Responsible Competitiveness in China 2009: Seizing the low carbon opportunity for green development
 | Businesses in China are increasingly working with government and civil society to shift markets to reward sustainable development. These responsible business practices are becoming more and more embedded in the country's emerging green industrial policy and low carbon development pathways. In some areas, China is set to leapfrog into the global elite of green innovators. This report was researched and written by AccountAbility and the China WTO Tribune, with support from the Sino Swedish CSR Cooperation Project, China's only ministerial-level CSR cooperation, a long-term agreement between the Chinese Ministry of Commerce and the Swedish Ministry of Foreign Affairs. It shows that China is developing a distinctive low carbon, responsible pathway.  Download report in English
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Findings
The report finds that China's businesses have made significant progress towards responsible competitiveness in the past three years. Progress has been dramatic and unexpected given the global economic outlook. While performance is not uniform, there have been advances in the fields of governance, energy efficiency, human resources, supply chain management and the uptake and stewardship of voluntary standards and reporting.
In 2007, the Chinese business community strongly focused on compliance activities, according to responsible competitiveness benchmarks. Today, China is asserting its responsible and green business credentials, both at home and in global markets.
China is implementing a wide range of policies to decouple industrial productivity and social development from energy consumption and carbon emissions. This track record has granted China a convincing voice in efforts to achieve a global agreement on how to manage the economic, social and environmental threats of climate change. China is now recognised as a part of the select group of countries that are doing most to investigate and devise policies to build low carbon competitiveness.
Responsible Competitiveness in China, as in other countries is being driven by leadership and innovation. The core challenge now is achieving a critical mass change and commitment in the business community. But the pathway to responsible competitiveness requires a supportive policy environment and the involvement of many stakeholders. Promoting additional drivers of responsible competitiveness, in the consumer and socially responsible investment markets, for example, will further incentivise business action.
Sweden, as a recognised world leader in responsible competitiveness serves as a strong guide for China's efforts to maintain and accelerate its green and harmonious development trajectory. China's recent experiences also serve as important lessons in how to reinvigorate European models of responsible business.
The report identifies seven areas core areas used to identify and seize low carbon opportunities. For each of these areas, the report presents the latest trends and case studies which demonstrate how Chinese businesses are innovating in order to create new green products and services and how new collaborations are forming to create new markets for the benefit of all. The data and cases highlight good practice that can be scaled up, shared and modified, both in China and in other countries.
The analysis presented in this report shows that China is developing a distinctive, low carbon, responsible pathway:
- low carbon industrial policies offer Chinese businesses and consumers huge opportunities
- responsible business ventures in China are now impacting global markets and relaunching China's brand
- strong government leadership, incentives and supportive policies are playing an important role
Challenges
China's fast and green development pathway faces many challenges. Low carbon development is already evident in many sectors and provinces. But given the size of the country, achieving scale is a significant challenge. The State Administration for Worker Safety recognises that reducing fatal accidents remains a critical task. Coal remains China's largest source of energy. Meanwhile the ageing population will begin to affect the economy within a decade. China's responsible competitiveness depends on deepening the collaboration between innovative business action, civil society enablers and ambitious government policy. China's geographic and policy diversity coupled with uneven development, means that sustainable development challenges require increasing long-term global cooperation at all levels of business, society and government - including with many trading partners in Asia, the EU, Africa and the Americas.
This report makes it clear that ambitious and timely business action is at the core of green innovation and growth. Businesses have the capacity, expertise and speed to reshape economies for sustainable development globally. Led by giant companies like State Grid and BaoSteel, fast growers like BYD and Suntech, SME clusters like Zhejiang's medicine makers and new eco-industrial parks across China, green and responsible business can be the new paradigm in China's competitiveness.
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