In the framework of our SWITCH-Asia project, you have designed training materials, conducted 3 training workshops in Dongguan, Qingdao and Shanghai, several on-site factory visits and a train the trainer session in Beijing. What is your overall impression of the project approach in promoting sustainable production patterns among Chinese SMEs of the electrical and electronics sector?
It became quite clear, that there is no one-fits-all solution. This is not a surprise, but a challenge: Every company came to this training already with precise expectations and a variety of specific questions they would like to have addressed. An improved EHS performance cannot be achieved through one training alone, but requires guides and support throughout a longer period of time. This became quite clear throughout the implementation of the training activities. The SWITCH project is a great offer to Chinese SMEs to get profound support from experts and I think this is also of great importance for the European industry with a view to educating their supply chain on environmental aspects.

According to your experience, what are the main challenges for SMEs to design and implement compliance strategies? Which key lessons could be learnt from Europe?
The complex landscape of standards and legislation is just too confusing for the SMEs. Even more when talking not only about compliance as such, but market surveillance and customer requirements, which might deviate from the wording of the legislation. Just as in Europe, the SMEs do not have the capacity to deal with these challenges in a comprehensive way. They need much targeted assistance. And very important, the top management needs to recognize the benefits of a pro-active, “green” strategy, which is more and more appreciated by business customers, especially brand name companies.

SMEs typically lack the research and development capacities to face complex challenges. European SMEs succeeded pretty well in sharing such a burden: We at Fraunhofer already back in 1999 set up an industry working group on lead-free transition, where SMEs exchanged their experiences, were trained on lead-free soldering and agreed on joint research activities to tackle remaining technical challenges. Similarly, there have been a couple of European research projects prior to the RoHS deadline. All this helped to prepare the companies, but required a good mutual cooperation.

Based on interaction with our Chinese colleagues at the workshops, what are the characteristics of Chinese SMEs in their management of environmental issues?
The perception of Chinese SMEs is not really different from their European counterparts: profit matters. As long as nobody really demands “green products”, companies are hesitant to do more than the absolute minimum. Hence only those arguments are convincing, which influence pecuniary profits: higher market share, better business relations, savings in production costs. Actually, once a company has a pro-active compliance strategy, profits follow suit, but it is hard to quantify this in advance. Just as in Europe the Chinese SMEs need some success stories. See and believe - it’s that simple!

In your opinion, what could be the main leads to explore for our pilot SMEs to improve standards compliance as well as resource efficiency management? Is the Conformity Model well-suited?
The Conformity Model indeed is a very good approach, in particular the introduction of various levels: As not all SMEs are the same this model needs to be somewhat flexible in addressing the individual situation and business strategy of a company. Clear guidance is exactly what SMEs need, as a baseline they need to be told: Do this and do that. Once they have made a first step they will be guided to an advanced level.

More precisely on our project, what types of activities could be the most efficient to assist SMEs following up from the initial series of training workshops?
The training workshops are understood to be a presentation of the broad playing field for eco-activities, but the actual company needs a customized approach, taking care of the current status of knowledge regarding environmental parameters for instance, or the requirements their business customers are passing down the supply chain. Depending on the target market, a foresight mechanism should be implemented, to give the SMEs the chance to anticipate, which requirements they might face in 2 to 3 years from now. Only this gives them sufficient time to be well prepared and even to be ahead of their competitors.