CSR Asia - Corporate Social Responsibility in Asia

However, as pointed out in Bosshard’s report, the nature of China's current involvement in Africa is problematic for a number of reasons. Firstly, China’s investments in Africa are concentrated in sectors that are environmentally sensitive (such as oil and gas exploration, mining, hydropower and timber extraction). Secondly, China’s strategy is to access resources that have so far not been exploited by European or American companies, either because they were considered insignificant in size, geographically too remote or politically too risky. Projects are therefore being developed in remote, ecologically sensitive regions in countries with weak governance systems. Thirdly, China’s domestic policies have prioritised economic growth over environmental concerns and there is a risk that these practices will be exported to other parts of the world. Recent concerns over environmental exploitation in China itself and the setting of laws and regulations to protect its own environment may even see China’s worst polluters relocate their production to places like Africa. Fourthly, Chinese investors and financiers have not adopted the international environmental guidelines and standards that have been taken up by international financial institutions.