RESPONSIBLE BUILDING A ZERO-CARBON, BUSINESS FORUM CLIMATE-RESILIENT FUTURE ON CLIMATE INNOVATION

HAIKOU, CHINA 23 & 24 MAY 2019

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2 Responsible Business Forum Haikou, China on Climate Innovation 23 & 24 May 2019

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Event Summary

The adoption of the Paris Climate Agreement China has been the world leader in reducing emissions, calls for a collaborative effort to reduce man- with a year on year reduction of more than 5%, driven by made greenhouse gas emissions based on a 71% increase in solar power and a 20% increase in wind nationally determined targets and provides energy. In the last decade, China has reduced its carbon a roadmap for global transformation towards intensity by 41%, and planted 7 million hectares of trees. a zero-carbon, climate-resilient future. To The Responsible Business Forum (RBF) on Climate deliver this, all stakeholders must come Innovation was held in Haikou, China, on May 23rd and 24th, 2019, to discuss and agree on collaborative together to accelerate and scale innovation approaches to scaling zero-carbon solutions. The forum and climate action. was co-organised by Global Initiatives and HIMICE, and was supported by the Department of Ecology and Environment, the Department of Commerce and the Office of Foreign Affairs of the Hainan Provincial Government of China. Private sector stakeholders who participated in the two-day forum included: SIG, Interface, CLP, BASF, Mars, Alibaba, Apple, Lenovo, AB InBev, SAP, IBM, Johnson Controls, Sateri, H&M and Shenzhen Energy Group, as well as global-drivers of sustainability: Rocky Mountain Institute, Institute of Public & Environmental Affairs, Stockholm Environment Institute, Birdlife International, WWF, Society of Entrepreneurs and Ecology, China Green Carbon Foundation, The Nature Conservancy and The Climate Group.

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Event Summary

During presentations and roundtable discussions, key The Forum also presented cutting-edge climate commitments were announced: innovations from large corporations and start-ups: The city of Huangshi, in partnership with 100 Resilient Interface Inc. presented their climate take-back Cities, unveiled its urban resilience strategy for this solution to reverse engineer carbon emissions with a focus historic industrial city. Huangshi Vice Mayor, Wu Zhiling, on low-carbon raw material solutions. shared the city’s commitments to transform local industry, SIG committed to collaborate with stakeholders on reduce consumption of natural resources, restore water building an ecosystem for sustainable packaging for the ecosystems and drive low-carbon development. food and beverage industry. The Hainan provincial government shared it’s Representing climate innovators from China and India, commitment to a rapid expansion of electric vehicle the startups XAG and Cropin shared big data solutions infrastructure and a complete ban of fossil-fuel powered and drone technology for a smart and sustainable future cars by 2030. Hainan is the only province in China to have for agriculture. set a clear timeline for phasing out fossil-fuel vehicles. The CLP Group committed to transitioning its fleet of Recommendations from Climate Innovation more than 1,000 cars to electric vehicles by 2030 and also Industry Groups encouraged employees to make the switch to EVs. CLP Parallel sessions offered a deeper look at the specific Group has become the first based company challenges and solutions across six industry sectors – to join the global EV100 initiative run by The Climate Building & Infrastructure, Carbon & Energy, Food & Group. Agriculture, Forest & Ecosystems, , and Transport & Urban Planning. Climate innovators from the private sector and climate experts from international organisations and think tanks discussed the partnerships, investments and policy changes needed to accelerate and scale zero carbon innovations for a climate positive future.

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Event Summary

Recommendations from Climate Innovation Industry Groups

Building and Urban Infrastructure Manufacturing 1. Roll out radical regulations and industry 1. Progressive carbon tax to encourage companies to standardisation of net zero carbon buildings adopt carbon-neutral and carbon-negative technology 2. Create synergies and break down silos throughout 2. Implement blockchain technology to reduce carbon the entire ecosystem of the building and construction emissions throughout the supply chain with IoT devices industry - from end users, to developers, to embedded in equipment to automate this process manufacturers, to policy makers and everyone in between 3. Increase advocacy and education, and galvanise action Forests and Ecosystems through inspirational cases and pilots of net zero 1. Adopt natural ecological methods to restore and carbon buildings protect forest ecosystems; 2. Governments, enterprises, and NGOs to jointly Carbon and Energy establish a multi-party demand cooperation 1. Policymakers to increase transparency for policy mechanism to deal with sustainable forest protection setting and pricing for renewable energy procurement and management in the context of climate change 2. Close the financing gap through mainstreaming 3. Innovation is the road to progress: government to set disclosure for climate and carbon assets innovation policies, entrepreneurs to innovate and 3. Companies to set accurate and ambitious targets and scientists to be included in innovative ways to address cascade their commitment to supply chains climate change

Food and Agriculture Transportation and Urban Planning 1. Work to solve the trust issues throughout the value chain 1. Governments to use data and future trend modelling 2. Empower producers to become more climate-resilient to guide the building of infrastructure 3. Implement systems performance through new metrics 2. Comprehensive transportation planning approaches to be adopted 3. Innovative and sustainable mindsets to be taken, e.g. enhanced waste sorting and treatment

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Speaker Highlights

“It is important that countries ensure their policies not only keep pace with technological developments but also encourage to apply them to sustainable development – a win-win for the environment and the economy.”

Devanan Ramiah Deputy Resident Representative, United Nations Development Programme (UNDP) China

“Change the use of internal combustion engines to achieve a virtuous cycle. Implement the policy to drive innovation.”

Helen Clarkson Chief Executive Officer, The Climate Group

“China is recognized for its commitment and efforts made to combat global climate change. However, as its economy is largely comprised of industrial sectors that provide manufacturing for the world, the question of supply chain emissions is particularly important in China.”

Ma Jun Director, Institute of Public and Environmental Affairs, China

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Speaker Highlights

“Public and private sectors should collaborate with each other to promote the development of circular economy, such as recycling of raw materials and products between factories.”

Rolf Stangl Chief Executive Officer, SIG

“How to get out of your comfort zone, to deal with change, to look at the relationship between biology and nature. We have made efforts, but far from enough, we still have a long way to go, we need more people to join this team.” “In the past few years, Interface reduced the carbon emissions Vanessa Pérez-Cirera by 97%. We have to reassess the Global Deputy, Climate and Energy, WWF raw materials and improve the technology to be more sustainable.”

Erin Meezan Vice President and Chief Sustainability Officer, Interface

“Corporate sectors need to work “The world we want tomorrow “The sector should develop a low- together with policymakers to depends on how we do business carbon energy portfolio by focusing develop a specific target in their today. The circular economy will on low-carbon energy, reducing master plan on climate action, such not emerge on their own. The carbon emissions and achieve 100% as setting a key target of adopting public and private sector need low-carbon transportation.” renewable energy.” to work together to change the habit of consumption to be more Zheng Daqing Senior Vice President, Business and Market Li Ting responsible. ” Chief Representative, Rocky Mountain Development, Greater China, BASF Institute China Ian Burton President, Mars Wrigley Confectionery China

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Speaker Highlights

“The climate crisis confronting humanity is an opportunity for innovation and community action, and evidence-based science is critical to influence decision- makers in the region.” “To achieve zero emissions, the government should abide by the Paris Climate Agreement and Niall O’Connor implement policies to encourage Director, Asia Centre, Stockholm Environment Institute the market to meet the climate commitment.”

Chan Siu Hung Managing Director-China, CLP Holdings Limited

“The conservation of, and commitment to, preserving our forests and ecosystems is the crucial way to lessen our carbon impact for the foreseeable future.”

Du Yongsheng President of the Board, China Green Carbon Foundation (CGCH)

“Alibaba has leveraged the “Solving the problem of climate “AbinBev collaborated with leading technology in big data, change requires a scientific BYD and Tesla for low carbon blockchain to reduce carbon approach, and ultimately it is not transportation informs consumers emissions in transportation, through technology - it is solved about the recycled material through improve energy efficiency and by people and a change in the tags in products. By 2025, AbinBev collect collaborative effort human factor. Mars has developed aims to achieve 100% renewable through mobile payment to science-based GHG reduction energy throughout the production finance the climate action.” targets, by 2030, Mars will recycle cycle.”

50% of its own packaging.” Tian Feng Frank Wang Director, Alibaba Cloud Research Center, Kevin Rabinovitch Vice President, APAC, AB InBev Global Vice President, Sustainability, Mars

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Keynote Speeches

Devanan Ramiah, Ai Luming, Deputy Resident Chairman, Society of Representative, China, Entrepreneurs and Ecology United Nations Development Programme (UNDP) We are the first environmental With a theme of building a protection NGO in China zero-carbon and climate-resilient future, this forum focuses on with a membership comprised mainly of entrepreneurs, the role business plays in promoting SDG#13: Climate Action. who are dedicated to advance enterprise and environmental Climate change is the existential threat of our generation, responsibility. With the joint effort from over 1000 members but our rhetoric has not matched our actions in terms of from the business sector, we have supported over 550 NGO and keeping global warming below 1.5 degrees. At this moment it personal environmental causes in China. SEE also facilitates a is critical to transform our traditional development patterns. learning platform for entrepreneurs, NGOs and the public to With the effective collaboration of governments, private engage in environmental protection. Working with Alipay, we sector and international multilateral organizations such as the have leveraged the public to crowd-fund an anti-desertification United Nations, climate innovation is the fundamental future control project. We have also worked with NGOs to push the direction. Artificial intelligence, big data, machine learning, green supply chain agenda for the real estate industry through nanotechnologies and other exciting advances are all capable our member companies. This year, SEE members joined efforts of driving climate action. Their emergence makes it important with various NGOs and local government from the that countries ensure their policies not only keep pace with province to implement a significant mangrove protection project. technological developments but also ensure they apply them to sustainable development – a win-win for the environment and the economy.

Vanessa Pérez-Cirera, Ian Burton, Global Deputy, Climate and President, Mars Wrigley Energy, WWF Confectionery China

Enterprises are the driving force of a climate resilient Mars supports SDG Goal 12 to future. Climate action needs drive sustainable consumption a systematic, nature-based and promote resource and approach to the challenges, and companies should be more energy efficiency, sustainable infrastructure, as one of the key active in the policy-making process. In the information era, targets for responsible business operations. MARS invested in it is important to take the initiative to develop solutions and educating consumers to select healthier products. We are making establish cooperation to promote the occurrence of climate efforts to promote low-sugar products as mainstream with innovation. We have made efforts, however, there is still a long our customers. In our production process, we have restricted way to go. Under the post-2020 climate framework we need to the amount of sugar added to our product, and increased the build up cross-functional collaboration. We also need to review proportion of sugar-substitute sweetener. Comparing to the year the SDGs, and we need to recognize that there are some pros 2000, no-sugar added products have risen from 30% to 60% and cons. From a microeconomics perspective, we need to set among our chewing gum and mint products. Our ambition is to micro-targets for the business sector and find the synergies ensure 95% of Mars Food products meet strict WHO nutrition between biology and nature. It is important to connect guidance on added sugar, sodium, and fats by 2021. businesses to high-value ecological projects, and help nature to adapt itself so that we can benefit mankind. We have only one earth. Further implementation of the Paris agreement requires more parties to take part.

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Keynote Speeches

Wu Zhiling, Ma Jun, Deputy Mayor, Chief Resilience Director, Institute of Public and Officer, Huangshi Municipal Environmental Affairs (IPE), People’s Government China

In partnership with 100 China’s economy is largely Resilient Cities since 2014, comprised of industrial sectors Huangshi is the first city in that provide manufacturing China to undertake an urban resilience approach to planning. for the world, the question of supply chain emissions is Resilient Huangshi strategy is developed in consultation particularly important. From the initial effort of transparency with stakeholders from the private and public sector, local through information disclosure, an array of environmental communities, academic institutions, technical experts, the China protection initiatives has grown. IPE has built databases to track Centre for Urban Development (CCUD). Resilient Huangshi water pollution, air quality, and global supply chains of major sets a clear-eyed vision for championing and implementing international brands. These databases in turn become publicly urban resilience amidst its most pressing shocks and stresses accessible with web-based mapping technology. The Green brought about by urbanisation, globalisation and climate change. Choice Alliance, launched by IPE with 20 other NGOs, has Resilient Huangshi represents a bold move forward for Huangshi driven many influential companies to embrace environmental to progress to be a stronger and more resilient city that offers sustainability through supply chain management, and also carry diverse economic opportunities, a beautiful natural environment, out active measures for improvement in pollution control, energy and a rich urban landscape that encourages communities to feel savings, and emissions reduction. at home.

Narayanan Vaidyanathan, Du Yongsheng, Global Head of Business President of the Board, China Insights, ACCA Green Carbon Foundation (CGCHF) There is a rising urgency of environmental risks that are reaching untested tipping points. Forests and ecosystems play a As the scale of the impact of major role in the “zero-carbon these issues comes into sharper focus, they are provoking more and resilient future” and provide a practical and effective concrete responses from business, civil society and regulators. solution to climate change. China’s forests action on climate Material Climate risks physical (flooding, natural disasters) change, established forestry methodology systems including and transition risks (impact on organization – the “growing vegetation restoration, afforestation and a forestry carbon pains” of getting to the future state of sustainability) have been measurement system. China’s effort, take the multi-benefit identified, which business models of the future are catering forestry carbon sink project as an example, provides a set of for in different combinations. There is a significant question methods, tools and best practices. For the future of Hainan of what is the impact of climate change on an organization vs. province, we believe that technological innovation and industrial how a company has an effect on the issues of climate change. layout, will provide a good combination of green development It is forward-looking and scenario driven to create various and environmental protection. We should take a systematic frameworks to understand the impacts of these environmental approach to ensure carbon sequestration through forestry and changes. Business can use environmental sustainability risks ecosystems, while also developing the local economy. as opportunities to offer new services/product lines into new partnerships, revenue, and impact.

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Keynote Speeches

Niall O-Connor, Erin Meezan, Director for Asia Centre, Vice President and Chief Stockholm Environment Sustainability Officer, Interface Institute (SEI)

The outcome of the recent Rather than just limiting the IPCC and IPBES reports damage from climate change, provided figures and statics on climate change to underline Interface started thinking about a climate fit for life. As a result the criticality of urgent climate action. The crisis confronting Interface established its Mission Zero promise to eliminate humanity is an opportunity for innovation and community any negative impact the company has on the environment by action, and that evidence-based science is critical to influence 2020. It redesigned processes and products and pioneered decision-makers in the region. Niall discussed opportunities new technologies and systems that reduce or eliminate waste for the upscaling of renewables in the region and the and harmful emissions, while increasing the use of renewable transformation to the New Climate Economy, as well as SEI materials and renewable energy sources. Supported by our led activities on low-carbon urban development. entrepreneurial spirit, we’re well on the way to achieving our promise.

Patricia Zurita, Chief Executive Officer, Birdlife International

Ecosystems such as forests, grasslands, wetlands and oceans play an essential function as carbon sinks. Many of these sinks already face considerable threats such as that of wetlands. While environmentally appropriate afforestation, reforestation and restoration increase the carbon being sequestered from the atmosphere, a nature-based solution is the only scalable way towards a climate-resilient future.

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Plenary Discussion Panels Building a Zero-Carbon, Climate-Resilient Future

Moderator: Malcolm Preston, Adjunct Professor, CLP Holdings Limited (CLP) over the past decade has been Kellogg School of Management and Guest Faculty, developing energy power projects in China and India, and has Harvard Business School become the largest foreign direct investor in renewable energy in Asia. As the first Hong Kong company to join the global EV100 • Rolf Stangl, Chief Executive Officer, SIG initiative run by the Climate Group, CLP committed to transit • Dr. Zheng Daqing, Senior Vice President, its fleet of more than 1,000 cars to electric vehicles (EVs) by Business and Market Development, 2030 and encourage more employees to switch to EVs. EV100 Greater China, BASF brings together leading businesses committed to making electric • Chan Siu Hung, Managing Director-China, transport “the new normal” by 2030. CLP aims to work together CLP Holdings Limited with its key stakeholders moving towards net zero carbon business. • Helen Clarkson, Chief Executive Officer, The production processes of the most important basic The Climate Group chemicals are responsible for around 70 percent of greenhouse gas emissions in the chemical industry. BASF experts work intensively on new technologies to substantially reduce The opening panel of RBF China introduced the overall emissions. As a co-founding member for the Alliance to End theme of RBF and gave the audience a broad overview of how Plastic Waste (AEPW), which is made up of nearly thirty major organisations and companies are addressing climate change. global companies, BASF has committed to develop, deploy and Private sector speakers highlighted their strategy to combat bring to scale solutions that will minimize and manage plastic climate change, how they are addressing practical climate risks waste and promote post-use solutions. To shape the future of within their businesses and gave some concrete examples on how electromobility, BASF is conducting extensive research into their business models, programmes and initiatives are reducing battery materials. The innovation makes it possible to shorten emissions and building a climate-resilient future. future EV charging time to 15 minutes. SIG shared its vision to lower their environmental impact To build a climate resilient future requires a collaborative through its responsible sourcing and sustainable packaging effort of companies, governmentl and non-governmental products, and embedded environmental responsibility as part of organizations as well as civil society. The Climate Group RE100 its business strategy. SIG targets to produce the most sustainable initiative aims to increase companies’ sustainability efforts as packaging solution on the marketand aims to be net positive by companies increasingly search for sustainable production and contributing more to the environment than it takes out across business strategy solutions. The Climate Group also works its value chain. By 2030, SIG aims to halve its environmental with more than 60 governments to facilitate change to create a impact and double its benefit to society by developing forests virtuous circle for production, innovation, and future growth. using only FSC certified liquid packaging board, creating a pack made from 100% renewable materials and working with others to increase collection and recycling of used cartons.

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Plenary Discussion Panels Science-Based Targets for a Net-Zero Economy

Moderator: Vanessa Pérez-Cirera, Global Deputy, The Science Based Targets initiative (SBTi) champions Climate and Energy, WWF science-based target setting as a powerful way of boosting companies’ competitive advantage in the transition to the low- • Li Ting, Chief Representative, carbon economy. In 2019 the World Wide Fund for Nature Rocky Mountain Institute China (WWF), together with other SBTi partners, aims to reach • Kevin Rabinovitch, Global Vice President, 1000 companies in order to engage with the private sector. The Sustainability, Mars implementation of SBTi requires the collaborative effort of • Frank Wang, Vice President, APAC, AB InBev public and private sectors. • Tian Feng, Director, Alibaba Cloud Research Center, SBTi practitioner MARS believes that carbon reduction is Alibaba Group not solely reliant on technology innovation, but also requires behaviour change from individuals in society. By using the SBTi tool, MARS has set a target of reducing two thirds of its corporate carbon emissions by 2050, and by 2040, MARS will adopt 100% renewable energy. Another ambitious commitment from ABinBev announced during the conference was that by 2025 ABinBev will adopt 100% renewable energy. ABinBev also works in China with BYD and Tesla to reduce carbon emissions in transportation. The initiative’s overall aim is that by 2020, science-based target setting will become standard business practice and corporations will play a major role in driving down global greenhouse gas emissions. Embedding science-based targets as a fundamental component of sustainability management practices is crucial in achieving this. Technology innovators in China, such as Alibaba, are applying blockchain and big data analytics to logistics and transportationin order to improve energy efficiency and reduce carbon emissions. The general adoption of fintech tools such as Alipay by the public also provides a crowdfunding channel for climate financing for companies and NGOs. Rocky Mountain Institute (RMI) shared its market-driven approach to supporting China in its energy revolution efforts and low-carbon green development. RMI also pointed out the importance of public policy in supporting the scalability of climate resilient innovations.

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Plenary Discussion Panels Innovation Towards a Climate Resilient Supply Chain

Moderator: Ma Jun, Director, Institute of Public and Nearly three quarters of greenhouse gas emissions in most Environmental Affairs, China industrial sectors come from the supply chain, highlighting the need for companies to not only account for their direct • Michael McComb, Vice President, operations, but also build partnerships with suppliers to Communications and Sustainability, SAP Greater China reduce emissions in manufacturing. From product design to • Wang Zhixin, Board member of SEE Foundation, President, energy efficiency, innovation is key to implementing effective XISHI Group greenhouse gas reduction strategies and scaling up solutions • Kathleen Shaver, Director Supplier Responsibility, within the supply chain. Sustainability, Apple Inc Institute of Public Environmental Affairs shared its innovation through big data analytics on environmental data mapping. It is important to tackle the issue of transparency through innovation and increase the awareness of supplier responsibility. Setting accurate emissions reduction targets for the supply chain can be difficult when you don’t have adequate data from suppliers. Environmental data disclosure has been put on the policy agenda with the Chinese government in recent years. SAP as a technology solution provider, has been working on providing solutions to improving supply chain efficiency and transparency. By adopting data analytics, companies have addressed logistics and transportation emissions in addition to those from manufacturing. 74% of Apple’s carbon emissions are coming from its suppliers. Apple has now developed a screening system to evaluate and manage its supplier’s environmental performance. Apple has managed 44 suppliers to committing to use 100% renewable energy. China is recognized for the commitment and effort it has made to combat global climate change. However, as the economy of China is largely comprised of industries that provide manufacturing to the world, the question of supply chain emissions is particularly important in China. In recent years, companies have done some excellent work to reduce supply chain emissions by expanding renewable energy and energy efficiency among suppliers.

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Plenary Discussion Panels Big Data, Blockchain and Artificial Intelligence for Climate Innovation

Moderator: Xiaochen Zhang, President, Fintech4good PWC shared its research in partnership with Microsoft on how artificial intelligence can enable a sustainable future. • Bella Zhang, Head of Energy and Sustainability, Applying AI, data science, economics, and sustainability Plug and Play Technology Center expertise, the research examined four sectors that are primed to • Callum Douglas, Director Corporate Responsibility, be disrupted by AI: Agriculture, Energy, Transport and Water. China and APAC, PwC One key finding shows enormous potential for AI to be an • Qi Zhang, Research Staff Enterprise Solutions, important tool in the effort to decouple economic growth from IBM Thomas J. Watson Research rising carbon emissions. The environmental applications of AI have the potential to boost global GDP by 3.1 – 4.4%, while also reducing global greenhouse gas emissions by around 1.5 – 4.0% Information technology and data management can play a by 2030 relative to Business as Usual (BAU). major role in advancing global climate action. The possibilities Blockchain technology consists of distributed data storage, of this are endless – from utilizing AI to estimate climate peer-to-peer transmission, a consensus mechanism, encryption change scenarios, blockchain to manage emission accounts, and algorithms, and smart contracts. It improves the transparency leveraging the Internet of Things (IoT) to track and manage and trust issue of data and is applied by IBM and its innovation efficiency of carbon emitters, technology is primed to support partners to tackle the global challenge of climate change. our path to a zero-carbon future. Applying hyperledger technology, IBM works with Energy This session explored key opportunities, barriers and best Blockchain Labs to create a general distributed energy ledger practices associated with blockchain and AI in addressing climate and blockchain platform for carbon asset trading, to facilitate change. By sharing key experiences from a start-up accelerator, a faster and more seamless collaboration among all parties. a technology infrastructure expert and a sustainability However, blockchain as a decentralised system, will require professional in China, the session identified key components in a collaborative effort to accelerate its application in climate building a participatory, inclusive, and sustainable ecosystem in innovation. mainstreaming technology enabled climate solutions in China The Energy network has become a hot topic for the and the world. integration of sustainable energies. Bringing together early and growth stage startups, industry leading corporations, and venture capitalists, Plug and Play have designed an Energy & Sustainability accelerator program to bring innovation to the energy sector. Among 300 start-ups that Plug and Play support in this area, 32% of them are using artificial intelligence.

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Plenary Discussion Panels Energy Productivity through Enhanced Value Creation

Moderator: Jenny Chu, Head of Energy Productivity Initiatives, H&M committed to EP100 and RE100 initiatives by The Climate Group the Climate Group, to prioritise energy productivity and use renewable energy throughout its value chain. To achieve this, • Benjamin Pinney, Vice President, Enterprise Strategy, H&M is investing in new technologies for lighting, heating, Johnson Controls ventilation and air conditioning systems to improve its energy • Feng Xin, Vice President, Downstream Business and use. By 2025, H&M targets to reduce its carbon footprint by Corporate Development, Sateri 50% and involve all of its suppliers in the energy efficiency • Amie Shuttleworth, Global Director of Sustainability, program, reducing the energy used in its logistics, transport and Cundall warehouses. • Harsha Vardhan, Global Environment Manager, Cundall is as an environmental engineering company that H&M provides solutions to its clients to identify ways to improve the environmental, social and governance performance of their property operations, or real estate investment portfolios. Improving energy productivity is vital for businesses Cundall helps clients to develop a road-map for achieving transiting towards a zero-carbon future. By generating greater carbon neutrality, net zero emissions or net positivity across economic output with less energy, companies can enhance the their property portfolios, based on different scenarios, including value of their products and services, essentially doing more with evaluation of initiatives such as SBTi, RE100 and EP100. less. Increases in energy savings by industry will also have knock- Johnson Controls has dedicated itself to protecting the on effects, such as reducing the costs of other decarbonisation environment and providing its products and services to efforts. empower customers and communities to consume less energy EP100, an initiative launched by The Climate Group in and conserve resources. Besides setting ambitious 2025 goals partnership with the Alliance to Save Energy brings together a related to greenhouse gas emissions, energy, water, waste, safety growing group of energy-smart companies committed to using and diversity from a 2017 baseline, the company also works on energy more productively to lower emissions and accelerate a educating its customers on energy efficiency, and coaching the clean economy. The panel discussed the growing business case second generation of leaders in energy efficient building controls, for energy productivity to demonstrate climate leadership. smart cities, etc. The fashion industry produces a huge amount of carbon emissions. It is important to cooperate and innovate to find an industry-wide solution. Sateri produces fibers and textiles for the clothing industry and has set up its own emission reduction targets, and continuously monitors its performance on energy efficiency in the production process. It is also engaged in a continuous effort to educate consumers on sustainable consumption.

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Plenary Discussion Panels The Future of Energy Efficiency

Moderator: Zhang Weidong, Programme Director, Challenges remain in the financing mechanism and making Sustainable Development, United Nations Development energy efficiency, the so-called “negative cost fuel” in the long Programme (UNDP) China term, economically feasible in the short term. Opportunities emerge in energy efficiency improvement, driven by technology • Peng Ji, Vice President, Broad Group advancement including data sciences, internet of things, artificial • Xu Linjun, Founder and CEO, intelligence, etc. Integration, of technologies innovation and Zhejiang Fuyang Port International Logistics policy implementation, become critical to address the multiple environmental requirements at low cost. For example in the cooling sector, there is a need to retool The energy sector accounts for more than two thirds of technologies for improving energy efficiency while switching to global emissions. Because of this, the transformation of the low-GWP refrigerants, so as to meet requirements from both the global energy system forms the backbone of climate action. Paris Agreement and the Montreal Protocol. Improved energy efficiency has shown to be one of the “lowest Energy Efficiency labeling policy is widely applied in various hanging fruit” for reducing emissions as a result of available countries. There is significant potential for energy savings and fast-growing technology. Therefore, innovating for energy through better and sustained energy management. Better efficiency in a range of contexts is crucial in driving towards a energy management leads to improvement in energy efficiency, carbon neutral future. which minimises energy wastage, cuts energy costs and helps companies improve their bottom lines. Located in the Fuyang Dongzhou International Port, The Energy Efficient Red Wine Warehouse is the first in China, designed according to the US LEED Standard, with organically integrated high-efficiency heat pump air conditioning systems, exploring a green storage model that achieves obvious resource conservation, energy saving and emission reduction effects at lower cost. Broad Group is a private manufacturer of central air conditioning non-electric absorption chillers that are powered by natural gas and waste heat.

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Plenary Discussion Panels Financing a Climate-Resilient Future

Moderator: Wei Zheng, Lead Consultant and Co-Founder, Green bonds are one of the major tools to cater to the Alliance For Good needs of green borrowers and investors, for reasonable funding costs and enhanced environmental disclosure. Mainland • Yu Hao, Chief Financial Officer, China is a significant player in the global green bond market. Shenzhen Energy Group In addition to a global commitment of green economies, local • Eileen Gallagher, Manager, Climate Change, government authorities have given strong top-down support to BSR the development of green bonds to finance green projects. The • Wang Shuwen, Secretary General, Mainland stock exchanges proactively support the listed green Harmony Community Foundation bond market by streamlining approval procedures, launching green bond indices and cooperating with international exchanges Innovation and climate action, at all scales, will require in enhancing transparency and disclosure. significant movement of finances across the globe. In 2016, A green bond can be a project bond backed by the issuer or climate finance from both public and private sectors amounted an asset-backed security (ABS) supported by the project. The to more than $75 billion. By 2020, up to $200 billion in funding authorities jointly promote the development of green financial is expected to be mobilised for climate change solutions and systems, including green loans, green bonds, ESG disclosure and adaptation efforts all around the world. The private sector, in verification and certification. Although green loans accounted particular, has been at the forefront of generating and channeling for the vast majority of green finance, the bottom-up funding funds to drive climate innovation globally. demand has driven the diversity in funding channels. Shenzhen Energy Group issued the first solar asset-backed securities (ABS) in China, which will be supported by revenue from the operation of photovoltaic (PV) plants. According to UNDP’s report, less than 10% of climate resilient costs are covered by the public sector, there is still a big gap to fill. Different types of funders, government, banks, foundations and private investors must collaborate to fill the gap in climate finance. Speakers identified the hurdles for implementation of climate finance: uncertainty of financial return, difficulty of measuring the outcome, lack of policy support, unclear implement process, and little recognition of companies. Companies need to do a thorough climate risk evaluation and carbon asset assessment, follow sustainability reporting processes and improve transparency. The global accounting authorities also need to enhance and improve climate sustainability accounting standards.

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Plenary Discussion Panels The Future of Packaging: Sustainable Solutions Throughout the Life-Cycle

Moderator: Zhang Wei, Assistant Resident Representative, Extended Producer Responsibility (EPR) is a policy United Nations Development Programme (UNDP) China approach under which producers are given a significant responsibility, either financial or physical, for the treatment or • Rolf Stangl, Chief Executive Officer, SIG disposal of post-consumer products. EPR is considered to be a • Ian Burton, President, Mars Wrigley Confectionery China key requirement for a circular economy. A critical requirement for recycling of post-consumer waste, is the nature and composition of the packaging itself. This often In Asia, due to a growing population and an increasing conflicts with other sustainability principles, for example: multi- middle-class, the demand for FMCG has been growing at an layer packaging can provide great solutions to enhance shelf life of unprecedented rate. This increase in demand brings forward perishable products and limit food-waste accordingly. However, major challenges for sustainable solutions for every stage of the the recyclability rate of such packaging is often low to zero. life-cycle of packaging, from the extraction of raw materials to From the behaviour perspective, consumer’s need for EPR (Extensive Producer Responsibility) and the disposal and convenience is a key driver for packaging recycling. Over the processing of post-consumer waste. last few years we’ve seen a shift in consumer perceptions of This designated plenary section on packaging discussed packaging and consumer’s attitudes towards waste disposal, challenges, opportunities and sustainable solutions for every step especially in Europe and North-America. Education on post- of the life cycle. The extraction of raw materials is the first stage consumer waste management is necessary to push forward the of the life-cycle of packaging. The stages of manufacturing and circular economy. distribution of packaging determine the majority of the carbon Mars has been continuously investing in changing child footprint due to the energy and fuel involved. behaviour for packaging recycling by education. According to SIG, limited luminous cans are now disposed directly instead of recycled. From a technical perspective, lack of necessary infrastructure, such as waste classification bins and recyclable packages are another major challenge. By investing in innovation on recyclable raw materials, SIG has developed advanced low carbon packaging material and effective circular processes. Through smart technology, automatic waste classification infrastructure will also greatly improve the recycling rate. Recycling needs a collaborative effort by stakeholders across the whole life cycle of packaging. From a policy perspective, the public and private sectors need to work together to push the circular economy. Policy makers need to look at adequate incentives for rewarding recycling behaviour, EPR, public education, and mandatory waste classification regulation.

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Industry Working Groups on Climate Innovation Building and Urban Infrastructure

Chair: Allan Han-Huei Teo, Regional Head, KEY RECOMMENDATIONS: Asia Pacific Network, World Green Building Council 1. Roll out radical regulations and industry standardisation of • Peng Ji, Vice President, Broad Group net zero carbon buildings • Eric Li, Manager, Construction Industry Team, Greater China, BASF 2. Create synergies and break down silos throughout the entire • Steven Zeng, Country Director, ecosystem of the building and construction industry - from Institute of Sustainable Communities end users, to developers, to manufacturers, to policy makers • Mengmeng Cui, Business Development Director Asia, and everyone in between Metabolic • UB Qiu, Sustainability Lead, North Asia, 3. Increase advocacy and education, and galvanise action Interface Group through inspirational cases and pilots of net zero carbon buildings

22 Responsible Business Forum Haikou, China on Climate Innovation 23 & 24 May 2019

Industry Working Groups on Climate Innovation Carbon and Energy

Chair: Wanyu Sung, KEY RECOMMENDATIONS: Supply Chains Account Manager, CDP 1. Advocating policymakers to increase transparency for policy • Yu Hao, Chief Financial Officer, setting and pricing for renewable energy procurement Shenzhen Energy Group • William Pan Deng, Offshore Wind Lead APAC, 2. Close the financing gap through mainstreaming disclosure DNV GL Energy for climate and carbon assets • Alan Chan, Director-Business Development (China), CLP Holdings Limited 3. Call upon companies to set accurate and ambitious targets • Koben Calhoun, Principal Electricity, and cascade their commitment to supply chains Rocky Mountain Institute • Xie Xi, Director of Climate Change and Energy, The Nature Conservancy China Program

23 Outcome Report

Industry Working Groups on Climate Innovation Food and Agriculture

Chair: Richard Brubaker, Founder, KEY RECOMMENDATIONS: Collective Responsibility 1. Work to solve the trust issue throughout the value chain • Kevin Rabinovitch, Global Vice President, Sustainability, Mars 2. Empower producers to become more climate-resilient • Christian Bauer, Manager Environmental Affairs and Product Related Sustainability, SIG 3. Implement systems performance through new metrics • Justin Gong, Co-Founder and Vice President, XAG Technology • Krishna Kumar, Chief Executive Officer, Cropin Technology • Clemens Grunbuhel, Senior Policy Advisor, Stockholm Environment Institute

24 Responsible Business Forum Haikou, China on Climate Innovation 23 & 24 May 2019

Industry Working Groups on Climate Innovation Forests and Ecosystems

Chair: Yang Biao,Project Director, KEY RECOMMENDATIONS: SEE Foundation 1. Adopt ecological methods, especially natural ways to restore • Xiao Nan, President, and protect forest ecosystems Anbao Environmental Science & Technology • Zhang Xiaoquan, Chief Science Officer, 2. Governments, enterprises, and NGOs to jointly establish Nature Conservancy a multi-party demand cooperation mechanism to deal with • Du Yongsheng, President of the Board, sustainable forest protection and management in the context China Green Carbon Foundation of climate change • Ling Lin, Secretary-General, Sichuan Green Foundation 3. Innovation is the road of progress: government to work on innovation policies, entrepreneurs to innovate and innovative approaches to scientists to address climate change

25 Outcome Report

Industry Working Groups on Climate Innovation Manufacturing

Chair: Justin Wu,Head of APAC, KEY RECOMMENDATIONS: Bloomberg NEF 1. Progressive carbon tax to encourage companies to adopt • Gong Xun, Corporate Environmental Affairs, Lenovo carbon-neutral and carbon-negative technology • Zhao Lijian, China Country Manager, Carbon Trust • Vincent Chen, Teamhead Environment Sustainability, Puma 2. Blockchain technology to reduce carbon emissions • Lai Chee Keong, Partner, ERM China throughout the supply chain with IoT devices embedded in equipment to automate this process

26 Responsible Business Forum Haikou, China on Climate Innovation 23 & 24 May 2019

Industry Working Groups on Climate Innovation Transportation and Urban Planning

Chair: Lauren Sorkin, Managing Director for Asia Pacific, 100ResilientCities KEY RECOMMENDATIONS:

• Luo Jin, Chief Engineer, Housing and Urban-Rural 1. Governments need to see the future trends and the actual Construction Department and Deputy Director, data and guide the building of infrastructure Resilience Office, Huangshi Municipal People’s Government • Lucy Li, Head, Industry Management Automotive, 2. Comprehensive transportation planning Asia Global Automotive Key Account Management, BASF • Nannan Kou, Head of China Research, 3. Innovative and sustainable mindset, e.g. enhanced waste Bloomberg NEF sorting and treatment • Steven Zeng, Country Director, Institute of Sustainable Communities

27 Outcome Report

Media Highlights

RBF China 2019 received significant media coverage, with top tier publications, journalists, and broadcasters present at the event. Key discussion points by speakers and delegates were featured in a number of prominent print and online media, such as Hainan TV, Toutiao, Sina, Sohu, Netease, ChinaNews, Xinhua News, Hainan Daily and China Green Times just to name a few. Several interviews of government officials, business personnel and international organisations were also conducted by media.

28 Responsible Business Forum Haikou, China on Climate Innovation 23 & 24 May 2019

Media Highlights

29 Table 1

Business 52

IO / NGO 24

Government 7 Media 6

Academia 5

Association 2 Outcome Report Others 5

Audience Profile

5%

2%

5%

6%

Audience Profile by Organisation % 7% Business 52 IO / NGO 24

Government 7 52%51% Media 6 Academia 5 Association 2 Others 5

24%

30

1 Table 1

%

Head of 35 Department/ Director Manager 26 C-Level/Managing 26 Director

Communications/ 6 Media

Student/Volunteer 7

Advisor/ 1 Consultant

Responsible Business Forum Haikou, China on Climate Innovation 23 & 24 May 2019

Audience Profile

Delegates from the private sector including Banking & Finance, Building, Manufacturing & Construction, Consumer Goods, Energy & Renewables represented approximately 52% of the Forum delegates. Other industries represented included Environmental services, Food, Beverage & Agriculture, Forestry & Paper, Electronics and Telecom, Oil, Gas & Mining, Trade & Development, and Transport & Logistics. Also, 26% of the delegates were from International Organisations & Non-profit associations, the rest from Government, Media, Academia and others.

7%

6%

35% Audience Profile by Level % Head of Department/Director 35 Manager 26 26% C-Level/Managing Director 26 Communications/Media 6 Student/Volunteer 7 Advisor/Consultant 1

26%

1

Delegates were drawn from 21 countries, with 68% from China and the others from countries including: ,Austria, Chile, China, Ecuador, France, Germany, Hong Kong, India, Indonesia, Ireland, Malaysia, Mexico, Netherlands, Philippines, Singapore, Sri Lanka, Switzerland, Thailand, United Kingdom, United States

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Audience Engagement

In line with our efforts to limit the waste generated at all RBFs, for the third year in a row, the RBF Connect App was instrumental in providing an integrated digital experience for our delegates. With access to the agenda, speakers & sponsor details and attendee lists, RBF Connect was well utilised by the participants at the forum. Delegates had important forum information at their fingertips, and live updates on the schedule. The app also worked as a digital concierge in arranging meetings between the delegates at the forum and helped maximise networking and discussion opportunities. The app also provided a platform for delegates to interact with the speakers through the Q&A feature, as well as participate in the polls and survey. Lastly, RBF Connect was successful in providing a space for delegates to share their updates, images, new relationships and backstage preparation from the forum, which raised the engagement on the app to a higher level.

Youth Engagement

Around 20 students from Hainan University worked closely with the Global Initiatives team and lent their time to assist with registering guests and speakers and to help take notes, photos and quotes from all of the Forum’s sessions. RBF China has engaged the millennials in China through collaboration with China Youth for Climate Action Network (CYCAN) and Hainan University Volunteers Association. CYCAN has engaged 300 universities and influenced one million students through their activities in China. CYCAN action has given strong encouragement to young people to better understand climate change and actively participate in addressing it. The students came from a range of academic backgrounds including law, economics, business studies and international relations and were instrumental in adding a youth perspective to each of the workshops and plenary discussions.

32 Responsible Business Forum Haikou, China on Climate Innovation 23 & 24 May 2019

Social Media

#RBFCHINA ON TWITTER

54,357 REACH

71 117 42 RETWEETS LIKES LINK CLICKS

FACEBOOK LIVE STREAMING

50,610 PEOPLE REACHED

10,000 LIVESTREAM VIEWERS

RBF China articles on 25 Wechat Subscription Media Accounts and 30 influencer’s accounts on Weibo, reached out to over 3,000,000 subscribers.

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Thank you! Global Initiatives would like to thank our sponsors for supporting the Responsible Business Forum on Climate Innovation 2019. We look forward to welcoming you to the next forum.

Responsible Business Forum on Sustainable Development 2019 Singapore, 18-19 November 2019. The St. Regis, Singapore

LEAD ORGANISER

CO-ORGANISER PRESENTING PARTNER INNOVATION PARTNER

KNOWLEDGE PARTNERS CORPORATE PARTNER

SUPPORTING PARTNERS 黄石市政府 Huangshi Municipal People’s Government

SUSTAINABILITY HOST TECH PARTNER EVENT PARTNERS

34