Polpharma R&D

Location:

Poland

Project number:

52459

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

25 Jun 2021

Status:

Disbursing

PSD disclosed:

28 Jun 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Provision of long-term financing to Zaklady Farmaceutyczne Polpharma S.A. ("borrower", "client") to support the introduction of new technologies and enhancement of in-house R&D competencies, Green Economy Transition (GET)-eligible investments and replacement of temporary bridge financing and short term credit lines with a more permanent finance structure (the "project"). The EBRD will act as a co-lender alongside  Polish commercial banks.

Project Objectives

The operation will support the European pharmaceutical industry during the pandemic and enable the company to increase its global sales presence through the development of value-added products as well as the introduction of new technologies that will facilitate the development of new substances and products to penetrate currently unavailable market niches. The project will also support a Polish pharma blue-chip to maintain its leadership position in Central and Eastern Europe and the Commonwealth of Independent States and streghten its international footprint.

Transition Impact

ETI score: 66

The project contributes to two out of three primary objectives in Poland: (i) competitiveness (where Poland trails advanced economies in productivity and innovation), as well as (ii) in the transition to a greener economy representing significant transition gaps in the country.

The expected transition impact of the project is Competitive, as it entails an increase in R&D spending of the company, which will leverage new technologies and expand the company's product portfolio in multiple areas. The secondary transition impact is Green. The "Go Green" programme will minimise the company's environmental and climate impact by generating more energy from renewable sources, energy efficiency improvements and usage of innovative technology for recovery of post-production materials.

Client Information

ZAKLADY FARMACEUTYCZNE POLPHARMA SA

EBRD Finance Summary

PLN 200,000,000.00

Additionality

The Bank's additionality derives from crisis response (briding the financing gap due to the past adverse market conditions) and following international best practices in the areas of gender inclusion and enviromental reporting. Also, the company's long-term reporting strategy will include the inclusion of best reporting practices including TCFD recommendations as well as "ESG reporting guidelines", jointly developed by the EBRD and the Warsaw Stock Exchange for publicly listed entities.

Environmental and Social Summary

Categorised B in line with ESP 2019. Environmental and social risks related to operation of the pharmaceutical production company and capex related to R&D activities, introduction of new technologies and energy efficiency and renewable energy investments will be undertaken within existing production sites, are site specific and can be managed by appropriate mitigation measures.

The ESDD was carried out in-house by ESD in line with COVID-19 approach through review of E&S questionnaire, additional submissions and video meetings with Company management.

The ESDD confirmed that the Company has the capacity to fully implement the Bank's PRs and the Project is structured to comply with the Bank's PRs. The Company operates under Integrated Management System certified to ISO 14001 and ISO 45000 standards and Good Manufacturing Practises (GMP) for Pharmaceutical Products governed and regularly controlled by the Pharmaceutical Directorate in Poland for compliance with national Pharmaceutical Law and international GMP standards. The ESDD concluded that the company operates in line with granted environmental permits (including IPPC permit and BAT for the site Starogard Gdanski facility), national, and EU legislation and submits regular environmental monitoring information to relevant local authorities. The Company has developed a wide-ranging environmental improvement plan until 2030 with set objectives in regards to energy efficiency, waste reduction, water use reduction and has been disclosing corporate Sustainability reports every 2 years.

Starting from 2022 the Company will switch into annual ESG reporting for Polish operations. The Company's long term reporting strategy will include inclusion of best reporting practises including TCFD recommendations as well as "ESG reporting guidelines" jointly developed by EBRD & Warsaw Stock Exchange for publicly listed entities. The Company is developing a long term decarbonisation plan.

The ESDD also confirmed that the company's H&S performance is good, with contractors and suppliers H&S managed through contractual obligations to adherence to company standards, dedicated training and supervision/monitoring.  The Company employs over 4500 employees (54% female and 46% male) and has implemented a well-developed HR management system and relevant HR policies compliant with PR 2. 32% of workers are unionised across 6 labour unions with collective agreements signed with 2 trade unions. The company has implemented suppliers management system certified to ISO 20400 Sustainable Procurement standard the only company in Poland and works proactively with their suppliers based in Asia (India and China) on environmental and social issues.

The Bank will monitor the Project through review of Annual E&S Reports and follow up site visits as permitted by COVID-19 conditions.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Magdalena Rzeszotalska
magdalena.rzeszotalska@polpharma.com
00 48 607 696 473
www.polpharma.pl

PSD last updated

28 Jun 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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