RESPONSIBLE BUILDING A ZERO-CARBON, BUSINESS FORUM CLIMATE-RESILIENT FUTURE ON CLIMATE INNOVATION HAIKOU, CHINA 23 & 24 MAY 2019 Outcome Report Outcome Report 2 Responsible Business Forum Haikou, China on Climate Innovation 23 & 24 May 2019 3 Outcome Report 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. 4 Responsible Business Forum Haikou, China on Climate Innovation 23 & 24 May 2019 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 Hong Kong 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, Manufacturing, 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. 5 Outcome Report 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 6 Responsible Business Forum Haikou, China on Climate Innovation 23 & 24 May 2019 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 7 Outcome Report 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 8 Responsible Business Forum Haikou, China on Climate Innovation 23 & 24 May 2019 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