Dow Chemical: Promotes Sustainability Concept in China   

By Peter Zong  

Since its establishment in 1987, the sustainability concept has been accepted by over 100 countries including China. Today nearly all the world is thinking about the sustainability issue. It is easy to make sustainability but the key is how to make sustainability economically, which may be the common viewpoint, particularly for chemical companies.   
    Recently the Dow Jones Sustainability World Index (DJSI) that is the first global index tracking the financial performance of the leading sustainability-driven companies worldwide announced its new components list for 2008. It had rated nine chemical companies in the global chemical industry, including Dow Chemical Company - marking the eighth time Dow Chemical has received this recognition since the launch of the Index in 1999. Dow Chemical was recognized for its operational eco-efficiency, product stewardship, customer relationship management and people development, among other things.

Dow's sustainability in China

"As one of the world's leading science and technology companies, Dow readily embraces sustainability. It is a key element of our business strategies around the world, and in China," said Gregory G. Bond, Corporate Director of Product Safety, Asia Pacific Director Environment, Health & Safety, Dow Chemical. "Sustainability for Dow means making sure that every business decision - from the initial development of a new product to the design and operation of a manufacturing site - is made in a way that is responsible for both our business and for the world outside."
    Dow Chemical has four strategies items including formulating the standards for sustainable development, commented by Dr. Gregory. There are three innovation points - promising safety of products, sustainable chemical and products designed for facing global problems. It is important to make sustainability economically, he thought.
   Dow Chemical not only shares its sustainable products and technologies including reverse osmosis membranes for water purification, energy conservation building materials, the process technology to produce epichlorohydrin from renewable glyerine, arsenic removal media for drinkable water and insulation shield for roofs in Chinese market, but also helps Chinese companies develop sustainability through strengthening supervision on products, integrating value chain, explaining responsible care and improving the safety of delivering chemicals by highways, as well as help Chinese organizations to lift the venture assessment ability in the use of industrial chemicals, food additives, cosmetics and insecticides.  Since 2005, best practices in sustainability have been introduced to SMEs in China through a four-year partnership between Dow and the Ministry of Environmental Protection of China to promote "Cleaner Production" among local companies. The past three years witnessed significant environmental and economic benefits through the reduction of energy consumption and waste water discharge. Since 2006 Dow started a three-year cooperation project - The National Demo Project on Management of Dangerous Chemicals, with the State Administration of Work Safety of China. At present 2 500 related people has accepted the professional trainings, and 31 small and medium chemical companies in China has passed the check related to the project.

R&D issue

As a key of sustainability, Dow Chemical pays more attention to its research and development in China. The company now has 1 500 employees in China, and is welcoming joiners for the new Dow Center due startup in few months. Dr. Theresa Kotanchek, Chief Technology Officer of Dow Chemical China, takes pride in her team.
    "Technology and innovation have a major role to play in Dow's pursuit of the 2015 Goals," Dr. Teresa shared, "Sustainability factors into everything we do in Dow. In research & Development, before the conceptualization of a product, we already have sustainability as a key consideration. This life-cycle approach ensures we design products and processes with the future in mind. With a new global hub of innovation opening in Zhangjiang High Tech Park, we will be better equipped to provide our regional and global customers with innovative solutions that help address China's most pressing challenges - water, energy, environment, human health and more."
    Actually Dow has done and is doing many R&D of sustainability in advance, which makes the company pay more cost than their competitors in a short term. Dr. Teresa believes the payment will have a good return.

Water treatment case

The drinkable water becomes deficit today when facing the problems - increased population, citizens moving to city, worsen water quality etc. "The water treatment business amounts to around US$400 billion worldwide," commented Mr. NT Yuen, Asia Pacific Marketing Manager, Dow Water Solutions, "perhaps 10% for equipment, components."
    According to a report of Chinese government, the water business in China will remain a year over year growth of over 15% in the future, totally reaching RMB2 000 billion in the period of 2006-2010.
   Dow Chemical is mainly supplying five technologies in water treatment in China. The leading reverse osmosis membranes were installed at three water reclamation and reuse facilities in Beijing - the BeiXiaoHe Wastewater Treatment Plant, Beijing International Airport's new Terminal, and the Beijing Economic-Technological Development Area, helps treat 45 000 cubic meters of water per day.
    "Dow's technologies are playing a more and more important role in China's water treatment sector," judged by Mr. Guo Youzhi, Secretary General of China Desalting Association, "Anyhow I hope Dow further develops new application markets in China and propose Dow to build a water R&D center here. Dow's reverse osmosis membranes have been short of supply in China, therefore I have a suggestion for Dow to build a membrane factory in China."

Energy conversation in buildings

The building sector has been considered as a large consumer of energy, in China, it exceeds 20% of total energy consumption. According to the Ministry of Housing and Urban-Rural Development of China, if all the buildings in China could reach an energy saving rate of 50%-65%, 110 million tons of coal would be saved in the period of 2006-2010.
    "To promote energy conversation, China shall ensure the energy supply, control coal's impact on environment and increase the energy efficiency," commented David Chen, Marketing Manager, Greater China Dow Building Solutions. "By using Dow Building Solutions' products in construction, the energy cost can be cut down by 20%. The house cost may be increased by RMB100 to RMB200 per square meter, ignorable compared with the energy value wasted."   
    "After using Dow's insulation boards, an advanced and environmentally friendly chemical material," said Bao Yuqing, Engineer of Beijing Uni-Construction Group, "the demo building in Beijing reached 65% of the energy efficiency requirements after renovation."

Hope

China has cited and promoted the concept of sustainability for dozen years while China Sustainable Development Strategy Report has been published for ten consecutive years. A great deal of policies related to sustainability have been issued publicly. However, the actual actions for Chinese companies showed slower than the companies globally. Given to the standards available, some loca