Short presentation on how "Doing The Right Thing" can help your business in China.

1. Social Responsibility in China
How it affects your business
and
How to integrate it in your business strategy
Johnny Browaeys
ES Operations Director

2. Overview
China Today
Challenges facing the players
Success stories

3. China today
World’s largest emitter of CO2
75% of cities suffer water shortages
90% of fresh water is polluted
> 130,000 workplace fatalities /yr
>700,000 cases of occupational disease /yr
>16,000 environmental shutdowns and rising
Middle Class growing fast
Rising environmental awareness
Hungry for resources and energy

4. 11th 5 Year Plan Policy Shift (2007)
“To build a harmonious society”
1.Circular Economy
2.Energy and Natural Resources Security
3.Social stability and Urban/Rural Disparity
4.Development of Second Tier Cities
Regulatory framework ~ US/EU
• But how about enforcement?

5. Th
eV
oic
e of
t he
Co
un
t ry

6. Blo
The ggin
Voi g
ce of t
he P
Court hearings
eop
Protests, blockages, delays
le

7. Challenges for the players
Never ending pace of new regulations
• Legal incompliance
Inconsistent regulatory enforcement
• 山高皇帝远
(The Mountains are High and the Emperor is Far Away)
Lack of resources, equipment and
experience
Lack of awareness/care of local suppliers
Increasing awareness/criticism of buyers
“Get rich fast / first”

8. Trends
Equator Principles to manage “China Risks”
Shenzhen and Shanghai Stock Exchange
“Instructions on Social Responsibility”
Development and Reform Committee urged
State-Owned Enterprises to embrace
Corporate Responsibility
“Super” Ministry of Environmental Protection

9. Reputation Risk for players in China
• China is hot- High profile media attention.
• China is not as bad as Western media describes…
• nor is it as good as Chinese media describes
Adoption of local vs international standards
• Would you operate to this level back home?

10. Success Stories
Paper Company securing finance by sustainable
forestry
Mining company beating 2 others to the deal with
sustainable mining
Chemical factory ensures continuity of the operations
by assisting suppliers with Chemical Registration
Metal manufacturing company increases reputation
and cooperation by engaging retired workers to
rebuild the local community
Electronic consumer goods company saving costs by
engaging local suppliers in their own upgrade to reach
more buyers

11. What to take home…
1. Understand the challenge for the players
2. Integrate them in your business strategy
3. Strive for genuine mutual interest
4. Leverage your reputation

12. CH2M - CHINA History in China
Initial Presence: CH2M HILL’s early efforts in China involved the design
and construction of large textile mills. Above: The Yu Yuan Cotton Mills in
Tientsin (Tianjin Today) in 1915 and the main entrance of the Washing
Textile Company in 1917. CH2M HILL’s 90 years of experience in China has
delivered 1,000’s of successful industrial projects for our global multi-national
clients in China.

13. CH2M HILL China Staffing / Capabilities
Staffing
Project Management 38
Procurement Logistics 16
Construction Management 85
EH & Safety Professionals 29
Mechanical & Process Engineers 38
Civil / Structural Engineers 19
Architects 18
Electrical & Controls Engineers 23
Cost Engineers 12
Schedulers 7
Water / WWT Engineers 12
Cleanrooms 46
Administrative & Support 36
379
Total
• Consulting Commissioning
Project Management •
•
• Validation
• Site Search • Design & Engineering
• Operation &
• Procurement
• Environmental
Maintenance
• Construction
• Government Permitting
CH2M HILL Office founded in China Since 1996.

14. 事在人為
“ Whether the goal can be achieved all depends on
human effort”
Johnny.Browaeys@ch2m.com - +86 1376 1894 720

15. Some Thoughts to Take Home
Confucius and Napoleon
“keeping the order is most important”
Character Language
“how to translate Product Stewardship?”
Descartes / Voltaire and “Dao”
“truth can serve a purpose”
Face and Sunzi
“everything has a content, package and purpose”

16. Global water and air volume (SPL Reference Number: E055/330)
Water sphere of 1390 kilometers across, volume of
1.4 billion cubic kilometers.
Air sphere of 1999 kilometers across, weighs 5140
trillion tons.