As an important platform for promoting global trade and cooperation, the CIIE brings together globally renowned enterprises and cutting-edge technologies. In 2024, Honeywell made its seventh appearance at the CIIE, showcasing its latest achievements in energy transformation, future aviation, and automation research. As a long-term practitioner of sustainable development, how will Honeywell leverage the CIIE platform to further expand into the Chinese market and assist Chinese companies in their green transformation? For this purpose, a reporter from China Business News interviewed Sun Jianneng, Vice President and General Manager of Honeywell Energy and Sustainable Technology Group in China, to explore the innovative power and strategic blueprint behind it.
China Business News: What are the unique features of Honeywell's product booth layout? What is the biggest highlight?
Sun Jianneng: This year's booth design closely revolves around Honeywell's three core business areas - energy transformation, future aviation, and automation. Among them, automation covers two major aspects: building automation and industrial automation. Energy transition, as the core of our sustainable development, is the starting point for about 60% of new product research and development investment. At this CIIE, we showcased multiple cutting-edge low-carbon technology applications, which became a major highlight of our booth.
In the field of circular economy, we highlighted the UpCycle plastic recycling process, which can broaden the types of recyclable plastics and convert waste plastics into raw materials for producing new plastics, significantly reducing carbon footprint. At the same time, in the field of petroleum refining, we have launched the "Future Refinery" solution, which helps refineries achieve low-carbon development through advanced process technology and services. In addition, Sustainable Aviation Fuel (SAF) is another highlight of our company. It is made from a wide range of renewable materials and can directly replace traditional fuels, helping airlines achieve low-carbon flight. The 7 years of participating in the CIIE are a testament to Honeywell's rapid growth in China. We have signed cooperation agreements with multiple local enterprises to jointly promote the development of sustainable technologies. In the future, we will continue to seize the "CIIE opportunities" and continuously develop products and technologies that meet customers' energy and environmental needs.
China Business News: Some foreign-funded enterprises have reduced their R&D departments in China, while Honeywell has been strengthening its R&D capabilities in China. What are your thoughts on this? What does this have to do with Honeywell's own development? What is the connection between optimizing the business environment and the Chinese government?
Sun Jianneng: Honeywell has been deeply involved in the Chinese market for nearly 90 years, and China has always been one of our most important markets globally. China is not only one of the world's largest markets, but also an important source of global technological innovation. The Chinese government continues to optimize the business environment, sending signals of actively attracting foreign investment and demonstrating its determination and confidence in expanding opening up. The scale, resilience, and innovative vitality of the Chinese market provide a solid market foundation for multinational enterprises to develop in China. Honeywell remains optimistic about the long-term positive trend of China's economic development and is firmly committed to deepening its presence in the Chinese market.
In China, Honeywell invests heavily in technology and product innovation every year. We have multiple leading R&D teams in China and even globally, which launch a large number of new products every year, many of which are first launched in China.
As early as 12 years ago, Honeywell established a technology experience center in Shanghai, which was the first overseas technology experience center outside of its US headquarters. In September of this year, the center completed a new renovation and reopened. We believe that it will provide a better window for local customers, partners, and others to understand Honeywell's cutting-edge technological achievements, and also create a diversified communication platform for us, bringing broader opportunities for business development in China.
In addition, Honeywell Energy and Sustainable Technologies Group has established the High Performance Materials Asia Pacific Innovation Center in Zhangjiagang, dedicated to the research and development of a wide range of high-performance products, such as environmentally friendly refrigerants and foaming agents, aerosols and solvents, fine chemicals, additives, medical packaging, and high-strength fibers for industrial use.
Looking ahead, Honeywell will continue to adhere to its localization strategy of "serving the East" and an open attitude towards cooperation. Through a series of product development and innovation, it will meet the needs of the Chinese market and contribute wisdom and strength to the sustainable development of the Chinese market. We believe that through in-depth cooperation and joint innovation with the Chinese market, we can jointly promote sustainable development and high-quality growth, achieve mutual benefit and win-win results, and create a better future together.
China Business News: Honeywell has undergone business portfolio adjustments and a series of spin offs and mergers and acquisitions this year. What impact does this have on the company's overall innovation capability and market competitiveness? What impact does it have on the Chinese market?
Sun Jianneng: Honeywell's business portfolio adjustment and merger and acquisition activities this year are based on strategic considerations, aiming to focus more on core development trends. The acquisition of Air Products' liquefied natural gas process technology and equipment business has strengthened our energy transformation product portfolio and provided a broader development space for the Chinese market. At the same time, the plan to spin off the high-performance materials business is to optimize the product portfolio and better respond to market challenges and opportunities.
These adjustments enable Honeywell to focus more clearly on its core competencies and future development directions, driving the group's sustained growth and innovation. For the Chinese market, these adjustments not only provide a more solid foundation and support, but also bring more possibilities and opportunities for our cooperation with Chinese customers.
China Business News: What specific plans and goals does Honeywell have for energy transformation and sustainable development?
Sun Jianneng: As a company with rich experience in sustainable development and energy conservation, approximately 60% of Honeywell's products and technologies are related to environmental protection and energy efficiency improvement. We firmly support and actively participate in China's low-carbon transformation, continuously developing products and technologies that meet customers' energy and environmental needs. While actively fulfilling our social responsibility, we also help our clients achieve sustainable development and promote the realization of China's "dual carbon" goals.
For Honeywell, sustainability is a comprehensive commitment that encompasses our facilities, operations, and products. In 2021, we solemnly promise to achieve carbon neutrality goals for all business operations and facilities by 2035. In fact, we have set and exceeded sustainable development goals multiple times. Since 2004, the greenhouse gas emission intensity of the company's business operations and facilities has been reduced by over 90%, and energy efficiency has been improved by over 70%. In addition to significantly reducing greenhouse gas emissions, we have implemented over 6300 sustainable development projects since 2010, including building automation and control, lighting, and hardware upgrades, saving an average of $100 million in costs annually.
In China, Honeywell currently has a total of 6 "green factories", including 2 national level and 4 provincial-level "green factories". More than 75% of the products we manufacture come from these 'green factories'. We will continue to promote the certification work of more factories and look forward to sharing Honeywell's successful experience and technical practices with more partners, helping to promote the development of many industries towards a low-carbon, efficient, and sustainable direction.