GE and GE in China

March 2004
Ellen L.W. Proctor
Director & Counsel, Environment, Health & Safety, Asia
GE Corporate Environmental Programs
A Company with an Outstanding Heritage
Founded by Thomas Edison
in 1878 as the Edison
Electric Co.
The only company
listed in the Dow Jones
Industrial Index today that
was also included in the
original index in 1896
11 global businesses
operating in more than 100
countries
315,000+ employees
worldwide
$134 billion in revenue
in 2003
$52.9 billion in international
revenue
A tradition
of leadership
History of GE in China
China is a Big Part of GEs Future
Product sales of electric fans, refrigerators and steam locomotives;
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: 12,000
Now
1910
1925
1929
1981
1991
1994
2003 revenues of US$2.6 billlion

Businesses include:

Energy
Transportation
Infrastructure
NBC Universal
Healthcare
Advanced Materials
Consumer & Industrial
Global Business Processes

GE in China
GEs Integrity Commitment

Comply with applicable EHS laws and regulations
Prevent workplace injuries and illnesses, and provide a
safe and healthy working environment
Assess EHS impacts of new activities and products
Reduce use and release of toxic and hazardous materials
Ensure EHS systems and performance are an integral part
of overall operational strategy
One set of rules . . . everywhere we do business . . . from
Schnectady to Shanghai



GEs EHS Policy
Why Have An EHS Policy?
EPA Enforcement
> $3.2 Billion
in 2002
Solutia Stock Drops 65%
Due to PCB Dumping
Company Reputation

Employee Satisfaction
Customer Requirements
Liability Avoidance
GEs EHS Metrics
Global
EHS Performance Evaluation
2003 Quarter 4 - YTD
CONFIDENTIAL-NOT FOR DISTRIBUTION
OUTSIDE THE GENERAL ELECTRIC COMPANY
GE GEA GEAE GECS GEIS GEL
Fatalities (GE Employees)
VPP/Global Star Status
1
Recordable Injury & Illness Rates
V% from same period last year
Lost Time Injury & Illness Rates
V% from same period last year
Wastewater (WW) Exceedances
2
Sites w/ WW Exceedances
2
Air Exceedances
2
Sites w/ Air Exceedances
2
Reportable Spills and Releases
Sites w/ Reportable Spills & Releases
Training Units Required in 2001
Percent Trained YTD
Compliance Findings (12 mos)
Percent Closed w/in 60 Days
4
Compliance Findings Open > 1 Year
Repeat Audit Findings
Agency Inspections
Env'l NON
3
Health and Safety NON
3
Fines Proposed (US$)
Fines Resolved (US$)
Fines Pending or Open (US$)
GEs 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 Chinese
Standardized e-enabled
EHS expectations
communicated and
tracked across all GE sites
PPE
Chem. 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 System

Enabling Business Audits
and Annual Compliance
Assessments by GE Sites
China
GEs Digital Audit Protocols
GEs 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 sharing
GEs 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 setting
What 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 savings
16,000 tons less haz. waste generated globally

Case Study Pollution Prevention in
China
GE the ONLY major lighting manufacturing using Hg
recycle/reduction technology for process wastes


GE Energy
Most efficient, least polluting gas turbines
in the world
IGCC technology can significantly reduce
CO emissions from coal plants
A leading manufacturer of renewable
energy sources from around the world
Investing in fuel cell technology

GE Consumer & Industrial
Appliances and Lighting are the US EPA
Energy Star product leaders in their
sectors
Energy saving consulting services and
products to commercial and industrial
customers
About Our Products & Services . . .
GE Transportation
Leader in low-noise & low-pollution engines

GE Advanced Materials
Lightweight & durable products for the auto
industry making vehicles more efficient


GE Infrastructure
Working 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 laws
Dont use child or prison labor
Meet minimum wage and hour provisions, and
Have acceptable environmental, health and safety practices

We verify through:
Certification of virtually all suppliers
Site assessments of suppliers in the developing world

Experience:
We conducted more than 1400 assessments in 2002
Most are willing to make the corrective actions
Suppliers are mostly unaware of the legal requirements, not willfully
non-compliant
GEs Supplier Guidelines
Contains Information about institutes
not easily accessible (contact details,
technical strengths)

Support for project from SEPA, MOH,
State Safe Production Supervision
Bureau & Public Security Bureau -
Fire Safety Division

China Design Institute Database Project
GEs Supplier Guidelines Improving
Supplier EHS Capabilities

User-friendly CD database in Chinese &
English for 60 E, H, S & Fire Protection
design institutes at national/provincial
levels. Also includes basic hazard
recognition training material.


Before
Inadequate Wiring
After
Improved Wiring & Explosion Proof Lighting
GEs EHS Supplier Guidelines
Improved EHS Results
GE China EHS Outreach Initiatives:



Networking
with
Stakeholders

Shanghai EHS Forum
AICM
Communications
w/local agencies
GE
Foundation

WRI China Bell Program
Proactive search for other
opportunities

China BELL Project
World Resources Institutes (WRI) Business Environment
Learning & Leadership (BELL) Project
Support By
- GE Fund
- Alcoa Foundation
- Citigroup
- Dutch Ministry of Foreign Affairs
Goal Integrate sustainable development concepts and skills into
Chinese business management curriculums
Sharing with Communities

Climate Change & GE
2003 Activities
First GHG Inventory (2002 baseline)
Committed to GHG Intensity Reductions as Part
of US Business Roundtable Initiative
External Website on Climate Change & Product
Portfolio
Marketplace Leader in Energy Efficient
Products
Corporate Initiative on Reducing Energy Costs

Next Steps
Plan and Identify reduction targets
Identify and evaluate potential GHG reduction
projects
Continue corporate initiative on reducing
energy costs
Conduct 2004 GHG inventory
Carbon Disclosure Project
(February 2003)
GE stands out as being
especially well-placed with
respect to providing low-
carbon solutions to a
number of key greenhouse
gas emitting markets.
GEs EHS Report

Excellence Sites
& Training
Injuries,
Releases,
& Exceedances
So Whats GEs EHS Story . . . ?
Unyielding Commitment to Compliance Everywhere We do
Business

World-class EHS Systems, Tools a Competitive
Advantage

Six Sigma & Waste Emission Reduction Bringing EHS to
the Bottom-Line

GE Supplier and Climate Change initiatives, and the E and
H&S Frameworks taking us beyond compliance

But we can always do better . . . and the jobs never done