{"id":11538,"date":"2016-11-04T16:08:05","date_gmt":"2016-11-04T20:08:05","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/chinas-war-on-pollution-spotlight-on-water\/"},"modified":"2016-11-04T16:08:05","modified_gmt":"2016-11-04T20:08:05","slug":"chinas-war-on-pollution-spotlight-on-water","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/chinas-war-on-pollution-spotlight-on-water\/","title":{"rendered":"China\u2019s War on Pollution: Spotlight on Water"},"content":{"rendered":"

Setting the scene: China<\/strong><\/span><\/p>\n

<\/u>Climate change is a global issue. As the case opens: \u201cThe risk of large-scale climate change is one of the central issues facing the world.\u201d For this reason, I have chosen to focus my analysis on a non-US company, given that (1) the environment is an international responsibility; (2) I feel that my experience in Asia might add breadth to the scope of the section\u2019s wider debate.\u00a0I thus turn to China, and to \u201cBeijing Enterprises Water\u201d, one of the country\u2019s key wastewater operators currently responding to China\u2019s waste quality problems, a critical issue amid the wider \u201cwar on pollution\u201d China is currently facing.[1]<\/a><\/p>\n

In China, 60% of the groundwater is unfit for human consumption.[2]<\/a> A 2014 government survey revealed that only 3.4% of the 968 monitoring sites met the highest\u00a0\u201cGrade I\u201d\u00a0standard (with 63% at grade III of VI or above). In addition, ~50% of the country\u2019s major enviro-political unrest is water-related \u2013 making the issue not just about economics and health, but about political stability also. If we look at the exhibits below, it is easy to understand why:<\/p>\n

Exhibit 1: Chinese water pollution \u2013 the sobering reality:\u00a0<\/em><\/p>\n

\"Exhibit\u00a0 \u00a0<\/a>\"A<\/a><\/p>\n

Left:A man swims in an algae-covered part of the Han River in Wuhan, Hubei province, 11 June 2014, Reuters, 2014; Right: \u00a0<\/em>A river in Wenzhou, Zhejiang Province, contaminated by unknown substances (thought to be blood), Reuters, 2014<\/em><\/p>\n

Focusing on Beijing Enterprise Water:<\/strong><\/span><\/p>\n

As one of China\u2019s leading water suppliers, BEW is an obvious company \u201cin the firing line\u201d to place our analysis. BEW originally began as a government sponsored water supplier, and overtime, gradually built a wide network of water supply and sewage plants around different provinces in China. However, with mounting pressure from the government and climate-change groups, BEW has pivoted its business focus to waste treatment.[4]<\/a><\/p>\n

Exhibit 2: Chinese water pollution \u2013 the sobering reality:\u00a0<\/em><\/p>\n

\"china-pollution\"\u00a0\u00a0\u00a0<\/a>\u00a0\"Worker<\/a><\/em><\/p>\n

Left:A boy swims in the algae-filled coastline of Qingdao, Shandong province July 15, 2011. Picture taken July 15, 2011. REUTERS\/China Daily; Right: <\/em>Worker Cleans Away Dead Fish At A Lake In Wuhan, Central China\u2019s Hubei Province, Kyodo News 2015<\/em><\/p>\n

In response to these spiralling problems, the government has been taking increasingly intense steps to tighten\u00a0regulation, with efforts across wastewater, soil\/air pollution, and CO2 emissions. Its focus on water pollution is likely to continue for at least the next ten years, owing to increasing scarcity from global warming, and demographic shift.<\/p>\n

As the government has ramped up scrutiny of water standards, BEW has been forced to shift its focus from simply a supplier, to a wastewater treatment facility provider, investing heavily in water-environment technology and cleaning facilities, leading to improved efficiencies and utilization rate.<\/p>\n

Exhibit 3: China has under-invested in environmental protection, but it has been catching up: Source: China Statistical Yearbook on the Environment, Wind<\/em><\/p>\n

\"Exhibit<\/a><\/p>\n

Exhibit 4: CO2 emission in the US and China: Air Pollution is a huge concern:\u00a0<\/em><\/p>\n

\u00a0\u00a0<\/a>\"Girl<\/a><\/p>\n

Left:Source: Energy Information Administration\u00a0–\u00a0EIA\u00a0– Official Energy Statistics from the U.S. Government, July 2015; Right: A g<\/em>irl walks through smog in Beijing, where small-particle pollution is 40 times over international safety standard (3\/43), Source: Kyodo News, 2015<\/em><\/p>\n

Operational improvements and technological investment:<\/strong><\/span><\/p>\n

As mentioned, in response to the war on water pollution, the company has made technology and operational upgrades to existing capacity.<\/p>\n