Opportunities for eco-friendly growth

By Raymond Zhou


"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."

Sustainable development a common concern

The sustainable development of China is not only an issue cared about by the government but is a common concern of China's business community.

That was according to delegates in a meeting of the World Business Council for Sustainable Development (WBCSD), held in Beijing yesterday.

It was also the latest reaction of China's business circle to Premier Wen Jiabao's recent confession that the Chinese Government failed to achieve certain environmental targets during the 10th Five Year Plan.

"Business and government sectors, together with relevant institutions and social communities, should join hands for the common goal," said Wang Jiming, Executive Chairman of the Chinese Business Council for Sustainable Development (CBCSD) and Vice-Chairman of Sinopec Corp.

Wang pointed out that as they are the backbone of China's economy, the contribution made by Chinese enterprises to this matter has a bearing on China's future.

He emphasized that Chinese enterprises, especially big ones, should incorporate sustainable development into their long-term strategies and roll out this philosophy in all walks of life.

Furthermore, the enterprises should turn the sustainable development concept into day-to-day action to try to guarantee sustainable development and our historical responsibility.

Yesterday's meeting of delegates was jointly held by WBCSD and CBCSD.

According to Chen Jinhua, chairman of China Enterprise Confederation (CEC) and China Enterprise Directors' Association, entrepreneurs have more important functions than ever.

CEC expects Chinese entrepreneurs, especially the really influential ones, to not only do a good job in their own businesses but also set an example and take a leading position in their industries. They should integrate related principles into their own development strategies, operational philosophy and corporate behaviour in order to fulfil their corporate social responsibility.

CEO Roundtable Goes Global

BY Alexander Wan

Yesterday heralded the first strategic partnership between China Daily CEO Roundtable and the World Business Council on Sustainable Development ( WBCSD ) and the China Business Council on Sustainable Development ( CBCSD ). Founded in 1995, WBCSD is a coalition of 180 international companies united by a shared commitment to sustainable development, via the three pillars of economic growth, ecological balance and social progress. With a combined market capitalization of USD5,400 billion which is approximately three times of China’s GDP, and total employees of 12 million, the WBCSD is the largest NGO in the world focusing on sustainable development issues. Through this partnership, China Daily CEO Roundtable effectively connects movers and shakers in the global business community to network with their Chinese counterparts. “We see this partnership with WBCSD and the CBCSD as a breakthrough development of our CEO Roundtable, providing global platforms and networks for our delegates. This simply reinforces our commitment and the positioning of our CEO Roundtable, which is to provide platforms for the movers and shakers in the global and the Chinese business communities, for strategic dialogues on China’s most strategic economic, business and social development issues.” Said Zhu Ling, Editor-in-Chief of China Daily.

Attended by over 80 CEOs and senior executives from both the global and the Chinese business communities with a title of: Visions, Challenges and Opportunities in Sustainable Development in China’s 11th Five Year Plan, the 23rd CEO Roundtable provided an extremely timely dialogue on one of the most important topics for China, and for the rest of the world. Yesterday’s session put together CEOs and senior executives of the world’s largest companies such as Shell, BP, BMW, Deloitte, Bayer, Alcoa, ABB, Dow Chemical, Siemens, Sinopec, COSCO, etc. “We are very delighted to be able to put together this roundtable on such a timely topic.” Said Kang Bing, Deputy Editor-in-Chief, China Daily.

Forthcoming CEO Roundtable Events:

March 30, 2006 CEO Seminar of Finance Industry Development of the Beijing CBD, Grand Hyatt, Hong Kong.
April 19, 2006 The 2007 Special Olympics World Summer Games in Shanghai: A Corporate Social Opportunity, Portman Ritz Carlton, Shanghai
May 11, 2006 China EU Business Partnership, Grand Hyatt, Beijing
May 31, 2006 The China Daily 25th Anniversary Gala Reception, Beijing
June 8-9, 2006 The International CEO Summit of the Yangtze River Delta Development, The Portman, Ningpo

For all enquires in how to get invitation, partnership and customized service, please email Alexander Wan, Executive Editor, China Daily CEO Roundtable at: alexwan@chinadaily.com.cn, website: http://ceoroundatble.chinadaily.com.cn

Roundtable Schedule for First Half of 2006

The 23rd China Daily CEO Roundtable

Mr Bjorn Stigson President World Business Council for Sustainable Development (WBCSD)

Mr Wang Jiming Vice Chairman Sinopec

Mr Kang Bing Deputy Editor-in-Chief China Daily

Mr Alexander Wan Executive Editor China Daily CEO Roundtable