Sustainable Business Models in Japan PDF

Sustainable Business Models in Japan: -Leveraging Cultural Values and Traditions 28 November 2024 Tamane Ozeki, Professor, Ph.D. Graduate School of Urban Management Osaka Metropolitan...

Sustainable Business Models in Japan: -Leveraging Cultural Values and Traditions 28 November 2024 Tamane Ozeki, Professor, Ph.D. Graduate School of Urban Management Osaka Metropolitan University Osaka, Japan - The Center of the Kansai Region - Population Japan 127 million Kansai Region 21 million Osaka Prefecture 8.8 million Japan Kansai Region Italy 5.9 million Singapore 5.6 million Osaka Japan Israel 8.8 million Kyoto 40 km Tokyo Kobe City of Osaka 30 km Kansai Nara Osaka 30 km 1 (c) Human Hub Japan Concentration of Academic & Research Institutions ・Osaka University SPring-8 SACLA ・National Cerebral and Cardiovascular Center Kyoto City Area The ‘K’ Super Computer (A World-class Super Computer) Harima Science City Kyoto University Kobe Biomedical Northern Osaka (iPS cells research) Innovation Cluster Area Umekita District, OSAKA Hanshin Ports → Kansai Science City Kansai International Airport Joint Constant Temperature KIX Medica Storage for Pharmaceuticals Kyoto: Embedded in Nature/Culture ponto-cho toji Kyoto: Embedded in Nature/Culture National Treasures In Japan - concentrated in Kansai - Kyushu/Okinawa Hokkaido/Tohhoku Chugoku/Shikoku 2% 3% 6% Kanto 30% Kansai 54% Chubu 3% Hokuriku/Koshinetsu n=1137 2% (c) Human Hub Japan How to leverage the cultural value and traditions? Japanese learn and follow Western method of strategic management Still maintains cultural values and traditions in corporate culture “WA” ; Japan becomes ”the Land of Harmony”. Prince Shotoku -The man who made Japan's national motto, Lived 574-622 (49 years) Enactment of the "Seventeen-Article Constitution" in 604 (rule of law) Article 1: "Harmony is Precious" (respecting diverse opinions and deciding through discussion) Someone called this ”the world's oldest democratic constitution" cf. The Magna Carta in England is in 1215 ; The modern constitution is the U.S. Constitution in 1787 Article ２: Respect Buddhism (Buddhism is universal truth for The center is the crown prince individual spiritual growth to become the higher sprits; This is called “Satori”.) (c) Human Hub Japan Shintoism and Buddhism (Polytheism) Shintoism: little scriptures and precepts; All creatures are part of God; Shinto teaches respect for all other creatures. (Buddhism) “All living-things, even mountains, rivers, plants, trees have Buddha nature. Buddhism teaches a Middle Way that finds harmony from both extremes: Harmony of “WA”. “Both Shintoism and Buddhism teach based on the oneness with nature.... (c) Human Hub Japan The Symbol of WA - Harmonious coexistence of Shintoism and Buddhism- Shiten-noji Temple is the oldest national Buddhist temple in Japan. A company, called Kongo Gumi, It is the oldest long-lived company in the world.1 Shiten-noji Temple: The temple, but it has the shrine gate!, a symbole of Shitoisum The oldest national Buddhist temple in Japan. (c) Human Hub Japan Zen and Mindfulness What is your image of Zen? – Health Benefits: calm down, clear mind, enhanced immunity and concentration, positive thinking – “Mindfulness” practiced by Steve Jobs and Google etc. is derived from Zen Zen is alternative name for the mind The heart of “Hotoke” is when a person reaches a mental state of clarity or empty in thoughts Various meanings of "Mottainai Most common cases are; leftovers from meals/ when disposing of leftovers when someone wastes time or things when receiving an excessive feeling, thing, or opportunity when you lose the above three issues →The meaning can be slightly different depending on the scene Various meanings of “Mottainai" The definition becomes clearer when translating "Mottainai" in the four typical situations. - It’s wasteful. - That’s a waste of time. - It’s too good for me. - How stupid of me! Mottainai is now globally recognized and is becoming a universal language Wanga Maathai: MOTTAINAI as a Universal Word Wangari Maathai, was the first Kenyan woman to win the Nobel Peace Prize in the environmental field – 2005 came to Japan and was inspired by the word Mottainai Environmental 3R (Reduce, Reuse, Recycle) + Respect = Mottainai The MOTTAINAI campaign – developed as a global activity aimed at spreading – proposing a lifestyle that does not burden the global environment and to build a sustainable recycling-oriented society – To cope with climate change and regional contribution Wangari Maathai: MOTTAINAI and the SDGs Enlightenment activities through licensed products and events In the MOTTAINAI campaign, they have been planning and selling environmentally friendly original products based on the 3R + R concept together with supporting companies. A part of the sales is donated to the "Green Belt Movement". “MOTTAINAI” Spirits To avoid wastes/ losses ① Adequate production quantity/ price Producers Products ③ ➁ Differentiated Re-Networking Value Chain with customers Customers 甲斐 (2019) 「ほどよい量をつくる」、インプレスをもとに作成 Discussion Does your country have a similar idea? If so, how is it reflected to the environment/ daily lives/ society etc.? Case 1: System of VegiBus https://youtu.be/msVb7igsQP8?list=TLG Gib7dOD1G11wyMDExMjAyMg 17  C a s e 1: VegiBus A refrigerated vehicle named "Yasai Bus" Makes the rounds of direct sales stands, roadside stations, fruit and vegetable stores, and wholesalers' warehouses Fresh information to the buyers on behalf of the growers The farmers ship their products, and the actual consumers can receive them on the same day, leading to increased profits for both the producers and the buyers Case Study 2: 100 Shokuya Representative Nakamura: "What I consider most important is the 'right to self-determination. We set a limit for our own income."  Case Study 2: 100 Shokuya Advantages 1. "Early Returning" leaving time is at 5:00 p.m. in the evening Full-time employees can decide their own working hours. People raising children, pregnant women, people who had no full-time employment experience during the “ice age”, the challenged people, and foreign students. 2. Reducing costs by "reducing food loss to almost zero” The cancellation rate is less than 0.1% by distribution by numbered tickets in person. No "freezer". The amount of food to be used is fixed, amount of food to be purchased is also fixed. Once the 100-meal target is reached, preparation can begin for the next day, so working hours can be reduced. Case Study 2: 100 Shokuya Advantages 2. The key to “Ultimate simplicity in management" is the overwhelming product appeal The signature dish, steak donburi, uses only domestic beef and domestic rice The cost ratio is approximately 50%. No advertising cost is used Only three menus Spread by word of mouth Case Study 2: 100 Shokuya Advantages 3. "Any person can be an immediate asset" No need for motivated people 4. "Liberation from Sales Supremacy" towards a gentler work style No medium to long-term goals or individual employee goals are set. Ideas to raise “customer satisfaction” rather than “making sales”. June 2018: Decision to close one of the three restaurants after selling out only about 50 meals, due to the earthquake in northern Osaka and torrential rain in western Japan. Case 3: GOOD NATURE STATION: To define new “WELL” though new business  Case 3: Natural Taste Hotel The first hotel in the world to receive the WELL Building Standard (WELL Certification) A healthy breakfast that makes the best use of selected ingredients Wonderful experiences such as yoga, qigong, and farm harvesting to purify your body and soul Sustainable economic growth rooted in supporting local production, and sustainability Carefully selecting ingredients that are rooted in local production for local consumption Contributes to the realization of a recycling-oriented society Case 3: Original Products “Ba” -Place for interaction Place where people get together and create knowledge Many occasional “Ba”s in daily life – Actual virtual psychological Ba within the organization – Ba where many people interact: e.g., meeting room, presentation room and electronic conference – External Ba, where experiences are shared among clients and suppliers – Vertical Ba within social networks, for example, Facebook – Smoking room Importance of Ba Consist of two elements: – Context, cannot be known if not present at Ba – Relational-From interaction with others to interaction with yourself Importance to management – Honda “WIGAYA”= “Waiwai-gayagaya” - Intensive discussion about the new product - In two-three days, most ideas are apparent, then the team tries to acquire new knowledge or members  A Natural Environment Respecting the nature that has been rooted in Kyoto since ancient times Place to realize a comfortable, enjoyable and healthy life by making use of the wisdom you incorporate in daily life The "conductor" that seamlessly connects the entire building will suggest the best selections for you Incorporating a little bit of "GOOD NATURE" into your daily life Enjoy only what you believe in！ “GOOD NATURE MARKET” A stylish market, with a wide selection of organic vegetables and environmentally friendly products filled with stories of the producers. A display of earth-friendly foods made in Kyoto ⇁products that are both earth-friendly and good for your body. Experience cooking methods that maximizes the potential of ingredients and seasonal delicious ways to eat seasonal foods. Discussion What is the merit of this business model? – Think of advantage of the “Ba” and “Wa” among the stakeholders related to this facility. How do you deepen or expand these concept by promoting new business? – Think of new business using their resources  How can we develop social businesses? -Responsible Innovation towards the inclusive society Università di Padova 29th November 2024 Tamane Ozeki Graduate School of Urban Management Osaka Metropolitan University How can we promote inclusive society? -By designing inclusive organisations 32 Case 4: Senshu Agri Sell the products without ever stating that they were made by NEETs or the challenged people. Target to become business methods to solve original social issues, At the time of its establishment, all directors were former NEET members. 33 Case 4: Agriculture and Welfare ”Nou-Fuku” collaboration Since the company was originally born out of employment assistance, it also works with the challenged people, “Nou-Fuku”, 34 Case 4: NPO to Shareholding Company Community・Business → Social・ Business NPO Welfare Community Senshu Agri Co. Development Practice (Social Enterprise) Organization Developing private organizations that NPO Osaka Youth aim to solve regional issues, not Employment starting from companies, but from the Support Organization Town limits of the public sector. development NPO Welfare Community committee Development Practice Organization Area: Nishinari, Osaka City (Solving regional issues) Ota, CEO of Senshu Agri Co., Ltd. is active in the fields of social business, community and district development, and support for the elderly through agricultural welfare cooperation. 35 Case 5: Making Weakness into Value： "album" The employment support office "album", operated by Takuya Kojima. This office welcomes the challenged people, helping them discover their specific capabilities in a warm, gentle, and comfortable environment. They offer services such as board game sales, photography and video production, and web design. Guided by Social Worker and YouTuber Ryo Izumi 36 Case 5: Gentle Interaction with the community The office is located on the 4th floor of the Ueda Corporation building, which specializes in workplace design. A co-working space for women is on the 3rd floor for shorter work hours. New ideas and collaborations are born from the interactions between Ueda employees and the staff at album. 37 Case 5: UMLAB (Umu Labo) by Album Each creator and each piece of work carries a unique story. gently places the "story" of each creator and each work of art, which "fluctuates" between society and welfare, between "able" and "unable", into a form. diversity social inclusion 38 How can we create Business Model to bring the world sustainable? In collaboration with Masaaki Yoshikawa Human Hub Japan - Even though Japanese are not religious, we are surrounded by nature and influenced by history of Shintoism and Buddhism. - We, particularly in Kansai, have been very keen on the sustainability by nature. Business Model and Net Zero Recently, discussions about transforming companies’ business models to achieve decarbonization have intensified. The potential of business model concepts in understanding and driving sustainable innovation has also been debated (Boons et al., 2013). Business models provide insight into how an organisation delivers outcomes for stakeholders and impacts the natural environment and society (Luedeke-Freund & Rosati, 2020). Function of Business Model Business Model acts as market devices (Callon et al., 2007) and intermediaries between companies, financial institutions, and different innovation actors and networks, such as research institutions (Doganova & Eyquem-Renault, 2009). The relationship between business models for decarbonization and economic performance is now under heightened scrutiny (Alfonso-Martinez, 2021; Brennnan & Tennant, 2018). Net Zero and Nature Positive G7 leaders called for the world to become net zero and nature positive. Nature positive means enhancing the resilience of our planet and societies to halt and reverse nature loss. It has become a movement, with leaders from governments, businesses and civil society committing to action. What is 'nature positive' and why is it the key to our future? | World Economic Forum (weforum.org)  2024 Course: Sustainable Business Models Master’s Degree in Accounting, Finance and Business Consulting Master’s Degree in Management for Sustainable Firms Department of Economics and Management "Marco Fanno" - University of Padova 8:45 am - 10:15 am, Monday, Dec 2 8:45 am - 10:15 am, Thursday, Dec 5 Via Ugo Bassi, Padova, Italy THE GREEN NEW CHINA: ECO-PRIORITY IN DEVELOPMENT Margot Wenying SONG Founder & CEO of EnviroVest DEC 2,Monday 2024 Padova, Italy © 2024 Margot Song. The information contained herein is subject to change without notice The copyright of this information is solely belonged to Margot Song (MS).This material may contain confidential, proprietary or legally privileged information. Without MS’s written consent, it will not be disclosed, copied, reproduced or distributed any of it to any person by any person. All rights reserved. 1  Lecturer: Song Wen Ying, aka Margot Song PROFESSIONAL EXPERIENCE EnviroVest Services(Guangzhou) Co.,LTD CEO, Executive Chairman of the Board 2014-Current Veolia EnviroVest Services(Nanjing) Co.,LTD President, Executive Chairman of the Board 2014-Current eJnnn Pheca Partners Limited Founder, Managing Director 2009-Current Guangdong Meida Nylon Co., LTD Senior Vice President, Executive Board Member 2002-2009 ACADAMIC EXPERIENCE School of Economics, Fudan University Lecturer, Master Degree of International Business 2023-Current Department of Science and Economy, Guest Lecturer, Master Degree in Management for Sustainable Firms University of Padova Master Degree in Accounting, Finance and Business Consulting 2023-Current Guanghua Management School, Lecturer, Master Degree of Business Administration 2018-Current Peking University Margot SONG is a Chinese entrepreneur with global business in the green sector. She has several joint venture partnerships, including companies such as Veolia, DSM, etc. Ms. Song has extensive experience in buyouts, corporate divestitures, and cross-border mergers & acquisitions. She was an advisory partner to One Equity Partners, a $12 billion private equity fund under JPMorgan, where she coordinated One Equity Partner's investment in China during 2012-2014. Ms. SONG is also active in promoting academic cooperation and exchange between Chinese and European universities, in particular Peking University, Guanghua Management School, Fudan University and University of Padova. EDUCATION Margot SONG holds MBA from Peking University and B.A. in International Finance/World Economy from Fudan University 2  THE GREEN NEW CHINA: ECO-PRIORITY IN DEVELOPMENT ❑ China Economy Development ❑ ECO-Priority Environment Development ❑ Market Perspective - Opportunities ❑ Case Study © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 3  THE GREEN NEW CHINA: ECO-PRIORITY IN DEVELOPMENT ❑ China Economy Development ❑ ECO-Priority Environment Development ❑ Market Perspective - Opportunities ❑ Case Study © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 4  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Population Development Growth of GDP during 1900-2020：China VS 1990-2020: China Europe ranks 1st Over the past decades, China has vaulted to become the world’s second largest economy, with a rapid pace of economic development. China’s GDP in 2023 was about 17 trillion US dollars, making it the second largest economy in the world. Manufacturing industry has always been the pillar industry of China’s national economy, accounting for above 40% of the total. In 2024, 5% GDP growth, contributing 30% to the world economic growth. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 5  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Continuous Growth of Advanced Manufacturing Clusters The output value of the automobile manufacturing industry exceeded EURO 14.3 billion for years and exceeded EURO 21.4 billion in 2021. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 6  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA China has some of the most updated infrastructures the biggest expensive high speed train Population Development networks VS 1900-2020：China Europe the mobile internet is very widespread in China, more than 800 million mobile internet users the mobile payment accessible and convenient in China, the payment on the mobile internet in 2023 was 11 times of that in the US. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 7  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA AI technology is widely applied in business as well as in media. latest business models in total, which is AI driven information pusher to the users and consumers,Development Population which now covers more than 600 million users on very active, and daily basis 5g is another infrastructure, 1900-2020：China VS that the government is committed to build immediately. Europe Tthe infrastructure both offline and online is being strengthened for the past decade, which gives a very strong background of business innovation, the economic transitions on many levels, from more quantitative growth to qualitative growth, from nature exploitation to environmentally friendly, or sustainable development models. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 8  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA From investment, driven to consumption, driven from manufacturing to smart manufacturing, that gives kind of an overview of the background of economic transformation, Population Development the Chinese middle class rising - a consumption upgrading. 1900-2020：China China’sVS per capita is 8800 US dollars, giving China 225 million middle Europe class population the number is growing at 13% every year, in 5-7 years, the number will reach 700 million, half of the population in China. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 9  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Guangdong Province, the Engine of China Economy GDP Ranks No.1 in China for 30 years Population : above 126 millions Land : 179,725 km2 GDP : ~ USD 1.97 Trillions(RMB 12.43 Trillions) Capital city: Guangzhou Mega cities: Guangzhou, Shenzhen, Zhuhai, Foshan, Dongguan, Zhongshan, Jiangmen, Zhaoqing, Huizhou. 9 mega cities contribute 81% GDP. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 10  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Guangzhou is the capital of Guangdong Province and the core city of Guangdong-Hong Kong-Macao Bay Area Land: 7434 km2 Population: Over 20 million GDP(2021): Over EURO 403 billion History: Over 2230 years. Guangdong is a major economic and populous province in China, has played an important role in promoting friendly exchanges between Italy and China. Guangzhou has established friendship city relations with Bari, Italy, and friendship and exchange city relations with Milan, Genoa, Padua and Turin, Italy. Italian President Mattarella visited Guangzhou during his state visit on Nov 12,he was deeply impressed by the beautiful, prosperous and vigorous development of the city. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 11  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA ~1970 City Center in Guangzhou © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 12  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA 2022, New City Center in Guangzhou © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 13  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Greater Bay Area(GBA) Hongkong, Macao and 9 major cities in Guangdong Land: 56,000 km2 Population: ~70 million GDP(2021): Over EURO1.9 Trillion The Hong Kong-Zhuhai-Macao Bridge (Photo: Nanfang Daily) Guangdong-Shenzhen-Hong Kong Express Busy Yantian Port in Shenzhen (Photo: Nanfang Daily) Rail Link (Photo: Nanfang Daily) © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 14  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Guangdong-Hongkong-Macao Greater Bay Area(GBA) © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 15  THE GREEN NEW CHINA: ECO-PRIORITY IN DEVELOPMENT ❑ China Economy Development ❑ ECO-Priority Environment Development ❑ Market Perspective ❑ Case Study © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 16  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Environment Protection Regulation and Policy Milestones in China Ecological Environmental Protection Plan Air Pollution Prevention Soil Pollution Prevention and Control Action Plan and Control Action Plan Water Pollution Prevention and Control Plan for Key River Basins 2013 2015 2016 2018 2020 Water Pollution Three Year Plan of Prevention and Action for Winning Financial Penalty Zero Waste City Control Action Plan the War to Protect Blue Skies Criminal Liability © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 17  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Ten-year trend of government environmental expenditure vs total environmental investments Government expenditure on envi ronmental p rotection Total investment in envi ronmental pollution contro l 10000 Fiscal expenditure on envir onmental p rotection as a % o f total fi scal expendi tur e 3.00% 2.88% 8000 2.77% 2.72% 2.73% 6000 2.53% 2.51% 2.52% 2.45% 2.50% 2.42% 4000 2.35% 2000 0 2.00% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 As China’s economic development enters a new phase, resources and environment sustainability are becoming a priority of the government and the people. According to data from the National Bureau of Statistics, the national fiscal expenditure on environmental protection before pandemic reached 635.275 billion yuan, an increase of nearly 2.3 times over ten years. Government expenditure on environmental services as a 2.88% of the total fiscal expenditure has also increased year over year. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 18  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA China Forest Coverage Grow Substantially during the past decades 1949,70 years ago -- 8.6% 2021 : 23.04% © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 19  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Qianshan Port, Zhuhai, Main City Street, Guangdong Huyuan, Guangdong © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 20  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA 《2020 China Environment Annual Report》 Good and Excellent quality of days in a year increased to 87% 2020, air quality in 202 cities among 337 large cities( population over 1 million) meet the standard, increased 13.3% compared to 2019. Photo: Deng Jia, China Environment News 2021 White Paper of "Biodiversity Conservation in China" © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 21  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Absolute GHG emissions of the top six emitters and international transport (left) and per capita emissions of the top six emitters and the global average (right) © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 22  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Macro Environment of Climate Change Transition- Dual Low Carbon - China’s ECO-PRIORITY in Development By 2030, non-fossil energy consumption reach around 25%, carbon dioxide emissions per unit of GDP drop by more than 65% Increase the forest by 6 bn cubic meters from 2005 level Total capacity of wind and solar power to over 1.2 bn kw Achieving carbon dioxide peaking before 2030. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 23  THE GREEN NEW CHINA: ECO-PRIORITY IN DEVELOPMENT ❑ China Economy Development ❑ ECO-Priority Environment Development ❑ Market Perspective - Opportunities ❑ Case Study © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 24  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA China-Italy relationship grows stronger and closer Nov 7-11,2024 Republic of Italy President, Sergio Mattarella paid state visit to China. During the state meeting with President Xi Jin Ping, two countries promoted closer commercial and culture cooperation. This year marks the 20th anniversary of the establishment of the comprehensive strategic partnership between China and Italy, on November 8, Chinese President Xi Jin Ping held talks with President and witnessed the signing of a number of bilateral cooperation documents between the two countries, continuing a new chapter in the development of China-Italy relations. During this period, President Sergio Mattarella gave a speech at Peking University, encouraging cultural exchanges between Italy and China. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 25  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA On Nov 12 in Guangzhou, Italian President Sergio Mattarella met with representatives of the Italian business community in China. He expressed his gratitude for their contributions and assured them of the Italian Republic's continued support. The last stage of presidential visit is President Mattarella meets Business community in China. Margot Song was interviewed by President Mattarella. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 26  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Italy and China - Green Economy Italy has the lowest Energy Intensity among the Italy has the lowest CO2 intensity among biggest industrial economies. the biggest industrial economies. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 27  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Why Italy and China Partnering for Green Economy In EU27+UK Italy is the Country with the In EU27+UK Italy is the Country with the highest highest waste recycling rate expenditure on GDP for Waste Management Italy Italy France UK UK France Germany EU28 EU28 Germany million tons %GDP 0 50 100 0 0.5 1 Waste Treated Sent to Recycling in EU28(2014) Waste Management Government Expenditure/GDP in EU28 (2016) Source: Eurostat © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 28  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Why Italy and China Partnering for Green Economy Italy has the highest investment rate on GDP Italy has the highest share of renewable for Environmental Protection among primary energy sources among the biggest EU27+UK Countries economies Italy EU28 France BRICS UK UK EU28 G7 Germany US (%GDP) 0 0.5 1 1.5 (%renewables/tot.) 0% 20% 40% Government/Public Environmental Protection Expenditure/GDP in EU28(2015) Share of renewables in Tot. Electricity Production(2016) Source: Eurostat Source: Enerdata © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 29  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA China Future Economy Development Focus As highlighted by the World Bank, for China “to achieve high-quality growth, policymakers should not lose sight of critical structural reforms, despite the current challenging environment. Decisive action to encourage a shift toward consumption, tackle social inequality, and rekindle innovation and productivity growth—including in technologies vital for China’s dual carbon goals—would help achieve a more balanced, inclusive, and sustainable growth trajectory.” Advanced Manufacture(Machine tool, smart control etc.) Environment management and recycle technology and solution Automobiles and components Sustainable and renewable energy and solutions Aerospace industry © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 30  THE GREEN NEW CHINA: ECO-PRIORITY IN DEVELOPMENT ❑ China Economy Development ❑ ECO-Priority Environment Development ❑ Market Perspective ❑ Case Study - To Be Continued © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 31  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Case Study for Business models 8:45 am - 10:15 am, Thursday, Dec 5 Via Ugo Bassi, Padova, Italy © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 32  2024 Course: Sustainable Business Models Master’s Degree in Accounting, Finance and Business Consulting Master’s Degree in Management for Sustainable Firms Department of Economics and Management "Marco Fanno" - University of Padova 8:45 am - 10:15 am, Thursday, Dec 5 Via Ugo Bassi, Padova, Italy THE GREEN NEW CHINA: ECO-PRIORITY IN DEVELOPMENT Margot Wenying SONG Founder & CEO of EnviroVest DEC 5,Monday 2024 Padova, Italy © 2024 Margot Song. The information contained herein is subject to change without notice The copyright of this information is solely belonged to Margot Song (MS).This material may contain confidential, proprietary or legally privileged information. Without MS’s written consent, it will not be disclosed, copied, reproduced or distributed any of it to any person by any person. All rights reserved. 1  Lecturer: Song Wen Ying, aka Margot Song PROFESSIONAL EXPERIENCE EnviroVest Services(Guangzhou) Co.,LTD CEO, Executive Chairman of the Board 2014-Current Veolia EnviroVest Services(Nanjing) Co.,LTD President, Executive Chairman of the Board 2014-Current eJnnn Pheca Partners Limited Founder, Managing Director 2009-Current Guangdong Meida Nylon Co., LTD Senior Vice President, Executive Board Member 2002-2009 ACADAMIC EXPERIENCE School of Economics, Fudan University Lecturer, Master Degree of International Business 2023-Current Department of Science and Economy, Guest Lecturer, Master Degree in Management for Sustainable Firms University of Padova Master Degree in Accounting, Finance and Business Consulting 2023-Current Guanghua Management School, Lecturer, Master Degree of Business Administration 2018-Current Peking University Margot SONG is a Chinese entrepreneur with global business in the green sector. She has several joint venture partnerships, including companies such as Veolia, DSM, etc. Ms. Song has extensive experience in buyouts, corporate divestitures, and cross-border mergers & acquisitions. She was an advisory partner to One Equity Partners, a $12 billion private equity fund under JPMorgan, where she coordinated One Equity Partner's investment in China during 2012-2014. Ms. SONG is also active in promoting academic cooperation and exchange between Chinese and European universities, in particular Peking University, Guanghua Management School, Fudan University and University of Padova. EDUCATION Margot SONG holds MBA from Peking University and B.A. in International Finance/World Economy from Fudan University 2  THE GREEN NEW CHINA: ECO-PRIORITY IN DEVELOPMENT ❑ China Economy Development ❑ ECO-Priority Environment Development ❑ Market Perspective - Opportunities ❑ Case Study © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 3  Business Models of Cooperation Cases Study ❑ Technologies & Localization ❑ Market Penetration & Revolutionary Technologies © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 4  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Sustainable Business Models Case Study 1 – Technologies & Localization EnviroVest invests in the construction and operation of large-scale, complex industrial facilities that provide hazardous waste (HW) treatment services with high-level standards such as EU regulations. With over decades of successful operation, EnviroVest has accumulated a series of patented technologies cover industrial waste treatment and recycle, soil remediation. Have set national standard of practices in industrial waste treatment businesses. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 5  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Soil and Groundwater Remediation Characteristics of Soil Soil Remediation Scope of Businesses Remediation Technology Complete technologies covering In-situ, ex-situ soil remediation solution for Services, agricultural, and hazardous waste treatment. Technology Source of Soil Remediation Safety Flexibility Tailer-made solutions with preliminary surveys, expert team consultation, program design, program implementation, Advantage effects monitoring and other integrated services. Bilateral Government Joint R&D Project Supported by Ministry of Science and Technology and Efficiency Sustainability Business Finland, EnviroVest introduced Finland technology to China since 2018, established R&D Project of modular in-situ soil remediation technology with Finnish Partner. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 6  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Sustainable Business Models Case Study 2 – Market Penetration & Revolutionary Technologies The Built Environment The built environment generates nearly 50% of annual global CO2 emissions. Of those total emissions, building operations are responsible for 27% annually, while building materials and construction (typically referred to as embodied carbon) are responsible for an additional 20% annually. Just three materials – concrete, steel, and aluminum – are responsible for 23% of total global emissions (most of this used in the built environment). Data Source: ”BUILT ENVIRONMENT”, Mar Garrido 2023 © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 7  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA China's green building energy-saving and temperature control technology industry has broad prospects and a market size exceeding 1 trillion yuan. The future city will be composed of a fusion of ancient and modern buildings, all of which meet the highest energy standards, while ensuring that people living in these buildings enjoy excellent comfort, which will be a challenge. During the COP21 conference in Paris, the European Union pledged to reduce carbon dioxide emissions by 27% by 2030, with 27% of the EU's carbon dioxide emissions attributed to heating and cooling of buildings in 2016. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 8  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA In response to global climate change and low-carbon green development, China has launched intensive industry policies related to building energy efficiency Significant Polices: “CUBECREAP”* in collaboration with the World Bank and the Global Environment Facility by Ministry of Housing to improve the greening of existing residential buildings in cities, research market mechanisms for renovation, and collect advanced technologies for technical assistance Soliciting Proposals for Promoting, Restricting, and Prohibiting the Use of Technologies in the Field of Building Energy Efficiency, Green Buildings, and Renewable Energy Buildings by Ministry and authorities. Market Status of green building - Promising and Strong Growth : According to the "2021-2025 Market Survey and Research Report on China's Green Building Materials Industry" released by the New World Industry Research Center, the proportion of green building technology application in new construction in China is still relatively low, far below the 40% development target proposed in the "Building Materials Industry Development Plan (2016-2020)", and there is a significant gap compared to developed countries such as Europe, America, and Japan. * “CUBECREAP” : the “China Urban Building Energy Conservation and Renewable Energy Application Project” launched by The Ministry of Housing and Urban Rural Development © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 9  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA About EcoLegacy About EnviroVest EcoLegacy is an Italian technology company based in Florence, Italy EnviroVest, a global environmental services company based with a focus on green air treatment technology design and engineering, in China with presence in China, Europe and US, focusing on whose founder, Guido Poccianti, is a distinguished Italian engineer, waste treatment and recycle. born in Florence in the old Poccianti family and graduated from the Over years, EnviroVest has established green cooperation University of Florence. program with ANIMA Confederation, SMACT, University of Padova and numbers of Italian companies, successfully In 2010, Mr. Poccianti was invited to design and build the natural invested and promoted Italy businesses to China. ventilation system for the "United Environment Pavilion" at the With a global network of engineers specialized in waste Shanghai World Expo, where the promotion of sustainable materials, treatment, remediation and green technologies, EnviroVest passive solar design and the development of renewable energy sources has accumulated decades’ experience in the field of were incorporated into the design and construction of three pavilions in environmental protection, from planning to construction and the Urban Best Practice Area, based on the principle of reducing global commissioning, and have successful cases in the field of greenhouse gases. waste treatment projects with world-class partners such as Veolia, BASF, etc. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 10  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Sustainable Business Models Case Study – Market Penetration & Revolutionary Technologies Partnership in R&D, Marketing, and Engineering The Thermal Shell System (TSS) is a revolutionary patented technology conceived for constructing buildings that are heated and cooled all year long with zero emissions and zero energy costs. In 2018, TSS started to seek China market opportunities. In 2022, EnviroVest invested into the Thermal Shell System green technology with EcoLegacy to develop TSS especial building benchmark project in China. After the cooperation, TSS won the Top 10 Excellent Prize in 11th China Innovation Entrepreneurship Competition. In 2023, TSS won the bid offer to provide low-carbon air control system for the Intangible Cultural Heritage Museum Project in northwestern China. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 11  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Radiant wall in Showroom Equipment Rooms China Xinjiang Intangible Cultural Heritage Museum built by New World China, officially started. In the design of air-conditioning engineering, the Italian TSS air environment control technology design (TSS Air Conditioning System) was introduced for the first time in order to realize the low-carbon and sustainable development of green buildings. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 12  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Project Completed © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 13  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Sustainable Business Models Case Study 3 – Market Penetration & Revolutionary Technologies Strategic Partnership collaborating biobased innovative projects between Start-up Cluster and Industrial Players. SPRING is the Italian Circular Bioeconomy cluster co-founded by Novamont. It gathers approximately 150 members across the value chain: Italian and multinational companies of all sizes, universities, private and public research centres, investors, regional clusters, industrial associations, farmers associations, etc. Recognizing the key elements of the Italian and Chinese government’s Bio-Economy strategies SPRING explores collaboration as partners with industrial players such as Novamont, EnviroVest, to accelerate the industrialisation and commercialisation of “biobased” innovative ideas. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 14  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Clear Roadmap set to prohibit or restrict usage of non degradable plastics q Resolutions on Further Strengthening Plastic Pollution Control (January 2020) Solid Promotion of Plastic Pollution Control (July 2020)) issued by NDRC,MEE. q 2020 to the end of 2025, non degradable plastic bags are forbitten gradually in national level, q non degradable disposable plastic consumed in the catering takeout should be reduced by 30%, q by 2025, plastic pollution should be effectively controlled q Since January 1, 2021, non degradable plastic has been banned to be used for food package, one-time-consumed utensils. q Hainan, Hebei, Guangdong, Shandong, Henan, Zhejiang, Tianjin and other provinces have issued implementation plans for plastic pollution control, and all listed degradable plastic products as alternative products that can be promoted and applied. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 15  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Market Status of bioplastic - Promising and Strong Growth Thanks to the prohibition and restriction rules on non degradable plastics and the promotion of degradable plastics in China, market demand for degradable plastics in China is relatively strong. q by 2025, estimated market demand for biodegradable plastics in China will be 2.5 million to 3 million tons q In the past five years, the average growth rate of the consumption of biodegradable plastics in China was about 20%. q In 2019, the consumption of biodegradable plastics was basically consistent with the output due to the limitation of production, and the consumption was about 260000 tons. q According to this growth rate, it is estimated that the demand for biodegradable plastics in China will exceed 650,000 tons by 2024. q Considering that the domestic "plastic restriction" policy has been intensively introduced and gradually implemented since 2019, the demand growth rate of degradable plastics market will further increase, and it is expected to exceed one million tons in 2024. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 16  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA More Possibilities … Strategic Partnership collaborating among academic institutes and universities and industrial players plays more significant role in the future cooperation. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 17  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA 2023,Padova University-Fudan University-EnviroVest established China-Italy University-Research-Industry Cooperation Program. Department of Science and Economy in Padova University and Economics School in Fudan University establish a Double Master Degree Program for Chinese and Italian students. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 18  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Ms.Margot Song was appointed as Lecturer to MBA of Guanghua School of Peking University. 2023, Ms.Margot Song lectured on the topic: An Overview of Trans-border M&A. 2019 2024 2024 © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 19  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Oct,2023, Ms. Margot Song, was invited as the guest lecturer of Department of Science and Economics of University of Padova on the subject of Sustainability Business Model. © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 20  2024 Sustainable Business Models Course – University of Padova THE GREEN NEW CHINA Contact: [email protected] © 2024 Margot Song. The information contained herein is subject to change without notice Dec.02/05.2024 I University of Padova, DSEA, Sustainable Business Models – THE GREEN NEW CHINA Margot Wenying SONG 21