Western companies are increasingly under scrutiny for the environmental friendliness of their offshore suppliers, and Chinese factories are seen as a big problem (see Will Environmental Groups Target Western Companies over Pollution Issues in Chinese Manufacturing?.) China is expected to soon become the world’s largest carbon emitter, and thus a big focus by those concerned about global warming and other environmental issues.
The P2PE program “essentially plays the role of matchmaker, helping factories connect with funding and services,” notes a recent story in the Wall Street Journal, commenting after a recent conference in Hong Kong attended by both environmental service firms and Chinese manufacturers. While the program is focused on China, it is open to manufacturers and service firms across the globe, though they must have a legal presence in Hong Kong.
adidas Jumps In
Footwear and apparel company adidas AG has been a big promoter of the P2E2 program. With apparel makers among those most targeted by green and labor rights activists, the company is promoting the P2E2 program across its global supply chain, which includes more than 1,000 suppliers, of which more than 300 have factories in China.
Some fear that Chinese manufacturers may be leery of a deal that sounds complicated and requires them to pay outside firms perhaps significant portions of the savings that they achieve. On the other hand, the allure of free consulting services and new equipment should provide a powerful incentive to improve the “Green” levels of their factories and overall supply chains.
A government web site says P2E2-based projects are active in the aluminum, cement, electronics, food processing, iron and steel, power generation, real estate and textiles industries in China.
Do you have any experience with the P2E2 program? What are your thoughts? Is this a win-win that improves the environment while also helping Western equipment manufacturers? Let us know your thoughts at the Feedback button below.
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