Top corporations flout environmental regulation in China

Factory in ChinaAn investigation into corporate environmental information disclosure in China reveals that top Chinese and overseas companies are flouting a new environmental regulation.

As per the Measures on Environmental Information Disclosure enacted in May 2008 seriously polluting enterprises should publicly release information regarding the major pollutants they release into the environment.

But a Greenpeace investigation discovered that none of the 25 factories belonging to the 18 companies disclosed information within the stipulated time limit. The companies include Royal Dutch Shell, Samsung Electronics, Nestlé, LG and Motorola.

Two of these companies failed to disclose environmental information even though local environmental authorities reported them as either using hazardous chemicals or discharging hazardous chemicals in excess of effluent standards.

The four factories belonging to three companies that eventually disclosed information only disclosed extremely limited data.

The report shows corporates, both Chinese and multinational, disregard for Chinese environmental regulations. Corporate disobedience was, in part, encouraged by local governments’ weak enforcement of the Measures.

Also, there are ambiguities within the Measures that also contributed to weak corporate environmental information disclosure. These include the definition of what constitutes a “seriously polluting enterprise,” what pollutants enterprises are required to report and where this environmental information must be published.

Greenpeace demands that all companies exceeding discharge standards should not only disclose the information of conventional pollutants such as Chemical Oxygen Demand (COD) and ammonia nitrogen, but also the release and transfer information of all pollutants, at least those listed in the relevant effluent standards that apply to their specific activities.

Local environmental protection departments should strengthen their enforcement of the Measures and ensure that companies disclose environmental information in accordance with the law.

Greenpeace says a comprehensive environmental information system that is free and easy to access for the public, includes a wide range of enterprises and pollutants, is essential to safeguard citizens and the environment from industry-induced risks.

The report recommends that China should create a database system where comprehensive information on the release of chemicals from companies, especially from their individual facilities, is systematically and regularly provided in a searchable format with direct public access, e.g. via the Internet.