BSR Guide Reveals Path to Energy Efficiency for Companies' China-Based Suppliers

SAN FRANCISCO, June 16, 2010 - In China, which emits more greenhouse gasses than any other country, many
factories use about 10 times more energy than their counterparts in
Japan-giving global companies the opportunity to profoundly reduce their
climate impacts by working with their China-based suppliers.

While energy-efficiency investments in China are cost-effective,
challenges related to the country's regulatory structure, professional
energy-service-provider industry, and lack of information about opportunities
and standards for measuring emissions often prevent companies from
capitalizing on this opportunity.

BSR's (www.bsr.org) new report, "Unlocking Energy Efficiency in
China: A Guide to Partnering with Suppliers
(www.bsr.org/reports/BSR_Unlocking_Energy_Efficiency_in_China.pdf),"
provides a clear outline for how leading companies can overcome these
obstacles and launch supply chain energy-efficiency programs in China. The
recommendations build on BSR's experience helping Walmart launch its
initiative to improve the energy efficiency of its top 200 China-based
suppliers by 20 percent by 2012. The report also provides insights from BSR's
China Training Institute (ctichina.org/v2/en), which has trained more
than 1,500 managers on energy management since 2004.

"The benefits to launching supply chain energy-efficiency initiatives are
great: Companies can save money, reduce their energy-related risks, gather
information to communicate to investors who are increasingly savvy about
climate issues, and establish themselves as leaders before supplier energy
management becomes mainstream," said Ryan Schuchard
(www.bsr.org/about/staff-bio.cfm?DocumentID=37), BSR's Manager,
Research & Innovation. Lead author of the report, Schuchard spent more than
six months helping Walmart launch its efforts at the company's global
sourcing headquarters in Shenzhen, China.

"We identified energy efficiency as a significant opportunity to quickly
enhance the resilience and environmental performance of our suppliers'
Chinese factories," said Walmart Vice President of Global Sourcing Ken
Lanshe. "But we quickly learned that while the successes of Walmart's
Supplier Energy-Efficiency Program (SEEP) in the United States provided us
with an effective model, navigating energy efficiency in China required us to
leverage local partners that possessed relevant knowledge, experience, and
tools. BSR's work helped us surmount these hurdles and ultimately reach more
than 300 suppliers since 2009."

BSR's report shows that companies can turn China's unique obstacles into
opportunities by offering suppliers:

    -- Insight: Global companies can orient suppliers with best
       energy-management practices, and they can also share staff, trainers,
       and  other resources that that can help suppliers address challenges
       such as garnering support from senior management.
    -- Information: By offering tools such as data-reporting systems,
       companies can provide suppliers with instant feedback and analytics to
       help them make better decisions on their own.
    -- Incentives: Company initiatives that link supplier purchase orders to
       progress and stipulate that collaboration with suppliers will depend
       on responsible energy use make energy efficiency more attractive.

BSR's report, which features perspectives from companies such as Walmart,
Hewlett-Packard, and IKEA, proposes a four-part road map to help business
leaders get started by:

    1. Building foundations for the engagement, which includes confirming
       that the company is really ready, choosing suppliers, and defining
       basic parameters
    2. Giving suppliers direction and motivating them to get started, which
       involves introducing them to the idea, launching the initiative, and
       setting commitments
    3. Helping suppliers effectively execute commitments on their own by
       establishing effective communications, providing goal-oriented
       measurement tools, and offering training and advice
    4. Taking stock and considering how to refine methods, invest in their
       own capability, and go further on energy efficiency and other issues

"By working with suppliers, companies can cost-effectively introduce
dozens, hundreds, or even thousands of factories to sustainability, and
enable them to pursue efficiency on their own," said Schuchard.

To read Schuchard's article on supply chain energy efficiency in China,
visit
www.bsr.org/files/BSR_Insight_Getting_Started_on_Supply_Chain_Energy_Efficiency_in_China.pdf
. Access the full report at
www.bsr.org/reports/BSR_Unlocking_Energy_Efficiency_in_China.pdf.

Company managers interested in BSR's Energy Efficiency Partnership
Program, which builds on insights in the report, can learn more at
www.bsr.org/energy-efficiency.

About BSR

A leader in corporate responsibility since 1992, BSR works with its
global network of more than 250 member companies to develop sustainable
business strategies and solutions through consulting, research, and
cross-sector collaboration. With offices in Asia, Europe, and North America,
BSR uses its expertise in the environment, human rights, economic
development, and governance and accountability to guide global companies
toward creating a just and sustainable world. Visit www.bsr.org for
more information.

Eva Dienel, Communications Manager, BSR, +1-415-984-3233, edienel at bsr.org