How we change business

Greening Businesses: Introduction to the Greenpeace Corporate Campaign

China’s phenomenal economic growth during the past two decades has created unprecedented environmental challenges for the country and the world as a whole. Greenpeace firmly believes that such economic development should never be achieved by sacrificing the environment.

We are not alone in this. In fact, a growing number of the world’s business leaders now recognize the key importance of incorporating environmental concerns into the development of sustainable business models, and they are proactively formulating new business strategies designed to tackle such problems. Chinese businesses are also catching up. Many understand that “going green” lowers business risks in an increasingly environmentally-friendly legislative world and also opens up new business and marketing opportunities.

Greenpeace believes that a company demonstrates true corporate responsibility when it minimizes its environmental footprint. Such behavior is increasingly being rewarded with the patronage of its customers and, consequently, the confidence of shareholders.

Greenpeace is playing an important role in pushing companies to improve their environmental records. In doing so, it hopes to raise the level and quality of public debate on corporate social responsibility in China.

How Greenpeace Influences Corporate Behavior

Greenpeace confronts corporations that think they can continue to harm the environment without any consequence to their bottom-line. But we are also not afraid to stand side by side with companies determined to reduce their environmental impact.

For over 30 years Greenpeace has used different tactics, ranging from lobbying to high-profile non-violent direct action, to challenge companies to go beyond business-as-usual. In doing so, Greenpeace has revolutionized entire industries and reshaped business perspectives regarding environmental protection.

Global corporations listen to Greenpeace because they know we enjoy public trust. Greenpeace does not accept donations from governments or corporations and relies on contributions mainly from its 2.8 million individual supporters worldwide and foundation grants. This helps us maintain our independence while engaging with businesses.

Approach 1: Lobbying businesses

Greenpeace lobbies companies to implement best industry practices. When our lobbying efforts are met with companies looking to take CSR seriously, this often results in changes that transform entire industries.

Case Study 1: B & Q and sustainable forestry In 2006, Greenpeace approached B & Q, China’s largest home furnishing retailer, to show the company the negative impact of its operations on the environment and the opportunity to grow its business in ways that would not destroy ancient forests. In 2007, B&Q pledged that all its wood products for sale in China will come from certified legal and responsibly managed forests by 2010. Now, Greenpeace is in talks with other home furnishing companies operating in China to follow B & Q’s footsteps and green their acts.  Case Study 2: Coca-Cola and the Olympics In 2007, Greenpeace approached Coca-Cola to make 100% of its Olympics refrigerators free of HCFCs and HFCs, which are ozone-depleting and/or climate damaging gases used for refrigeration. Coca-Cola promised to do so, and all 6,350 machines it will deploy for the Beijing Olympics will use natural refrigerants instead. These are the largest set of climate-friendly commercial refrigerators to be deployed in China. Greenpeace is now lobbying other refrigeration-using companies such as McDonald’s and Pepsi to do so as well. Moreover, Greenpeace is asking Coca-Cola to go beyond the 6,350 refrigerators and release a timeline to phase-out all climate damaging fridges in China and across the world.

Approach 2: Challenging businesses

When conversation with companies bears little or no fruit, Greenpeace turns to direct challenges. This involves high-profile non-violent direct actions that raise the level of public debate on a certain environmental issue. More often than not, our corporate victories are achieved by a combination of lobbying and high-profile activities.

Case Study 1: Challenging the electronics industry After three years of Greenpeace campaigning, backed by the electronics-using public in China, global computer giants Acer, Apple, Dell, HP, LG, Nokia, Microsoft, Samsung, Sony Ericsson, and Toshiba committed to globally phase-out the most toxic materials in their products with strict timelines. Lenovo became the first Mainland Chinese electronics company to give a comprehensive toxic phase-out commitment in all their products. These companies together represent the lion’s share of the global electronics market. Case Study 2: Confronting illegal logging In 2004, Greenpeace exposed Asia Pulp and Paper (APP)—one of the world’s largest paper manufacturers—engaging in illegal logging and forest clearing in Yunnan and Hainan provinces. After Greenpeace’s findings were confirmed by the State Forestry Administration’s official investigation, the Zhejiang Province Hotels Association urged its 300 member hotels to boycott APP’s paper products. In 2005, APP finally vowed to abide by Chinese regulations and stop its illegal logging activities in China. Greenpeace is currently continuing to monitor APP’s actions in China and beyond. Case Study 3: Challenging climate polluters In 2004, years of Greenpeace campaigning eventually pressured China Light and Power (CLP)—one of the largest electricity operators in the Asia Pacific region—to commit 5% of its portfolio to renewable energy by 2010. In 2005, CLP even set up a Renewables Division to oversee its renewable energy development. Greenpeace campaigns have raised the climate alarm and increased ambitions in mainland China to rapidly deploy commercially viable renewable alternatives. Case Study 4: Food brands go GMO-free Since 2003, over 130 prominent food brands have committed to use non-genetically engineered ingredients in their products, alongside pesticide residual control commitments by major supermarket chains in China due to Greenpeace pressure. Products are tested for genetically engineered (GE) ingredients and, if found, consumers are informed. Moreover, any double standards practiced by companies are exposed. Companies are also introduced to best practices that can help control pesticide residues and GE ingredients. Brands that have committed to non-GMO use include major multinational and local companies like Danone, Heinz, Mengniu, Pepsi Co., and Yili, while supermarkets that have introduced more stringent pesticide control policies include big chains such as Carrefour and Park n’ Shop.

Approach 3: Creating Solutions

Complaining alone is never enough. Greenpeace offers more than just criticism by presenting specific solutions that are already available in the market. And where none are available, we create them.

Case Study: Climate-friendly cooling The global domestic refrigeration industry was once dependent on fluorinated cooling chemicals such as CFCs and HCFCs. These potent greenhouse gases are up to thousands of times more harmful to the planet’s climate compared to carbon dioxide.. Greenpeace heavily campaigned against replacing these ozone depleting chemicals with another set of man-made chemicals known as HFCs. When the chemical industry retorted that greener alternatives were unavailable, Greenpeace developed them. Greenpeace revolutionized the global industry in 1992 when it developed and propagated a cooling technology known as Greenfreeze, a natural, climate-friendly and energy efficient alternative. Afterwards, it facilitated the technical transfer of Greenfreeze from Europe to developing countries such as China. Over 200 million domestic refrigerators use Greenfreeze today, and each year Greenfreeze is used to cool 70 to 80 million new fridges, which represent 37 percent of total annual global production. In China, 75% of the domestic refrigeration industry uses Greenfreeze technology. In 2004, Greenpeace supported the launch of the Refrigerants, Naturally! initiative by Unilever, Coca-Cola and McDonald’s. This corporate alliance initiative pledges to replace climate-destroying fluorinated cooling gases with climate-friendly natural refrigerants. Companies such as Pepsi Co, Ikea, and Carlsberg have since joined the initiative.

Greenpeace Business Platforms

Greenpeace China recently launched several platforms that provide a vital channel of communication between environmentalists and industry. Our hope is to create a space for open debate and dialogue.

The Greenpeace Business Lecture Series in China

E. Neville Isdell, Chairman and CEO of The Coca-Cola Company, speaks at Greenpeace’s Inaugural Business Lecture in May 27th, 2008.

Greenpeace China launched its inaugural Business Lecture Series in China in May 2008. The Business Lecture Series introduces China to the latest corporate trends and insights on environmental solutions. It offers a platform for open dialogue where leading corporate executives, policy makers, and members of the Chinese environmental movement can have an honest, robust exchange about challenges and opportunities facing corporations operating in China today.

The Lecture Series attracts best of breed executives who use the event to share best practice and network informally with environmental campaigners, colleagues and competitors. The first Greenpeace Business conference was held in the United Kingdom in 1996 and has involved speakers such as London Mayor Ken Livingstone, former World Bank President James Wolfensohn, Chief scientific advisor to the UK Sir David King, and the Chairman of Shell, Lord Ron Oxburgh.

‘Green Investment’ newsletter—uncovering hidden environmental risks

In January 2008, Greenpeace China launched its inaugural ‘Green Investment’, a quarterly newsletter targeting the finance community.

The newsletter shares important information about environmental risks and issues that we uncover during the course of our on-the-ground experiences and investigations associated with our major campaign issues.

As in many other emerging markets, corporations that wish to invest in China and the financial institutions that back them face considerable hidden material risks.  Such risks include non-compliance with or violations of environmental laws, or – even worse – large-scale pollution that causes irreversible damage to local communities.  When material risks of these types come to light, the parties concerned may incur considerable penalties.  Their business operations might even be halted. 

It is imperative for financial institutions to step up to the plate, assess the environmental risks relating to their investment portfolio, and ensure that they incorporate more stringent environmental standards into their lending policies and practices.