"There is no sustainable world without a sustainable China." This was the
refrain at yesterday afternoon's CEO Roundtable in Beijing.
The 23rd such event, this particular China Daily CEO Roundtable focused on
the visions, opportunities and challenges of sustainable development in China's
11th Five-Year Plan. Around 60 senior executives and government officials took
part in the meeting, held in the Kerry Centre.
Those who participated shared their views on how to make China's rapid
economic growth more friendly to the environment.
"We live in a world increasingly shaped by sustainable growth issues," said
Bjorn Stigson, president of the World Business Council for Sustainable
Development (WBCSD), an organization representing some 190 of the world's
leading corporations.
There is a strong need for awareness, and the media is playing a fundamental
role, said Stigson. Issues such as biodiversity, carbon emissions, land use and
energy efficiency are increasingly on the Chinese Government's agenda.
Multinational corporations need to share their experiences with their Chinese
colleagues and learn from each other, he said.
Georg Fronja, senior vice-president of Siemens China, Communications Mobile
Networks, asked about the "political framework" and the "punishment" for those
who endanger sustainable growth. "The social cost is borne by all of society,"
he noted.
Yang Fu, director general of the State Administration of Work Safety,
responded that the Chinese government has placed an emphasis on work safety.
"Not only is it an economic issue, but it is a social issue as it concerns
people's lives and property."
Yang said the Chinese Government has set specific targets for the 11th
Five-Year Plan: industrial accidents will be reduced by 35 per cent between 2005
and 2010, and mine accidents by 25 per cent. It is the first time such targets
have been included in government planning.
From a broader perspective, energy consumption per unit of GDP will be
reduced by 20 per cent; water consumption will be reduced by 30 per cent for
each 10,000 yuan worth of industrial value-added products and major pollutant
emissions by 10 per cent, said Alexander Wan, a China Daily manager who chaired
the event, quoting from a government document.
One industry mentioned by Stigson of WBCSD was cement. China produces half of
the world's output of cement, he said, and for one tonne of cement there is also
one tonne of CO2. "Reducing pollution will make corporations more efficient and
therefore more profitable," he said.
Peter Wong, a consultant for Deloitte Touche Tohmatsu in Hong Kong, raised
the question of cross-border pollution. "Borders cannot prevent pollution," he
said. "No one can deal with the issue in isolation. The mental attitude in Hong
Kong has to change.
Another issue was the preservation of historic buildings. Wong cited the
example of Pingyao, where historic buildings are about to be "converted into a
Disney-like park." He lamented the insufficiency of efforts on the part of the
government to protect this heritage and hoped the corporate world could
"champion the cause" so that people will see long-term returns.
Combined efforts
Stigson of WBCSD observed that, for sustainable growth to work, market
mechanisms and government regulations have to go hand in hand. Those who do good
work should receive incentives while those who lag behind should be dealt with.
Regulations must be enforced. One area where regulations should focus, he said,
is energy consumption for buildings; currently 90 per cent of them in China are
not efficient.
"The technology is available, but it has to be used," commented Peter Leupp,
chairman and president of ABB (China). The way to increase implementation is by
"incentive," he said, "and the tariff system does support that."
There is a reason why some of these problems exist, added Peter Wong. Because
energy supplies are unreliable, every business and organization buys its own
generators and usually buys the cheapest, which are inefficient.
Nobody will admit to any wrongdoing, but such behaviour must change.
Businesses need to be prepared to pay a little more for a cleaner environment
and there should be incentives for them to do so.
William Valentino, general manager of Bayer, corporate communications,
Greater China, praised the Chinese government "harmonious society" policy but
said that resources should be channelled into specific areas, and words made
into action. Corporations, for their part, should see it as an issue of building
"integrity, branding and trust." "Companies must work together with civil
society" so that the country can maintain rapid growth while at the same time
factor in social costs. He specifically mentioned the private sector where help
is needed and foreign businesses can offer solutions.
Jiang Weimin, an officer with the China Business Council for Sustainable
Development (CBCSD), emphasized the importance of "engaging stakeholders". Since
the Chinese Government is the biggest stakeholder in the Chinese business
sector, it must work with the government and iron out a "reward and punishment
system." For corporations, this provides a chance to gain a "competitive edge,"
he said. "If you don't catch the train, your competitor will."
Ren Bingyan, vice-president of ALCOA China, said his company is "actively
applying principles of sustainable development." It not only concerns economic
viability, but also environmental viability. Areas that ALCOA has "high
standards" in include energy and water consumption, the discharge of waste and a
safe working environment.
Chris Chan, public affairs director for Dow Chemical (Greater China), pointed
out the significance of "engaging small and medium-sized enterprises (SMEs)
because generally big corporations are "doing a good job" in sustainable growth
but SMEs do not have the resources nor the awareness.
His company has a partnership with the State Administration of Work Safety to
work on the details.
Ron Nielsen of Alcan Inc raised the question of making the issue relevant at
the individual level. The individuals' role is big, he said. There is a need for
"enhancing competence and individual innovation" and corporations must provide
support and make it concrete and manageable."
The Chinese Government has set targets for resource efficiency such as
recycling and they are serious about these aims, said Stigson of WBCSD.
"If this is the case, the government needs to utilize different drives and
incentives. There should be a combination of incentives and disciplines."
But Stigson cautioned that when it comes to SMEs "no country has got it 100
per cent right, and no country has a golden solution." But corporations can
always share their positive experiences with the rest of the world.