The Dutch NCG meeting agenda discussed insights from China and Bangladesh. For China, Joyce Chau provided an interactive session on FTA activities in Greater China, including capacity building workshops, auditing activities, and stakeholder engagement. For Bangladesh, Daniel Seidl discussed Bangladesh as an emerging market, FTA activities there, challenges and opportunities, and capacity building. Both sessions aimed to provide understanding and opportunities for collaboration on sustainability issues in these regions.

1. Dutch NCG meeting
24 November 2015

2. Agenda
2
13:00 – 13:10 Welcome & Introduction
Introduction from the NCG Chair & Coordinator
Monique Ansink
Norma Snell
13:10 – 14:10 Insight from China (interactive session)
Joyce Chau
14:10 – 15:10 Insight from Bangladesh (interactive session)
Daniel Seidl
15:10 – 15:30 Discussion, Wrap-up & Conclusion
Monique Ansink
Norma Snell

3. Questions from participants
3
1. How to judge the infringements, what is minor and what is major? Are they rating
with Minor-, minor+, major- and major+, etc… How do they give scores?
2. Sometimes scores have a good result on every subject, but total result is still
improvement needed (see attached report). Why is that?
3. BSCI needs a list of subcontractors incl. names and addresses of production units,
written declaration of commitment of subcontractors’ compliance with the BSCI
Code of Conduct and proofs of continuous improvement of social performance in
the facilities of subcontractors. Do their materials suppliers also need this written
declaration? Many factories don’t have subcontractors, but suppliers.
4. How do I evaluate that a BSCI audit was conducted in a fair and appropriate way?
Can BSCI be more flexible and realistic for overtime payment? The industrial
standard in China is that 99% of the factories don’t pay 150% in the evening and
200% in the weekend. We think BSCI should work towards improvement of this,
but if they request the factory now to comply 100% with the national law in China,
they will create fake documents only for the BSCI audit.

4. 1. FTA in
Greater China
4

5. Agenda
5
• A Quick Glance of Greater China
• Update on Trade, Environmental and Social Issues
• FTA in China
• Call for Understanding and Collaborations

6. 6
23 Provinces (Including Taiwan)
5 Autonomous regions (Guangxi, Inner
Mongolia, Ningxia, Xinjiang, Tibet)
4 Municipalities (Beijing, Chongqing,
Shanghai,Tianjin)
2 Special Administrative Regions
Area: 9.6 million sq. km
Population: 1.3 billion –
- SH (20), BJ (16), CQ (11), GZ (10)
Languages: 292
Ethnic groups: 56; Han 91.51%
Human Development Index: China Ranked 91/HK 15
Trade Union Members: 280 Million as of end 2014
Migrant workers: 175.5 million Q3 2015

7. 7
China - Trade
• The European Union and China are two of
the biggest traders in the world.
• China is now the EU's 2nd trading partner
behind the United States and the EU is
China's biggest trading partner.
• Europe and China trade over EUR 1 billion
a day
Oct 2015: Dutch King Willem-Alexander
and Queen Maxima led a delegation of
150 companies to China and signed 15
cooperation agreements, ranging from
finance, trade to aviation, technology and
panda protection

8. 8
China’s 13th Five-Year Plan (2016-2020)
• “Medium-high” Economic Growth: Annual growth target to 6.53 %,
increasing consumption and developing the industrial sector.
• Innovation: Increase robotics market share to 50% & go Cyber Economy
with Internet Plus
• Continued Opening Up: The “Belt and Road Initiative”
• Revised Social Policy: The One-Child Policy ended
• Increased Environmental Protection for air, water and soil pollution
prevention.
• Unrelenting Anti-Corruption Campaign
Click to view highlights of the Plan

9. 9
• The new Environmental Law took effect on Jan 1, 2015
• “Environmental Protection Tax” (EPT)
• China will pilot the issuing of balance sheet of natural resources between
Nov 2015 and end of 2016 and full implementation will be in 2018.
• By 2020, China’s carbon emission relative to GDP will be down by 40-50%
from 2005 level; total yearly water consumption will be capped at 670
billion metric tons
China – Environmental Protection

10. 10
• Elimination of “hukou system”: China is helping 100 million people
without urban ID records to settle in towns/cities by 2020
• Labour Law and the Labour Contract Law
• OHS has been focusing for continuous improvement by new laws and
regulations
• The All-China Federation of Trade Unions (ACFTU), promotes collective
bargaining
• Min. wage: RMB 850 to RMB 2000+
• Strikes and protests are still major challenges in China
China – Social Development and Labour Protection

11. 11
• Non-food Producer Workshop
• 26 Awareness-Raising
Workshops with 800+
attendees
• 11 Advanced Workshops
with around 300
attendees
• Cities: Guangzhou,
Hangzhou, Ningbo,
Shanghai, Shenzhen
• 2 Food producer workshops
in Qingdao
• 2 BEPI awareness workshops
in Shanghai and Shenzhen
Capacity Building for Producers

12. 12
Capacity Building for Producers
Getting Started with BSCI Occupational Health &
Safety
Fair Remuneration &
Decent Working Hours
Drafting Remediation Plan Food Producer TrainingGrievance Mechanism

13. 13
Capacity Building for Participants and Partners
2015.07.02 Shanghai
Andrew Martin meeting
BSCI Participants
2015.07.08 Shenzhen
Managing my 2.0 workshop for
Participants
2015.07.07 Shenzhen
BSCI Capacity Building Strategy
Meeting with service providers

14. 14
Capacity Building for BEPI Participants and Producers
2015.11.12 Hong Kong
Cleaner Production for Sustainable
Supply Chain Seminar
2015.10.26 Shanghai
BEPI Workshop
2015.10.29 Shenzhen
BEPI Workshop
2015.11.17 Guangzhou
Biodiversity Seminar

15. 15
Special Pilot Project of Grievance Mechanism for
Producers in China 2015
Effective Due Diligence for Mitigation
Of Adverse Impacts and Mass Adoption
14 factories with 8600+ workers
nominated by 8 BSCI Participants
Join the Grievance Mechanism in Action Breakout
Session at 16:30 – 17:30 Nov 25
Interact with the Producers from China
& Learn the Fruitful Outcome

16. 16
Special Pilot Project of Grievance Mechanism for
Producers in China 2015
2015.07.17
Guangzhou
Impactt delivered
Group Training
2015.09.24-25
Shanghai
Timeline delivered
Group Training
Session
2015.03.27 Shenzhen
Mr. Christian Ewert kicks
off the Pilot

17. 17
• 8977 audits conducted in Jan-Nov 2015
• 15 Auditors’ Upgrade training in 5
cities
• Integrity Programme in China
• 7 QC completed from Sep-Nov
• 57 SAI surveillance audits
completed
• 2 Anti-bribery meetings held in
Shanghai and in HK hosted by FTA
China Rep Upcoming:
Calibration of Auditors
2015.12.10-11 in Shanghai
Key Auditing activities in China

18. 18
Christian Ewert spoke at Prime
Source Forum March 2015 HK
Christian Ewert officiated at the 12th Sino-
European CSR Forum on Due Diligence Beijing
Stakeholder Engagement Activities in China

19. 19
Stakeholder Engagement Activities in China
Joyce Chau, FTA Representative China presented at
- Source Trends 2015 on Consumer Facing Sustainability
- Sustainable Fashion Business Consortium Lunch Seminar
- Living Wage Roundtable by ACCA & The Living Wage
Foundation
- The 5th Multi-Stakeholders Advisory Committee Meeting
on Rising Wages Challenges and Opportunities
- Sustainability Academy on BEPI
- Cleaner Production for Sustainable Supply Chain
- Biodiversity Seminar jointly organized with WTO Tribune

20. 20
Forthcoming Stakeholder Engagement Activities in China
• The 8th International Conference on CSR in China - Dec, Beijing
• Darrell Doren to officiate at The 13th Sino-European CSR Forum on Due
Diligence – Dec, Shanghai

21. 21
Top challenges in implementing BSCI
• Producers’ side
– Don’t understand Code 2.0
– Internal Management system, OHS and Compensation & Working
Hours
• Participants’ side
– Good results only
– Over rely on suppliers/consultants
– Go beyond audits – Remediation & Capacity Building
• Auditors – Calibration and Quality Assurance
• BSCI – Segregation of demands and scalable support
Call for Understanding & Collaborations

22. 2. FTA
Bangladesh

23. Agenda
23
• Bangladesh as an Emerging Market
• FTA in Bangladesh
• Challenges / Opportunities

24. The People’s Republic of Bangladesh
24

25. Emerging Market Bangladesh
25

26. Emerging Market Bangladesh (II)
26

27. SWOT Analysis/Bangladesh & Investors Feedback
27

28. FTA Bangladesh/Is Bangladesh a Success Case?
28

29. FTA Bangladesh/Round Tables/Media
29

30. Capacity Building Opportunities & Challenges
30
MIND-SET

31. THANK YOU!
31
For more information, contact:
Daniel Seidl Joyce Chau
FTA Representative Bangladesh FTA Representative Greater China
daniel.seidl@fta-intl.org joyce.chau@fta-intl.org