CCTV Finance and Economics Channel broadcasts "Dialogue" with special planning and reporting on
the Secretary of the Party Committee of China Building Materials Group, Chairman Zhou Yuxian
was invited to be a guest of CCTV Dialogue to
systematically narrate the vivid practice
of China's building materials "the Belt and Road" ESG Host: Jin Qiang
Guest:
Zhou Yuxian Huang Qunhui, Secretary of the Party Committee and Chairman of the Board of Directors
of China Building Materials Group, was the 14th National Committee of the Chinese People's Political Consultative Conference. Liu Meng, Director of
the Institute of Economics of the Chinese Academy of Social Sciences, ESG, General Representative
of the United Nations Global Compact Organization (UNGC) in the Asia-Pacific Region and "the Belt and Road"
Moderator: Today we have invited ESG practitioners, experts and scholars who are implementing the "the Belt and Road" initiative. As well as representatives of ESG's first sponsor, to discuss how ESG can empower and build a "the Belt and Road" with high quality. First of all, we would like to ask Chairman Zhou to talk about your understanding of the relationship between the Belt and Road Initiative and ESG.
Zhou Yuxian: From the perspective of enterprises, I understand that the spirit of the Silk Road and the requirements of the "the Belt and Road" are highly consistent with the ESG concept. In this sense, the implementation of ESG concept can make the "the Belt and Road" more smooth and solid. "The Belt and Road" can also provide a broader practical space for ESG concepts to be translated into action.
Because in the process of building the "the Belt and Road", some countries have a relatively perfect ESG system, and some countries have not yet come out their own ESG framework and guidelines, so we practice the ESG concept in the process of building the "the Belt and Road", which can promote the improvement of the ESG system in the global scope. As far as our enterprise is concerned, to become a world-class enterprise, the first prerequisite is internationalization. ESG is a globally recognized common language, and translating the ESG concept into "the Belt and Road" actions can better enable our enterprises to accelerate the pace of going out.
E-Environmental
Sustainability Moderator: Let's take the next time apart and talk about ESG separately. So in the ESG concept, E is actually environmental sustainable development. Many of us here may have the impression that in July (2023), we frequently refreshed the historical record of high temperature weather. At this time, many people focused on our double carbon goal. Chairman Zhou, we all know that green is the background of "the Belt and Road". In the traditional sense, many people think that the building materials industry is a high energy consumption and high emission industry. How does China's building materials respond to the carbon reduction target? For example, the current process of cement product is to use calcium carbonate as raw material, through firing (process) to decompose calcium carbonate into calcium oxide and carbon dioxide, so carbon dioxide is discharged, but so far there is no material that can replace cement, we will continue to use, of course, we will continue to use this product. We are also continuing to reduce carbon emissions.
China Building Material Group's cement technology and equipment and system integration technology are leading in the world, whether it is particulate matter emissions, carbon dioxide emissions, or other sulfur dioxide and nitrogen oxide emissions, the technology is world-class. Our technology is not only applied to developing countries, but also to the technological transformation of some old cement plants in developed countries and developed countries. We should make full use of our research and development technology to develop cement materials that can be solved from the root without calcium carbonate.
For example, one of our cement owners in France hopes that our achievements can be implemented in his place. Our first production line has been put into operation through joint efforts. The result of putting into operation is that the carbon dioxide emissions per ton of cement can be reduced by 280 kg, 28%. If such technology is promoted all over the world, the amount of carbon emissions saved will be reduced by 1 billion tons. Of course, this is also related to the development stage of each country, especially the commercial development of carbon emissions and carbon trading. If the technology can withstand such commercial value, it can be applied.
Moderator: In fact, just now you said a key core point, that is, the material industry is actually related to the entire industrial chain, related to many industries, whether it is environmentally friendly, whether it is green, so the green of the whole life cycle is very important, what efforts have China's building materials made in the green of the whole life cycle? For example, let me give you a few small examples. We built a cement plant in Hungary. The exterior walls of the whole cement plant are all white. Why should it be made white? After we have the design, when the product really lands, our group has developed a lot of environmentally friendly and advanced products that are needed for global economic development.
Third, in the whole life cycle we are doing, we invest in ESG products. For example, our group is the largest wind power blade company in the world, and China Building Materials is already the largest EPC solar power plant company in Europe.
Compere: Heard so much a moment ago actually, you see no matter be the investment on the technology, the investment on talent, it is the investment on capital in the final analysis. Have you ever considered the input-output ratio when investing in building materials in China? When I first went to this industrial park, most of the water used by the residents there was rainwater for their own domestic water, or other water that we thought was not very clean and sanitary, and they were also using it. So when we go there to build an industrial park, the first thing we think about is that if this place is to develop, we must first solve the problem of water. So I went to help them find water and dig wells. The water was solved, and the road was not good, so we went to repair the road again.
It seems that the investment in that year was relatively large, but since it was put into operation in 2018, the most important thing is that you have won a good environment for common survival, gained the trust of local residents in your enterprise, and more importantly, inspired our own employees. Including the employees recruited by the host country, they think that you are a responsible enterprise, and your enterprise is worthy of trust and sustainable development.
So with such benefits, your investment in environmental protection at that time was not a burden, but a responsibility that you should bear. This kind of responsibility also invisibly promotes their own enterprises to improve their position and face sustainable development.
S-Social Responsibility
Host: In fact, what we have been talking about just now is ESG, the dimension of E. Next, let's talk about the pillar of S, that is, society. In fact, when ESG was proposed, many people in the S dimension focused on stakeholders, including shareholders, investors and so on. So with the development of time, this concept is also constantly extended. Chairman Zhou, how do you understand the stakeholders? But in fact, as an enterprise, the relevant parties have gone far beyond this scope. Our group often says that we have 18000 employees abroad. There are more than 10,000 families behind 18000 employees. How many elderly people and how many children are there in more than 10,000 families? In fact, if you think about it in a series, these are the stakeholders of our enterprise. Look a little wider, don't you think our government is?
With the huge expansion of the definition of stakeholders, in fact, in the process of implementation, one of the problems we need to solve is how to stand on the stakeholders to see the problem, and then as the main body of the enterprise to solve the demands of stakeholders. I think as an enterprise, to really handle the stakeholder relationship is to truly practice the concept of S in ESG through hard, soft and heart links.
Compere: How do you accomplish this?
Zhou Yuxian: I would like to use an example of a huge stone to elaborate on the so-called hard link. We are choosing to invest in a huge stone. Why should we choose Egypt? If we can provide such products to customers in Europe or closer to Europe, we can have shorter time, more appropriate and more agile service, which is to start landing in Egypt, and in the process of landing, we will think about who we are working with, and we will want to be able to choose local partners. Then choose an influential institution with a relatively high degree of marketization in the world. So this is the formation of such a company landing, my products came, technology came, shareholders also came, this is called hard Unicom. This year is the 10th anniversary of
our Chinese giant stone. In the middle of five years or so, we feel that we should do some soft links. We are thinking about how to extend our industrial chain, make better contributions to the local economy and provide more services to the local residents. We have set up a joint laboratory with the Egyptian government. This joint laboratory has two tasks: one is to solve the problem of local raw materials. Up to now, after five years of implementation, 98% of our raw materials can be "localized". Due to the localization of local raw materials, the local glass fiber industry chain has been lengthened and the number of employed people has doubled.
The second is to truly establish Egypt's own glass fiber industry standards and national standards, and train Egyptian employees with such standards. As the Egyptian president said, they have become the fourth country in the world to have their own glass fiber R & D and production capacity, and he is very proud. Therefore, this kind of soft Unicom has reduced the cost of our entire Egyptian company, improved the quality of products, enhanced the competitiveness, and achieved economic benefits while achieving soft Unicom. We began to work hard on people. After the heart was connected, the local employees and the local society attached great importance to our enterprise.
G-Corporate Governance
Moderator: The three dimensions of ESG, just now we discussed the E and S dimensions, which focus more on the external responsibility of the enterprise. The next thing we're going to talk about is the G dimension, "governance," which is more about the internal responsibility of the enterprise. In 2019, the European Parliament issued an action plan for sustainable finance, formally incorporating the risk factors of ESG into the financial sustainability assessment system. Chairman Zhou, how do you understand the scope of the G dimension? When we take a project, you have to think about the biodiversity treaty, you have to think about the climate convention, and where you want to build a factory, you have to think about the religion there, the culture there, the customs there.
I used to invest in a Las Bambas copper mine in Peru. His community needs to be relocated. Thousands of villas have been built, and the relocation needs to be checked and accepted. Suddenly, in the process of inspection, the local residents put forward one, saying that you have built one less thing and one less church. You see, this is a big problem. You can start building immediately. You see, the time is delayed, the funds are also delayed, and the cost of time is very high. We started the second acceptance and said that there was still a problem that had not been solved. We said that it had been solved according to the contract. We said that every villa had no fence. We think it's good to be open, but it's not local, so it seems like a small event like this, but when you get bigger, it becomes a risk.
So in this corporate governance, with the concept of ESG, with the standard of ESG, with the guidance of ESG, when you go to operate, as long as you follow this rule in a down-to-earth manner, combine with your engagement in such projects, do not miss items to do, you will find risks and eliminate risks. It also enables the project to move forward smoothly.
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