1+3: Partnering for China

It has been three years since the China Business Council for Sustainable Development (CBCSD) launched its Corporate Social Responsibility (CSR) “1+3” project. The CBCSD has worked together with BASF and 14 other member companies and their “1+3” teams, actively exploring and promoting both a local and international approach to social responsibility in China.

The CBCSD is a coalition of 75 leading Chinese and foreign enterprises in China. Officially established in 2003, the CBCSD recognizes the importance of sustainable development and aims to nurture closer cooperation, dialogue and exchange between business, government and other likeminded organizations.

Under the CSR “1+3” initiative, member companies are expected to train three or more of their partners from their supply chain, based on their own experiences with CSR. Issues addressed include environmental protection, labor issues and human rights protection. Thirty-six companies joined the first phase of the program under the guidance of 11 multinationals, including BASF, and several Chinese multinationals, including Sinopec and COSCO.

Driving Sustainable Production and Consumption

The green economy, and balancing economic and environmental development, is an increasingly important topic in China. Global companies must demonstrate leadership in incorporating sustainability issues in their own operations and product offering. China is one of Nokia’s largest markets, and Nokia has had a substantial presence in the country for 25 years. Like in all Nokia’s local operations, sustainability issues in Nokia China are managed according to global policies and standards, including local production and supply chain management, as well as raising consumer awareness of take-back and recycling programs.

Based on a visionary goal created a decade ago, Nokia has set up a mobile industry value chain in the Xingwang Industrial Park in Beijing that “clusters” Nokia and its key suppliers to produce mobile phones under stringent environmental standards with regard to manufacturing, distribution, sales and recycling. Commissioned by Nokia in 2009, research at the Xingwang Industrial Park shows how well environmental protection and business goals can go hand in hand, achieving considerable cost reduction for the companies located in the area by reducing energy consumption, optimizing material use, and reducing both logistics and inventory costs. It has been called “one of the largest and most complete industry value chains in the world.”

Sustainable Steel Production

China produces nearly half a billion tons of steel annually. The resulting steel slag production, the partially vitreous by-product of smelting ore to separate the metal from the rest, amounts to some 40 million tons. Decreasing iron ore resources, coupled with increasing energy costs, have led Shanghai-based Baosteel to find ways to process the steel very efficiently while protecting the environment.

Driving Sustainable Development in China

ITT, a high-technology engineering and manufacturing company, operates on all seven continents, but is currently seeing its fastest and largest growth in China – where ITT’s water and wastewater pump systems play an increasingly prominent role in that country's expanding infrastructure development. By investing and establishing a presence in China over the past century, ITT has built credibility and a reputation for reliability among the Chinese people and government officials.

ITT has demonstrated its commitment to promoting sustainable development in China through the installation of energy- and water-efficient products and technologies in small- and large-scale projects, thus tackling China’s water access and quality issues.

Frequently, ITT’s customers in China are cities and project-based corporations working on major government infrastructure projects such as Three Gorges Dam, the South-North Water Diversion Project, the Suzhou Subway and the country’s numerous wastewater initiatives in Beijing, Shenyang and Kunming. Most recently, ITT committed to helping China’s Chongqing Water Group construct the sustainable water transport networks that are necessary to improve the quality and supply of freshwater in Chongqing, the largest city in Western China.

Internally, ITT’s manufacturing plants in Shenyang and Nanjing incorporate "green" practices, such as water treatment technologies that enable almost total water reuse and zero wastewater discharge – with the Nanjing plant conserving over 18,000 liters of water and wastewater each day.

To address the country’s water access and quality issues, ITT collaborated with the Center for Rural Drinking Water Safety, part of China’s Ministry of Water Resources, to complete two water treatment plants in China as part of a pilot project to find sustainable solutions for rural drinking water issues. The two plants supply more than 15,000 local residents with purified water that meets or surpasses national standards.

ITT also promotes sustainable development in China through its philanthropic efforts in the region. ITT Watermark, ITT’s signature corporate citizenship program, partnered with the China Women’s Development Foundation, a non-profit organization dedicated to improving the lives of women and children, to provide eight rural schools with safe drinking water, new sanitation facilities, and education on water safety and hygiene. ITT also deployed its technology to address water distress following the 2008 Sichuan earthquake, providing safe drinking water to more than 200,000 earthquake survivors.

Sustainability through Collaboration

Environmental protection and sustainable development are high on the agenda and the world is seeing initiatives at all levels by international and national bodies, governments and businesses to address the challenges ahead.

For many years, Alstom Power has recognized the importance of the environment in the power generation business and has positioned itself as a clean power provider. Alstom Power is pursuing a global sustainability strategy based on three pillars: management of the ecological, social and economic impact of offices and sites the company owns and operates; Alstom Power’s product footprint and the management of the ecological, social and economic impact of its products from “cradle to grave” (use of raw material, transport, erection, services and end of life of products); and customers’ efforts to produce clean power.

Providing clean power solutions to China
Alstom Power’s global strategy is then applied locally in line with individual national requirements. For instance, in planning the country’s economic and social development, the Chinese government has prioritized cutting carbon dioxide emissions per unit of GDP by 40-45% by 2020 (from 2005 levels).

Alstom Power is contributing to this goal by providing clean solutions in power generation and bringing the most advanced technologies to China. In the area of hydro, the company has fully localized its engineering and manufacturing capabilities over the last 15 years and transferred knowledge and technology to China. Around 28% of the hydro plants in China are now equipped with their technology. In nuclear, Alstom Power is working with partner Dongfang in that direction. With regard to coal, the company is developing Wuhan Boiler Company Ltd., one of the largest and most modern manufacturing sites in the world for efficient utility boilers. And Alstom Power is currently implementing a cooperation agreement with Huazhong University of Science and Technology (HUST), the leading university in China on R&D in carbon capture and storage (CCS), for one of the most promising “new” technologies in the area of CCS. This new agreement builds upon already established agreements with HUST, to provide financial support to outstanding students and teachers.

Fighting climate change through energy efficiency
Energy efficiency in buildings is another means of reaching the Chinese government’s ambitious target. Amongst Alstom Power’s various industrial sites in China, Wuhan Boiler Company Ltd. stands out on a global level in terms of energy efficiency. The decision to construct a new manufacturing facility (210,000 m2) and a five-floor office building (15,000 m2) at Wuhan, allowing more than 1,100 persons on site at any time, provided a perfect opportunity for Alstom Power to reduce its environmental footprint. Various technical initiatives were taken to reduce the environmental impact of the site: detectors, solar-powered water heaters, etc.; system, recyclable wooden insulation panels, recyclable flooring and geothermal heat exchangers that use the earth’s constant subterranean temperature to warm or cool the air, etc.

It is expected that 6,000 tons of CO2 per year will be avoided as a direct result of these innovations.

Acting as a good corporate citizen
Naturally, Alstom Power is also emphasizing its service to the local communities. In support of the Chinese government’s decision to ban the distribution of free plastic bags, employees are actively involved in a project sponsored by the Alstom Foundation to raise environmental awareness by encouraging people to use eco-friendly green bags. The project has supported the manufacture of more than 43,000 durable cloth shopping bags. The Foundation also supports the Meili Mountains National Park Project to preserve the biodiversity of mountains at Yunnan Province. In addition, Alstom Power encourages employees to launch individual initiatives.

Alstom Power is proud of its achievements so far and is committed to continue supporting its customers, employees and the local communities in their sustainable development ambitions.

First published in the November 2010 edition of Sustain magazine by the World Business Council for Sustainable Development.

Powering the Use of Alternative Fuels in China

As the world turns its attention towards the climate conference in Cancun, Mexico, it is important to remember that sustainable energy solutions already exist. Here is one example from China.

Sustainable development and social responsibility are at the core of the Chinese government’s current 5-year plan, and Holcim expects that they will be even more prominently represented in next year’s 5-year plan. Holcim, together with its Chinese partner Huaxin, also places great importance on these issues.

Huaxin’s environmental protection business unit contributes to the circular economy by converting certain industrial and municipal wastes into fuels and raw materials for cement production. In this way, Huaxin is able to substitute part of its coal consumption and can therefore preserve precious natural resources. Holcim is involved with the Chinese government in the Asia-Pacific Partnership on Clean Development and Climate task force, and engages with international organizations to help China develop environmentally-sound and safe practices.

Efforts to this end include following strict guidelines and policies on the use of waste materials in the clinker manufacturing process. Huaxin and Holcim are playing a key role in assisting governments to develop national and international guidelines and standards for co-processing. In China, Holcim has provided a great deal of input into the ‘Guidelines for Co-processing of Hazardous Wastes in Cement Kilns.’ This Sino-Norwegian project is under the responsibility of the Chinese Research Academy for Environmental Sciences and aims to regulate large-scale, environmentally sound management of hazardous waste disposal in cement kilns in order to strengthen the Chinese implementation of the Stockholm Convention and Basel Convention. Holcim’s and Huaxin’s work doesn’t stop there.

China is the world’s largest producer of pesticides, and the disposal of obsolete pesticides and their packaging constitutes a potential risk for people and the environment. Under the umbrella of the Sino-German project on ‘Management of obsolete pesticides,’ GTZ, Holcim and Huaxin formed a public-private partnership. Huaxin provides a waste management service through co-processing of obsolete pesticides in modern cement kilns.

High temperatures and long residence times ensure the complete and safe destruction of toxic chemicals. Thanks to its vast experience in the treatment of (sometimes hazardous) waste, Holcim is able to ensure that the disposal of this waste is carried out in an environmentally sound manner, and that relevant occupational health and safety issues are properly considered and managed. In total, Huaxin has disposed of around 1,500 metric tons of obsolete pesticides without compromising either the safety of workers and local communities or the quality of the clinker produced.

Article originally published in the November 2010 edition of Sustain, the magazine of the World Business Council for Sustainable Development.

Biofuels Power China

In a major step forward for its carbon dioxide-cutting program, Unilever has launched a manufacturing process at its Hefei factory in China based on second-generation biofuels. Unlike the first-generation biofuels, the second generation uses non-edible plant residues and therefore does not compete with crops for food supply.

First active in China some 80 years ago, Unilever set up its manufacturing base for home and personal care products in Hefei in 2003, making it one of the biggest manufacturing sites for Unilever globally.

The business is now using straw as a source of fuel to produce laundry powder, reducing CO2 emissions by 15,000 tons annually (32% of total site emissions) at a considerably reduced cost to the business. The move further benefits the environment because it is no longer necessary to burn straw to produce a source of mineral replenishment for soil, which caused severe air pollution. Fortunately, the ash produced in the Hefei plant can also be used to replenish the soil – without the damage to air quality caused by burning.

"China clearly faces serious environmental challenges, making our new biofuel-based process even more meaningful, in addition to helping our local farming community to find a new commercial outlet for their waste. A win-win for all,” says David Ingram, VP, Supply Chain, Greater China Group. China is not alone in implementing biofuels programs. In Sri Lanka, the business has unveiled a new biofuel-powered boiler that uses agricultural residues such as coconut shells and sawdust to generate steam for manufacturing processes.

In India, Hindustan Unilever (HUL) has been using biofuels in its Chiplun plant, in the Ratnagiri district, since 2006. Factories in Maharashtra and Pondicherry followed suit in 2007 and 2008 respectively – using biomass as fuel to generate steam. Plants in Kenya, Tanzania, Ghana and South Africa are also now using biofuels in their manufacturing processes.

As they do not compromise food supplies, second-generation biofuels are a prime example of Unilever’s commitment to renewable energies that deliver social and environmental benefits in the way they are sourced as well as in their eventual use. They will help Unilever boost its use of renewable energy, which currently stands at 17% of overall energy consumption.

Article originally published in the November 2010 edition of Sustain, the magazine of the World Business Council for Sustainable Development.

In Fast-Growing Asia, New Attention on Quality Over Quantity

Automakers received an unexpected boost in August, when Asian sales surged thanks to variations on the American "cash for clunkers" scheme to encourage consumers to turn in old gas guzzlers and buy new, cleaner models. The US plan, you may recall, was designed in part to help rescue the American auto industry, but ended up doing more to boost sales of Japanese and Korean cars. So Tokyo decided in April to offer consumers rebates if they would also purchase new hybrid cars. And in June, China followed suit, offering even larger subsidies to consumers in five cities that bought more environmentally friendly cars.

More than just a plan to revive domestic auto sales, the moves are part of a broader shift among Asian policy makers from pursuing economic growth at all costs to promoting what is widely known as "green growth." Asian governments used to focus almost exclusively on GDP growth as the barometer of policy success, but as rapid development creates growing environmental and social stresses, more policy makers are focusing on how to make their economies better, and not just bigger. Fast-growing economies in which citizens face crippling pollution and destabilizing disparities in income aren't necessarily healthier economies. So governments are quickly bringing sustainable growth, once a rallying cry for non-governmental organizations, into the policy mainstream.

Engines Can Turn Waste into Value

Commercial customers all over the world are discovering the new ways to capture and use gas to meet energy needs through onsite power generation, all while reducing greenhouse gas emissions. One prime example is General Electric's Jenbacher gas engines.

In Australia, the Jenbacher gas engine business has contributed to several of the country's largest coal mine methane projects, including a power plant commissioned in 2008 operating on Jenbacher coal mine methane gas engines. The methane-rich gas coming from the mine is used to generate onsite power at Anglo Coal's Moranbah North mine in the state of Queensland, helping to reduce the amount of greenhouse gas that escapes into the atmosphere. Through the capture and use of mine gas, the Moranbah North project will deliver significant environmental benefits, reducing about 1.5 million tons of CO2 equivalent per year.

In Mexico, Jenbacher engines are at the heart of a newly expanded landfill gas-to-energy project, hailed by President Felipe Calderón as “a model renewable energy project” for Latin America. The 12 MW project converts gas from the Simeprode landfill near Monterrey into electricity, which is used to support the solid waste facility's operations as well as Monterrey‘s light-rail system during the day and city street lights at night.

In a sprawling commercial tomato greenhouse outside of Amsterdam, the world's first commercial 24-cylinder gas engine is in operation. The Royal Pride Holland project is made possible by two Jenbacher units, which were installed in a pilot project to demonstrate the engine's commercial viability for the horticultural industry. It highlights the increased emphasis on combined heat and power in Europe as the region increases its focus on energy efficiency.

Thousands of miles to the east, Jenbacher gas engines are at work in a far different way, using biogas created from chicken manure to generate power and heat at a large chicken farm north of Beijing.

The plant is the first of its type in China, and could pave the way for similar applications in the future. Providing 14,600 MWh of electricity per year, the project is designed to help reduce suburban electricity shortages. By using the biogas for power generation instead of coal, the new project is expected to reduce greenhouse gas emissions by about 95,000 tons of CO2 equivalent per year.

Progress Undented by Financial Crises

With the US-led crisis just behind us and another unfolding in Europe, one could be forgiven for becoming pessimistic about our prospects. But at the World Economic Forum’s Global Redesign Summit in Doha last week participants were asked to cast their gaze back over the last 60 years and ask, “How are we doing?” The answer: fantastically well. Sixty years ago, after all, Europe and much of Asia were still struggling to emerge from the ashes of the second world war. China has in the past 20 years achieved what the leaders of the Long March never could have imagined. And in just the past decade, Africa has emerged from decades of turmoil, famine and epidemics to become a promising new centre of growth. Incomes are more evenly distributed than ever. Fewer people proportionately live in poverty, hunger or the darkness of illiteracy than ever before. They have more choices than ever before. And now we stand on the threshold of a revolution in health brought about by bioengineering and nanotechnology. Times may be tough, but we have undoubtedly come a long, long way.