GE and GE in ChinaMarch 2004 Ellen L.W. Proctor Director manufacturing of light bulbs; investment in power plants. Acquisition of Anderson/Meyer Trading Company, providing installation and services for the electrical industry in China.Invested in the Shanghai Electrical Power Company, the largest foreign venture in China at that time. Re-established GEs business contact with China through the opening of a representative office (1981) in Beijing.GE Hangwei Medical Systems was established in Beijing - the first JV of GE in China. GE (China) Co. Ltd. was established in China,acting as an investment vehicle for GEs projects in China, and provides services to GEs JVs and affiliates.JV/ WFOE/Investment Projects: 36+ Employees: 12,000Now1910192519291981199119942003 revenues of US$2.6 billlionBusinesses include:Energy TransportationInfrastructureNBC UniversalHealthcareAdvanced MaterialsConsumer & IndustrialGlobal Business ProcessesGE in ChinaGEs Integrity CommitmentComply with applicable EHS laws and regulationsPrevent workplace injuries and illnesses, and provide a safe and healthy working environmentAssess EHS impacts of new activities and productsReduce use and release of toxic and hazardous materialsEnsure EHS systems and performance are an integral part of overall operational strategyOne set of rules . . . everywhere we do business . . . from Schnectady to ShanghaiGEs EHS PolicyWhy Have An EHS Policy?EPA Enforcement $3.2 Billion in 2002 Solutia Stock Drops 65% Due to PCB DumpingCompany ReputationEmployee Satisfaction Customer RequirementsLiability AvoidanceGEs EHS MetricsGlobalEHS Performance Evaluation 2003 Quarter 4 - YTDCONFIDENTIAL-NOT FOR DISTRIBUTION OUTSIDE THE GENERAL ELECTRIC COMPANYGEs Global EHS Framework Outlines company wide expectations for 21 Health & Safety and 6 Environmental Topic Areas Resources & Guidance provided for all questions Updated Annually by GE EHS Media Experts Provides a status assessment system to track implementation Available in ChineseStandardized e-enabled EHS expectations communicated and tracked across all GE sitesPPEChem. Storage Checklists in local language Regulatory Based Auditing Resources Regulatory Citations and Guidenotes Comprehensive Content across all EHS Media Updated Annually by EHS Consultant Experts Directly Integrated with Finding Closure Tracking SystemEnabling Business Audits and Annual Compliance Assessments by GE SitesChinaGEs Digital Audit ProtocolsGEs China EHS Council Composed of all GE EHS professionals in China Quarterly Meetings Focus on China EHS Law Tracking with monthly newsletters & digitized database with more than 1000 China regulatory reqts Focus on cross-auditing Best practice sharingGEs EHS Training All plant managers must participate in 2-day in-person class on EHS expectations Curriculum for EHS professionals includes courses on EHS audit skills, H&S management system auditing, industrial hygiene, ergonomics (many in local language) In process of rolling out 36 e-enabled courses for EHS & non-EHS professionals on key topics: Available in Mandarin Customized, where appropriate, to local law requirements Material can also be delivered in classroom settingWhat is the MRT Process?Minimizes environmental and employee exposures from mercury wastes at Fluorescent Manufacturing Plants.Crush and Sieve Technology separates glass, metal and phosphor powder in closed loop system (95% volume reduction) allowing glass and metal recycling.Distiller Technology removes mercury from glass and phosphor substantially reducing volume of haz. waste.What Are the Results?Global implementation complete in 2004 with total capital investment of $10MM (13 sites)$3 MM annual global cost savings16,000 tons less haz. waste generated globallyCase Study Pollution Prevention in ChinaGE the ONLY major lighting manufacturing using Hg recycle/reduction technology for process wastesGE Energy Most efficient, least polluting gas turbines in the worldIGCC technology can significantly reduce CO emissions from coal plantsA leading manufacturer of renewable energy sources from around the worldInvesting in fuel cell technologyGE Consumer & IndustrialAppliances and Lighting are the US EPA Energy Star product leaders in their sectors Energy saving consulting services and products to commercial and industrial customersAbout Our Products & Services . . . GE TransportationLeader in low-noise & low-pollution enginesGE Advanced MaterialsLightweight & durable products for the auto industry making vehicles more efficientGE InfrastructureWorking with customers to optmize wastewater treatment processes, resulting in water conservation, energy savings & reduced pollution. Helped Yunnan facility improve cooling system performance, conserving 933,000m3 of water per year with net annual savings of US$360,000.GE will only do business with suppliers that: Comply with local law