Be Green and Innovative

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2 Be Green and Innovative With a rapidly growing economy, China faces great stress on its resources and environment. A better environment will not automatically emerge, necessitating a strategy of sustainable development that encompasses multiple stakeholders the Government, academia, NGOs and industries. While manufacturing is a major driver to the country's growth, its impact has proven to be harmful if not managed and mitigated, and has caused damage by depletion of natural resources, global warming and production of toxic wastes. Nonetheless, China s manufacturing landscape has been seen shifting. Innovative strategies are called for and a new paradigm - one that is sustainable and is inclusive of all stakeholders - is emerging. In light of the Chinese Government s 12 th Five-Year Plan which outlines three main priorities - sustainable growth, industrial upgrading and the promotion of domestic consumption, the 2013 Esquel Sustainability Symposium, entitled Be Green and Innovative, brings together experts from a diverse field to shed light on areas including technologies and solutions in driving sustainable textile industry, environment and responsibility, as well as businesses sustainable showcases.

3 The Path to Sustainable Growth China has achieved an astonishing transformation over the past three decades. The 12 th Five-Year Plan provides a powerful starting point for addressing a number of quantitative targets to be met with, and changes to be made, aiming to steer the country towards a more sustainable model of development. To meet the target of transforming itself from being the world s factory to hubs of research and development, and high-end manufacturing, upgrading and transformation of the traditional manufacturing sector are called for. From labor-intensive to automation and innovation-based manufacturing, the re-configuration of traditional manufacturing industries addresses how the manufacturing sector could embark on a path towards sustainable growth. Sustainable Textile Industry: Technologies and Solutions Scarcity of natural resources and degradation of environment are among the most acute challenges facing us, in particular the textile industry. Large quantities of water are consumed and waste from different steps in the various processes is produced. Regulatory and consumer pressure is demanding reduction in the environmental footprint of industrial processes an imperative for the future success of the global textile industry. Interest in eco-friendly technologies and solutions in the textile industry has increased in the current scenario because of increasing awareness of environmental issues.

4 Environment and Resources China has witnessed miraculous economic growth over the past 30 years. Rapid industrial development has placed a lot of stress on the use of energy and natural resources. As a result, resource depletion and environmental pollution have become serious problems facing China that raise both international and domestic concerns and require the rethinking of government policies. What steps can be taken to address the critical natural resource and environmental constraints? What can be done to contribute to an economy that is both environmentally and economically sustainable? Market and External Stakeholders To achieve a green economy, the nexus that exists among governments, NGOs and businesses is crucial. Consumers can be influential in deciding to choose products with proven sustainability credentials. NGOs and international organizations are increasingly active, building awareness, promoting best practices, and facilitating negotiations among communities, government and companies. Competitors can use their sustainability credentials to differentiate themselves from other companies. Enterprises and policy makers must take a proactive role in nurturing relationships with stakeholders from all areas, with transparent policies and verifiable metrics, while also being open to feedback.

5 Symposium Agenda MONDAY, AUGUST 12 Afternoon Hotel Check-in TUESDAY, AUGUST 13 08:30 08:45 Forum Registration 08:45 08:55 Welcoming Remarks Marjorie Yang, Chairman, Esquel Group 08:55 09:05 Keynote Speech Ma Xiuhong, Chairman, China Foreign Trade Center Session 1 The Path to Sustainable Growth 09:05 09:25 The Six Sigma Sustainability Process Hau L. Lee, Director, the Stanford Global Supply Chain Management Forum 09:25 09:45 Upgrading and Green Transformation of Traditional Labor-intensive Industries Zhang Yansheng, Secretary-General, the Academic Committee, National Development and Reform Commission 09:45 10:05 Striding Towards Sustainability - Transformation and Upgrading of the Textile Industry Jiang Hui, Chairman, China Chamber of Commerce for Import and Export of Textile and Apparel

6 Symposium Agenda 10:05 10:25 Study on the Sustainability of Chinese Textile Industry Sun Ruizhe, Vice Chairman, China National Textile and Apparel Council 10:25 10:45 Tea Break Session 2 Sustainable Textile Industry: Technologies and Solutions 10:45 11:05 Comprehensive Utilization of Waste Textiles Tang Shijun, Director, Experiment Center of Quartermaster Equipment Research Institute 11:05 11:25 A Green Future to China's Textile Industry Yao Mu, Member, Chinese Academy of Engineering 11:25 11:45 Sustainable Utilization of Biological Resources and Traditional Culture Pei Shengji, Director, Kunming Institute of Botany of the Chinese Academy of Sciences 11:45 12:05 Sustainable Development of Textile Industry Zhou Xiang, Member, Chinese Academy of Engineering 12:05 14:00 Lunch

7 Symposium Agenda Session 3 Environment & Responsibility: Challenges and Opportunities 14:00 14:20 Environmental Challenges and China's Green Choice Ma Jun, Director, Institute of Public & Environmental Affairs 14:20 14:40 Building a Low Carbon Future: Emerging Opportunities for NGO-business Partnerships Qian Jingjing, Director of China Program, Natural Resources Defense Council 14:40 15:00 The Importance of Sustainable Farming LaRhea Pepper, Managing Director, Textile Exchange 15:00 16:00 Panel Discussion What can industries do to help address the deteriorating environmental problems? 16:00 16:20 Tea Break Facilitator : Jiang Nanqing, National Officer, UNEP China Office Panelists: Gao Yong, Chancellor, Xi an Polytechnic University Ni Jinren, Director of Institute of Environmental Engineering, Peking University Wang Tao, Professor, Hong Kong Polytechnic University Zhang Yugao, Group Director of R&D, Esquel Group

8 Symposium Agenda Session 4 Case Studies 16:20 16:40 Esquel Group Cheng Peng, General Manager (Knitting) 16:40 17:00 Huntsman Corporation Stephen Gray, Vice President, Strategic Marketing and Planning 17:00 17:20 Lenzing Group Andreas Dorner, Director, Global Marketing at the Business Unit Textile 17:20 17:25 Closing Remarks John Cheh, Vice Chairman & CEO, Esquel Group 18:30 20:30 Dinner WEDNESDAY, AUGUST 14 09:00 11:00 Factory Tour - Esquel s Green Production Campus R&D Center: Eco-Textile Research and the Application of New Textile Technology Wastewater Treatment Center: Reverse Osmosis Treatment for Water Reuse Woven Fabric Factory: Clean Production and Review of Product Innovations Garment Factory: Automatic Production Line and Information Management

9 Forum Speakers Marjorie Yang is Chairman of Esquel Group. She has a Bachelor s Degree in Science from Massachusetts Institute of Technology and an MBA from Harvard Business School. Ms. Yang is a member of the National Committee of the Chinese People s Political Consultative Conference. She is Chairman of the Hong Kong-United States Business Council and Deputy Chairman of the Seoul International Business Advisory Council. She is also Chairman of the Hong Kong Polytechnic University Council, and a member of the MIT Corporation and advisory boards at Harvard University, Harvard Business School, MIT, and Tsinghua University s School of Economics and Management. She is Chairman of Shan Shui Conservation Center and a Member of the Advisory Council of Natural Resources Defense Council in China. Ma Xiuhong is Chairman of China Foreign Trade Center. She previously served as the Vice Minister of Commerce of PRC, the Secretary-General of Anti-Monopoly Committee of the State Council, Secretary-General of the State Leading Group of Intellectual Property Rights, CPPCC Member and Deputy Director of the Foreign Affairs Committee. She started her career with the State Import and Export Administrative Commission and the State Foreign Investment Administrative Commission since the early stage of China s reform and opening-up. Between 1982 and 1998, she worked as Deputy Director and Director at the Bureau of Foreign Investment Administration of the Ministry of Foreign Economic Relations and Trade (MOFERT), and then as Deputy Director-General and Director-General at the Department of Foreign Investment Administration of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC). Between 1998 and 2003, she served as Assistant Minister, and then Vice Minister of MOFTEC and Member of the Ministry s Party Committee. Hau L. Lee is the Thoma Professor of Operations, Information and Technology at the Stanford Graduate School of Business. He is the founding and current co-director of the Stanford Global Supply Chain Management Forum. He is also the faculty director of the Stanford Institute for Innovations in Developing Economies. He is on the board of Esquel Holdings Inc., Chairman of Esquel Sustainability Council and Director of Stanford Sustainability Center. Zhang Yansheng is currently Secretary-General, researcher, and PhD supervisor of the Academic Committee of National Development and Reform Commission (NDRC). He is also a part-time professor at Renmin University of China, Wuhan University, Huazhong University of Science and Technology, and Central University of Finance and Economics. He is mainly engaged in the fields of international finance and international trade. He has published over 20 Chinese and English books (including co-authored books), and more than 300 academic dissertations. He has been awarded Sun Yefang Prize of Economics Publication, first prize of Beijing Municipal Philosophy and Social Science Outstanding Works, Outstanding Works Prize of Chinese Academy of Social Sciences (CASS), first prize of Outstanding Research Achievement of National Development and Reform Commission (Science and Technology Progress Award), and China Development and Research Prize; he also presided over the 9 th collective study session of Political Bureau of the CPC Central Committee on November 2008.

10 Forum Speakers Jiang Hui is Chairman of China Chamber of Commerce for Textile Import and Export. He has obtained a postgraduate degree and has successively worked in the Bureau of European Affairs of Ministry of Foreign Trade and Economic Cooperation and the General Office, being promoted from Deputy Drector General via the Section Chief to the Vice Deputy Director between 1989 and During this period, he was the Counselor of the Chinese Embassy in Portugal and the Counselor and Minister-Counselor of the Chinese Embassy in Brazil. He joined China Chamber of Commerce for Textile Import and Export in 2009 as the Vice Chairman and was appointed as the Chairman in Sun Ruizhe is Vice President of China National Textile and Apparel Council (CNTAC). Mr. Sun has a Bachelor's Degree in Dyeing and Finishing from Donghua University and an EMBA from Cheung Kong Graduate School of Business for EMBA. Mr. Sun is a professor-level senior engineer. His major research includes textile product development, industrial innovation, industrial policy, industrial statistic analysis and planning, and social compliance. Tang Shijun is the Director of Experiment Center of Quartermaster Equipment Research Institute and is a senior engineer. He graduated from Beijing Institute of Fashion Technology majoring in chemical fiber. He is also a part-time professor of Beijing Institute of Fashion Technology, Deputy Editor of the Textile Standards and Quality Journal, Vice Director of the Committee of Experts on China Technology Innovation Strategic Alliance for Waste Textiles Comprehensive Utilization Industry as well as a member of the professional committee of China Association of Resources Comprehensive Utilization and resources and environment committee of China National Textile and Apparel Council. Yao Mu is a textile materials expert and academic. He is an Academician of the Chinese Academy of Sciences and one of the pioneers in clothing comfort studies. He once served as Vice Chairman of Science and Technology Association of Shanxi Province; Honorary President, Professor and Doctoral Tutor of Xi'an Polytechnic University (formerly known as Northwest Institute of Textile Science and Xi'an University of Engineering Science), Professor Emeritus of Weinan Teachers College, and professor and doctoral tutor of the College of Textile and Clothing Engineering, Soochow University. Yao Mu has innovations in the development and application of multi-processing wool textured filament, successfully launching a number of textile testing devices, and made outstanding contributions to enrich China's textile raw materials and military uniform fabric upgrading.

11 Forum Speakers Pei Shengji is a biodiversity expert. He is a researcher and doctoral tutor at the Kunming Institute of Botany of Chinese Academy of Sciences, Chairman of the Chinese Association of Ethnobotany, Consultant of the Medicinal Plant and Herbal Plant Committee of the Botanical Society of China, Deputy Director of the Chinese Medicine Ecological Committee of the Ecological Society of China, Editor of the Journal of Ethnobotany, and Senior Member of the Society of Ethnobotanists. He was also Director of Yunnan Institute of Tropical Plants of the Chinese Academy of Sciences, Deputy Director of Kunming Institute of Botany, International Technical Advisor of WWF and Chairman of International Society of Ethnobiology. Zhou Xiang, graduated from the East China Textile Institute of Science and Technology in 1955, is currently a professor at Donghua University. The DP finishing agent with ultra-low formaldehyde and finishing process developed under her leadership can reduce formaldehyde emissions to internationally advanced level; her "cationic modified ramie study" can improve the color yield and color vividness of ramie fiber via cationic modification, and her "polyester fiber laser surface treatment" study can significantly optimize fiber dying and hydrophily the former is considered advanced in China while the later is a state-of-the-art technology even at the international community. She was elected Academician of the Chinese Academy of Engineering in Ma Jun is the Founding Director of the Institute of Public & Environmental Affairs (IPE). He began his environmental research in the mid 1990s, when he worked for South China Morning Post. In late 1999 his book China s Water Crisis was published by the China Environmental Science Press, assessing water challenges in all seven major water basins in China. Since 2006 he has led the efforts of IPE in developing the China Water Pollution Map (en.ipe.org.cn) and China Air Pollution Map, two public interfaces that display thousands of government sourced pollution data and corporate violation records nationwide. Ma Jun was named Green China Man of the Year in 2006 and received the Ramon Magsaysay Award in Qian Jingjing is Director of China Program at the Natural Resources Defense Council (NRDC), focusing on promoting energy efficiency, use of clean energy, and environmental policies in China. Her work is centered on China s energy and environmental policy development, particularly on urbanization and smart growth, green building, and carbon capture and storage. Before joining NRDC, she worked in the United Nations Children s Fund and the United Nations Development Program for nine years on various environmental projects for developing countries. Jingjing holds a Master s of Science Degree in Environmental Technology from the Imperial College London and a Master s Degree in Engineering in Chemical Engineering from California State Polytechnic University at Pomona.

12 Forum Speakers LaRhea Pepper is an advocate for a more sustainable textile industry. She helped to create Textile Exchange both in the US and Europe, with the mission to inspire and equip people to accelerate sustainable practices in the textile value chain. Pepper s life mission is promoting organic cotton. Raised on a farm, LaRhea learned to farm with minimal pesticides and chemicals, long before the term organic was mainstream. As the Managing Director for Textile Exchange, she and her team are actively changing the paradigm of both the agriculture and textile industries. Jiang Nanqing is the National Officer at UNEP China Office. She is a Doctor of Ecology. She has been involved in her agro-ecology doctoral research in universities and international research institutions of the Netherlands, Japan, Israel and Kenya for seven years and published more than 20 scientific papers. In October 2008, she joined the United Nations Environment Program (UNEP), responsible for the implementation of a number of programs in China, including climate change, green economy, sustainable architecture and climate initiative, ecosystems and biodiversity economics and environmental education, etc. She is now responsible for promoting and implementing UNEP's strategies in China, strengthening the partnership between UNEP and Chinese partners, and enhancing UNEP's influence at the national level. Gao Yong is the Chancellor of Xi'an Polytechnic University. He also serves as the Director of the National Institute of Power Electronics and Director of the Shaanxi Electronics Institute, Member of the Expert Guidance Committee of the National Integrated Circuit Design Industrialization Camp (Xi an). His research focuses primarily on power electronic device and power integration, new semiconductor devices and integrated circuit design as well as very large scale integrated circuit design. Ni Jinren is Director of the Institute of Environmental Engineering at Peking University. Graduated from the School of Water Resources and Hydropower Engineering of Wuhan University in 1982, he then received a Master s Degree and a Doctoral Degree from the Department of Hydraulic Engineering at Tsinghua University; he later conducted post-doctoral research in the College of Urban and Environmental Sciences of Beijing University. He was employed as Associate Professor of Beijing University in 1991 and became Professor in He devoted himself to the interdisciplinary research among water conservancy, geosciences and environment. He hosted the National Outstanding Youth Science Fund Project, key projects of Natural Science Foundation of China, national 11th Five-Year Supporting Plan Issue, major special projects for national water pollution control and management, major international cooperation research projects of Natural Science Foundation of China and over 30 other important science and technology projects, such as European Union science and technology cooperation project and Canada s CIDA cooperation project.

13 Forum Speakers Wang Tao is Professor from the Hong Kong Polytechnic University and an expert on air quality. After receiving a PhD in Atmospheric Chemistry from Georgia Institute of Technology in 1992, he then conducted post-doctoral research at the University of Michigan. In 1995 he joined the Hong Kong Polytechnic University where he led a number of research projects including serving a Chief Scientist for China s Natioanl Basic research Project on acid rain. Currently he works as Sub-editor of the Journal of Geophysical Research and Guest Editor of Atmospheric Chemistry and Physics, both of which are famous national academic journals on atmospheric environment, as well as a Member of Scientific Advisory Board of International Global Atmospheric Chemistry Project (IGAC). He also acts as Adjunct Professor/Researcher in Shandong University and Chinese Research Academy of Environmental Sciences, and Member of the Academic Committee of the National Key Laboratory of Environmental Benchmark and Risk Assessment. d rain. Zhang Yugao graduated from The University of British Columbia, Canada. Currently serving as Esquel Group's R&D Director, he is in charge of the research and development on products, technologies, production processes, wastewater treatment, water and energy saving, and ELS cotton breeding. In addition, Mr. Zhang is the visiting professor at the College of Materials and Textiles, Zhejiang Sci-Tech University and also serves as Vice Director of Woven Committee, China Cotton Textiles Association, Vice President of Foshan Textiles and Silk Society. With a solid education background in chemistry and 20 years of experience in the textile industry, he has developed over 100 new products and filed more than 150 patents. In recognition of his outstanding contributions to technology innovation, energy conservation and emission reduction, he was awarded as one of the Most Innovative People in China Textile Association in 2008, and the Innovation Leader in Foshan City in Cheng Peng is General Manager (Knitting) of Esquel Group. He has a Bachelor's Degree in Precision Instruments and Mechanism from Tsinghua University and a Master's Degree in Mechanical Engineering from Purdue University. At Esquel Group, he has held positions including Production Planning Manager (Knitting), Engineering Manager (Knitting), Senior Manager (Dyeing), Assistant General Manager (Dyeing) and General Manager (Weaving and Knitting). He is also a member of Esquel's Sustainability Council. Stephen Gray is Global Vice President, Strategic Marketing and Planning of Huntsman Textile Effects, a division of Huntsman Inc. As a veteran with more than 35 years experience in the textile industry, Mr. Gray has held a variety of technical, marketing, product management and sales roles in Asia, Europe and the Americas. He plays a pivotal role in driving the business s global strategic marketing and planning platforms, including strategic marketing, marketing communications, product management, business development and the Formulation Distribution Center organization.

14 Forum Speakers Andreas Dorner is the Global Marketing Director at the Business Unit Textile in Lenzing AG. He has joined the company since Based on the experiences as Marketing Manager and Product Manager in the textile industry, he worked in these segments over 20 years for Top-, Image- and Lifestyle- as well as Sportswear-Brands. Before joining Lenzing AG he was Director for Marketing and Business Development at a leading global company for textile accessories with over 100 subsidiaries worldwide. Aside from the extensive textile industry background, he developed an innovative concept for Creative Industries for an European regional government. John Cheh is Vice Chairman & CEO of Esquel Group. He received his Bachelor s Degree in Economics and Political Science from McGill University and his PhD in Economics from Massachusetts Institute of Technology. From 1981 to 1993, he was with Canada s Department of External Affairs and International Trade, and served in Beijing, Seoul and Tokyo in senior diplomatic positions. He was also the Executive Director of the Canada China Business Council in Toronto and the President, Asia, of Bell Canada International. In 2001, he became the President of Bombardier China, a position he held until joining Esquel in October Dr. Cheh is the Vice Chairman of the China Cotton Textile Association (CCTA), Vice Chairman of the China Chamber of Commerce for Textile Import and Export (CCCT) and an Advisory Board Member of the International Textile Manufacturers Federation.