"Sustainable Development — An Asian Perspective"
By Mr. H.L. Kam
President & CEO
CK Life Sciences


Ladies and Gentlemen. Good afternoon. It's my honour to have the opportunity to come to Melbourne to speak at this important gathering.

Today, I would like to talk about sustainable development from an Asian Business Perspective.

World Summit Outcome – Public-Private Partnership
Three months ago, the World Summit on Sustainable Development was held in Johannesburg. At the Summit, Water, Energy, Health, Agriculture, Biodiversity were identified as the five key areas for action and public-private partnership as the preferred vehicle.

The company I work for – the Cheung Kong Group – has launched initiatives in all of these five areas, and have also participated in a number of public-private partnerships. This afternoon, I would like to share with you some of our experience.

Before I go further, maybe I will first introduce to you briefly the Cheung Kong Group.

Cheung Kong Group
The Cheung Kong Group is made up of a group of listed companies engaged in property, telecommunications, ports, infrastructure, retail, manufacturing, media, and life sciences.

Total market capitalization of the Cheung Kong Group is about A$110 billion, equivalent to about 15% of the total market capitalization of the Sydney Stock Exchange. We operate in over 40 countries and have more than 160,000 employees worldwide.

In Australia, we have invested around A$9 billion. Businesses include gas distribution, electricity distribution, transportation and telecommunications; and they are conducted through Envestra, ETSA Utilities, Powercor, Citipower, Sydney Cross City Tunnel, and Hutchison Telecom.


Environment sustainability is the forte of CK Life Sciences, our biotech arm. This company is dedicated to improving the quality of life in two areas, environmental sustainability and human health. Through this company, we have participated in public-private partnership programmes in Australia, and have started a number of environmental initiatives. I will elaborate further about this later.

Importance of Public- Private Partnerships
Going back to public-private partnerships, I believe they constitute an important contributing factor for the implementation of successful sustainability efforts.

Private corporations can make great contributions by developing and promoting products and services which facilitate environmental sustainability. However, as private corporations are driven by commercial objectives, unless financial returns on these products are justified, investment will be limited.

Governments, on the other hand, can act as catalysts to speed up the necessary reforms. Government can also generate multiplier effects in expediting the success of efforts undertaken by the private sector.

Governments could assume the leadership role in providing an environment for private corporations to operate so that their causes can be realized. Policies, incentives and - at times – legislation could create the appropriate playing field to ensure sustainable efforts get to be carried out widely, efficiently and effectively. The role of governments in sustainable development is extremely significant.

Sustainability Does Not Mean Compromise
In addition to public-private partnerships, another very important dimension to successful environmental programmes would be the development of win-win, non-compromising solutions for all parties concerned.

At Cheung Kong, we believe that achieving environmental sustainability should not mean compromising on quality of life. Truly sustainable means that we should not have to go back on progress made nor do we have to suffer sacrifices. We should always move forward, and contribute positively towards efficiency and human comfort.

After all, sustainability should be aimed at more than just basic survival. Sustainability should be the principle by which we work to improve the well being of mankind.

Effective environmental sustainability initiatives should be ones which are financially viable for commercial corporations, generate overall benefits for the country, and improve quality of life for mankind.

Take the example of motor vehicles, one should not ban cars on the road because they cause pollution, one should find ways to tackle the pollution problem. The introduction of unleaded fuel, and legislation on emission free vehicles in some countries are good examples of non-compromising win-win solutions.

Some of Cheung Kong’s Sustainability Initiatives
At the Cheung Kong Group, we are committed to developing solutions in which all stakeholders win.

We have undertaken a number of environmental initiatives, and the principle we adopt for making decisions on participation follow this non-compromising, win-win, scenario.

These initiatives include:
- a co-combustion system that can handle 50% of Hong Kong’s municipal waste, while creating green employment and using recycled materials;
- hydrogen fuel cell investment in Canada in which we are the cornerstone shareholder in a listed company aimed at supplying cars with fuel that is emission free; and
- a A$625 million property development in which 95% of the natural wetland on site is preserved; this project not only solves a housing problem, but also generates a wetland conservation fund to protect the 80 hectare wetland and the rare species of birds that are habitats of that environment.

CK Life Sciences in Australia
I would now like to share two examples where we believe the public-private partnership as well as the non-compromising win-win principle can apply very effectively in Australia. Both of these efforts are those of CK Life Sciences.


CK Life Sciences, has identified promoting environmental sustainability as one of two missions of the company, the other being improving human health. Using scientifically advanced breakthrough technology, we have developed more than 100 products, half of them aimed at solving environmental issues, and the remainder addressing human health concerns. All these products were developed based on our unique yeast-based technology platform in which dormant cells of the selected yeast strains are activated and then acclimatised to perform functions including nitrogen-fixation, carbohydrate-degradation for environmental products and immunity enhancement capability which is applied in pharmaceuticals and animal feed additives.

The range of environmental products we have developed include eco-fertilizers, bioremediation solutions, and animal additives. For today’s purposes, I will zero in to talk about cases pertaining to the first two product categories.

Sustainability Agenda of Australia
In our view, these products, the eco-fertilizer as well as the bioremediation solution, fit perfectly with the sustainability agenda of Australia. According to the recent Land and Water Audit Report conducted by the Federal Government, it is clear that the country is faced with serious soil degradation and water quality problems.

For soil condition and water issues in Australia, one of the major causes is the over use of chemical fertilizers. For decades, chemical fertilizers have improved productivity yields of farmers. But many studies have indicated that only one third of the nutrients from fertilizers is absorbed by the plant, one third is left in the soil, and the other third gets leached into nearby waterways.

Those chemicals that remain bound up in the soil cause soil degradation, while those leached into the water cause pollution which affects the bio-diversity of the marine environment. For these reasons (and others), sustainable agriculture has become an urgent topic for Australia.

The challenge now is to develop or identify a fertilizer which can supply nutrients, that is nitrogen (N), phosphorous (P) and potassium (K), that the crops need without causing leaching into the environment.

In this area, we definitely see great potential for public-private partnerships. Take, for example, the case of the Great Barrier Reef. The Australian government should be commended for taking a visionary role by outlining plans to tackle the Reef water quality problem in the MOU recently signed by the Queensland Government and the Federal Government.

This MOU commits the two Governments to a range of joint actions aimed at halting the decline in water quality on the Reef.

One activity to result from the MOU is an inquiry by the Productivity Commission, which found in its Draft Report released last week that important parts of the Reef system may be under serious threat from chemical laden sediment that flows into coastal waters every time there’s significant rainfall.

Against this backdrop comes the opportunity for private sector to step up efforts to develop appropriate solutions. One of the challenges is to develop fertilizer products which do not cause leaching and yet can generate yields similar to chemical fertilizers. Currently, there are organic fertilizers in the market which are environmentally friendly, but they do not always generate satisfactory productivity yields for farmers.

CK Life Sciences’ eco-fertilizer, NutriSmart
At CK Life Sciences, we have developed an eco-fertilizer product called NutriSmart.

NutriSmart is an active microbial fertilizer which contains six strains of yeasts. It does not contain pre-fixed N, P and K and the strains are all treated to supply macronutrients by fixing N from the air, decomposing rock phosphate into P and breaking down K from the soil to an easily absorbable form when they are in contact with the roots of plants, and when the plants are in need of these nutrients. In essence, NutriSmart has three benefits. It enhances crop quality, improves soil condition, and is environmentally friendly.

NutriSmart can do most of the beneficial things that chemical fertilizers do in terms of productivity, yield and cost, but without causing the associated environmental harm of traditional chemical fertilizers, such as leaching of excess nutrients into nearby waterways. NutriSmart is an appropriate product for the current agricultural environment – right product, right timing.

The product has been extensively tested in a number of countries around the world, with favourable results. In Australia, tests have been carried out by SARDI, a South Australian government agency, with very positive results; and currently it is being tested by BSES, a government agency in Queensland.. NutriSmart is now in use on more than 50 crops in a dozen different countries.

Recently, we have participated in a programme orchestrated by the Burdekin Shire to alleviate the burden on sugar cane farmers in the Burdekin region of Queensland.


Under this plan, we offered cane farmers limited supplies of NutriSmart at a steep discount. We asked for an upfront payment of only $50 a tonne with the balance of $300 paid off interest free over nine months. During the nine months, farmers are expected to seek a Government subsidy designed to encourage take-up of innovative new technology, in order to pay amounts outstanding for the fertilizer. For farmers who apply for the subsidy but don’t receive it, or receive less than $300, their total outstanding balances will be waived.

The project not only alleviates the financial burden on sugar cane farmers, it also gives them the opportunity to counter those persistent accusations that cane farmers are the ones causing pollution to the environment. Another multi-win scenario.

Private Enterprise Can Only Do So Much
But companies can only do so much. As a private enterprise, there is not a great deal more that we can do than develop products, stage tests and trials to prove their effectiveness, and aggressively implement initiatives to promote the use of our products.

However, these are all micro-level activities. A general change of thinking is necessary to push forth sustainable farming. And the speed of change should be considerable in order to be effective. To accelerate adoption of such farming practice requires the active leadership from the government on a macro-level. It is this leadership which would create an attractive environment for industry practitioners to develop and introduce solutions to the market, and make consumers aware of the need to adopt the solutions.

Governments Take Lead in Some Areas
In the case of the Great Barrier Reef, the Queensland and Federal Governments have demonstrated a visionary approach in conducting the on-going Productivity Commission study and the series of workshops with concerned stakeholders, as well as inviting submissions from the public to look for solutions to solve the Reef water quality problem.

As I understand, the South Australian Government has funded a number of tests for sustainable agriculture; and the Victorian Government has been active in developing an export-oriented organic food industry.

These are all commendable efforts, but it looks like this is just the beginning and that there are still many actions to be taken in order to ensure effective solutions are implemented expediently.

Steps for Government to Consider
To encourage greater take-up of eco-fertilisers as replacements for traditional chemical products, we propose that Australian Governments consider the following:
1. Provide research grants for the development of eco-efficient fertilisers.
2. Provide subsidies for the testing of eco-efficient fertilisers.
3. Introduce targeted, performance-based incentives for farmers to change to eco-efficient fertilisers, and
4. Develop a regulatory and legislative framework that induce the use of eco-efficient fertilizers and discourage the use of contaminating fertilizers.

We feel very strongly that to ensure sustainable agriculture is carried out and implemented, some sort of carrot and stick approach, a combination of incentive and regulation is essential.

California Emission Control Legislation a Good Example
The actions of the California Government of the US to reduce motor vehicle emissions provide an example that Australian Governments could productively emulate.

The California Government has passed legislation requiring 10% of the State’s motor vehicles to be emission free within a 10 year period..

That is a clear target and a clear timeline, both essential ingredients in any effective plan designed to create an environment in which the necessary research and development is carried out and the required business support operations are developed.


The California Government’s determination to take the lead by passing the legislation has had definite results. With expectation that the issue is forthcoming, car manufacturers have stepped up efforts to carry out research on cars that run on clean fuel. Gas companies have started to devise business strategy to meet the legislated changes; and consumers have begun to learn more about clean fuel, its applications and benefits. There were no more debates on the issue.

This is a good reference case for the Australian government to look to for ways to speed up the adoption of sustainable farming practice. The government can set the stage and get farmers and the fertilizer industry prepared for the change. Incentives and levies should all be considered to turn the concept of sustainable land use into reality.

Protecting Precious Water Resources Through Bioremediation
Moving from sustainable farming, I would like to discuss another important and related subject – bioremediation. This is another area where we see how the public-private partnership can work very well and win-win non-compromising solutions can be implemented effectively.

As water is another precious resource in Australia – like fertile soil - government should take a leadership role in conserving water and improving its quality. Drought has been an issue in Australia in recent years. Developing measures to encourage re-cycling of water and cleaning up polluted water would be important areas for Government activity, while it is also imperative to encourage the adoption of sustainable farming practice that will not contaminate the environment.

It is understood that water problems such as those in Great Barrier Reef, Murray Darling River System and many smaller waterways, are very complex, and that while physical, chemical and biological solutions have all been studied, the perfect solutions for recycling and cleaning waste water, as well as preventing the water from being further contaminated have yet to be identified. For this matter, government can take up many roles – as regulator, policy maker, and in some cases, even the end user. In this regard, the government can work with private corporations to carry out research and develop new solutions.

WonderTreat Offers Liquid Waste and Solid Waste Solutions
CK Life Sciences has developed a range of bio-remediation products to treat waste water itself as well as solid waste that lead to contamination. The WonderTreat™ range of bioremediation products provide effective, economical and environmentally-benign solutions for organic waste management and water pollution.

WonderTreat™ contains microbes with specific pollution removal functions. It provides tailored solutions for removing bioavailable nitrogen and phosphorous and reducing odours and environmental toxins. It also reduces polymeric compounds, and suppresses the growth of algae and pathogens.

Currently, in Australia, a few trials of WonderTreat have been lined up including ones in a piggery for the treatment of pig manure near Murray Bridge, and another in a dairy farm to treat cow manure with the intention of solving the dairy discharge problem into the lower reaches of the Murray River. Both of these initiatives are to be conducted with the support of the South Australian Government. Commercial tests are also in place.

Important Partnership Role of Environment Groups
At this point, before I go further, I would like to point out that in addition to private enterprises and the government in partnerships to carry out environmental initiatives, the environmental NGOs are also an important party to the cause. Governments and business corporations are often led by their own agendas and priorities, such as political situation and monetary gains. On the other hand, the NGOs, guided by ideals, are oftentimes more impartial and put greater emphasis on the longer term benefits of mankind. They are very focussed on their ideals and can concentrate on the problems without much distraction. They can play an important role in making sure the governments and private enterprises remain on course towards the effective development of sustainable solutions.

So while it is true that government, environmental NGOs and commercial enterprises can work together for the common good of the environment, just how to make the partnership work effectively is another key question.

How To Make The Partnership Work?
In my view, there are three important elements to make the partnership a success:
1. Complementary Roles
Each party of the partnership has to understand their roles. The Government and NGOs are to address macro issues, with the government taking the leadership role to create the environment for change, maybe through passing legislation, setting policies, introducing incentives and so on. The role of the NGOs is to raise public awareness on the issues and/or at times bring in international rapport. Private enterprises, on the other hand, are to launch activities on the micro-level – putting in resources and know-how to develop and market the appropriate products and services. The efforts of the three parties should be complementary.

2. Be Courageous and Open Minded
Many governments and NGOs have been sceptical about working with the private sector, worrying about being labelled as “endorsing a commercial product”.

But for the greater benefit of sustainability, partnering with private sector organizations, especially those who have put in huge investments on R&D, can speed up progress. The key is to ensure the outcome benefits all.

There are more and more cases all over the world in which Governments, private sector organisations, as well as NGOs start constructive dialogues in the form of regulatory negotiation to formulate policies inclined towards the promotion of products that will benefit both environmental protection and economic development.

3. Willing to Invest into the Future
The private sector should not be afraid to take bold steps in investing in R & D and undertake ventures which may not bring immediate profits, but could bring good returns in the long run. It is these pioneering private enterprises who come out with innovative breakthrough products which could capture untapped opportunities when they arise.

In this regard, governments can assist with the commercial viability of a new technology or a new venture by itself buying innovative, environmentally-friendly products. Setting the right policy would also greatly help in shortening the lead time for business corporations to generate returns.

Australians Can Lead the World in Sustainable Developments
Australia is well placed to turn these opportunities into real commercial ventures which could contribute to this country’s balance of payments.

Australia has a highly adaptive and innovative population which readily adopts new ways of thinking and new technologies. This quality in turn has fostered the growth of highly innovative thinking in this country about ways to tackle environmental problems.

From my previous dealings with the different government departments and government agencies, and those with NGOs such as ACF, NCC, Landcare, and WWF, I can see that great expertise exist and positive actions have been taken.


Private sector industry colleagues have also been innovative in their thinking and business acumen. With all parties making effective contribution in their roles, it is almost a certainty that the public-private-NGO partnership would go a long way to champion environmental sustainability causes.

If there is any one country that can lead the world in sustainability development, I’d say that that country is Australia.

We at CK Life Sciences are dedicated and committed to develop products and solutions for environmental sustainability. We hope that we can work closely with governments, NGOs and other industry colleagues for the eventual benefit of mankind.

Thank you.

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