Michał Obiegała, corporate affairs director for BP, has been the chairman of the board of the BPCC since April of this year. He talks to the BPCC’s Michael Dembinski about the bilateral trade and investment relationship between the UK and Poland, and about green transformation – the greatest challenge facing mankind.
I’d like to start with the corporate view – how does HQ in London see Poland? Is it considered a maturing and stable economy, or one that still has plenty of upside as it continues to strive to catch up with Western Europe?
Poland is a big country in the Central and Eastern Europe region, with a strong and resilient economy, large and dynamic consumer base, and a high potential for growth and innovation. Poland is one of the key markets for BP’s retail business, where we operate over 570 service stations under the BP and Aral brands, offering a range of high-quality fuels, leading lubricants business under the Castrol brand, convenience products and services. Then there is Lightsource BP, present in the country since 2021 with photovoltaic projects under construction with a current pipeline of around 2.5 GW. We also have a significant presence in the aviation sector, supplying fuel and services to major airports and airlines in Poland. All this reflect that we are perceived as important market on European map for HQ of BP. But on the other hand, we still have an issue related to the lack of a long-term and stable energy transition policy for Poland. The decisions are fluctuating and there’s no durable and credible strategy for the long perspective. This make difficult to plan long-term investment in Poland.
Green transformation is affecting the fossil-fuels sector more than any other. BP is on a journey to transition from being an oil company to being an energy company. At the same time, the ongoing digitalisation of a global corporate of this size is also a major challenge. Are there synergies between the two processes? Can digitalisation help in pivoting away from fossil fuels? I’m also thinking here of R&D, of green hydrogen, of how AI is being used to optimise the switch to the provision of zero-emission energy?
It is fact that energy transformation affects us more than companies from other sectors as we’re in a path of our transformation from International Oil Company to Integrated Energy Company. Or strategy called “And not or” means that we’re playing our part by investing in today’s energy system, which is mainly oil and gas – and, not or – in our transition and the energy transition. Digitalisation might play a role in this process, but for now it’s still more a ‘hardware’ issue rather than an IT challenge. For now we’re mostly in oil and gas today; we’ve increased global investment in our lower carbon, convenience stores and power-trading businesses (what we call our ‘transition growth engines’) from around 3% in 2019 to around 23% in 2023.
The change of government in Poland last autumn has led to welcome changes in terms of how the legislative process plays out in the Polish parliament, with proper social and business consultation, giving business more time to prepare for new regulations. How is the business-government interface looking today from your point of view, particularly in areas that challenge your current business model, namely Sunday trading laws and restriction on alcohol sales at petrol stations?
We always highlight the importance of transparency and dialogue. The new government has indeed implemented new standards in this respect. On the other hand, it’s still too early to give a more detailed assessment as there are still not many new legislation projects implemented.
You took over as chairman of the BPCC at the Annual General Meeting earlier this year. Please share with us how you see the chamber’s role as a bilateral organisation developing? How do you see the current state of the economic relationship between our two countries in terms of trade and investment?
As the new chairman of the BPCC, I am very honoured and excited to lead this chamber, which has been promoting and strengthening the bilateral relations between Poland and the UK for 32 years. I see the chamber’s role as a bilateral organisation developing in three main directions: first, to support our members in navigating the challenges and opportunities of the post-Brexit landscape; second, to foster innovation and collaboration across sectors and regions, especially in areas such as the green economy, digital transformation, and social responsibility; and third, to expand our network and influence among key stakeholders and decision-makers in both countries.
The current state of the economic relationship between Poland and the UK is strong and resilient, despite the uncertainties and disruptions caused by the pandemic and Brexit.
We are beginning to see an exciting new trend – Polish companies entering the UK market not just as exporters selling goods, but acquiring companies. This month’s acquisition of Thomas Cook, the world’s oldest travel agent, by Polish firm eSky (itself a start-up just 20 years ago), follows on the acquisition of Andover Trailers by EmTech, a Polish cargo-trailer manufacturer from Bełchatów. The BPCC now has its sights set on being a truly bilateral chamber, ready to support both Polish investors entering the UK as well as UK firms entering Poland.
Both Poland (last autumn) and the UK (this summer) have had a change of government, resulting in greater openness on the part of the new authorities to engage in dialogue. In the case of Poland, the BPCC now has a full-time regulatory affairs manager and a public affairs group that is actively meeting with representatives of the government and regulatory bodies. What do you see as the key priorities for the BPCC when it comes to improving the business environment for UK investors in Poland?
The BPCC has a vital role in advocating for the interests of UK investors in Poland (and vice versa), especially in the context of the post-Brexit and post-pandemic recovery. Some of the key priorities for the BPCC are to promote a stable, transparent and predictable regulatory framework that fosters innovation, competition and growth. The BPCC engages with the Polish government and regulators on issues such as taxation, labour law, energy policy, digitalisation, public procurement and environmental protection, seeking to harmonise standards and practices with the EU and the UK. Another aspect is to enhance the bilateral trade and investment relationship between Poland and the UK, leveraging the opportunities arising from the Trade and Cooperation Agreement and the Partnership, Trade and Cooperation Agreement. The BPCC provides practical advice and guidance to UK exporters and investors who want to enter or expand in the Polish market, as well as for Polish companies who want to do business in the UK. The BPCC also collaborates with other chambers of commerce, industry associations and government agencies to promote trade and investment flows between the two countries.
Brexit has not, on paper at least, led to any fall in trade between the UK and Poland – indeed, official data shows that both 2022 and 2023 were record years in terms of the value of exports and imports in both directions. However, anecdotally, we see that SMEs have been hit hard by new red tape. Given Poland’s presidency of the EU Council in the first half of next year and the forthcoming review of the UK-EU Trade and Cooperation Agreement, what regulatory changes are most needed to lower post-Brexit barriers to business? What obstacles could be lifted or eased?
This issue should be analysed in relation to the scale of the business. Large British companies investing in Poland or other EU countries have the know-how as well as the human and financial resources to thoroughly analyse the business environment in Poland before making investment decisions. For example, logistics companies, by operating their own customs agencies, simplify and shorten transport processes. However, a large part of BPCC members are SMEs who, due to the scale of production for the Polish market or the specificity of the services provided here, must cope on their own. We believe that the Polish presidency of the EU will provide an opportunity to discuss the simplification of bureaucracy, especially in the SME sector. As a chamber, we will try to interest both the relevant state authorities and members of the Polish parliament in this topic. We are aware that the presidency primarily concerns EU matters, nevertheless the UK remains one of Poland’s top trading partners – and currently the only one that’s seeing growth – and this fact should encourage us all to cooperate on the removal of investment barriers.
As I said earlier, an increasing number of Polish businesses are considering international expansion, and for many of them the UK is an interesting market. Entering the UK by way of M&A rather than organic growth is a strategy that shows promise.
How do you assess the current state of the Polish private sector in terms of its readiness to make acquisitions in the UK? Do you perceive any notable differences in the way Poles do business compared to the British way?
As part of the BPCC’s activities, we are receiving more and more inquiries from Polish entrepreneurs interested in expanding their products and services or investing in the British market. It is true that this area of the market is growing significantly, and many companies are looking for opportunities to enter the market under the M&A model. One basic conclusion emerges from analyses conducted by the chamber: Polish entrepreneurs need greater awareness of the marginal conditions of conducting business in Great Britain. I’m not talking about the technical aspects of setting up a company, keeping accounts or managing logistics. They need to be aware of their own readiness to expand in the economic as well as the socio-cultural dimension. For example, an offer or website translated into English is not the same as a professionally prepared portfolio of information for a British contractor. It is also an illusion that the first step is to employ someone locally who will launch the business. The basis is an audit of your own supply capabilities in the context of expectations on the demand side. Therefore, in cooperation with our members, we want to prepare a set of information and basic support services for potential exporters and investors entering Great Britain.
What should the Polish government be doing to attract further inward investment from the UK? How should Poland promote itself in the UK – and indeed across the English-speaking world – as a safe place to grow a business?
The Polish government could be doing more to attract inward investment from the UK by ensuring a durable level playing-field for foreign and domestic businesses, especially in terms of taxation, labour law and environmental standards. Poland should also provide stable and predictable regulations that foster innovation and competitiveness, and avoid sudden or arbitrary changes that could undermine investor confidence. And Poland should be open for dialogue and cooperation with the UK business community, and seek to address their concerns and expectations in a constructive and transparent manner.
The climate crisis is the greatest threat facing humanity. How should we be altering our behaviours to ensure that we do not bring about environmental catastrophe on our planet? Who should bear the greatest share of responsibility – governments, business or consumers?
This is a complex and urgent question that requires collective action and systemic change. There is no single or simple answer, but rather a range of possible solutions that involve different actors and levels of responsibility. All actors have a role and responsibility to play in tackling the climate crisis, but not to the same extent or in the same way. Governments, businesses and consumers are interdependent and influence each other, but they also have different levels of power, resources and accountability.
Governments have the primary responsibility to set the legal and policy frameworks that enable and incentivise climate action. They should also support the most vulnerable and affected populations, both within and across borders, through financial and technical assistance, capacity building and solidarity.
Businesses in general have the responsibility to align their operations and strategies with the goals of the Paris Agreement and the 2030 Agenda for Sustainable Development. Companies like BP play a major role in this process, as they have to ensure fuel and energy security for now and at the same time have to play an active and significant role in the transformation.
The climate crisis is a daunting challenge, but it is also an opportunity to create a more just, peaceful and sustainable world. By working together, we can make a difference and secure a better future for ourselves and generations to come.
