The GPW Group's governance and Social Responsibility during the SARS-CoV-2 pandemic
Following the SARS-CoV-2 pandemic announced by the WHO, the GPW Management Board and the Management Boards of the subsidiaries faced the challenge of aligning the operation of the companies and their work systems with the new conditions.
The key objective was to implement crisis management plans and procedures necessary to secure business continuity of the GPW Group and to protect the organisation. In its crisis management efforts, the Company integrated the ESMA and PFSA recommendations for regulated markets of 12 March 2020, the ESMA recommendations concerning financial reporting of 20 May 2020, the IOSCO Statement of 29 May 2020 on Importance of Disclosure about COVID-19, as well as the guidelines of the Chief Sanitary Inspectorate, including in particular recommendations concerning the safety, health and hygiene of the Company’s employees.
The GPW Group is exposed to moderate financial and operational risk due to the SARS-CoV-2 pandemic. The procedures put in place in the Group cover different pandemic scenarios and provide for adequate formal legal solutions to ensure business continuity of the Group members. The parent entity established a Crisis Management Team responsible for continuous monitoring of identified risks. Substitutes were named for key managers of the strategic initiatives. The Group’s business continuity and the continued implementation of the Strategy #GPW2022 are ensured among others by supplier diversification and the maintenance of recovery resources at a back-up location.
The financial standing of the Group is strong, which is why the Group did not use any of the public support schemes offered by the government in anti-crisis shield and assistance programmes in 2020. The GPW Management Board and the Management Boards of the subsidiaries identified potential operational risks arising as a result of the SARS-CoV-2 pandemic.
We protected the health and saefty of GPW Group employees
The SARS-CoV-2 pandemic announced by the WHO required special procedures and instructions aiming to protect the life and health of employees. In addition to implementing safety instructions, the Management Boards of the Group members helped to ensure ergonomic work from home. Employees took part in dedicated training, received grants to buy ergonomic office equipment, and regularly received guidelines concerning ergonomic work on the computer at home.
The procedures cover the risk of confirmed COVID-19 cases among employees and impose strict occupational health and safety measures including personal protection equipment used by employees in the office as well as office space cleaning and disinfection.
Mitigating measures were taken to ensure business continuity and the implementation of strategic projects. Although most employees work remotely since March 2020, all processes at the Exchange are executed without interruption.
The Group supported employees in IgG and IgM testing for SARS-CoV-2 in the national laboratory network of ALAB Laboratoria. In the case of reasonable suspicion that employees may have had contacts with other employees or clients who test positive for COVID-19, they are PCR tested.
We continuously monitor compliance with the scope and quality requirements for services provided by third-party vendors
We identified no interruption in the provision of services by telecommunication, energy, and banking suppliers during the SARS-Cov-2 pandemic in 2020. Business continuity of the Companies is ensured among others by diversification of providers and recovery resources available at the back-up location.
On 10 March 2020, the Exchange issued a communication to Exchange Members announcing the steps being taken and giving assurance of continuity of the service. We reviewed processes with a view to their automation and improvement including efficient remote work. We facilitated mutual communications among Group members and modified procedures to limit face-to-face contacts. As a result of those measures, documentation may be submitted to GPW by email. We extended the validity of supervising broker authorisations (in specific cases, the authorisation expires after 12 months) of investment firm employees until 30 days after the lifting of the state of epidemic threat in Poland or the state of epidemic in connection with SARS-CoV-2 infections.
We offered online examinations of candidates for supervising brokers as well as fully remote processing of the allotment/allocation of financial instruments by employees of GPW and employees of Exchange Members. To open events hosted by GPW to a bigger public without having to travel or enter GPW Group offices, new listing celebrations and industry conferences were broadcast live from the GPW head office (subject to the applicable sanitary regime) or taken completely online.
We offered facilitations for issuers
In 2020, due to the SARS-CoV-2 pandemic, we implemented temporary modifications of measures taken in the case of issuers in the NewConnect and Catalyst alternative trading system (ATS) who fail to publish periodic reports within the regulatory time limits: we waived the usual practice of imposing regulatory penalties, which were replaced by other disciplinary measures, including suspension of trading in such issuers’ securities (in relation to 2019 annual reports and Q1 2020 quarterly reports). Certain exchange fees were reduced for those issuers on the GPW Main Market and NewConnect who are affected by the pandemic.
We support the health care sector in the fight with the pandemic
In 2020, as part of measures against the pandemic, we made a donation of PLN 1 million for the acquisition of SARS-CoV-2 testing equipment by the District Sanitary Stations in Siedlce and Radom and donated the Exchange’s entire profit from trading in Allegro shares on the first day of trading amounting to PLN 680 thousand for the fight with the pandemic (the donation went towards the acquisition of equipment by more than a dozen health care institutions across Poland). Since March 2020, the Exchange donates fruit previously bought for GPW Group employees to the staff of medical emergency teams in Warsaw.
The GPW Group continues to implement its strategy without interruption
As at 31 December 2020, the Group held PLN 716 million in cash and cash equivalents and assets measured at amortised cost including bank deposits and guaranteed corporate bonds; in the opinion of the Management Board, those financial resources are sufficient to conclude that the Group’s short-term and mid-term liquidity risk is low. No significant impact of the pandemic on the Group’s liquidity was observed in 2020. The procedures put in place in the Companies cover risk scenarios of the pandemic and include adequate legal solutions necessary to ensure business continuity. The Exchange Management Board and the Management Boards of the subsidiaries monitor the epidemiological situation in Poland and globally on an on-going basis and analyse its impact on the position of the Group members.