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  • 1.Presentation Pack Corporate responsibility and business success in China

2. Structure Sustainable development Facts about China Sustainable development in China Business role and responsibilities Business implementation 3. Getting started definition "de-f&-'ni-sh&n

  • Who has previously heard about sustainability?I n what context?
  • What would be your definition of sustainable development?
  • How important is sustainable development:
    • To you ?
    • To your company?

Q Sustainable development meets the needs of the present without compromising the ability of future generations to meet their needs Brundtland Commission, Our common future, 1987 4. Human activity = impacts Global Warming Water, Air, &Land Pollution ResourceDepletion Ozone Depletion Reduction ofBiodiversity Population Increase & Economic Growth 5. Sustainable development covers many topics

  • Agriculture
  • Human rights
  • Water
  • Urbanization
  • Mobility
  • Communications
  • Labor
  • Democracy
  • Accountability
  • Privatization
  • Biodiversity
  • Demography
  • Wealth
  • Nutrition
  • Health
  • Education
  • Consumption
  • Energy
  • Pollution
  • Emissions and waste generation
  • Efficiency
  • Ecosystems
  • Climate change

6. A changing global landscape

  • Issues include:
  • Communications CNN world
  • Changing expecations of consumers
  • Valuation including intangibles and knowledge
  • Free movement of goods and services
  • Finite nature of resources carrying capacity
  • Changing demographics haves and have nots
  • Changing role of business and government

In a world of instantcommunications, whistle blowers, inquisitive media, and googling, citizens and communities routinely put firms under the microscope.Tapscott and Ticoll (2003) 7. Context: Demography

  • Today: 6 billion human beings on Earth
  • 2030: population will reach 8 billion ,of which 7 billion will live in the developing world
  • Populations will increasingly move towards cities, creatingmegalopolis es

8. Context: Natural resource needs P overtyeradication & population growth lead to a rising demand for materials and natural resources OIL, GAS, URANIUM, MINERALS, CLEAN, WATER are finite and limitedresources, and could become rare inthenear future 9. Land pollution

  • Land Pollution:
  • Agriculture + industrial activities + waste generation
  • Intensive use of chemical fertilizers
  • Intensive land exploitation

x 4 . 5in40years 10. Air pollution- Main environmental threat to human health -SO 2 andNO 2 emissions A cid rain 20 3 9 STOCKHOLM 68 18 49 TOKYO 39 33 240 BOMBAY 122 90 377 BEIJING 79 26 .. NEW YORK 57 14 14 PARIS < 50 SO2 ( g/m3) [1998] < 50 < 90 WHO STANDARDS NO2 ( g/m3) [1998] PARTICLES ( g/m3) [1995] CITY 11. The Greenhouse Effect 12. Biodiversity

  • Thecontinuous decreaseinanimal and plant populations results in a loss of genetic diversity
  • Global biological diversity isdecreasing , due to direct and indirect human activity: hunting, loss of natural habitat (deforestation, desertification) ,etc.

13. Roles and responsibilities Globalization goes together with the emergence of a growing number of stakeholders (more demanding and powerful) Individuals NGOs Institutions Investors PRESERVE PEACE & STABILITY SEEK GLOBAL LONG-TERM SOLUTIONS POWER TO RULE, INCITE, TAX DEMAND MORE TRANSPARENCY, INFORMATION AND ETHICS; INCLUDE SOCIAL & ENVIRONMENTAL PERFORMANCE IN BUSINESS NOTATION POWER TO PROVIDE FUNDS DEMAND TO BE CONSULTED AND ASSOCIATED POWER TO INFORM AND DENOUNCE(MEDIA, INTERNET, JUSTICE, ) SEEK QUALITY OF LIFE AND SECURITY DEMAND FREE CHOICE POWER TO VOTE, DENOUNCE, BOYCOTT Businesses CONTRIBUTE SERVICES, PRODUCTS AND TECHNOLOGY TO SOCIETY BALANCE ECONOMIC PROFITS WITH THE LONG_ - ERM SUSTAINABILITY OF THE BUSINESS 14. Increased awareness1948:Declaration of human rights 1961:WWF, amnesty international 1970 s :Environmental movements 198 0s :1984:Bhopal; 1986: Chernobyl; 1989: Exxon Valdez 2002:Enron, WorldCom VALDEZ 15. Global frameworks and initiatives SarbOx The search for solutions is happening on a global scale and is being led by both public institutions and as part of private initiatives. Solutions include new legislation, stakeholder partnerships, voluntary agreements, codes of conduct, multilateral agreements, interdependent actions, etc. 16. Key for success in sustainable development

  • Maintain the balance between economic growth, environment, and social aspects by:
    • An integrated approach for business operations;
    • Partnerships among stakeholders;
    • A Cross-disciplinary approach.

Natural resources & energy Health & Safety, equity Economic growth Profit Planet People 17. Structure Sustainable development Facts about China Sustainable development in China Business role and responsibilities Business implementation 18. Facts about China

  • China's population is 1.31 billion people .
  • GDP is US$ 1.41 trillion and expected to grow 8% in 2004 .
  • It already accounts for 13% of world output .
  • Largest recipient of foreign direct investment .
  • China produces 2/3 of all photocopiers, microwave ovens, DVD players and shoes, over 1/2 of all digital cameras and around 2/5 personal computers.
  • In the last two decades, almost 200 million people have been lifted out of poverty.
  • Every year, 10 million more people join the job market .

* Ref: The Economist, UNDP and UNFPA Population (Mill.) Population growth (%) Population growth Population 19. Size matters * Ref: The Economist, UNDP and UNFPA

  • 60% of the population still lives in the countryside but.
  • At present there is only one car for every 70 people in China, against one car for every two Americans, but.
  • The Chinese government estimates that there are 500,000 HIV positive individuals in China, or a prevalence rate of less than 0.2% but.

20. Increasing energy needs: Coal Shortage of electricity production capacity 74% of electricity produced in coal plants Lack of jobs in western China Coal reserves mainly in western China Energy shortage prevents shutdown / modernization of old coal plants New coal plants built in urgency Pollution Health and Safety conditions Efficiency Strain on resources Limited implementation of standards:Pollution, safety & health & health issues Safety of workers in mines Coal prices on the rise CO 2emissions, global warming Strain on rail transport 21. Increasing energy needs: Oil China is the second largest consumer of oil after the USA, and accounts fortwo-fifthsof the increase in global consumption since 2000.Chinaoccupies the second place among the major greenhouse gas emitters worldwide (13.5%). China only has 1.7% of worldwide oil reserves. Expected % of needs to be imported: 50% in 2010; 85% in 2030. 22. Mobility China is expected to become the world's third largest automaker by 2010.

  • Oil consumption for mobility has risen sharply, contributing to making China dependantonimporting o il.
  • Air pollution in the big citiesison the rise .

23. Electricity production capacity Current issues

  • Electricity demand increased 16.5% in 2003
  • Shortage of production capacity in 2003
    • At its peak : 40 GW
    • Average : 15 GW
  • Direct impact on the economy, as 70% of electricity is consumed by industry
  • 2005 forecast: to meet its 2020 economic objectives, China must build the equivalent of one nuclear plant every 1 5days for the next 15 years.

24. Energy efficiency * Ref:UNIDO Less than 10% of new buildings are made according to existing isolation standards Energy growth is increasing faster than GDP (= power elasticity co-efficient)

  • 2005-2020 Government objectives :
  • - Increase GDP four-fold
  • Increase electricity production capacity two-fold(Objective to improve energy efficiency by 25%)

Power elasticity co-efficient should be less than 1.0 (opposite to current trend) 25. Depletion of natural resources

  • Land degradation and desertification
    • The use of chemical fertilizers in China is two time shigher than in other countries
    • Continuous expansion of desert = desertification
      • 1950s 1970s:1,500 km 2 /yr
      • 2003:3,000 km 2 /yr
    • Sandstorms from the Gobi desert hit Northern China every year, reaching into Korea and Japan, and sometimes even crossing the Pacific Ocean and arriving at west American shores
  • * Ref: UNIDO

26. Depletion of natural re