This document discusses using data and technology to improve business and supply chain resilience in China. It describes how companies can use environmental data and monitoring to conduct risk screening of suppliers and operations. This allows companies to identify which entities may face issues like relocation or closure due to changing policies. Companies can then take proactive steps to mitigate risks and ensure the resilience of their business operations and supply chains. The document also introduces Greenment, a Chinese environmental consulting firm that has developed proprietary databases and technology to help companies with these types of data-driven risk assessments and dynamic risk management.
Business and Supply Chain Resilience in China's New Era
1. Business and Supply Chain Resilience in China’s New Era
New Challenges and New Tools
Contact: WeChat and Mobile: 13761894720 - http://www.linkedin.com/in/johnnybrowaeys
European Chamber Chemical and Petrochemical Working Group – Environmental Working Group – Joint Session
Johnny Browaeys – Vice Chair, Environmental Working Group, European Chamber, Shanghai
2. 2002
2007
2012
2017
China 5-year Planning places Strategic Priority on
Environmental Protection
“Eco-Civilization” – “Industrial Transformation”
Three
Critical
Battles
by 2020
Preventing
Financial Risks
Tackling
Pollution
Reducing
Poverty
3. "source: National Ministry of Ecological Environment official website"
Types of Administrative penalties 2015 2016 2017
33,667 cases
2018
36,302 cases
Continued daily penalties
(number/billion yuan)
715 /
0.57
1,017/
0.81
*1,046/
1.08
*691/
0.985
Operational halts 4,191 9,976 *16,429 *19903
Production restrictions 3,106 5,673 *7,842 *6196
Administrative detentions 2,079 4,041 ~8,600 *7145
Environmental pollution crimes 1,685 2,023 ~2,700 *2367
Administrative penalty decision ~97,000 ~124,160 ~233,000 ~166,210
Total administrative fines (billion RMB) 4.25 6.63 11.58 13.6
NOTE: * means data from January to November only
Driving Implementation with New Enforcement Tools
4. Round 1 Round 2 Round 3 Round 4Pilot
Centrally Driven Supervision Monitoring Campaigns
Jan Feb Jul Aug Nov Dec Mar May Aug Sep
2016 2017
85,488 cases
~120 million Euro
1,173 people
13,882 governmental officers
7. Local
Government
Initiatives
Impacts
• Stop Production
• Blacklist Company
• Reduce Emissions
• Litigation
• Challenge Reputation
• Upgrade installation
Weather
Conditions
Public
Complaints
NGO’s
Upgrading old
Industries
Public Events
Multiple initiatives
keep hitting the
company
Real Time Policy Dynamics
Closing
Industrial Parks
Relocation
Chemical
Industries
Cleaning Black
River Initiative
Incidents
The Six
Uprisings
Shandong
Chemical
Action
The Nanjing 2
Reductions
8. The Key Message:
These initiatives are triggered by various factors,
pressuring different government departments and
regional governments to act on a variety of goals,
sometimes confusing and conflicting, but most
importantly, very dynamic and
maturing into real-time policy implementation
9. “understand the importance of rectifying and upgrading the chemical industry from the perspective of
implementing new development concepts”
“taking into account the safety and environmental protection, the relationship between rectification and
industrial transformation, truly jumping out of the "path dependence" of development that is inconsistent with
new ideas, getting rid of the "low-end lock" of high-quality and unsuitable industries”
“Enterprises and parks that do not meet the safety production standards must be closed. Enterprises and parks
that fail to meet environmental standards must be shut down, and low-end enterprises must be eliminated.“
The meeting emphasized that the purpose of rectification is to upgrade .
Enterprises that meet the standards and positively improve their integrity should take the initiative to form a
consensus on rectification and improve the development of enterprises. Enthusiasm.
Standing Committee of Jiangsu Provincial Party Committee:
The official view illustrating the plan ahead to be followed nationally
-> speeding up China’s Industrial Transformation
10. Below are a few examples addressing specifics companies with specific issues:
• Blacklisting of chemical companies: https://mp.weixin.qq.com/s/dGkqjkk8MKu3-chLtKF__w
• Cancellation of hazardous chemical production safety: https://mp.weixin.qq.com/s/ObNbn4saukYFJl6BxYD4cA
…
Below are a few examples of announced plans addressing specific issues in specific regions:
• Inspections announced in 23 provinces: https://mp.weixin.qq.com/s/_F17dumMWGFxUKi8lK2pTw
• The next round of Environmental Inspections in 10 provinces: https://mp.weixin.qq.com/s/XQrymmITzqx3BadkJxLkzQ
…
Examples of on the ground implementation
11. • Data mining
• Data analytics
• Digital solution
Data and Technology
• Enforcement Data
• Monitoring Data
• Permitting Information
Company Records
• National
• 31 Provinces
• 338 Cities
Available Data & Coverage
• Governmental Official Channels
• Professional/commercial Data source
• Public and other Medias
Data Source and Monitoring
“Big Data” Available Today
12. Fast Screening
and
Categorization
Data Analysis +
Risk Alerts
From Offline to
Online (based on
available
information)
From Offline to
Online (verify
and address
specific issues)
From Offline to
Online (track
progress)
Automated
Minimal
Human
Resources
Targeted
Questionnaire
assessmentHuman
Assessment
On site
Audit
Traditional Auditing
Support self-
improvement
Assess awareness
and transparency
Data Enabled Environmental Risk Assessment
Questionnaire
Site Visit
Medium Risk
High Risk
Interaction
Interaction
Tiered Screening using “Big Data”
Assess ability to
mitigate
13. Identify & Categorize Suppliers at Risk
• Onsite & External Risks
• Real Time Monitoring
• Solve issues that can be solved
Note: information on this map was modified to protect confidentiality
Exposure Risks
Medium High Medium LowHigh Low
Medium high
High
Medium
Medium Low
Low
On site risks Prioritize Suppliers & Mitigate Risks
• Know when to find alternatives
Medium
Portfolio Vulnerability Screening
14. Integrated risk
Risk Alert
Environmen
tal planning
Environmen
tal Quality
Environmental
infrastructureEnvironmental
Scrutiny
Environmental
Performance
Environmen
tal planning
Environmen
tal planning
Environmen
tal planning
Environmen
tal Quality
Environmen
tal Quality
Environmen
tal Quality
Environmental
infrastructure
Environmental
infrastructure
Environmental
infrastructure Environmental
Scrutiny
Environmental
Scrutiny
Environmental
Scrutiny
Environmental
Performance
Environmental
Performance
Environmental
Performance
Portfolio Categorization
Acute Risk for Relocation, Closure,
Production Suspension
Potential Risk for Relocation, Closure,
Production Suspension
Risk could arise if performance or external
factors change
No risk unless unexpected poor
performance
Integrated risk
Normal
Integrated risk
Monitor
Integrated risk
Watch Out
15. 15
Corporate Response Strategies
New Opportunities
• More Accurate Risk Screening
• Cost-effective Portfolio
Screening
• Real Time Risk Monitoring
• Faster Mitigation
New Challenges
• Manage External Factors
• Manage Dynamic Factors
New Approaches
• Data-enabled Screening
• Proactive Mitigation
• Dynamic Risk Management
Outcomes
• Business Resilience
• Better Financial Projection
• Improved Transparency
16. The Key Message:
Data allows you to foresee which of your operations
or suppliers may get hit, why they may get hit,
whether you can do something about it, and if yes,
what you can do about it to ensure resilience of your
business. If not, you will know earlier that you will
have to find alternatives.
What’s your 3-year plan?
17. 17
Live Supplier Resilience Portal:
Red color means at risk. Green
means ok. You click on the site,
get summary and insight what you
can do about it.
18. • The largest independent environmental database in
China with 10 years, over 1.4 billion environmental
data, nation-wide coverage, central government, 31
provinces, 338 citied.
• Customized technical solution to monitor and detect
policy movement and latest news, among vast
information of traditional and new medias, related to
central supervision planning, special government
action planning, regional planning for production
restriction and suspension due to environmental
issues etc.
Proprietary Database and Technology
• Over 3 million companies with real-time and
historical on-line monitoring data of over 12,000
major industrial facilities and over 1 million records of
environmental complaints, governmental notices,
violation/penalty records to track down the
environmental performance of a given company.
• Over 3,000 information platforms (official, public and
social media) for targeted and precise identification of
environmental information related to
supervision/enforcement actions/plans and latest
government movement in environmental campaigns
Company Records & Public Monitoring
• GREENMENT originated in 2012 when CH2M Hill
decided to localize their environmental Business Unit.
Today we are the largest, premier EHS consulting
and engineering services provider in China with
around 100 consultants and serving 80% of Fortune
100 companies.
• GREENMENT has its headquarter in Shanghai China
and operates offices in Beijing, Guangzhou, Silicon
Valley USA and Antwerp Belgium.
Largest Trusted Environmental Provider in China
• GREENMENT as a Chinese company often supports
national and local environmental authorities and
Institutes for the research and development of
environmental policies and standards and has developed
excellent long-standing relationships with China’s key
government stakeholders.
• GREENMENT has ten experts that are registered in the
government database who are routinely engaged by the
authorities for expert panel review on projects by other
consultants.
Deep Insights and Strong Local Relations
Who is GREENMENT?
Johnny Browaeys WeChat & Mobile: 86 1376 1894 720 - johnny.browaeys@greenment.net - http://www.linkedin.com/in/johnnybrowaeys