Last week, four outstanding sustainable enterprises were the winners of the Fourth New Ventures China Investors Forum. Held on May 31st, the Forum is an annual event that gives the country’s top green enterprises a chance to showcase their business models for international investors. The judging panel included representatives from the China Environment Fund, Booz Allen Hamilton, Citigroup, AsrIA, Shanghai Pudong Development Bank, and the International Finance Corporation.
This year’s winners are:
Beijing Landwasher Science & Technology Development Co., Ltd.
Located in East Beijing, this water-free environmentally friendly sanitation technology company has sold over 2,200 of its environmentally-friendly toilets, reaching annual sales of $8.7 million. The company’s innovative technology uses a water-free flush system that conserves resources while meeting the sanitation needs of both urban and rural communities not yet served by current infrastructure.
Shenyang SMEs Credit Guarantee Center
This Liaoning enterprise offers much needed credit guarantee services for small and medium sized enterprises (SMEs). To date, they have provided 892 loan guarantees totalling $44 million for SMEs in the region. Their track record is impeccable with a less than 1% default rate.
Tianjin Lotus Biological Technology Co., Ltd.
Tianjin Lotus has developed and produces a revolutionary technology for environmentally friendly crop fertilization. With a 50 ton/year fertilizer production capacity, the company has established a broad commercial network in nearly 20 provinces and cities all around the country. The innovative organic fertilizer is applied once during the entire crop growth cycle, and generates 15-60% increases in yields, depending on the crop. Farmers can save labor, increase their income, and promote sustainable farming techniques.
Beijing Yusen Jiayu Environment Protection Technology Co., Ltd.
Yusen developed and produces 100% biodegradable ‘polymers’ and granule material made from discarded straw, shrimp and crab shells. The product has various applications like “planting bags” that promote vegetation growth in low-water areas. Yusen has sold 62 million transplant bags to help reverse desertification in rural ecosystems. The company has reached $2.8 million in annual sales with net profits of over $600,000.
This event comes at a time when China is increasingly interested in sustainability, as evidenced by environmental legislation and the environmental goals in the Eleventh Five Year Plan. In all, the Investor Forum showcased 10 SMEs that are pioneering the growth of green sectors, and 24 more enterprises as part of a Sustainable Business Marketplace.
The SME sector is well situated to create a sustainable growth trajectory for the country. The Export-Import Bank of China estimates that SMEs account for 59% of the country’s GDP and 82% of its new products. SMEs have the flexibility and drive to generate environmental technology breakthroughs that are the key to China’s sustainable development in the 21st century.
With 280 registrants including representatives from over 30 investment funds, the event’s attendance shows that international investors as well as the public and private sectors are acknowledging the importance of the green SME sector and sustainable entrepreneurship.
The Investor Forum featured Jonathan Lash (World Resources Institute), Zheng Xin (National Development and Reform Commission of China), Dr. Mao Yushi (Fuping Development Institute), and Dr. Tang Min (Asian Development Bank). Together with a group of local and international panelists, they discussed how to promote investment into China’s green SME sector.
New Ventures, a project of the World Resources Institute, supports sustainable enterprises by accelerating the transfer of capital to outstanding companies that incorporate social and environmental benefits. Since its inception in 1999, New Ventures has supported over 150 innovative companies in Latin America and Asia. Through an extensive network of local partners, the program selects promising companies, mentors the entrepreneurs, helps them to improve their business plans and prepares them to interact with investors, beginning with a New Ventures Investor Forum.
Derek Newberry, Research AnalystDerek is staff writer for NextBillion.net and a Research Assistant with the New Ventures team where he studies the impact of small- and medium- sized-enterprises (SMEs) on environmental and social conditions in emerging economies.
