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CSR & Sustainability China elcamedia CSR consultancy EMERGING MARKETS SERIES SUSTAINABLE DEVELOPMENT in China’s 12 th Five Year Plan ElcaMedia CSR Consultancy order the FULL report COMPLIMENTARY at www.elcamedia.com

Sustainability and CSR in China Five Year Plan

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Sustainability and CSR in China Five Year Plan : More than any other five year plan, China’s 12th Five Year Plan, 2011-2015,focuses on quality of life over quantity of GDP. It offers a wealth of opportunitiesfor international companies to sell technology, equipment and consultancy toChina in many ways.To help senior executives quickly get an overview of the strategic challengesand opportunities regarding CSR, we’ve compiled a summary of the CSRelements within the 105 page document: clearly listing the sustainabledevelopment actions planned by the Chinese Government.

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Page 1: Sustainability and CSR in China Five Year Plan

CSR &

SustainabilityChina

elcamediaCSR consultancy

EmERging maRkEtSSERiES

SUStainaBLE DEVELOPmEntin China’s 12th Five Year PlanElcamedia CSR Consultancy

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the

FULL

repo

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COMPLIM

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Page 2: Sustainability and CSR in China Five Year Plan

Sustainable Development in China’s 12th Five Year Plan:An Executive Summary. by Dr. Robin Porter Senior Consultant for China Projects, ElcaMedia CSR Consultancy Fmr. Counsellor for Science and Innovation at the British Embassy in Beijing

Copyright © 2012 ElcaMedia CSR Consultancy - Leading international agency for embedding CSR & Sustainability into an overall corporate strategy. Printed in the UK.

Page 3: Sustainability and CSR in China Five Year Plan

A wealth of opportunities

More than any other five year plan, China’s 12th Five Year Plan, 2011-2015, focuses on quality of life over quantity of GDP. It offers a wealth of opportunities for international companies to sell technology, equipment and consultancy to China in many ways.

To help senior executives quickly get an overview of the strategic challenges and opportunities regarding CSR, we’ve compiled a summary of the CSR elements within the 105 page document: clearly listing the sustainable development actions planned by the Chinese Government.

This 20-page summary comes from preliminary research carried out in the course of a larger project on the 12th Five Year Plan for the European Commission by our senior consultant for China projects, Dr. Robin Porter. To our knowledge, until now no such transparent document exists elsewhere.

Covering the full spectrum of CSR from energy efficiency targets and low-carbon development strategies to climate change and the creation of a ‘green’ economy, we expect it will provide valuable practical insights for any executive dealing with China.

© 2012 ElcaMedia CSR Consultancy - Leading international agency for embedding CSR & Sustainability into an overall corporate strategy

Page 4: Sustainability and CSR in China Five Year Plan

Key facts & figures

Key economic targets • AnnualGDPgrowth:7% • Increaseurbanisationfrom47.5%to51.5% • IncreaseservicesectorcontributiontoGDPbyfourpercentage points,from43%to47% • IncreasespendingonR&Dto2.2%ofGDP • Holdinflation(CPI)atorbelow4%peryear

Key non-economic targets • Increasenon-fossilfueluseto11.4% • ReductionofenergyuseperunitofGDP:16% • ReductionofCO2emissionsperunitofGDP:17% • Increaseforestcoverageby21.66% • DecreasepollutantsCODandsulfurdioxideby8%each

Impacts of climate policy on business sectors:

Cost to reduce

emissions

High

Low

Emissions IntensityLow High

• Renewables• Recycling

• Insurance• Banking & Finance• Retail

• Mining• Utilities• Property• Automotive

• Aluminium• Cement• Iron & Steel• Chemicals

• Agriculture• Oil&Gas• Airlines• Transport• Coal mining

Source: KPMG

© 2012 ElcaMedia CSR Consultancy - Leading international agency for embedding CSR & Sustainability into an overall corporate strategy

Page 5: Sustainability and CSR in China Five Year Plan

EnergyThe first group of issues under the broad heading of ‘Sustainability Development’ concerns China’s plans for energy under the 12th FYP. Specifically, these relate to her programme to increase energy efficiency, her low-carbon development strategy, and the actions to be taken to ensure energy security. Inevitably, there will be some overlap between these issues.

© 2012 ElcaMedia CSR Consultancy - Leading international agency for embedding CSR & Sustainability into an overall corporate strategy

Page 6: Sustainability and CSR in China Five Year Plan

Energy efficiency

The headline intentions for energy efficiency are essentially contained in chapters 11 and 22 of the 12th FYP. In chapter 11:

a.) Promoteanddevelopdiversifiedandcleanenergysources: • developsafeandefficientcoalmines,andlargecoalenterprise groups • promotetheintegrationofcoalresources,andthemergerand reorganization of coal mine enterprises • carryoutR&Ddemonstrationsofcoal-basednaturalgas,coal- based liquid fuels and coal-based co-production, and promote their steady introduction • strengthentheexplorationanddevelopmentofpetroleumand natural gas resources • stabilizedomesticpetroleumoutput,andpromotetherapidgrowth of natural gas output • promotethedevelopmentandutilizationofunconventionaloiland gas resources, such as coal-bed gas and shale gas • developcleanandefficientlarge-capacitycoal-firedgenerating sets, giving priority to heat and power cogeneration units in large/ medium cities and industrial parks, large coal-fired power stations near coal mines, and integrated coal gangue power stations • develophydropoweractivelyonthepreconditionofproper ecological conservation and resettlement • focusontheconstructionoflarge-sizedhydropowerstationsin southwestern China • developmediumandsmallriverwaterpowerresourcesbasedon local conditions • planandconstructpumpedstoragepowerstationsscientifically • developnuclearpoweronasafeandefficientbasis • strengthentheconstructionofgrid-connectionworks,anddevelop wind power effectively • developsolarenergy,bio-massenergy,geothermalenergyand other new energy sources actively • promotetheextendedapplicationofdistributedenergysystems

© 2012 ElcaMedia CSR Consultancy - Leading international agency for embedding CSR & Sustainability into an overall corporate strategy

Page 7: Sustainability and CSR in China Five Year Plan

b.) Optimizethelayoutofenergydevelopment: • plannationalenergydevelopmentandconstructionprioritiesina unified manner • constructfivenationalintegratedenergybasesinShanxi,the OrdosBasin,easternInnerMongolia,southwesternChinaand Xinjiang • developnuclearpowerintheeasterncoastalregionandsome areas in central China • improvetheleveloflocalenergyprocessingandtransformation, in order to reduce the pressure for large-scale and long-distance energy transmission • planandconstructenergystoragefacilitiesrationally,improvethe petroleum reserve system, and strengthen the capacity of natural gas and coal reserve and peak molulation

c.) Strengthenconstructionofenergytransmissionchannels: • acceleratetheconstructionofthestrategictransmission channels for oil and gas produced in northwestern, northeastern, and southwestern China, and sea-imported oil and gas, and improve the domestic trunk oil and gas pipe network • makeunifiedtheplanningofnaturalgasimportpipelines,LNG receiving stations, and cross-regional trunk gas transmission and distribution networks • createagassupplylayoutinwhichnaturalgas,coal-bedgas and coal-based gas are balanced • acceleratethebuildingofamodernpowergridsystem • furtherexpandthesizeofwest-to-eastpowertransmission • improveregionaltrunkpowergrids • developadvancedlarge-capacity,high-efficiencyandlong- distance power transmission technologies to meet requirements for large-scale cross-regional power transmission, and grid connection of power generated from new forms of energy • promotetheconstructionofintelligentpowergrids,strengthen urban and rural power grid construction and improvement, and improve the performance in terms of electricity supply and reliability of power grids, using advanced information technology, and control and energy storage technologies

ENERGY/energyefficiency

© 2012 ElcaMedia CSR Consultancy - Leading international agency for embedding CSR & Sustainability into an overall corporate strategy

Page 8: Sustainability and CSR in China Five Year Plan

In chapter 22, the following sections:

a.) Strengthenenergyconservationmanagement: • formulateandimplementlimitsonenergyconsumptionperunit of production in energy-intensive industries • formulateandimplementenergyefficiencystandardsforthe end-use of energy-consuming products • strictlyenforcethesystemforassessingandexaminingenergy savings in investment projects

b.) Vigorouslyenforceenergyconservation: • promoteenergy-savingconversionprojects • undertakeenergy-savingprojectsthatbenefitthepeople • encourageprojectswhichdemonstrateenergy-saving technologies in industry • promoteenergyperformancecontracting

ENERGY/energyefficiency

© 2012 ElcaMedia CSR Consultancy - Leading international agency for embedding CSR & Sustainability into an overall corporate strategy

Page 9: Sustainability and CSR in China Five Year Plan

Low-carbon development strategy

The headline intentions for a low-carbon development strategy are an integral part of the plans for energy, and are motivated in part by plans for protection of theenvironment.Referencesarecontainedinchapters2,9,21,22and23ofthe12th FYP.

In chapter 2, as previously indicated: • developacirculareconomyandlowcarbontechnologies

In chapter 9, on improving and promoting manufacture: • implementexemplaryprojectsofcarbondioxideutilization

IntroductiontopartVI,greendevelopment: • establishgreenandlowcarbondevelopmentideas

In chapter 21, section 1, on controlling greenhouse gas emissions: • saveenergyandimproveenergyefficiencyandincreaseforest carbon sinks • significantlyreducetheintensityofourenergyconsumptionand CO2emissions • promotetheplantingoftreesandforestationtoincreasethe national forest-cover area to 12.5 million hectares • accelerateresearch,developmentandapplicationoflowcarbon technologies • lookintocreatinglowcarbonproductstandardisation,labellingand authentication systems • establishaneffectivesystemforcalculatingGHGemission statistics and gradually create a carbon emissions trading system • advancelowcarbonpilotprojects

In chapter 22, section 1 on boosting energy conservation: • rolloutlow-carbonenergy-savingactionsin‘the10thousand enterprises’

Inchapter23,ondevelopinga‘circular’economy: • encouragelowcarbonconsumptionmodelsandlifestylesamong the people and government

© 2012 ElcaMedia CSR Consultancy - Leading international agency for embedding CSR & Sustainability into an overall corporate strategy

Page 10: Sustainability and CSR in China Five Year Plan

About ElcaMedia CSR Consultancy

ElcaMedia CSR Consultancy is a leading international agency for embedding Corporate Social Responsibility (CSR) and Sustainability into an overall corporate strategy. We are the firstcompany in the world with Cradle-to-Cradle certified consultants: a prestigious closed loop/ circular economy model.

Corporate Social Responsibility provides significant opportunities to build long-term business value. ElcaMedia CSR Consultancy has proven experience of achieving ROI from CSR:developing clear steps for action helping international companies identify, adopt and implement CSR strategies throughout their organisations for the greater benefit of all stakeholders.

These include the necessity for a sound operational CSR strategy, a specific environmental and social strategy for the identification and management of related issues, employee training programs, and best practice in the field of approach, reports and communication when it comes to presenting the business to the wider world - including China.

About the author

This publication was written by Dr. Robin Porter, ElcaMedia’s senior consultant for China projects. RobinisanacademicChinaspecialistandiscurrentlyVisitingProfessorattheCentreforEastAsianStudies,UniversityofBristol(UK).HehasbeenadviseronChinatoamajorindustryandfrom 2002 to 2005 was Counsellor for Science and Innovation at the British Embassy in Beijing.

Disclaimer

All reasonable efforts have been made to ensure that the material presented here is accurate andreliableatthedateofpublication.However,thecompanyandtheauthorreservetherightnot to be responsible for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected.

Copyright © ElcaMedia CSR Consultancy

www.elcamedia.com

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