example in the banking sector by applying high environmental standards in day-to-day activities, both by reducing the direct impact on the environment by continuous monitoring own energy and resource consumption, with the aim of identifying opportunities to reduce our environmental impact and developing appropriate measures. It is worth noting that our head office is EDGE certified. It is the first building in the country that received the certification due to its energy and resource efficiency. We invest in renewable energy technologies - the bank has installed a rooftop solar power plant. I want to emphasize the fact that 100 percent of our car fleet consists of electric vehicles. Apart from its own efficiency measures, the bank has a greater impact by incentivizing the business sector with green loans to promote investments in energy efficiency. With our accumulated in-house expertise, we have positioned ourselves as the partner of choice for green loans. Q: What challenges do you see in Georgia in terms of environmental care and development of green business? The main challenge is the low awareness of the importance of car-

ing for the environment. We think we should all do our part in raising the responsiveness towards the topic, and ProCredit Bank has been serving this purpose for many years. We have achieved expertise in green financing, we demonstrate its benefits and importance through constant dialogues that we engage in with our partners, and we finance green investments for small and medium enterprises. Our efforts enable citizens to understand the consequences of their positive impact, reduce environmental pollution and endorse the green development of the country.

Q: Do you think that the Green Business concept is popular among Georgian businesses? From year to year, the popularity of the green concept in Georgia is increasing. This is facilitated by the increased availability of information in the business sector. Many steps have been taken in this regard. However, there is still much work to be done, and we think the potential in this direction is quite significant in the Georgian economy.

Q: What are the main projects that you have implemented and made your contribution in green business development? ProCredit Bank has been actively implementing various eco-friendly initiatives for several years and is contributing to the development of green business. We have completed the cycle of electric cars popularity project: from financing opportunities to the free electric charging stations installed in the whole country aims at improving the air quality. In addition, financing offers for renewable energy projects contribute to the idea of green development. This investment reduces the emission of harmful gasses and significantly decreases the monthly utility bills. The project of EDGE certification for green buildings can have many advantages for all SME businesses as it brings international prestige, opens many doors for decent financing opportunities and drives profitability. Q: ProCredit bank is actively involved in EV (Electric Vehicles) introduction in Georgia, why do you think it is important for green business? The poor quality of air is one of the substantial health concerns in our country. Replacing the internal combustion engine cars with electric vehicles would have a significant impact on improving the air quality. We started the electric car project a few years ago with the renewal of our fleet. As a result of gradual replacements, our fleet consists of only electric vehicles today. In addition, we have offered green loans to our customers with preferential

rates. However, one of the major obstacles to switching to electric cars was a lack of infrastructure. In order to make the decision easier for the population, we created a network of free electric chargers covering the country to travel the route from the East to the West with the EV, which we plan to expand further.

Q: What are your short and medium term plans and projects you're going to develop in terms of green business? Since 2012, one of the strategic directions of ProCredit Bank has been the promotion of green and ecofriendly initiatives. In this regard, we have taken many steps forward from year to year. We try to increase awareness regarding environmental issues and make our daily activities eco-friendly, thus setting an example for others. We offer SMEs access to financing and share our German experience with them to successfully operate in the market. The promotion of green business development in the country remains an active component in the plans of the ProCredit Bank. We will continue offering modern and practical business solutions to the customers, thus creating a better environment. We as a financial institution understand our role in this matter and would like to transmit this message to the business sector as well as the individual citizens. If each of us will realize our role in protecting the environment, the country will become greener, more developed and ecofriendly, and this will positively affect our well-being and healthy life in a safe environment.

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“Beyond Zero” Philosophy - Toyota Caucasus’s Role in Promoting Green Business Toyota Motor Corporation is one of the largest automobile manufacturers in the world, producing about 10 million vehicles per year. In an interview with The FINANCIAL, Irakli Lekishvili, Head of the Corporate and Sales Division of Toyota Caucasus, talked Caucasus about Toyotas global vision, innovations and projects. He also shared with us Toyota Caucasus’s contribution to the development of green business in the country.

ronmental safety, so that every citizen feels responsible for themselves and future generations. Q. What are Toyota’s plans for the future in terms of developing a green business and making a contribution to its development globally? A. We continue our efforts towards a better world, tackling global environmental challenges via six bold steps to becoming more sustainable. The first three steps are getting us to carbon neutral and the remaining three to Beyond Zero. It’s always been our ambition to go above and beyond and take care of other important aspects of the environment and that is why Beyond Zero is not just about communication, but is our basic mindset. We want to be the leading region in achieving carbon neutrality - and to reach this goal ten years in advance of the Global Toyota Environmental Challenge 2050. Q. In your last interview we spoke about the Toyota Caucasus strategy for offering eco-friendly cars to local customers. Which models will you offer to your customers in the future and what will distinguish them in terms of the benefits they can provide to the environment? A. To continue implementing last year’s activities, we are constantly increasing the introduction of ‘electrified powertrain’ models to our customers. The line-up of our hybrid electric vehicles is already the widest and as a next step (and in consideration of the local infrastructure and our customers’ convenience) we plan to introduce the most popular plug-in hybrid models such as the Rav4 PHEV, Prius PHEV, and Toyota C-HR PHEV. This technology will certainly contribute to improving the environmental conditions in Georgia and we believe switching to HEV technologies is the first, but essential, step for achieving eco sustainability in the region.

Q. In your last interview with The FINANCIAL you spoke about Toyota’s goal for 2050. What are Toyota’s current green initiatives and practices? A. Thank you very much for your interest in Toyota Caucasus again this year. Various environmental challenges are rapidly threatening ecosystems and societies globally. Major interventions and strategic approaches are required to minimise harm and to avoid reaching catastrophic stages. Last year we actively discussed our goal for 2050 which was introduced in 2015 and comprises various challenges to improve the environment around us. Today we would like to share our vision to go beyond expectations, via the Beyond Zero philosophy which has been prioritised for a while now. Q. What is Beyond Zero? A. Beyond Zero is Toyota’s global commitment to contribute to a world beyond emissions and beyond restrictions. A world where we leave nothing and no one behind, and where people experience the freedom to move, supported by Toyota’s leading electrification technology and mobility innovations, matched with memorable customer experiences. It isn’t the final destination, but only a step in the journey that started more than 20 years ago with the introduction of hybrid technology. Q. How do you see the world from the Beyond Zero perspective? A. Toyota has always seen the world a little differently. Where others might see barriers and obstacles, we see opportunity. That’s why we have pioneered the journey towards zero emissions, although for us that’s only the start. We want to go beyond. From cities powered only by clean hydrogen to mobility solutions that benefit everyone,

we’re striving to create a more inclusive and sustainable world and society; a better world. Toyota has even revealed plans to build a prototype ‘city’ of the future on a 175-acre site at the base of Mount Fuji in Japan. It will be a fully connected ecosystem powered by hydrogen fuel cells. Envisioned as a ‘living laboratory’, the Woven City will serve as a home to full-time residents and researchers who will be able to test and develop technologies such as autonomy, robotics, personal mobility, smart homes and artificial intelligence (AI) in a real-world environment to become the showpiece of a hydrogen society. With the Beyond Zero perspective we strive for a world which is full of innovative solutions, connectivity and high technologies for a better and cleaner environment. Q. What are the main challenges you see in promoting the Beyond Zero philosophy in Georgia? A. A significant step has been made in Georgia within the framework of the EU Association Agreement. Regulations have come into force that will help revive our environmental philosophies. Toyota Caucasus actively cooperates with all the environmental agencies, both legislative and private

“It has always been our ambition to go above and beyond and take care of other important aspects of the environment and that is why Beyond Zero is not just about communication, but is our basic mindset.” structures, to provide maximum coordination and effort to cover all aspects to implement Beyond Zero. In general, I am sure you will agree that the environment in Georgia is quite challenging, as our country is beginning to set foot in this direction just now. Achieving environmental and economic sustainability is not without a challenge. There are a number of issues surrounding this delicate balance between preserving our ecosystem while achieving a high quality of life. Our biggest challenge is to raise societal awareness about the significance of envi-

Q. Have purchases of electrified powertrain vehicles increased compared to in previous years?

A. Yes, in the field of hybrid and the plug-in ‘world’ Georgia is indeed the leader in the region, and figures are increasing from year to year. We believe this trend will continue to grow as sustainability is at the centre of everything we do. We focus on creating ever-improved cars that will let people live cleaner, safer and more connected lives. Globally, we strive to develop future mobility solutions that connect people, vehicles and cities in order to substantially reduce people’s environmental footprint, and (even if it may not be in the very near future) we believe this will also become a reality for our country.

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Georgian Industrial Group Continuing to Implement Energy Efficient Projects and Contribute to Sustainable Business Development In an interview with The FINANCIAL, Giorgi Emiridze, Executive Director of the Georgian Industrial Group, spoke about the company’s contribution to the development of green business in Georgia. He emphasised the projects and plans for the future that will have a positive impact on the development of the country’s economy and energy efficiency.

A. One of the leading investment directions of GIG is energy efficiency; accordingly, we are implementing a number of projects in this direction. Years ago, we invested in renewable energy in Ukraine, building a solar power station which has been operating intensively and successfully for years. We would like to highlight the fact that for a certain period of time, during the war, this station was located in occupied territory; however, despite this, the station never stopped supplying electricity to the country’s energy grids. We have long-term plans in Georgia regarding sustainable business development, which involve the implementation of various projects. By the end of the year, we are planning to install solar stations at almost all of our facilities throughout Georgia, which will ensure full power supply to these facilities. Q. What are GIG’s short- and medium-term plans and projects that are going to be developed in terms of green business?

Q. What is your company’s main goal and vision for the market? A. Georgian Industrial Group (GIG) is one of the largest industrial groups in Georgia. Its main vision is to evolve into a leading industrial group in Georgia, recognised for its prominent contribution to the country’s industrialisation, quality and reliability by investing in the future of Georgia. We are represented in several countries, including Georgia, Kazakhstan and Ukraine.

Our investment portfolio includes the energy sector in several countries, industrial and construction materials production. We have a number of business partners, including those operating in healthcare, insurance, schools and many other diverse areas. Q. What is GIG accomplishing in terms of energy efficiency? A. Our group has been focused on energy efficient and renewable energy projects for years. We

have also carried out a number of rearmaments of cutting Soviet machines. As a result, both production efficiency and environmental issues have significantly increased. GIG actively continues to operate in this direction in order to contribute to the energy efficiency of the country. Q. What are the main projects that you have implemented that have contributed to sustainable business development?

A. Currently, our group has started installing solar plants at its facilities across Georgia, which ensures the full supply of these facilities with sustainable sources of electricity. In the near future, GIG plans to help various companies across Georgia with similar projects and ensure the installation of solar stations in their infrastructure, which will increase energy efficiency and have a significant, positive impact on the environment. GIG is also working on a windmills project and the replacement of an old, lowefficiency thermal power plant with a new, high-efficiency one. We believe that these projects will help the energy independence of the country, as well as create a better environment for the future development of the country. We believe that green and renewable energy will contribute to the long-term, effective development of the country. For this, the private and public sector should be consolidated, which will ensure the development of a correct action plan. All of this is a sign of long-term effective development and has a positive impact on both the economic and environmental progress of the country.

green business forum

HEADLINE NEWS & ANALYSIS July 25, 2022 | FINCHANNEL.COM

HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | July 25, 2022

green business forum

Solomon Pavliashvili, Deputy Minister of the Ministry of Environmental Protection and Agriculture of Georgia

The Role of the Public Sector in Promoting Green Business "Green business is a key continued from p.4 Q. How do you regulate the harmful effects of business on the environment? What sanctions exist in this regard in the country? A. In order to minimise the regulation of the harmful effects of business on the environment, the starting principles of the Committee’s law-making activities are the regulation of activities with possible significant impact on the environment in accordance with modern environmental standards and the establishment of appropriate responsibility measures in case of damage to the environment. On the other hand, the adequate attitude of the business is also important and it is welcomed that the business thinks and expresses its readiness to conduct its activities in compliance with environmental requirements. This is an important factor for the development of the green economy. Thus, the imposed fines are the framework that in turn encourages companies to use modern technologies in the production process and therefore, at the same time, to save the expanses they are facing in the long-term perspective , however modern technologies in addition to the fact that they are more environmental friendly they are as well more cost effective. This is a prerequisite for their integration in the modern and global space. Q. What role does public-private partnership play in the development of green business? A. Public-private partnerships (PPPs) are becoming increasingly popular in public policy. It is expected that this partnership will improve public welfare, increase the efficiency of the spending of public finances, promote international cooperation and aid effectiveness. A green economy is mainly based on six sectors: renewable energy, green buildings, sustainable transport, water management and waste management. PPPs aimed at reducing pollution, increasing energy and resource efficiency can be considered to be one of the important mechanisms for achieving green growth, especially in terms of green infrastructure development. Q. What are the main challenges you see in terms of green business development in Georgia? A. There is great potential for the development of a green economy in Georgia, especially in such fields as energy and agriculture, transport, tourism and the forestry sector. Certain institutional foundations have been prepared for the formation of a green economy. In particular, during the last decade, the “Waste Management Code”, “Forest Code”, “Environmental Assessment Code”, “Environmental Liability Law”, etc. have been adopted, which fully take into account the legal requirements of the European Union. Three national environmental action programmes of Georgia have also been adopted, where the environmental goals and priorities of Georgia are outlined, as well as the tasks necessary to improve the environment are defined. According to the 2021 Global Innovation Index report, which measures green economic activity, Georgia ranks 63 out of 130 countries. The transition to a green economy is a complex process that depends on the overall level of economic development and its profound qualitative changes. Thus, it is logical that Georgia is facing challenges as our country is in the process of developing a green economy. The implementation of environmentally-safe methods is associated with considerable costs for businesses. For example, the measures to improve the atmospheric air condition in Rustavi envisage the reduction of industrial emissions, which in many cases, in addition to the installation of cleaning equipment in enterprises, also requires the upgrading of technology and change of whole production cycle, which is associated with extra expenses for them. That is why it is im-

portant to implement a consistent policy by the state, by taking into consideration business support and encouragement. Q. What are the main projects you’ve implemented in terms of promoting green business in Georgia in 20212022? A. The Environmental Protection and Natural Resources Committee, with the support of the Swedish Government and the United Nations Development Program (UNDP) in Georgia, carried out a thematic inquiry on the topic: sustainable management of inert waste. On the basis of the mentioned thematic inquiry , legislative changes will be initiated by the Committee in the Waste Management Code of Georgia, if necessary, as well as in the spatial planning and construction legislation. The mentioned changes will improve the existing legal regulation, in particular the issues of sustainable management of inert waste will be clarified, including the rights and duties and responsibilities of central and local government agencies. The Committee, with the support of the British Government and the Westminster Foundation for Democracy (WFD), together with the Parliament’s Sectoral Economy and Economic Policy Committee, launched a thematic inquiry on the topic titled “Opportunities and Challenges of Decarbonisation in Georgia”, which aims to identify the challenges for achieving the goals of the decarbonisation policy in Georgia. According to the action plan of the committee in 2022, it is envisaged to start the development of a draft law on climate change. In order to effectively fulfil the obligations undertaken by Georgia at the international level, it is important to create an appropriate legal framework. The project determines the creation of the Parliamentary Council on Climate Change in the Parliament of Georgia, which will significantly increase the role of the Parliament in the formation of the climate change policy and the supervision of its implementation. In addition, effective inter-agency cooperation is also important. Based on the goals of the development of a green economy, state agencies in the field of economy and environmental protection, closely cooperate and work together, including in the direction of education and capacity building. In addition, it is welcomed that already at the municipal level, appropriate acts are being issued that promote the development of a green economy, including the conversion of biomass into energy. There are also governmental programmes aimed at assisting businesses in the process of transition to environmentally-friendly technologies. For the same purpose, the state spares no effort in obtaining the support of donors. Q. What are the future goals and plans of the Committee on Environment and Natural Resources that will encourage and promote the development of green business in the country? country? A. The Environmental Protection and Natural Resources Committee is already actively working on the draft law “On Water Resources Management” and the resulting legislative changes, which represent a large-scale reform of the water sector. In addition, Committee has other objectives and plans for the nearest future, which are following: The law on “Biological Diversity” (not initiated); It will lead as solid bases for the development of legal and policy mechanisms to achieve effective biodiversity planning and to meet final objective, which is to enhance the conservation of biological diversity, the sustainable use of its components, and the fair and equitable sharing of benefits arising out of the utilization of genetic resources. The law on “Industrial Emissions” (not initiated); This establishes the main principles for permitting and control of large industrial installations based on an integrated approach and the application of best available techniques (BAT) and is one for the most important legal framework in the process of transposition to EU directives.

instrument to support business development in a sustainable way" What is the Ministry of Environmental Protection and Agriculture of Georgia role in promoting green business? Green business is a key instrument to support business development in a sustainable way and encourages to balance economic growth with environmental protection. It supports us to contribute to the implementation of Sustainable Development Goals. The role of the Ministry of Environmental Protection and Agriculture of Georgia is to support and develop laws, policies and programs that promote green business. The Ministry supports the green business in different ways. Furthermore, it is very important to contribute to the public awareness-raising and behavior change towards sustainability. We are implementing various projects in all these directions. For example, as education is the initial and significant part of every process - the Environmental Information and Education Centre within the framework of EU4 Environment programme implements the online green economy course of the world's leading educational platform - The One UN Climate Change Learning Partnership. There are also important forums held where the development of green economy and green business, promotion of small and medium-sized enterprises are discussed. In addition, in order to support green and circular business practices, legal provisions related to sustainable public procurement were elaborated as well. The draft decree of the Government of Georgia defines basic principles and means of implementing Sustainable Public Procurement in practice. Based on the requirements of the EU directives it includes the innovative concept of the life-cycle costing as well as the relevant calculator based on which the lifecycle costing can be measured. This concept can be considered as one of the effective instruments for the implementation of Sustainable Public Procurement. At the policy level, it is significant that with support of the Government of Sweden, we are working on the mapping of the circular economy in Georgia and we are planning to elaborate the circular economy strategy of Georgia as well. Number of projects are implemented in the country promoting green grants, eco-innovation, eco-labeling, energyefficient and renewable energy technologies, etc. What are the main challenges you see in terms of green business development in Georgia? The field of green business is indeed challenging in Georgia. Since it is a developing process, it faces challenges in achieving financial stability and implementing responsible business conduct standards and practices. These challenges are usually related to increased competition, financial problems, incorrectly formed business models, product creation without preliminary market research and analysis, errors in planning marketing strategies, incorrectly selected partners, lack of investment and competencies in research and development, lack of appropriate infrastructure for innovation, increased costs for creating innovative products, etc. The analysis of the different activities, programmes and projects dedicated to sustainable, inclusive and green development has revealed the necessity of awareness raising measures among business circles and especially SMEs, with regard to green economy opportunities and benefits from it. Therefore, we are implementing and supporting environmental education and awareness raising programmes at the national level targeted to various audiences. The lack of special financing, dedicated to the implementation of green business related projects, is a second main challenge for the development of green business in the country. The financial system has a key role to play here, as there is no sustainable development without sustainable financing, be it public or private. Furthermore, another issue for the measurement and assessment of overall profit by business enterprises following the application of greener approach, rather than a traditional business model in a long-term perspective. Increasing the price for products and services can also be another issue of concern. It is equally important both for ensuring the implementation of environmental legislation and for providing incentives for the business to introduce green growth practices. Another issue is the lack of experience and capacity of the private sector. What legislative changes were made in 20212022 that contributed to the development of green business?

Development of the legislation and policy promoting green business practices is among the priority of the Government of Georgia. Despite the difficult situation related to Covid-19 pandemic, we are trying to approximate our legislation in regard to green development, to the best international practice. Therefore, Forest Code, the law on Energy Efficiency, Law on Energy Efficiency of Buildings, Law on Ambient Air, regulations of Extended Producer Responsibility have been adopted during the outbreak of Covid-19, have been adopted during the recent years. In the framework of the EUfunded EU4 Environment Programme, in close cooperation with the State Procurement Agency of Georgia and Environmental Information and Education Centre, Georgia drafted sustainability provisions and relevant articles to the draft Law of Georgia on Public Procurement. Furthermore, a draft decree of the Government of Georgia "On the Necessary Measures to Be Taken in Order to Achieve the Goal of Sustainable Development in Public Procurement" was prepared in the framework of the project. Draft decree regulates detailed provisions and approaches for the practical implementation of Sustainable Public Procurement and reflects requirements of the EU directives and international best practices. What role does public-private partnership play in the development of green business? - Can you underline some projects in this direction if we have? Public-private dialogues play a significant role in the process of green and circular transition as the participation of the business operators makes the process more transparent and democratic. It contributed to preventing conflict among different groups and between the public and the government and it increases confidence in public institutions. Public-private discussions contribute to creating fair policies/laws reflective of real needs enriched with additional experience and expertise of the private sector; It facilitates cross-sector dialogue and adopts more forward and outwardlooking solutions. For the effective management of such important and large-scale processes, it is crucial for the public and private sectors to work together. For these reasons a number of training, consultation workshops and dialogues have been conducted in the framework of various international projects. For instance, in the framework of the EU-funded EU4Environment programme, awareness raising activities and trainings have been conducted for the Georgian economic operators, business associations, manufacturers and distributors in 2022. As the Sustainable Public Procurement is a new concept for Georgian legislation and practices, awareness of business and market players was essential for high-level competition on the market. Municipal waste management sector is connected to public-private partnership as well. We have an example of this cooperation in one of the municipalities of Georgia, namely Sagarejo where the collection and transportation of municipal waste is implemented by the private sector. Public-private partnership plays an important role in the implementation of extended producer responsibility (EPR) too. Within the new reform launched in Georgia to support establishment of the Extended Producer Responsibility system at the national level, producers and Producer Responsibility Organizations will work closely to manage the specific waste streams. As long as the municipalities have their obligations on waste collection, they will have to work together to organize separate collection sites. Do you think that existing law is effective in terms of protecting Georgia from environmental offenders? It should be mentioned that, on March 2, 2021 the Parliament of Georgia adopted Law of Georgia on Environmental Liability, which is fully in line with the obligations under the EU-Georgia Association Agreement and respective EU directive, aiming to develop a system of environmental liability based on “polluter pays principle” and serving the elimination/mitigation of environmental harm. The law established a completely new mechanism of environmental liability in Georgia, according to which a person causing significant damage to the environment will be obliged not to pay the monetary compensation, but to take necessary remedial measures to restore the environment in accordance with a predefined plan-schedule. Continued on p. 17

green business forum

HEADLINE NEWS & ANALYSIS July 25, 2022 | FINCHANNEL.COM

HEADLINE NEWS & ANALYSIS

green business forum

FINCHANNEL.COM | July 25, 2022

Solomon Pavliashvili, Deputy Minister of the Ministry of Environmental Protection and Agriculture of Georgia

"Green business is a key instrument to support business development in a sustainable way" continued from p.15 The new law also envisages the operator to take preventive actions, when there is an imminent threat of such damage occurring. Moreover, the new legislation introduced the financial guarantee to manage environmental risks. Namely all the operators carrying out the high-risk environmental activities will be obliged to have a financial guarantee before launching the activity.

Eko Kalandarishvili, Director of Sales and Marketing | Hilton Garden Inn

Running an environmentally friendly business helps to reduce impact on the environment Q. What is the role of Hilton in promoting green business in Georgia? A. Hilton Garden Inn Tbilisi Chavchavadze, as a part of Hilton Hotels & Resort family, has been participating in all relevant sustainability programs and initiations. Hilton is committed to reducing waste and driving towards a circular economy. We are committed to leading the hospitality industry toward a net-zero economy and reducing our greenhouse gas emissions in line with climate science.Waste prevention, recycling, food upcycling and donation are all key components of creating a greener hospitality industry. Q. Why do you think it is important to promote green business for the development of the country? A. Hilton Hotels & Resorts integrated sustainability and green business ideology decades ago, however after the increasing impact of climate change in the contemporary world, it has become even a bigger priority. Green business is also important as it can contribute significantly to the local economy of a country by creating employment and additional business opportunity for the domestic businesses. Running an environmentally

friendly business helps to reduce impact on the environment and preserves natural resources. Therefore, business can help the environment in many ways, for example, it reduces the reliance on natural resources. Q. For you as a business, what are the impediments to being more positive about green business development? A. Sustainability of the business and being part of the community we live and serve in, as simple as that! – I mean Sustainability costs money. It might be more expensive to manufacture or to distribute the product or, it might affect the cost of the service as well. Businesses have to measure how sustainable they are and Hereby, Implementing a green business model may not be a quick and smooth transition for a company and its employees, it takes huge amount of time and energy to draft and to integrate sustainable programs into the business. Q. How you see the role of the public sector in promoting green business. What kind of support do you have from the public sector? A. The public sector is important by se tting the brighter guidelines, logistics and promoting educational content concerning the dangers and impacts of climate change.

Q. What kind of environmental issues take into consideration Hilton in the project planning process? A. Every brand of Hilton Hotels & resorts has specific minimum requirements in order to ensure hotels are kept in line with the trends on energy efficiency. Q. What are the main services that you offer to customers? A. Hilton Garden Inn Tbilisi Chavchavadze is located in the Up-Market, Vibrant neighborhood of Chavchavadze Avenue, The primary district for business and the commercial lifestyle in Tbilisi, Georgia. The Hotel offers 170 fabulous rooms with a modern design, including 23 connecting rooms, 5 suites and 8 meeting spaces for any kind of events. Hilton Garden Inn Tbilisi Chavchavadze offers enhanced food and beverage options, modern and contemporary designs, and the brand's hallmark bright and airy décor, along with exceptional service. Guests of the hotel will have a variety of onsite dining options, including ANDAZI restaurant. Besides being Modern and Cozy, ANDAZI restaurant has a Georgian Soul, offering a wide selection of international dishes with Georgian Highlight. Beside that guests will be treated to numerous amenities and services, including

complimentary Wi-Fi throughout the property, 24-hour business center with Print Spots™ remote printing, a state-of-theart fitness center, and pet friendly towards animal lovers. Q. Tell us about your progress in 2021-2022, what are the main projects that you have implemented and made your contribution in green business development? A. As Hilton Garden Inn Tbilisi Chavchavadze started operating in Q4, 2021, during this short period of time, we have already implemented HACCP standard, local sourced suppliers and seasonal menus. Coming next, we aim to start with quality assurance program and to review and update energy efficiency of the business. Q. What are Hilton Georgia’s short and medium term plans and projects you’re going to develop in terms of green business? A. We would like to look into recycling and waste reduction. We believe it is important to the long-term success of our business to build and operate sustainable.

Can you evaluate the overall ‘green business’ situation in Georgia? The state of green business in Georgia is still in an active phase of development. More precisely, as mentioned above, it faces challenges, both economic and technological, as well as in terms of lack of experience. Since there are many novelties and innovations in this field, it is necessary to adapt to all this, change the traditional methods, which step by step will definitely lead us to the set goal of creating the most comfortable environment for the green business development in the country. We actively work on the development of a circular economy in the country. In this regard, we are committed to support waste prevention, reuse, recycling, and energy recovery according to the environmentally sound management standards and safe disposal of waste. In order to implement Extended Producer Responsibility, we developed six by-laws on the number of waste streams. Four by-laws have already been adopted by the Government of Georgia. Apart from that, the Ministry of Environmental Protection and Agriculture of Georgia with the support of the Kingdom of Sweden is intending to develop a National Strategy for Circular Economy with the aim to ensure long-term resilience, promote economic opportunities and gain environmental and social benefits. What kind of restrictions do companies have in order not to harm the environment and to contribute to the care of the environment? First of all, it should be highlighted that sanctions established for administrative offences in the area of environmental protection and natural resources management, are subject to periodic review, as a result of which relevant amendments to the legislation are being developed and initiated to ensure that administrative penalties have a deterrent effect. In order to reduce air pollution from the industrial sector in the country a legislative package was adopted in March 2021 that tightened liability of industrial plants for exceeding emission limit values and absence of abatement equipment. It introduced obligatory conditions for industrial plants having a significant negative impact on the environment to install automatic self-monitoring systems for emissions into the air. Sanctions for violation of fuel quality standards (for import, production and provision of lack of quality petrol and diesel) increased sharply in 2020 and it became the subject to the Criminal Code of Georgia if violation is committed repeatedly. In this regard, it is particularly noteworthy that implementation of the Extended Producer Responsibility (EPR) system at the national level is one of the requirements provided by the Waste Management Code. To ensure the implementation of extended producer responsibility, the National Waste Management Strategy and Action Plan defines strategic goals and specific actions for the management of the following types of waste: batteries, oils, packaging materials, electrical and electronic

devices, tires, accumulators, end-oflife vehicles. Hence, all companies considered by law are obliged to fulfill their duties. This and other restrictions which companies have, are important to lead their businesses to the greener operation. The Ministry develops a National Environmental Action Programme (NEAP) once every five years, where the activities to be implemented during this period are described in details. The programme outlines Georgia's environmental priorities and defines strategic long-term goals, including specific actions that are determined to improve the quality of the environment and reduce pollution. The important activity in terms of strengthening environmental protection is the improvement of the environmental monitoring system, which is an important tool for determining the state of different components of the environment, measuring the quality of pollution. Improvement of these types of systems allow for better identification of environmental conditions and planning of appropriate responses. What are your future plans in terms of promoting green business? The Ministry has plans to encourage their activities in terms of promoting green business. For instance, information settings, consultations and various tools ensuring public access to environmental information, involving government agencies and the business sector are important to continue in order to identify more environmental initiatives and receive support from the government. The Government of Georgia recognizes the green economy opportunities for the country and its potential for sustainable economic growth, job creation and poverty reduction. Green economy is an important part of the process that will help to deliver sustainable development through focusing on the role of natural capital as a driver of economic growth. Within the scope of the different programmes, with participation of our international partner organizations, we are organizing workshops, seminars, trainings and conferences for business representatives. These activities are dedicated to: resource efficient and clean production (RECP), green economy and new growth opportunities, eco-innovation, sustainable public procurement, ecological value-chain and product innovation, environmental management systems and perspectives of green finances in Georgia. I think that the main trend of the issues under the different programmes dedicated to the development of the green economy should be preserved. At the same time, since the main beneficiaries of green actions are representatives of the private sector, the programme should ensure participation of more companies and especially SME’s from the different spheres of activities. From our point of view, for the preservation of sustainability of the programmes we need implementation of much more projects dedicated to resource efficiency, product innovation, green economy and similar areas. Visualization of green actions will be a good incentive for the private sector to do the same action in their companies.

green business forum

HEADLINE NEWS & ANALYSIS July 25, 2022 | FINCHANNEL.COM

HEADLINE NEWS & ANALYSIS

green business forum

FINCHANNEL.COM | July 25, 2022

Buy Green and Save the Planet – ECO Drive Offers Eco-Friendly Products and Promotes Green Business in the Country Replacing existing cars with ecofriendly modes of transportation is one of the most important ways to contribute to green business in the country. Ecodrive.ge is a new project on the market which aims to promote a healthy environment in the country, prevent air and environmental pollution, and offer eco-friendly products to customers. In an interview with The FINANCIAL, Natalia Alikhanashvili, Executive Director of Ecodrive.ge, talked about the main role of the company in the market, emphasised its contribution to promoting green business in Georgia, and its plans for the future in this direction.

ise any product for both personal and commercial purposes. Q. What services do you offer to customers?

Q. What is the main goal of your company and its vision for the market? A. Georgian project Ecodrive. ge was established with the aim of helping the environment. The products on offer are aimed at combating modern-day environmental issues. Due to its diversity, Ecodrive.ge is adapted to customers of different tastes, those who travel by car, scooter or otherwise. Electric cars and scooters reduce fuel consumption and air pollution. Also, for consumers who want to light their offices, homes or gardens with modern visual lights, eco-lighting saves more than 80% of energy compared to traditional lighting. Our priority is providing a quick and creative solution for the benefit of the customer, through which we can reach the best result. Let’s help the environment and save the earth together! Q. What is the role of ECO Drive in promoting green business in Georgia? A. Ecodrive.ge is the first Georgian project that has been able to combine all eco-friendly products in one space. The goal of the company is for every customer to become interested and willing to follow the challenge of the world and become guardians of the earth. Our project and its products allow customers to custom-

A. The project combines two directions. In terms of lighting, we are partners with the large manufacturer Senslights, a Korean company that offers a full line of premium quality electrical products: Solar panels, Solar lights, Led lights, Hybrid conditioners etc. Also, our partner in the direction of electric vehicles is the Chinese state-owned company JAC Motors, which offers a full line of electric vehicles. The company offers a variety of passenger and commercial vehicles: trucks, loaders, buses and others. Our partner in the line of electric cars is the Japanese brand HONDA, which offers passenger electric cars. We also offer 10% cashback to companies who purchase an electric vehicle under leasing conditions. Q. Why do you think that promoting green business is important for the development of the country? A. Of course, taking care of the environment globally and locally, improving ecological benchmarks and saving costs from an economic point of view, such as utility and logistics costs, are very important. This is quite prevalent in large enterprises, where they have the opportunity to reinvest the saved funds in business development or even invest in small start-up projects, in which mostly young people are involved. Implementation of the above-mentioned projects means more employed citizens and more income for the home

state. In reality, we are reaching the point where a strong social environment and a healthy, successful business environment directly and proportionality determines the strength of the country. In order to implement all this, the state’s support and participation play a major role.

“We are going to be cooperating with large companies and offering a campaign - get off the green line and become energy efficient, buy green and save the planet.”

Q. The introduction and promotion of electric vehicles is an increasingly important issue for the country. In what way are you contributing to this? A. Our role - to present this issue as a separate project - is already a step forward for the country. A few years ago we introduced the first electric car and started developing the green line. We think that not only from a business point of view, but also from a social responsibility point of view, the Georgian green project of GAA Holding - Ecodrive. ge, has an important role and objective in the Georgian market. Q. What challenges do you see in terms of introducing electric vehicles in the country? A. There are certain obstacles, for example from the tax point of view, Solar panels and solar lightings, due to their battery, there is an additional tax on them, i.e. VAT. In terms of this, it would be good for the state to adopt a specific law and promote the development of this direction with legislation. It would also be beneficial to plan and establish electric charging points and parking places throughout the city and country. Providing adequate in-

frastructure is very important for consumers; solving the problem of where to park or charge their vehicle. If in Europe up to 10 chargers are installed every 100 km, according to our standards, we should find at least 1 charger every 3-5 km. Q. For you as a business, what are the obstacles to improving green business development? A. One of the most important things I would highlight is it would be good if the government were to support green projects - as mentioned above, support from a tax point of view and complete exemption from additional taxes for products within the framework of social responsibility projects. This would avoid increasing the prices of products for the end customer, who would then have the opportunity to purchase it for a much more affordable price. Q. What environmental issues would you single out that you, as a business, are having the most positive impact on? A. This would certainly be the reduction in emissions that our electric vehicles majorly contribute to. Carbon emissions are directly proportionate to air pollution, in particular, secondhand cars run on gasoline and

diesel, which are entering our country in large numbers.

Q. What are the short- and mediumterm plans of ECO Drive and what are the projects you’re planning to develop in terms of green business? A. We are going to be cooperating with large companies and offering a campaign - get off the green line and become energy efficient, buy green and save the planet. This involves offering solar panels, solar lightings and led lighting systems to companies. From solar energy panels to electric transport, we provide full green line products. We understand that the initial investment in this product is costly, but in the long run it is profitable and also helps the environment. We also have a new product, which is a ready-made package. It is a mini 5 kilowatt solar panel power station for private houses and cottages. It can be used immediately after installation within 24-hours. Ecodrive.ge is a Georgian project that adapts to all kinds of challenges and demands. Our goal is to strive for development. We are a part of Europe and we must follow world technological developments closely. Ecodrive.ge - Buy green products and save the planet.

green business forum

HEADLINE NEWS & ANALYSIS July 25, 2022 | FINCHANNEL.COM

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