Speeches and Articles by Former Consul General Michael Klosson

Remarks by U.S. Consul General Michael Klosson
at the
Conference on Environmental Risk Management for
Financial Institutions

November 29, 2000
Hong Kong

(As Prepared for Delivery)

I would like to thank the organizing committee, each of the supporting organizations, and the conference's sponsor - American International Underwriters - for their good work on this important event and for inviting me here today to make some closing remarks.

Often when I have an opportunity to discuss environmental issues, the main topics are international protocols or pollution abatement technologies and the audience is environmental NGOs or government officials. Today the issue is still the environment, but the audience is banking and finance professionals. I am very heartened to see such a good turnout from the financial community, both local and foreign. This really shows how far the understanding of environmental issues has evolved, and how protecting the environment is something about which we all are concerned.

It also demonstrates the growing realization that working to improve the environment does not have to come at the expense of business and commercial opportunities. In fact, this conference today has shown that intelligent and appropriate concern for the environment by lending and insuring institutions is actually good business. The two can go hand in hand. By exercising environmental due diligence, financial institutions can limit their overall liability. And those companies with whom they do business will, in turn, run their operations more cleanly and efficiently. Businesses of all types are learning that redesigning products and processes to reduce energy and resource demands all benefit the environment and save money.

This has been the lesson we have learned in the United States. In their book Natural Capitalism, Amory Lovins, Hunter Lovins and Paul Hawken document numerous such cases. For example, when Dow Chemical announced a one billion-dollar, ten-year environmental investment program, the company was not just being socially responsible. It anticipated a 30 to 40 percent annual return on its investment.

This hotel in which we are meeting is another example. Under the stewardship of General Manager Jean-Marie Leclercq, the Nikko has implemented a series of environmentally friendly policies beginning in 1992 which also save the hotel an estimated one million Hong Kong dollars annually. Although these examples may not be directly related to the type of financial institutions that you represent, the lessons learned by Dow and Hotel Nikko provide food for thought for your businesses.

Hong Kong, like other locations, faces numerous environmental challenges. If Hong Kong is to remain a vibrant and livable city, everyone -- the SAR government, individual citizens and the business community -- bear responsibility for addressing these challenges. This responsibility does not, however, have to be viewed simply as a burden. It also presents an opportunity. Today's conference shows that environmental protection and economic efficiency can go hand in hand so that everyone benefits.

This conference has done something else that is very important. It has provided another opportunity for U.S. and Hong Kong business leaders to create the lasting partnerships that are important to both our economies. It is for this very reason that the United States - Asia Environmental Partnership was created. We have developed a great deal of expertise in dealing with environmental challenges over the past half century, and we believe that many of those lessons are also applicable here in Hong Kong and throughout the region. I am not saying that our situations are identical. But through USAEP, we seek out those situations where U.S. experience or expertise is appropriate. This, I believe, is one of those situations.

I hope you've found the conference useful. Although the first of its kind, I hope the conference has now firmly launched a process of continuing exchanges between our financial communities on this issue.

Thank you.

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