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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
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 1896
• 11 global businesses
operating in more than 100
countries
• 315,000+ employees
worldwide
A tradition
of leadership
• $134 billion in revenue
in 2003
• $52.9 billion in international
revenue
History of GE in China
1910
Product sales of electric fans, refrigerators and steam locomotives;
manufacturing of light bulbs; investment in power plants.
1925
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.
1929
1981
1991
1994
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.
Now
JV/ WFOE/Investment Projects: 36+
Employees: 12,000
China is a Big Part of GE’s Future
GE in China
2003 revenues of US$2.6 billlion
Businesses include:
Energy
Transportation
Infrastructure
NBC Universal
Healthcare
Advanced Materials
Consumer & Industrial
Global Business Processes
GE’s Integrity Commitment
GE’s EHS Policy
•
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
Why Have An EHS Policy?
Company Reputation
Liability Avoidance
EPA Enforcement
> $3.2 Billion
in 2002
Solutia Stock Drops 65%
Due to PCB Dumping
Customer Requirements
Employee Satisfaction
GE’s EHS Metrics
GE
Fatalities (GE Employees)
VPP/Global Star Status
1
Recordable Injury & Illness Rates
V% from same period last year
Lost Time Injury & Illness Rates
V% from same period last year
Wastewater (WW) Exceedances
Sites w/ WW Exceedances
Air Exceedances
2
2
2
Sites w/ Air Exceedances
2
Reportable Spills and Releases
Sites w/ Reportable Spills & Releases
Training Units Required in 2001
Percent Trained YTD
Compliance Findings (12 mos)
Percent Closed w/in 60 Days
4
Compliance Findings Open > 1 Year
Repeat Audit Findings
Agency Inspections
Env'l NON
CONFIDENTIAL-NOT FOR DISTRIBUTION
OUTSIDE THE GENERAL ELECTRIC COMPANY
EHS Performance Evaluation
2003 Quarter 4 - YTD
Global
3
Health and Safety NON
3
Fines Proposed (US$)
Fines Resolved (US$)
Fines Pending or Open (US$)
GEA
GEAE
GECS
GEIS
GEL
GE’s Global EHS Framework
Standardized e-enabled
EHS expectations
communicated and
tracked across all GE sites
• 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
Chem. Storage
PPE
GE’s Digital Audit Protocols
Enabling Business Audits
and Annual Compliance
Assessments by GE Sites
•
•
•
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•
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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
China
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
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
Case Study – Pollution Prevention in
China
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
GE the ONLY major lighting manufacturing using Hg
recycle/reduction technology for process wastes
About Our Products & Services . . .
GE Energy
GE Transportation
Most efficient, least polluting gas turbines
in the world
Leader in low-noise & low-pollution engines
IGCC technology can significantly reduce
CO₂ emissions from coal plants
GE Advanced Materials
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
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.
GE’s Supplier Guidelines
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
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.
 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
GE’s EHS Supplier Guidelines –
Improved EHS Results
Before
… Inadequate Wiring
After
… Improved Wiring & Explosion Proof Lighting
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
Sharing with Communities
• 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
Climate Change & GE
2003 Activities
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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
Carbon Disclosure Project
Next Steps
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Plan and Identify reduction targets
Identify and evaluate potential GHG reduction
projects
Continue corporate initiative on reducing
energy costs
Conduct 2004 GHG inventory
(February 2003)
“GE stands out as being
especially well-placed with
respect to providing lowcarbon solutions to a
number of key greenhouse
gas emitting markets.”
GE’s EHS Report
Excellence Sites
& Training
Injuries,
Releases,
& Exceedances
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