1. Industry Approaches to Environment Challenges Johnny Kwan Chairman, AICM CCICED Roundtable Meeting April 23, 2008 Association of International Chemical Manufacturers

2. Challenges in China In 2007, China petroleum and chemical industry’s sales revenue reached 710 billion USD, 22.5% higher than last year There are 2,432 foreign enterprises in China (~ 10% of the total petroleum and chemical industry in China ), also represents 12.2% of total production Regulatory agencies are interested in Responsible Care ® Promotion of RC in state-own companies is still a priority

3. 26,103 DG manufacturers 6,619 DG storage companies 213,071 DG trading companies 6,244 DG transporters 124,390 DG users 258 DG waste disposal sites All together: 376,865 Business Units Deal with 32,000 DG Everyday… Over 1 million tons of DG transported in China Challenges in China

4. A Titanium Dioxide facility in Dongying, Shandong province was halted by local residents due to concerns over environmental and health issues. Construction of a 1.4bn USD Aromatic PX plant in Xiamen was halted even after the governmental approvals were granted. Large scale protests by the local residents forced the government to change their decisions. Challenges in China

5. March 29, 2005 - Liquefied chlorine leakage in Jiangsu resulted in 29 deaths, 436 hospitalized, and three villages evacuated. Nov.13, 2005 - Benzene plant explosion in Jilin Petrochemical Co. Resulted in 5 deaths and 1 missing. Pollution of benzene and aniline in the Songhua River affected 63 million people in Harbin. China will spend 5 years to clean up Songhua River at an est. cost of 26.6 billion RMB (3.3billion USD). April 18, 2004 - A military tank drove into Tianyuan Chemical Plant in Chongqing to prevent leaking chlorine tank. 9 fatalities with 150,000 residents evacuated. Challenges in China

6. Occupational health and safety Chemical Industry Approach: Responsible Care ® Environ- mental protection Product stewardship Process safety and emergency response Distribution safety Dialogue Facility security

7. To contribute to the development of a harmonious society and the sustainable growth of China’s chemical industry through the promotion of Responsible Care ® and cost effective, science- and risk-based policies. Our Vision

8. AICM Board Executive Director Responsible Care Committee Regulatory Affairs Committee Government Cooperation and Communications Committee Special Projects Advisory Board Logistics Committee AICM Consulting Company AICM Structure Incorporated in Hong Kong in 1988 Non-profit making organization Represents the collective interests of its members Important issues Ad Hoc issues Transport Safety Product Steward. Process Safety Occupational Health and safety Pollution Prevention CAER Plastics Issues Council Isocyanate Work Group Flame Retardant Products Plasticizers Advocacy Panel

9. AICM Member Companies

10. We Promote RC LOI on Responsible Care® with CPCIA in 2002. The First China “Responsible Care® Conference” jointly hosted by AICM and CPCIA in 2005. SMERC Programme - Responsible Care® Leadership co- organized with China Europe International Business School in 2006. The Second China “Responsible Care® Conference” jointly hosted with CPCIA in 2007.

11. Ongoing dialogue with key policy makers from over ten government agencies by organizing workshops. We Dialogue with Government on Public Policies 2006 & 2007: MDI/TDI Di-Isocyanate – Product Responsible Care Seminar 2006: Conference on Plastics and Sustainable Development 2005 & 2007: Seminar on Implementation of Globally Harmonized System for the Classification and Labeling of Chemicals 2005: China GHS International Seminar 2002: Agreement on Emergency Services for chemical accidents

12. RSQAS Unified assessment Satisfied process 25 5 Companies 5 Assessments We Initiate RSQAS Improved efficiency Increased transparency

13. We Enhance Positive Public Awareness China Chemical Industry News: Responsible Care ® Media Campaign. Cooperation with Media Press Conference for China “Responsible Care® Conference 2007 ”. China Chemical Industry News: Special Edition for Responsible Care® Conference 2007.

14. Priorities in 2008 Enhance transparency Open Days AICM RC Report Training on best practice SMERC RC Codes Specific technical skills Improve road transportation safety Expand RSQAS Strengthen dialogue between AICM and government, stakeholders and member companies Target 50% industry engagement of RC by 2012

15. 15 The journey is long and the path is tough, but with determination and know-how, we will succeed!

16. Thank You! The success is all in OUR HANDS!