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GE and GE in China March 2004 Ellen L.W. Proctor Director & Counsel, Environment, Health & Safety, Asia GE Corporate Environmental Programs.

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Presentation on theme: "GE and GE in China March 2004 Ellen L.W. Proctor Director & Counsel, Environment, Health & Safety, Asia GE Corporate Environmental Programs."— Presentation transcript:

1 GE and GE in China March 2004 Ellen L.W. Proctor Director & Counsel, Environment, Health & Safety, Asia GE Corporate Environmental Programs

2 A Company with an Outstanding Heritage Founded by Thomas Edison in 1878 as the Edison Electric Co. The only company listed in the Dow Jones Industrial Index today that was also included in the original index in global businesses operating in more than 100 countries 315,000+ employees worldwide $134 billion in revenue in 2003 $52.9 billion in international revenue A tradition of leadership

3 History of GE in China China is a Big Part of GE’s Future Product sales of electric fans, refrigerators and steam locomotives; manufacturing of light bulbs; investment in power plants. Acquisition of Anderson/Meyer Trading Company, providing installation and services for the electrical industry in China. Invested in the Shanghai Electrical Power Company, the largest foreign venture in China at that time. Re-established GE’s business contact with China through the opening of a representative office (1981) in Beijing. GE Hangwei Medical Systems was established in Beijing - the first JV of GE in China. GE (China) Co. Ltd. was established in China,acting as an investment vehicle for GE’s projects in China, and provides services to GE’s JVs and affiliates. JV/ WFOE/Investment Projects: 36+ Employees: 12,000 Now

4 2003 revenues of US$2.6 billlion Businesses include: Energy Transportation Infrastructure NBC Universal Healthcare Advanced Materials Consumer & Industrial Global Business Processes GE in China

5 GE’s Integrity Commitment

6 Comply with applicable EHS laws and regulations Prevent workplace injuries and illnesses, and provide a safe and healthy working environment Assess EHS impacts of new activities and products Reduce use and release of toxic and hazardous materials Ensure EHS systems and performance are an integral part of overall operational strategy One set of rules... everywhere we do business... from Schnectady to Shanghai GE’s EHS Policy

7 Why Have An EHS Policy? EPA Enforcement > $3.2 Billion in 2002 Solutia Stock Drops 65% Due to PCB Dumping Company Reputation Employee Satisfaction Customer Requirements Liability Avoidance

8 GE’s EHS Metrics Global EHS Performance Evaluation 2003 Quarter 4 - YTD CONFIDENTIAL-NOT FOR DISTRIBUTION OUTSIDE THE GENERAL ELECTRIC COMPANY

9 GE’s Global EHS Framework Outlines company wide expectations for 21 Health & Safety and 6 Environmental Topic Areas Resources & Guidance provided for all questions Updated Annually by GE EHS Media Experts Provides a status assessment system to track implementation Available in Chinese Standardized e-enabled EHS expectations communicated and tracked across all GE sites PPE Chem. Storage

10 Checklists in local language Regulatory Based Auditing Resources Regulatory Citations and Guidenotes Comprehensive Content across all EHS Media Updated Annually by EHS Consultant Experts Directly Integrated with Finding Closure Tracking System Enabling Business Audits and Annual Compliance Assessments by GE Sites China GE’s Digital Audit Protocols

11 GE’s China EHS Council Composed of all GE EHS professionals in China Quarterly Meetings Focus on China EHS Law Tracking with monthly newsletters & digitized database [with more than 1000 China regulatory req’ts] Focus on cross-auditing Best practice sharing

12 GE’s EHS Training All plant managers must participate in 2-day in-person class on EHS expectations Curriculum for EHS professionals includes courses on EHS audit skills, H&S management system auditing, industrial hygiene, ergonomics (many in local language) In process of rolling out 36 e-enabled courses for EHS & non-EHS professionals on key topics: Available in Mandarin Customized, where appropriate, to local law requirements Material can also be delivered in classroom setting

13 What is the MRT Process? Minimizes environmental and employee exposures from mercury wastes at Fluorescent Manufacturing Plants. Crush and Sieve Technology separates glass, metal and phosphor powder in closed loop system (95% volume reduction) allowing glass and metal recycling. Distiller Technology removes mercury from glass and phosphor substantially reducing volume of haz. waste. What Are the Results? Global implementation complete in 2004 with total capital investment of $10MM (13 sites) $3 MM annual global cost savings 16,000 tons less haz. waste generated globally Case Study – Pollution Prevention in China GE the ONLY major lighting manufacturing using Hg recycle/reduction technology for process wastes

14 GE Energy Most efficient, least polluting gas turbines in the world IGCC technology can significantly reduce CO ₂ emissions from coal plants A leading manufacturer of renewable energy sources from around the world Investing in fuel cell technology GE Consumer & Industrial Appliances and Lighting are the US EPA Energy Star product leaders in their sectors Energy saving consulting services and products to commercial and industrial customers About Our Products & Services... GE Transportation Leader in low-noise & low-pollution engines GE Advanced Materials Lightweight & durable products for the auto industry making vehicles more efficient GE Infrastructure Working with customers to optmize wastewater treatment processes, resulting in water conservation, energy savings & reduced pollution. Helped Yunnan facility improve cooling system performance, conserving 933,000m3 of water per year with net annual savings of US$360,000.

15 GE will only do business with suppliers that: Comply with local laws Don’t use child or prison labor Meet minimum wage and hour provisions, and Have acceptable environmental, health and safety practices We verify through: Certification of virtually all suppliers Site assessments of suppliers in the developing world Experience: We conducted more than 1400 assessments in 2002 Most are willing to make the corrective actions Suppliers are mostly unaware of the legal requirements, not willfully non-compliant GE’s Supplier Guidelines

16  Contains Information about institutes not easily accessible (contact details, technical strengths)  Support for project from SEPA, MOH, State Safe Production Supervision Bureau & Public Security Bureau - Fire Safety Division China Design Institute Database Project GE’s Supplier Guidelines – Improving Supplier EHS Capabilities User-friendly CD database in Chinese & English for 60 E, H, S & Fire Protection design institutes at national/provincial levels. Also includes basic hazard recognition training material.

17 Before … Inadequate Wiring After … Improved Wiring & Explosion Proof Lighting GE’s EHS Supplier Guidelines – Improved EHS Results

18 GE China EHS Outreach Initiatives: Networking with Stakeholders Shanghai EHS Forum AICM Communications w/local agencies GE Foundation WRI China Bell Program Proactive search for other opportunities

19 China BELL Project World Resources Institutes (WRI) Business Environment Learning & Leadership (BELL) Project Support By - GE Fund - Alcoa Foundation - Citigroup - Dutch Ministry of Foreign Affairs Goal – Integrate sustainable development concepts and skills into Chinese business management curriculums Sharing with Communities

20 Climate Change & GE 2003 Activities First GHG Inventory (2002 baseline) Committed to GHG Intensity Reductions as Part of US Business Roundtable Initiative External Website on Climate Change & Product Portfolio Marketplace Leader in Energy Efficient Products Corporate Initiative on Reducing Energy Costs Next Steps Plan and Identify reduction targets Identify and evaluate potential GHG reduction projects Continue corporate initiative on reducing energy costs Conduct 2004 GHG inventory Carbon Disclosure Project Carbon Disclosure Project (February 2003) “GE stands out as being especially well-placed with respect to providing low- carbon solutions to a number of key greenhouse gas emitting markets.”

21 GE’s EHS Report Excellence Sites & Training Injuries, Releases, & Exceedances

22 So What’s GE’s EHS Story... ? Unyielding Commitment to Compliance Everywhere We do Business World-class EHS Systems, Tools … a Competitive Advantage Six Sigma & Waste Emission Reduction Bringing EHS to the Bottom-Line GE Supplier and Climate Change initiatives, and the E and H&S Frameworks taking us beyond compliance But we can always do better... and the job’s never done


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