Thinking green in China
6
china
WHAT'S NewS Issue 4 April 1998
'Sustainable growth' was the focus of a two-week fact finding mission that
brought 21 Rabobank executives to China, one of the world's fastest growing
economies. What's NewS reports.
As we are all aware, Rabobank is
committed to the development of people
and their communities. As we move into
the 21st century, it is clear, especially to a
F&A orientated bank, that the very idea
of 'development' has to change to embrace
growth in an environmentally sustainable
way. Our MBA elass was sent to China
because no other market so graphically
illustrates both the opportunities and
challenges of this profound transition.
Within 20 years, six of the worlds' ten
largest economies will be located in Asia.
China, the most populous, is also the
largest and the fastest-growing of all, and
the one in which we have invested
considerable resources, as reflected by our
opening of offices in Shanghai and Beijing.
EYE-OPENER
Participants in the trip, students in our
'Executive MBA Program' at the
Rotterdam School of Management, had the
opportunity to visit Beijing, key agricultural
production regions, as well as the leading
Chinese trading centres including Shanghai
and Hong Kong. They saw, first hand, how
broad a gap still stands between 'thinking
growth' and 'thinking green'. 'Of course,
we had all done our homework before we
got on the plane,' says Hans van den
Brande of Rabo Securities. 'Nevertheless,
when we arrived, I think all of us were in
for a big surprise. The mission proved to be
a real eye-opener.'
ON-GROUND DILEMMAS
The trip was explicitly designed to
illustrate the real trade-offs and dilemmas
on the ground. Participants experienced
the Chinese way of life first-hand; they
saw graphic examples of the shaky
transition from a planned economy to
free-market; they became more intimately
acquainted with the severe environmental
consequences of rapid industrial growth,
especially in agribusiness; and, finally, they
were able to formulate ideas on how
Rabobank can contribute to a more
sustainable pattern of development ahead.
GREEN TEAM
The trip's ultimate objective was of course
to see how Rabobank can contribute to
solutions in China, particularly in F&A,
and it was clear that any solutions would
require joint public- and private-sector
initiatives. Sybren de Hoo and Bart-Jan
Krouwel, key members of our 'green team',
were able to open important doors to
officialdom. Participants met members of
the Chinese National Environmental
Protection Agency (NEPA), the Science and
Technology Commission, the National
Cleaner Production Centre, and the
Institute of Agricultural Economies. 'Once,
these officials were lonely voices in the rush
for rapid growth,' says de Hoo. 'Now, even
the bigger Ministries realize that they need
to implement cost-effective environmental
protection measures. With the very
continuity of their primary production at
stake, they are in the market for solutions.'
PRESENTING CLEAN
Rabobank delegates made presentations
about the Dutch experiences with cleaner
production technologies, focusing on
examples like the government's 'green
fund' initiatives developed together with
private banks. They also outlined the
efforts towards environmental audits in
industrial reporting. 'Part of our own
inspiration has been drawn from the
rather fruitful public-private sector
collaborations evolved in Holland,' says
Bart-Jan Krouwel. 'We'd like this
experience to benefit rapidly developing
economies like China and to establish
ourselves as leaders in the provision of
advice and practical solutions in this field.'
Although, of course, the European
experience cannot be directly translated
abroad. A Sino-Israeli joint venture in
greenhouse construction highlighted this
important fact; western energy- and
technology-intensive production methods
are sometimes less effective than
modifying methods developed for the
Chinese context.
RISK LOWERING
Visits to breweries, milk processing plants,
pulp and paper factories, and silk
manufacturers were arranged to give
participants a much clearer picture of the
framework of corporate management and
ownership, the raw materials supply and
production processes and, of course, the
related environmental issues and potential
solutions. These visits reinforced the fact
that, when investing in joint ventures, one
is in a position to encourage
environmentally efficiënt production
The 21 executives who went on a mission to
China: From left to the right:
Front row: Bertiard Remmelts (Schretlen
Co), Tom Knijpers (Rabobank Mark en
Dintel) and Ton Zondervan (Rabobank
Alphen a/d Rijn).
Second row: Rob van den Ende (Rabobank
Maaslanden), Jan van Lith, Lisette
Havermans, Nuria Artigas (Interpolis) and
Petra Verhoef f (Rabobank International).
Third row: Johan van Dijk (Interpolis) and
Flans van den Brande (Rabo Securities).
Top-line: Raymond Kroese (Rabobank
Nederland), Gerard Bruggeman (Rabobank
Twello), Peter Mathot (Rabobank
Zoetermeer), Simon van de Berg Lage
Landen), Anton Miltenburg (Rabobank
Laren), Gijs Kloek (Interpolis), Jeroen Nas
(Rabofacet), Henk Prinssen (Rabobank
International), Rene Jansen (Rabobank Den
Bosch), Heijmert Rijken (Rabobank
International) and Sytse Altena (Rabobank
International).
processes rather than simply financing the
installation of counterproductive and
costly 'end of pipe' solutions. By focusing
on the process rather than the cosmetic
'quick fix', foreign players can
substantially lower the risk profile of any
given investment.
GREEN STRATEGIES
Participants came away with an
appreciation for the magnitude of the
problems confronting China. But by
encouraging sustainable practices, by
fostering public-private sector
cooperation, by adapting western
solutions to local realities, and by helping
to shape enlightened policies as well as
financing positive change, it was also clear
that cleaner production is feasible within
the guidelines of rapid growth. And
cleaner production helps to insure
continuity for our customers, for the
communities in which they live, and for
the vitality of important emerging
markets. Hence, it is a field in which we
are developing strategie expertise.
