Multinationals expanding plans to better protect the environment

Cai Yan and Xie Shuanghong are students at Experimental Primary School at Beijing Normal University. They both became fans of chemistry after attending an educational initiative held by German chemical company BASF.

"I am fascinated by the magic of chemistry. What's more, I learned the importance of environmental protection in the industry," said Xie, who participated in chemical experiments during the activity.

The initiative, called BASF Kids' Lab, was designed to inspire and educate primary school students about sustainable development and scientific innovation through child-friendly experiments, said Eckhard Parzich, head of corporate communications of BASF Greater China.

This year is the eighth year that the company held the program in China.

"With this platform, children can learn about the importance of environmental protection and also appreciate the fun of chemistry," said Parzich, adding that it is also a good channel for BASF to communicate with local communities.

Environmental issues have long been a focus for BASF in China, said Johnny Kwan, board chairman of BASF Greater China. The company earlier published its first report on financial, environmental and social performance in China.

Reducing emissions

According to the report, emissions of greenhouse gases from BASF's chemical operations in China last year amounted to 1.8 million tons, a reduction of 5.2 percent compared to 2007. This was achieved mainly through technological upgrades of plants.

Energy efficiency, defined as primary energy consumption (fuel, electricity, steam) per ton of product, was also improved, and helped reduce BASF's overall energy consumption in China.

The company's energy efficiency increased 50 percent between 2002 and 2008 in China.

"The report will be one important ongoing effort to deepen the dialogue with our stakeholders in a more systematic, consistent and transparent way," said Kwan, adding that BASF will continue reporting on its activities with regard to sustainable development in China every year.

BASF and Sinopec, China's largest refiner, earlier agreed to jointly invest $1.4 billion to expand their joint venture in Nanjing, Jiangsu province.

The expanded project will produce downstream specialty chemicals for the Chinese market, serving multiple industries such as construction, electronics, pharmaceuticals, automotive and chemical manufacturing.

The investment at the joint venture, BASF-YPC Co Ltd, includes the expansion of the existing steam cracker, under which its capacity will be expanded to 740,000 tons a year from 600,000 tons.

A steam cracker is a facility that produces ethylene, the raw material for plastics and synthetic fibers.

The investment also includes the construction of 10 new chemical plants, and the expansion of three existing plants.

The Nanjing project is BASF's largest investment in China. With petrochemical production at an integrated site, it is able to save raw materials and energy, and also centralize waste treatment and environmental protection, Kwan said.

Globally, the company has six such integrated sites. It can realize about 800 million euros (8.1 billion yuan) in savings each year from these six sites, he added.

Bayer's carbon footprint

Like BASF, many global companies are strengthening their environmental initiatives in China.

Bayer, another German chemical company, earlier started its nationwide carbon footprint program, recording and auditing all carbon emissions produced during its production and business activities.

The program will cover all key production units and has already rolled out at some production sites and office buildings.

Siemens Home Appliances, also publishes an environmental report in China each year. The company's overall investment in environmentally friendly measures exceeded 100 million yuan over the past decade, said company CEO Roland Gerke.

Since 1990, the company has succeeded in cutting the average energy consumption of its appliances by more than 50 percent, Gerke said.

The company earlier this year opened its first direct distribution store in Nanjing in Jiangsu province. The store has a corner dedicated to energy-saving and environmentally friendly products.

The increasing support of environmental issues by multinational companies will boost the whole industry in China, said Ma Jun, director of the Institute of Public and Environmental Affairs.

Sinopec recently announced a change to its earlier plan to build a $9 billion refinery in Nansha in Guangzhou province, which attracted concerns about the damage it might cause to the densely populated Pearl River Delta. Sinopec instead said the refinery will be built in Zhanjiang in Guangdong province.

"The decision is a good example of how environmental concerns can shape policy," Ma said.

(China Daily 11/23/2009 page5)