Climate change is redefining industrial leadership as one that involves energy efficiency and environmental friendliness.

This is the consensus reached by nearly 70 company executives, industry observers and government officials who gathered last Wednesday at the 32nd China Daily CEO Roundtable to discuss how businesses in China can engage in climate change issues.

They concluded that foreign-funded companies in the country can play a very positive role in contributing to China’s efforts to mitigate global warming.

In China, industry consumes 70 percent of the total energy, according to Richard Hausmann, president and CEO of Siemens China and cochairman of the roundtable.

As many domestic companies are still unaware of the dangers of climate change, an increasing number of foreign-funded enterprises, particularly European companies, are exhibiting great enthusiasm to transform themselves into low-carbon businesses.

Hausmann told roundtable participants that the German company is adjusting its own business portfolio to fight climate change. “It has always been ignored that motors for fans, pumps and compressors are actually responsible for 65 to 70 percent of industrial energy usage.”

So the company has adopted motor compacts to reduce energy consumption by 45 percent and uses LEDs (light emitting diodes) to save 80
percent more electricity compared with average light bulbs.

Siemens also provides energy-efficient turbines for power plants in China, helping them reduce carbon dioxide emissions each year.

US-based Alcoa is also a leading enterprise fighting climate change. Ren Bingyan, vice-president of Alcoa Asia-Pacific, said the aluminum
producer invests $100 million a year in low-carbon technology innovation.

“We find aluminum recycling is the most efficient way to save energy, so is aluminum application,” Ren said. He added that 1 kg of aluminum application in automobiles can reduce carbon dioxide emissions by 20 kg.

Lauding the performance of companies in their fight against climate change, Pieter de Haan, senior vice-president and general manager of Philips Lighting East Asia, offered a wider perspective.

He said a partnership between European Union and China “on the level of industry” can help both achieve effective reduction of greenhouse gases.

His suggestion was supported by Michael Pulch, deputy head of European Union Delegation of the European Commission and the honorary chair of the roundtable, who welcomed the idea of an industry platform and cooperation.

“EU will continue to lead global actions to fight climate change and will work closely with both developed and developing countries as well as energy consumer and producer countries,” Pulch said.

He said the EU is sending a clear signal to the private sector that it is serious about moving toward a low-carbon economy. “EU and China can work together to do it (lower carbon emissions).”

Gerard Deleens and his Green Journey Beijing-Paris is a case in point. Deleens, general manager of Green Journey Beijing-Paris, said the company is preparing an event in 2008, using a new vehicle between Beijing and Paris.

“I think we need to improve the use of new-tech vehicles,” Deleens said. “We are speaking with different automakers. We would like to show that this vehicle can also be used outside city.”

Christoph Stark, president and CEO of BMW Group Region China, admits the auto industry has a long way to go in realizing emission-free goals.

In addition to calling for governments to enforce stricter emission standards, Stark encouraged companies to cooperate with governments
in alternative energy research and development.

China has set an official usage target of 15 percent for renewable energy by 2020, with a $200 million R&D budget, loan assistance
and subsidies as incentives, according to International Energy Agency. That implies great opportunities for the private sector, both at home
and abroad.

By Wu Chong