Vanessa Wright Photo: Courtesy of Pernod Ricard

Editor's Note: 

The world is undergoing a profound change. China has been pushing to step up its sustainable development with new measures such as garbage sorting. Companies and individuals are becoming increasingly aware of environmental protection. The Fortune Global Sustainability Forum 2019 was held from Wednesday to Friday in the city of Yuxi, Southwest China's Yunnan Province where nature and biodiversity are well-preserved. On the sideline of the forum, Vanessa Wright (Wright), vice president for Sustainability and Responsibility at Pernod Ricard shared her thoughts on China's sustainable development and efforts in environmental protection in an exclusive interview with Global Times reporter Zhou Zheng (GT).

GT: Plastic waste poses a threat to the environment. In the past 50 years, the usage of plastic has increased 20-fold. You are the keynote speaker of the session regarding the plastic economy. What is the plastic economy? What should beverage companies do to reduce plastic waste?

Wright: I think the plastic economy is not just referring to plastic; it is about rethinking and changing the mind-set. The plastic economy is really about transformational change, reconsidering how business models can work for the future so that nothing goes to waste. A very good parallel is that nature has no waste - everything goes in a cycle. It is called bio inspiration as well. When you look at different parts of nature and in the sea in particular, there are a lot of solutions for the future. As for beverage companies, other solutions for plastic straws like seaweed versions can be adopted. 

To reduce plastic waste, I believe every company has a responsibility. Companies have to adopt a circular mind from product creation until the end. A circular mind addresses the notion of not just making a product, and using it and tossing it in the waste. Instead, it is about making, using and then reusing so it forms a closed loop.

GT: China has been putting a lot of effort into sustainable development. The country has cracked down on waste imports and is cultivating people's habit of garbage sorting starting in Shanghai. How do you see China's push for sustainable development? In what area do you think China can do more?

Wright: I think it is to be applauded. Given the scale, size and importance of China as a world nation, anything that China can do to show leadership in this area really helps the rest of the world too. China is to be applauded for the steps it's taking, even though, like every other country, we have not found all the solutions yet.

One of the key challenges is not just the responsibility producers have in terms of the packaging they are making, but it is also the infrastructure that countries put in place to recycle, which is hugely important.

Another is consumers, who are often the weakest link. The truth is everybody says they are going to recycle, but how many people actually do it? That is probably another area of responsibility for companies like ours to help Chinese consumers be more socially and environmentally responsible by sharing some messages, influencing them and helping them think about recycling. 

Putting in place a strong infrastructure for recycling is going to be very important for the future. In the US, for example, the percentage of glass recycling is very low, only about 20 percent. As companies, we would like to make sure that our products' packaging gets recycled. But it will not work if there is no infrastructure and consumers are not doing it.

China is taking some fantastic steps. I would say China can potentially improve consumer awareness on recycling. More consumers need to understand that every small step they take can ultimately have a big impact. Consumers will not bother recycling if they believe their effort is too small to make a difference. But millions of people doing it will make a difference.

GT: Some people believe that sustainable development contradicts a company's "animal spirit" of maximizing profit. In what ways can a company be motivated to fulfill its sustainable development responsibilities?

Wright: I don't think they're necessarily contradictory. I see sustainability as an opportunity to identify the material risks of our business and take the opportunity to improve. Companies can revisit process and systems to drive innovation and to work with other parties to create shared values for the future. So, for us, it is about opportunity.

For example, reducing the weight of a glass bottle will reduce the transport cost. It's not always about capitalized costs. It also has a long-term benefit for the business. 

Perhaps people need to have a different mind-set and see it as an opportunity for transformational change. Things will not always be the same. Businesses are aware that they have to do something. If not, you probably will not have a product in the future. It is just good business sense.

Now in some areas, of course, it is difficult to see an immediate return on investment, but it may bring potential benefit. Take the reduction on carbon emissions, which is a big challenge. To do that, it takes capital expenditure and investment. But in some ways that might be cost avoidance, because at some point, there probably will be a tax on carbon emissions.

Companies need to see environmental protection as an opportunity to shift the mind-set of all employees, creating the butterfly effect. Sustainable development is about long-term viability and resilience of a business, which goes beyond just making a profit.

GT: There are concerns that more environmental protection measures will put pressure on economic growth despite the fact that our living standards could be improved. What will be the impact of those measures on the local economy?

Wright: It can be difficult to predict what's actually going to happen in the future. But in my opinion, the one thing we do know is that producing products that are sustainable, disposable and caring for the environment is only going to gain momentum. It is only going to head in one direction in the future.

In terms of the economy, even now when I am talking to analysts and investors, I can see a shift in the types of questions they were asking me two years ago to today. And there is definitely a movement in businesses. The chairman of Black Rock said they are not interested in investing in businesses without a strong social purpose. The analysts and investors are looking more carefully at what companies are doing. More companies have ESG (environmental, social and corporate governance) ratings now, where sustainability is a very important yardstick in analyzing corporate management.

GT: China has been committed to further reform and opening-up. The country has rolled out more measures to speed up opening-up. Do you think the business environment is changing in China? Do you think your company will take advantage and explore more investment opportunities?

Wright: As a business, we certainly will be taking every opportunity we can. China is a really important country to continue to partner with on a number of sustainable projects. China's business environment is buoyant. Our sales in the Chinese market in the 2019 financial year increased 21 percent compared to a 6 percent organic growth worldwide. 

We attended the China International Import Expo last year and will continue to do so this year. The opportunities we are taking are as proactive as possible. We are working very closely with Tsinghua University to build a framework on sustainability. 

One does not have all the solutions. It is about working with others to find and share, build and learn together in the future.