China Environmental Law

Business for Social Responsibility (BSR) issued a report in April on ”Water Management in China’s Apparel and Textile Factories.”  The report

summarizes the activities and findings of the first phase of the Water Quality Initiative in China. A joint effort by Business for Social Responsibility and the Center for Water Research at Peking University, the Initiative has two expected outcomes: 1) improvements in water quality management and water use in apparel factories (textile manufacturers, dye houses and laundries/washing facilities); and 2) decreased water risk in the China-based supply chains for global apparel companies and retailers.

The Water Qualitive Initiative in China was

 launched in an effort to uncover additional innovative tools and approaches to compliance strategies that can accommodate specific local economic and social interests, with a longer term objective of bringing into alignment economic growth and responsible management of water and natural resources in the region.

A study was undertaken to in February of this year in which the BSR

worked with a student consulting team from the Ross School of Business at the University of Michigan to conduct a series of factory visits in China to identify patterns in factory water management, i.e. the technological, contractual and/or policy factors that improve or hinder performance.

Are you sitting down, because here comes the good part: Professor Paul W. Gruber, who led the Ross School study, reports (comment 45) that

We were surprised that our expectations - rampant pollution violations, poor water quality discharged from the factories - did not match our findings. For example, of the factories we surveyed, 100% were in compliance with water regulations.

100%! OK, the study only involved 11 facilities, but still these are Guangdong “apparel manufacturers” who are almost the poster boys for bad environmental behavior in China.  I haven’t read the full Ross School report, but it can be found here. I’ll take a look at it and report back. 

 The BSR report, focusses on the “half-empty” results of the study and says that its “key findings” were that

• Water management is not a priority business issue for factories.
• Current government regulations and enforcement offer little incentive to improve water management; thus, factories managers have little to no rationale for improvement.
• Most factories believe that regulatory compliance meets the brands’ management requirements. Brands could benefit from sending a unified message on wastewater discharge standards, monitoring and enforcement.

All of these conclusions are no doubt true, but I’m still blown away by the 100% compliance; another part of the China’s environmental ”Silver Lining?”