Livelihood Action Plan July 2023

Strengthening Marine Protected Areas in SE China to conserve globally significant coastal biodiversity
(China-Protected Areas System Reform (C-PAR) Program Child Project #4)
Action Plan for Enhanced Safeguards Risk Management-Livelihood Action Plan
Final Draft
July 2023
Table of Contents
Abbreviations.................................................................................................................................................6
Executive Summary........................................................................................................................................7
1 Project Background............................................................................................................................9
2 Livelihood Background.....................................................................................................................11
3 Proposed Livelihood Model..............................................................................................................13
3.1 Easement Rights and Issuance of Green Usufruct Bonds................................................................15
3.2 Cooperation with Enterprises-Social Corporate Responsibility.......................................................16
3.3 Introduction to best practices in Vertical Farming..........................................................................21
3.4 Introduction to best practices in Eco-Tourism.................................................................................29
3.5 Introduction of E-businesses for women groups.............................................................................34
2
List of Tables
Table 01 Project-Areas..........................................................................................................................................10
Table 02 National CSR Regulation.........................................................................................................................17
Table 03 Sustainability Reporting-Vertical Farming..............................................................................................25
Table 04 Sustainability Reporting in Eco-Tourism.................................................................................................32
Table 05 Sustainability Reporting in E-Business....................................................................................................35
3
List of Figures
Figure 01 Project Livelihood Model......................................................................................................................14
Figure 02 Carroll's CSR Pyramid Model.................................................................................................................19
Figure 03 GRAS Tool-Biodiversity in Project Area.................................................................................................21
Figure 04 Smart Farm Project in Hebei Province..................................................................................................23
4
List of Annexes
Annex 01 Livelihoods of Fishermen in the Project Area

Annex 02 National Climate Change Strategies
Annex 03 Easement Rights to Issuance of Green Usufruct Bonds
5
Abbreviations
ADB Asian Development Bank
AFIP Academy of Forest Inventory and Planning, National Forestry and Grassland Administration
AGRS Appeal and Grievances Redress System
BQCW Beihai-Qinzhou Coastal Waters
C-PAR China’s Protected Area System Reform
CBAP Coastal Biodiversity Action Plan
CBD Convention on Biological Diversity
CWD Chinese White Dolphin
DNPAM Department of Natural Protected Area Management, National Forestry and Grassland
Administration
ESA Ecologically Sensitive Area
ESG Environment, Social and Governance
GEF Global Environment Facility
KBA Key Biodiversity Area
LAP Livelihood Action Plan
MARA Ministry of Agriculture and Rural Affairs
MNR Ministry of Natural Resources
MoF Ministry of Finance
MPA Marine Protected Area
NBSAP National Biodiversity Strategy and Action Plan
NFGA National Forestry and Grassland Administration
NGO Non-Governmental Organization
NIM National Implementation Modality
NNR National Nature Reserve
NR Nature Reserve
PA Protected Area
PNR Provincial Nature Reserve
PRC Peoples Republic of China
SAR Special Administrative Region
SDG Sustainable Development Goal
SESP Social and Environmental Screening Procedure (UNDP)
SOA State Oceanic Administration
TIO Third Institute of Oceanography
UNDAF United Nations Development Assistance Framework
UNDP United Nations Development Programme
6
XBCW Xiamen Bay Coastal Waters

ZJCW Zhuhai-Jiangmen Coastal Waters
Executive Summary
This institutional empowerment and management development project aims to conserve globally significant
coastal biodiversity in southeast (SE) China through integrated seascape planning and threat management,
Marine Protected Areas (MPA) network expansion, and strengthened MPAs operations. The project focuses on
coastal ecosystems, using the Chinese White Dolphin (CWD) as an indicator and flagship species to engage
multiple stakeholders in novel ecosystem-based approaches. The target area for the project is the three
provinces in southeast China: Fujian, Guangdong, and Guangxi. The project aims to conserve globally
significant coastal biodiversity in Southeast SE China through integrated seascape planning and threat
management, MPA network expansion, and strengthened MPA operations. The project's activities are carried
over three components:
 Component 1: Strengthened MPA legal framework and mainstreaming and expanding MPA network.
 Component 2 demonstrates improved MPA and Ecologically Sensitive Area (ESA) management.
 Component 3: Monitoring, evaluating, and sharing knowledge and information on coastal habitats and
species.
This study includes the update of the Social and Environmental Screening Template (SESP), where a total of
eight risks have been identified. Risk 8: Climate change impacts are expected in China's coastal ecosystems,
risking achieving project targets/objectives, identified as a moderate risk and is subject to change to low Risk by
the end of the project when the project management develops relevance to the national and regional Risk
Emergency Response of MPAs. Seven risks have been assessed as low-significance risks requiring monitoring
and mitigation measures. The low risks are:
(1) Risk 1: access restrictions for fishermen/women);
(2) Risk 2: Existing community conflicts over access to marine resources could be exacerbated by project
activities;
(3) Risk 3: There are gender disparities at project sites that could potentially be reproduced by the
creation/enhanced management of MPAs;
(4) Risk 4: Project activities will occur within/adjacent to environmentally sensitive areas posing potential risk to
sensitive habitats and species;
(5) Risk 5: There are small levels of ethnic minorities in project sites that could be impacted by project activities
(6) Risk 6: Creation of MPAs and ESAs will change the use of marine resources with potential adverse impacts
on habitats;
(7) Risk 7: Project will address harvesting of fish and aquatic species, which could damage aquatic habitats if
carried out at unsustainable levels
7
The overall project risk categorization is low. An ESMF has been prepared for the project (and three other CPAR
projects) outlining the additional safeguard measures that apply to the project and will be completed during
the project to minimize potential risks. This updated SESP template shall form the basis to complete and
endorse the mitigation measures.
The proposed mitigation measures shall include the following:

1. Update Stakeholder Engagement Plan
2. Appeal and Grievance Redress System
3. Livelihood Action Plan
4. Disaster Response Plan
5. Sustainability Reporting
The proposed Livelihood Action Plan LAP entails the development of the following diversified livelihoods
initiatives:
1. Easement rights to local businesses and communities and issuance of green usufruct bonds
2. Cooperation with Enterprises-Social Corporate Responsibility
3. Introduction to best practices in Vertical Farming
4. Introduction to best practices in Eco-Tourism
5. Introduction of E-businesses for women's groups
8
This report presents the national regulation and best practices for the components of the LAP. The proposed
livelihood activities consist of long-term activities. The long-term activities are more significant for the
sustainability of the project’s outcomes and for the administration of MPAs at regional and national levels.
While the other mitigation measures are feasible to be implemented during the project duration.
The LAP Model is based on the concept that private enterprises will utilize their corporate social responsibilities
tools to acquire usufruct green bonds issued by the MPAs. Private enterprises have two reasons to acquire
green bonds, mainly as a carbon credit, where the MPAs act as a carbon sequestration environment, and
secondly, private enterprises are required to support community development projects. In both cases, the
enterprises will report on their activities as part of the ESG Reporting in the financial market. The MPAs shall
utilize the received values of the green bonds in developing carbon sequestration projects in the MPAs and
develop sustainable projects such as vertical farming, eco-tourism, and E-businesses for women. At the same
time, the MPAs issue green bonds with usufruct nature for the local communities that are impacted by
economic displacement as part of the project activities. The proposed livelihood initiatives are in support of the
ongoing eco-compensation measures. The eco-compensation measures are suitable mid-term activities that
should be continued with the proposed livelihood initiatives in this study. As a result, the project will reach a
more significant number of beneficiaries and ensure a soft transition in income and controlled economic
displacement with the interest and benefits of local communities. The eco-compensation will be customized to
reach the beneficiaries more effectively since the project is developing additional income and livelihood
opportunities. This report provides the overall financial model of the LAP and the overall framework for each
livelihood initiative. In consultation with the project stakeholders and local communities, the project manager
decides on the detailed formulation and implementation for each livelihood initiative.
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1 Project Background
This institutional empowerment and management development project aims to conserve globally significant
coastal biodiversity in southeast (SE) China through integrated seascape planning and threat management,
MPA network expansion, and strengthened MPAs operations. The project focuses on coastal ecosystems, using
the Chinese white dolphin (CWD) as an indicator and flagship species to engage multiple stakeholders in novel
ecosystem-based approaches. The target area for the project is the three provinces in southeast China: Fujian,
Guangdong, and Guangxi.
As the only C-PAR child project focusing on coastal and marine ecosystems, this project offers opportunities for
replication and learning across the marine environment, linking marine and terrestrial approaches and between
Marine Protected Areas MPAs and Terrestrial Protected Areas TPSs.
The rich coastal and marine resources, in turn, support essential industries such as fishing, maritime shipping,
and oil and gas exploration, which jointly contribute to over 10% of China's overall GDP and are growing at an
annual rate of 15%. China already provides substantial financial support to strengthen the capacity of
developing countries for environmental protection and marine ecosystem conservation through platforms such
as the UN Environment Trust, the China-ASEAN Maritime Cooperation Fund, as well as through initiatives such
as the Belt and Road Initiative in cooperation with Southeast Asia, South Asia, and the developing countries in
Central Asia, Africa, and other regions. In 2016, the State Oceanic Administration newly approved 16 national
marine parks. The PRC has already established 250 marine nature/special reserve zones (marine parks) of
different levels, with a total area of 124,000 km2.
The project has three pilot seascapes: a) "Xiamen Bay Coastal Waters" in Fujian Province, b) "Zhuhai and
Jiangmen Coastal Waters" in Guangdong Province," and c) "Behai and Qinzhou Coastal Waters" in Guangxi
Province. The project has five target nature reserves and one proposed nature reserve: Shankou Mangrove
National Nature Reserve (NNR), Dugong Chinese White Dolphin (CWD) NNR, and the proposed Sanniang Bay
CWD Provincial Nature Reserve (PNR) in the pilot area of Behai and Qinzhou Coastal Waters, Pearl River Estuary
CWD NNR (PRE CWD NNR) and Jiangmen CWD PNR in the pilot area of Zhuhai and Jiangmen Coastal Waters,
and Xiamen Rare Marine Species NNR (Xiamen RMS NNR) in the pilot area of Xiamen Bay, as presented in Error:
Reference source not found. The project proposes two pilot villages: Sanniangwan Village, next to the
proposed Sanniang Bay PNR, and Shanliao Village, next to the Dugong CWD NNR—source: Dr. Xianyan Wang,
the local consultant for CPAR4.
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Table 01 Project-Areas
Zhuhai and Jiangmen Xiamen Bay Coastal
Pilot Area Behai and Qinzhou Coastal Waters
Coastal Waters Waters
Projent province Guangxi Guangdong Fujian
Target Nature Shankou Dugong Proposed PRE CWD Jiangmen CWD Xiamen RMS NNR
reserve Mangrove CWD Sanniang NNR PNR
NNR NNR Bay PNR
Project Beihai Qinzhou Zhuhai Jiangmen Xiamen
Municipality/city
Project Hepu Qinnan Qi’ao Taishan Xiamen
County/district Island
Analyses of the social texture and financial needs of the target MPAs conclude that there is significant room for
improvement in terms of regulations, business planning, and mainly structured sustainable revenue generation
based on the easement rights of existing communities and businesses, where:
 Communities in or surrounding the nature reserves in Beihai-Qinzhou Coastal Waters in GZAR are largely
economically dependent on the nature reserves, and most economic activities are not ecosystem-friendly.
 Many households in Sanniangwan Village in Beihai-Qinzhou Coastal Waters are engaged in CWD tourism-
related livelihoods, such as restaurants, homestay, and selling small items to tourists. However, there are
no village regulations or service standards on the services. Households provide services to tourists
according to standards of their own.
 To some degree, there is conflict among villagers and between villagers and the Dugong Nature Reserve in
Beihai-Qinzhou Coastal Waters about the use of the intertidal zone. The area legally belongs to the
experimental zone of the nature reserve, but most of the site is now occupied by five households.
 Less than 2% of ethnic minority people in the villages located within or adjacent to the project nature
reserves, although about 10% of ethnic minority people live in Qinzhou Prefecture in GZAR. Of the 12.4%
ethnic minority in Qinnan District, 11.8% were Zhuang Ethnic Group people. In the project provinces: one-
third of the population in Guangxi was ethnic minority people, much higher than the national average.
 However, community co-management of the intertidal area in Dugong Nature Reserve (Guangxi) seems to
be difficult because of the complicated relationship and illegal occupation of the site for over ten years.
11
2 Livelihood Background
New mechanisms for financing MPAs, beyond just governmental allocations, should be explored, and
fundraising/business plans should be developed—for example, the ongoing eco-compensation mechanisms for
supporting communities disadvantaged by MPA establishment.
The project supports demonstration PAs and other stakeholders in expanding financing channels, where:
o Two ecological compensation experts have been recruited to support the development of financing
channels for the protected area, and the report Financing and Promotion Program for Ecological
Protection Compensation of Seagrass Bed Ecosystem in Hepu Dugong NNR has been shared with
demonstration PA and Guangxi Forestry Bureau. It will be a trial in selected MPA in Guangxi.
o Nearly 3 million CNY obtained from other sources will be secured in 2022 for seagrass bed restoration
(in Guangxi Province) and sustainable living practices (in Guangdong Province).
o The score of the Financial Sustainability Scorecard increased from 71 (baseline) to 80 (MTR).
At present, the primary source of funding for ecological compensation in marine protected areas is government
financial transfer payment. There is a lack of funding channels for ecological compensation for marine
protected areas. From the perspective of long-term investment in developing MPAs, multi-level, multi-channel,
and comprehensive financing sources is the fundamental solution.
The compensation laws and regulations are not unified, and the compensation standards are vague. China has
not yet established uniform principles and standards for ecological compensation in maritime laws and
regulations. Provisions are scattered in various laws, resulting in differences in compensation standards in all
regions. Mechanisms are, therefore, weak and prone to instability. The unparalleled and mutually exclusive
compensation provisions affect the authority of the law. Second, compensation is not a unified, simple method
of compensation, unreasonable compensation for losses caused by long-term interests. Third, the
compensation program is disordered, lacking fair and just compensation due to a lack of process control and
risks causing more serious abuse of power. Fourth, the compensation is challenging to implement, and the
remedies are imperfect.
Today there are three main requirements to establish ecological compensation measures for marine
protected areas:
o Establish safeguards and mechanisms through appropriate laws and regulations or normative
documents, which can be institutionalized and legalized.
o Establish, improve, and coordinate the implementation of marine ecological compensation systems in
various regions and oceanic departments through overall guidance
o Establish multi-level compensation benefits to achieve a balanced compensation for direct and indirect
losses, ensuring fair and equitable settlement.
12
The Project Document-LFW-Indicator 6 states that financial sustainability and resourcing for MPAs depend on:
a) the amount of financing from new eco-compensation mechanisms (diverse sources including the
governmental, private sector, etc.); and
b) improved financial sustainability as measured by the Financial Sustainability Scorecard (FSS) - see Annex B as
part of the Project Document) where FSS Components consist of:
1. Legal, regulatory, and institutional frameworks

2. Business planning and tools for cost-effective management
3. Tools for revenue generation
The following briefly describes the existing livelihood conditions in the project area. Annex 01 provides a
detailed description of the livelihood conditions in the project area.
1. Totally 17 villages are located within the six target nature reserves, all within the Shankou Mangrove
NNR, and no villages are within the other nature reserves. Thirty-two villages live adjacent to five of the
six target nature reserves, except Xiamen Bay. No village is within or adjacent to the Xiamen RMS NNR.
No rural villagers live within or adjacent to the PRE CWD NNR. The nearest urban community is about 10
km away. Of the 32 villages, 17 neighboring the Shankou Mangrove NNR are the same villages as those
within the Shankou Mangrove NNR.
2. Generally speaking, the villages have much fewer land resources per capita than their provinces' average
(1.26 mu in Guangxi and 0.45 mu in Guangdong). The limited land resources are not enough to maintain
the lives of the local communities. Shows the socioeconomic situation of the surveyed village.
3. The involvement of the villagers in marine-related production activities was high, while participation in
marine conservation was limited.
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3 Proposed Livelihood Model

The proposed livelihood model for the sustainability of this project and the overall administration of MPAs
consists of the following, as shown in Figure 01:
1. The private sector enterprises in China are invited to buy green bonds that the Administration of MPAs
issues. The Administration of MPAs issues green bonds to finance projects that contribute to the
sustainability of the MPAs and their communities. These projects could include, for example, the
development of MPAs into carbon sequestration zones, vertical farming, eco-tourism, and E-Businesses for
Women.
2. The private sector enterprises are interested in acquiring green bonds for two reasons: purchasing carbon
credits from MPAs as part of their carbon sequestration projects. And private enterprises are interested in
community development projects by utilizing their Corporate Social Responsibility CSR development tools.
In both cases, the enterprises will include these two activities in their ESG Reporting to their shareholders
in the financial market.
3. The Administration of MPAs shall issue Green Bonds with a usufruct model maintaining the easement
rights of local communities, especially those impacted by economic resettlement. This implies that there
will be financial returns to the local communities because of the acquisition of green bonds. The financial
returns could be utilized by local communities to support the eco-compensation measures and to build the
capacities of local businesses in implementing sustainable projects such as vertical farming, eco-tourism,
and E-businesses for women.
The following is the overall framework for the proposed livelihood initiatives aligned with the proposed
Livelihood Model:
1. Easement rights to local businesses and communities and issuance of green usufruct bonds
2. Cooperation with Enterprises-Social Corporate Responsibility
3. Introduction to best practices in Vertical Farming
4. Introduction to best practices in Eco-Tourism
5. Introduction of E-businesses for women's groups
14
Figure 01 Project Livelihood Model
3.1 Easement Rights and Issuance of Green Usufruct Bonds
The Administration of MPAs shall assess the opportunity of developing the marine protected areas as carbon
sequesters. The Chinese government can promote ocean carbon sequesters in response to climate mitigation
measures and carbon credit opportunities for Chinese enterprises. Annex 02 describes the relevant national
climate change strategies.
In response to the development of ocean carbon sequesters in MPAs, the MAP Administration can produce and
sell green bonds to enterprises. The enterprises are interested in opportunities to buy carbon credit and
develop local communities. In both cases, the enterprises will report on acquiring green bonds in their ESG
Report to their shareholders and the financial market. Enterprises often apply their Corporate Social
Responsibility (CSR) tools in acquiring green bonds and developing local communities. CSR provides advantages
and venues for enterprises to patriciate in the sustainability of their business and country. The MAP
Administration shall issue green bonds with usufruct attributes to maintain the easement right for local
communities and businesses and provide additional funds to the Eco-Compensation measures. Annex 03
provides examples of easement right schemes in China.
Green bonds are marketable securities that are issued following legal procedures and with agreed principal and
interest repayment, including but not limited to green financial bonds, green corporate bonds, green corporate
bonds, green debt financing instruments, and green asset-backed securities, with funds raised specifically to
support green industries, green projects or green economic activities that meet the prescribed conditions.
The project document refers to usufruct bonds as eco-compensation for marine stewardship (e.g., to reduce
over-harvesting and support shifts to more sustainable livelihoods), including formulation of Ecological
Protection Compensation Rules to be piloted in the Guangxi autonomous region—Financial Sustainability
Scorecards (see Annexes B and R) of the Project Document. The advantage of usufruct bonds is that they raise
awareness among community members on equity in marine ecological compensation and the need to reduce
the economic and pollution load on marine ecosystems. The interest of the local communities now is in
protecting the ecology of their marine environment.
In China, the country’s Green Bond Standard Committee (CGBSC) issued its first China Green Bond Principles in
mid-2022. Overall, the principles show alignment with international standards, such as local issuers are to
follow the China Green Bond Endorsed Projects Catalogue, overseas issuers may also reference The Common
Ground Taxonomy and EU taxonomy, 100% use of proceeds may be allocated to green projects, with reporting
requirements sharpened annually and recommended more frequently. For 2023 and beyond, it is expected to
see steady, continued momentum toward detailed and harmonized standards for sustainable instruments.
Source: Sustainalytics-The Sustainable- Bond Market in 2023 https://www.sustainalytics.com
Regarding defining green bond projects, two sets of standards exist in China. One is the Green Bond Project
Support Catalogue, which specifies that green bond funds are mainly invested in six primary areas: energy
conservation, pollution prevention and control, resource conservation and recycling, clean transportation,
clean energy, ecological protection, and climate change adaptation; and the issuance of green bonds such as
green financial bonds, green debt financing instruments for non-financial enterprises, green corporate bonds,
and green asset-backed securities in the financial market currently follow this specification. The 4.1.3.3 section
of the Catalogue (2021 Version) mentions provisions of green fisheries, including carbon sink fisheries and
water purification fisheries, comprehensive utilization of rice fishing and saline water fisheries, recirculating
water aquaculture, depth-water wind, and wave resistance and non-baiting net box breeding, ecological health
breeding, comprehensive utilization of by-products of aquatic product processing, and other environmentally
friendly fisheries; construction and operation of aquaculture sewage treatment facilities, and construction and
operation of fisheries resources conservation facilities, such as conservation-oriented marine pasture.
The other standard is the Green Bond Issuance Guidelines, which focuses on green corporate bonds and points
out that the funds raised from green corporate bonds are mainly used to support green projects such as
energy-saving and emission-reduction technology transformation.
Source: http://www.gov.cn/zhengce/zhengceku/2021-04/22/content_5601284.htm
3.2 Cooperation with Enterprises-Social Corporate Responsibility

The construction and administration of ocean & fishery-protected areas are groundwork with long-term
benefits. Aside from significant governmental support and inputs, there is a need to mobilize the strengths in
all quarters of society by following the market-oriented model to attract private financing to participate in the
construction and management of reserve zones. Corporate Social Responsibility (CSR) is the vehicle for private
sector participation in the sustainability process.
The purpose here is to introduce Corporate Social Responsibility CSR in this project as a financial vehicle for
national enterprises to provide funding and support to livelihood activities in the MPAs and, as a result,
maintain the sustainability of the MPAs. National corporates in China can utilize the CSR opportunities and
make it part of their ESG Reporting to national and international shareholders.
3.2.1 Background of CSR
The Organization for Economic Cooperation and Development OECD Guidelines

https://mneguidelines.oecd.org https://www.oecd.org/china/china-and-oecd.htm and the UN Guiding
Principles on Business and Human Rights,https://www.ohchr.org/sites/default/files/Documents/Publications/
GuidingPrinciplesBusinessHR_EN.pd are the most widely accepted international guidelines that explain to
enterprises how to perform CSR due diligence in their value chains. The OECD Guidelines for Multinational
Corporates (OECD guidelines) offer a framework for enterprises to deal with sustainability issues such as the
environment. Enterprises must know their value chain's social and environmental risks and take mitigating
17
measures. The UN Guiding Principles on Business and Human Rights distinguish the state's duty to protect
human rights, the responsibility of corporates to respect human rights, and the provision of access to effective
remedies. In addition, the local networks of the UN Global Compact https://unglobalcompact.org/engage-
locally/about-local-networks can assist corporates with CSR-related matters. The Business & Human Rights
Navigator https://bhr-navigator.unglobalcompact.org shares examples of how corporations manage CSR risk.
Corporates in China are identifying, preventing, and reducing CSR risks in their supply chain, both upstream and
downstream. This is also called 'due diligence' or 'CSR risk management' and can consist of the following steps:
the formulation of a CSR strategy, mapping the corporate value chain, performing a risk assessment, and
prioritizing the risks, collaborating with the value chain partners to address risks, as well as monitoring and
communicating about their policies and progress.
3.2.2 National Regulations of CSR
The most relevant ministries for CSR in China are the Ministry of Human Resources and Social Security
(MOHRSS), the Ministry of Emergency Management (MEM), the Ministry of Ecology and Environment (MEE)
and the Ministry of Commerce (MofOFCOM). They are also actively represented at provincial and lower
administrative levels, such as through the provincial Department of Ecology and Environment (DEEs) and the
Department of Commerce (DofCOMs). Chana has well established CSR framework and supportive institutional
environment. The project can demonstrate how CSR is aligned to protect and sustain marine protected areas.
The following Table 02 exhibits the main national regulations regarding CSR in the country.
18
Table 02 National CSR Regulation
19
Name of the Law Area of CSR Date of Law Enactment
Constitution of the PRC Comprehensive (human rights Dec. 4,1982
Strengthening Marine Protected Areas in protection
SE China to oriented)
conserve globally significant coastal biodiversity
Company Law of the PRC comprehensive Jan. 1, 2006 (amended on Oct.
26, 2018)
Law of the PRC on the Protection human rights protection, social May 13, 1991
of Persons with Disabilities security
Law of the PRC on the Protection human rights protection Sep. 4, 1992
of Minors
Law of the PRC on the Protection human rights protection Oct. 1, 1992.10.1 (amended in
of Women’s Rights and Interests 2005, 2018, and 2022)
Labor Law of the PRC labor employment, Jan. 1, 1995 (amended on Dec.
employment promotion 29, 2018)
Law of the PRC on Labor Contracts labor employment Jan. 1, 2008
Law of the PRC on Trade Unions labor employment April 3, 1992
Law of the PRC on Prevention and labor employment May 1, 2002
Control of Occupational Diseases
Law of the PRC on Work Safety safety in production, Nov. 1, 2002
labor employment
Law of the PRC on Mine Safety safety in production, May 1, 1993
labor employment
Law of the PRC on the Promotion Safety in production, Jan. 1, 2003 (Feb. 29, 2012)
of Cleaner Production Environmental protection
Law of the People's Republic of Safety in production, Oct. 17, 2020
China on Biosafety Environmental protection
Standardization Law of the PRC safety in production, April 1, 1989
environmental protection \
labor employment,
consumer rights protection
Law of the PRC on Environmental environmental protection Dec. 26, 1989 (amended in
Protection 2014)
Law of the PRC on Marine environmental protection March 1, 1983 (amended on
Environmental Protection Nov. 5, 2017)
Law of the PRC on Environmental environmental protection Sep. 1, 2003 (amended on Dec.
Impact Assessment 29, 2018)
Law of the PRC on the Prevention environmental protection April 1, 1996 (amended on
and Control of Environmental Sep.1, 2020)
Pollution by Solid Waste
Law of the PRC on the Prevention environmental protection Nov. 1, 1984 (amended on June
and Control of Water Pollution 27, 2017)
Law of the PRC on Prevention and environmental protection June 1, 1988
Control of Air Pollution
Law of the PRC on the Promotion environmental protection August 29, 2008 (amended on
of Circular Economy Oct. 26, 2018)
Law of the PRC on Energy environmental
20 (resources) Jan. 1, 1998 (amended on Oct.
Conservation
Action protection
Plan for Enhanced Safeguards Risk Management-Livelihood Action Plan 26, 2018)
Law of the PRC on Mineral environmental (resources) Oct. 1, 1986
Resources protection
Law of the PRC on the Prevention environmental (resources) August 31, 2018
and Control of Soil Pollution protection
3.2.3 Academic Perceptions of Corporate Social Responsibility (CSR)
It is generally agreed that CSR refers to "voluntary activities undertaken by companies that go beyond legal
requirements to operate economically, socially, and environmentally sustainable. Therefore, in an academic
sense, CSR can be considered a voluntary act of a company, a consciousness above legal responsibility.
Carroll's CSR Pyramid Model, which is highly

regarded in the academic community, divides
CSR into four areas in descending order of
importance: economic responsibility, legal
responsibility, ethical responsibility, and
philanthropic responsibility, as shown in Figure
02. Ethical responsibility and philanthropic
responsibility. Among them, economic
responsibility can be understood as the basis of
Figure 02 Carroll's CSR Pyramid Model corporate social responsibility. That is, the
company has an obligation to provide goods and services to society and earn profits, which reflects the
essential attributes of the company as a profit-making economic organization and is the most important social
responsibility of the company, but not the only responsibility. Legal responsibility requires companies to obey
the law and "not to do bad things." Ethical responsibility involves value expectations beyond legal principles
and requires companies to "do good." Philanthropic responsibility implies that companies should act like "good
citizens" and not only do good things but also contribute to society. In recent years, China has tended to try to
"legislate corporate social responsibility." This has been reflected in the 2006 Company Law, Article 5:
Companies engaged in business activities must comply with laws and administrative regulations, abide by social
morals and business ethics, be honest and trustworthy, accept the supervision of the government and the
public, and assume social responsibility.
Source: https://www.zhihu.com/question/321014735/answer/2209481350
3.2.4 Risk Management of CSR-Environment Pillar
Enterprises often develop CSR Risk Management Plans to address social responsibility up and downstream of
their supply chains. International shareholders constantly review CSR Plans, providing the platform for
investment decision-making in these enterprises. The following is a review of the CSR-environment risks in
China.
Climate
The Ecological Threat Report 2022 analyses four different ecological threats: food security,
21
natural disasters, population growth, and water stress

https://www.visionofhumanity.org/wp-content/uploads/2022/10/ETR-2022-Web.pdf, where China is at a high
risk of ecological threat.
The effects of climate change, such as extreme drought, flooding, and migration flows, directly affect
international supply chains. Corporations mitigate the impacts of the emission of greenhouse gases by, for
example, developing carbon sequestrating schemes in MPAs. This approach could compensate for corporate
CO2 emissions that are (for now) unavoidable. This is called ‘carbon offsetting,’ meaning that corporations pay
for their CO2 emissions. With that money, projects are funded that reduce CO2 emissions elsewhere. Carbon
offsetting does not directly impact reducing CO2 emissions of corporate operations and is, therefore, not an
alternative to CO2 reduction. It is an additional measure intended for the genuinely unavoidable emissions.
Biodiversity
The biodiversity in China faces threats due to the combined effects of habitat fragmentation, environmental
contamination, and exploitation of natural resources. Spatial variation in biodiversity loss across China under
multiple environmental stressors | Science Advances
The world map of the GRAS Tool https://gst-prod.gras-system.org/webui/index.html#/worldmap/show

shows which areas are at increased risk for biodiversity loss. Figure 03 exhibits the Ramsar Sites in green in the
three project areas. The WWF Biodiversity Risk Filter https://riskfilter.org/biodiversity/home is a free online
tool that enables corporates and financial institutions to Inform, Explore, Assess, and Respond to biodiversity
risks. It is a corporate and portfolio-level screening tool to help corporates and investors to prioritize action on
what and where it matters the most to address biodiversity risks for enhancing business resilience and
contributing to their business's sustainable future.
22
Figure 03 GRAS Tool-Biodiversity in Project Area
3.3 Introduction to best practices in Vertical Farming
3.3.1 Definition & Benefits
Coastal areas attract urban and industrial developers due to the proximity of expert and import ports, cooling
water, water surface resources, and moderate weather. Small communities often must adjust when losing
coastal or terrestrial farming lands. Vertical farming is one of the solutions that can contribute to replacing the
loss of farming livelihood or as a replacement for a lost livelihood.
The advantages of vertical farming are:
1. Vertical farming allows for, in some cases, over ten times the crop yield per acre than traditional
methods.
2. Up to 20 outdoor farmland units per vertical farming unit could return to their natural state due to
vertical farming's increased productivity. Vertical farming would reduce the amount of farmland, thus
saving many natural resources.
23
3. Deforestation and desertification caused by agricultural encroachment on natural biomes could be

avoided. Producing food indoors reduces or eliminates conventional plowing, planting, and harvesting
by farm machinery, protecting soil and lowering emissions.
4. All-season farming multiplies the productivity of the farmed surface by a factor of four to six,
depending on the crop.
5. Vertical farming also allows for producing a wider variety of harvestable crops because it uses isolated
crop sectors as opposed to a traditional farm where one crop type is harvested per season.
6. This farming method is environmentally responsible by lowering emissions, reducing needed water,
and resisting weather changes such as floods and droughts.
7. This type of urban farming, allowing for nearly immediate farm-to-store transport, would reduce
distribution costs and shorten produce travel time.
8. Control of pests (insects, birds, and rodents) is easily managed in vertical farms because the area is
well-controlled. Without chemical pesticides, growing organic crops is more accessible than in
traditional farming.
9. It requires moderate labor skills that can be provided to local communities in the impacted project area
through capacity-building measures.
Sources: 1) Deng B, Zhang YL, Yuan SW, et al. Progress and prospects of vertical agriculture research[C]// The
35th Annual Meeting of the Chinese Meteorological Society of Chinese Meteorological Society. Innovation and
change of meteorological services in the era of big data, Internet, and integrated media - The 8th
Meteorological Services Development Forum. May 2018; and
2) https://www.usda.gov/media/blog/2018/08/14/vertical-farming-future
The challenge of starting vertical farms is in the initial investment and its energy dependency. Therefore, the
state requires interventions and support through targeted projects, as in this project. Where the value of green
bonds can offset the high initial investment. In addition, it is an advantage that vertical farms are located near
oceanic carbon sequesters. Since vertical farms require and emit carbon dioxide as part of the plant growth
cycle. Figure 04 provides an example of Smart Farm Project in Hebei Province. Where vertical farming is
presented as a community project including eco-tourist activities.
24
Figure 04 Smart Farm Project in Hebei Province
25
Smart Farm Project in Hebei Province

A Smart Farm Project has been founded in Hebei Province. The initial investment is 50 million yuan, and the
subsequent annual investment is 2 million yuan, with a yearly income of about 30 million yuan.
Necessary technologies in the agricultural production process of vertical farms mainly include:
(1) Drip irrigation, hydroponics, and aeroponics are jointly used.
(2) Automatic spore capture analyzer: for analyzing fungal diseases.
(3) Stereo culture: fully uses land resources and sunlight for faster plant growth.
(4) Red and blue LED lights: change lights according to the plant growth conversion rate demand.
(5) Carbon dioxide and oxygen conversion pipeline: carbon dioxide discharged from mushroom growth is
transported to the lettuce shed through the pipeline, and oxygen output from the plant shed is reversely
transported to the mushroom house.
(6) Adopt yellow and blue sticky boards, light repellents, and other physical repellent methods to repel pests
without pesticides.
Other experience of the Smart Farm operations:

(1) The new varieties introduced by the company were experimented with by the innovative farm first and
then promoted to be grown in large fields, reducing the cost of trial and error.
(2) Cooperating with village committees and travel agencies; open to the public for free and has become a
well-known tourist study site near and far, attracting many tourists and selling fruits and vegetables well.
(3) Renting out small plots of land to tourists to earn rent and providing seeds by the farm.
Source: https://tv.cctv.com/2022/09/30/VIDEL6vTrftXl7QXHVwAkEPb220930.shtml?
spm=C47996.PEQcu7CFaec5.E1duYqEwVCnQ.564
26
3.3.2 National Regulation-Vertical Farming
The following are a brief review of national regulations in support of agriculture efficiency and improvement.
The State Council's 14th Five-Year Plan for Agriculture and Rural Development
The 2nd main goal -- a steady improvement in the quality, efficiency, and competitiveness of agriculture,
including agricultural production structure and regional layout optimized; material and technical equipment
conditions continue to improve; the level of scale, intensification, standardization, and digitization is further
improved; and the supply capacity of green and high-quality agricultural products is significantly enhanced. The
industrial and supply chains are optimized and upgraded, forming a modern rural industrial system.
Chapter III, Section I -- Research key core technologies in agriculture. Improve the stable support mechanism
for basic research in agricultural science and technology, and strengthen the construction of fundamental
agricultural theories, scientific research infrastructure, positioning observation systems, and resource and
ecological monitoring systems. Focus on the critical areas of essential frontier and accelerate breakthroughs in
several significant theories, tools, and methods. Focus on critical areas such as biological breeding, arable land
quality, smart agriculture, agricultural machinery and equipment, and green agricultural inputs, and accelerate
the development and innovation of several key core technologies and products. Accelerate research on the
causes of animal diseases, crop pests, and diseases in the weather environment, transmission mechanisms, and
pathogenic mechanisms, and enhance the ability to prevent and control significant agricultural risks and ensure
industrial safety.
Chapter III, Section IV -- the development of intelligent agriculture. Establish and promote the application of
agricultural and rural extensive data systems; promote the deep integration of a new generation of information
technology (Internet of Things, big data, artificial intelligence, blockchain, etc.) and agricultural production.
Construct digital fields, digital irrigation areas, and intelligent farming (animal husbandry, fishing) farms.
Source: http://www.gov.cn/zhengce/content/2022-02/11/content_5673082.htm
Agricultural Mechanization Promotion Law of the People's Republic of China (amended on Oct. 26, 2018)
The State supports agricultural machinery producers to develop advanced and applicable agricultural
machinery, adopt advanced technologies, advanced processes, and advanced materials, improve the quality
and technical level of agricultural machinery products, reduce production costs, and provide agrarian
machinery products that are serialized, standardized, multifunctional and of good quality, and energy-saving
and reasonably priced.
Source: https://gkml.samr.gov.cn/nsjg/bgt/202106/t20210609_330421.html
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3.3.3 Sustainability Reporting- Vertical Farming
The planned livelihood vertical farming projects should be designed, and their expected results should be
aligned to fulfill the following sustainability reporting presented in Table 03. The reporting indicators are
adopted and customized based on SASB Standards: The Sustainability Accounting Standards Board (SASB)
https://sasb.org. The advantage here is that these are international best practices, and private enterprises will
be able to report on these indicators as part of their financial reports to shareholders. Also, this project can
pilot the design and implementation of livelihood projects, where lessons could be learned for replication at
the national level as part of livelihood projects in MPAs administration.
Table 03 Sustainability Reporting-Vertical Farming
Reporting Sustainability Indicators
Vertical Farming
Greenhouse Gas Emissions
The agricultural industry generates direct greenhouse gas (GHG) emissions from the processing and
transporting goods via land and sea freight operations. Employing innovative technologies that use
alternative fuels and energy inputs generated from internal processes—and improving fuel efficiency
are ways businesses can limit exposure to volatile fuel pricing, supply disruptions, future regulatory
costs, and other potential consequences of GHG emissions.
Amount of greenhouse gas (GHG) emissions to the atmosphere of the seven GHGs covered under the
Kyoto Protocol—carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons
(HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3).
Energy Management
Energy consumption contributes to environmental impacts, including climate change and pollution.
Energy management affects current and future costs of operation. Climate regulation and other
sustainability factors could result in higher and/or more volatile electricity and fuel prices, increasing
operating costs for agricultural products. Therefore, energy efficiency gained through process
improvements can lower operating costs. The tradeoff between on-site versus grid-sourced electricity
as well as the use of alternative energy can play essential roles in influencing both the long-term cost
and reliability of a company’s energy supply and the extent of regulatory impact from
direct versus indirect emissions.
The total amount of energy consumed per year includes energy purchased from external sources and
energy produced by the entity (self-generated). For example, purchased electricity and heating,
cooling, and steam energy are all included in the energy consumption scope.
The percentage of energy consumed that is renewable energy. Renewable energy is defined as energy
from sources that are replenished at a rate greater than or equal to their depletion rates, including
geothermal, wind, solar, hydro, and biomass.
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Water Management
The agricultural industry relies on water for processing activities, and companies in the industry also
typically generate wastewater or effluent. Due to physical availability and/or regulatory access, water
availability directly impacts the industry’s ability to operate processing facilities efficiently.
Businesses can manage water-related risks and opportunities and mitigate long-term costs. Through
capital investments and assessment of facility locations relative to water scarcity risks, improvements
to operational efficiency, and work with regulators and communities on issues related to water access
and effluent.
The quantity of water was withdrawn from all sources per year in thousands of cubic meters. Water
sources include surface water (from wetlands, rivers, lakes, and oceans), groundwater, rainwater
collected directly and stored by the entity, and water and wastewater obtained from municipal water
supplies, water utilities, or other entities.
Quantity of water is withdrawn in locations with High or Extremely High Baseline Water Stress as a
percentage of the total water withdrawn.
Risks associated with water withdrawals and water consumption include threats to the availability of
adequate, clean water resources, including:
Environmental constraints—such as operating in water-stressed regions, drought, concerns of aquatic
impingement or entrainment, interannual or seasonal variability, and risks due to the impact of
climate change.
Regulatory and financial constraints—such as volatility in water costs, stakeholder perceptions and
concerns related to water withdrawals (e.g., those from local communities, non-governmental
organizations, and regulatory agencies), direct competition with and impact from the actions of other
users (e.g., commercial, and municipal users), restrictions to withdrawals due to regulations, and
constraints on the entity’s ability to obtain and retain water rights or permits
Risks associated with the discharge of water and/or wastewater include but are not limited to, the
ability to obtain rights or permits related to discharges, compliance with regulations related to
discharges, restrictions to discharges, the ability to maintain control over the temperature of water
discharges, liabilities, and/or reputational risks, and increased operating costs due to regulation,
stakeholder perceptions and concerns related to water discharges (e.g., those from local
communities, non-governmental organizations, and regulatory agencies).
The total number of instances of non-compliance, including violations of technology-based
standards and exceedances of quantity and/or quality-based standards.
Food Safety
Agricultural products are sold directly to consumers in raw form or are further processed before
reaching consumers. Maintaining product quality and safety is critical, as contamination by
pathogens, chemicals, or spoilage presents severe human and animal health risks. Poor farming,
transport, storage, or handling practices may contaminate contaminants. Food quality and safety
issues can lead to consumer-driven demand changes and regulatory action.
29
Product recalls can harm brand reputation, reduce revenues, and lead to costly fines. Obtaining food
safety certifications or ensuring suppliers meet food safety guidelines may help companies safeguard
against product safety risks and communicate the quality of their products to buyers.
Non-conformance rates with Global and National Food Safety Initiative (GFSI) recognized
food safety certification programs for (a) significant non-conformances and, separately, (b) minor
non-conformances.
Workforce Health & Safety
Industrial processes used in the agricultural industry present significant occupational hazards.
Employees are engaged in many labor-intensive activities. Common hazards include falls,
transportation accidents, equipment-related accidents, and heat-related illness or injury, among
others. Health and safety standards violations could result in monetary penalties and costs for
corrective actions. High injury rates, particularly fatalities, may indicate a weak governance structure
and workplace safety culture, leading to significant reputational harm. Strong performance in
managing workforce health and safety can help build brand image while promoting worker morale,
which may lead to increased productivity, reduced worker turnover, and enhanced community
relations.
Total recordable incident rate (TRIR) for work-related injuries and illnesses.
Environmental & Social Impacts of Ingredient Supply Chain
Agricultural businesses source agricultural inputs from a large number of suppliers. How companies in
the industry screen, monitor, and engage with suppliers on environmental and social topics may
impact consumer demand, reputational risks, and the ability of companies to manage their crop
supply and respond to price fluctuations effectively. Supply chain management issues related to labor,
environmental practices, ethics, or corruption may result in regulatory fines and/or increased long-
term operational costs for companies. Similarly, agricultural products companies may face
reputational damage if their suppliers perform poorly on environmental or social issues. Companies
can mitigate these risks and potentially increase consumer demand or capture new market
opportunities by engaging with key suppliers to implement sustainable agricultural practices or
sourcing from certified suppliers.
Strategy to manage environmental and social risks that arise from its contract growing and
commodity sourcing practices. Environmental and social risks include but are not limited to extreme
weather events, water stress, degradation of the environment, labor rights, and community rights.
The percentage of agricultural products it sourced that are certified to a third-party
environmental and/or social standards. Environmental standards are defined as standards that
address environmental impacts related to the production of agricultural products, such as the
protection of primary forests, maintenance of surface water and groundwater quality, and
implementation of integrated pest management (IPM) solutions or an Organic System Plan. Social
30
standards are defined as standards that address social impacts related to the production of
agricultural products, such as workforce compensation, training, and continual monitoring of health
and safety risks associated with applications of agrochemicals.
GMO Management
Agricultural products developed using genetically modified organism (GMO) technology have gained
increasing consumer interest. While GMO technology has, in many cases, enabled improvements in
crop yield through the development of disease or drought-resistant traits in plants, there is increasing
consumer concern about the perceived health, environmental, and/or social impacts related to the
cultivation and consumption of GMOs.
Note: China has studied GMO food crops for decades but has never permitted them to be planted
because of technological opposition. However, it allows imported GMO soybeans and corn for use in
animal feed and the planting of GMO cotton.
Not Applicable
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3.4 Introduction to best practices in Eco-Tourism
Ecotourism is a sub-component of the field of sustainable tourism. Ecotourism must maximize ecological
benefits while contributing to communities close to ecotourism venues' economic, social, and cultural well-
being. Ecotourism is a form of tourism involving responsible travel (using sustainable transport) to natural
areas, conserving the environment, and improving the well-being of the local people.
Ecotourism may focus on educating travelers on local environments and natural surroundings with an eye
to ecological conservation. Responsible ecotourism programs include those that minimize the negative aspects
of conventional tourism on the environment and enhance the cultural integrity of local people. Therefore, in
addition to evaluating environmental and cultural factors, an integral part of ecotourism is the promotion
of recycling, energy efficiency, water conservation, and creating economic opportunities for local communities.
A primary challenge is ensuring that ecotourism does not compromise the ecological integrity of Marine
Protected Areas MPAs and the welfare of local communities. The following are the expected benefits of
ecotourism:
1. The incentive to protect natural environments

2. The incentive to rehabilitate modified environments and lands
3. Provides funds to manage and expand protected areas
4. Ecotourists assist with habitat maintenance and enhancement through their actions
5. Ecotourists serve as watchdogs or guardians who personally intervene in situations where the
environment is perceived to be threatened
6. Exposure to ecotourism fosters a broader sense of environmentalism
7. Communities experience changes in environmental attitudes and behavior
8. Areas protected for ecotourism provide environmental benefits
9. Generates revenue (related to visitor expenditures) and creates employment that is directly related to
the sector
10. Provides economic opportunities for peripheral regions
11. High multiplier effect and indirect revenue employment
12. Supports cultural and heritage tourism, sectors that are highly compatible with ecotourism
13. Foster community stability and well-being through economic benefits and local participation
14. Aesthetic and spiritual benefits and enjoyment for locals and tourists
15. Accessible to a broad spectrum of the population
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3.4.2 National Regulations -Ecotourism
The current tourism in the surveyed villages in the project area is not aligned with ecotourism definitions and
does not achieve the expected benefits. For example, in the Sanniangwan Village, there were no regulations or
advice on tourism-related services. All services were offered by individual households according to their own
standards. Not all tourism-related activities were biodiversity friendly. For example, noise from the tourist
yachts and garbage from the tourists on the beach.
There are many laws and regulations related to ecotourism in China, such as Environmental Protection Laws,
Tourism Laws, Wildlife Protection Laws, Forest Laws, Marine Environmental Protection Laws, Water Pollution
Prevention and Control Laws, and Regulations on Nature Reserves, and regulations specifically for ecotourism
have not yet been introduced. In addition, the relevant laws and regulations, such as Regulations on Nature
Reserves, Regulations on Scenic Areas, Forest Park Management Measures, Forest Laws, Grassland Laws,
Wildlife Protection Laws, etc., are legislated separately according to the specific carrier of ecotourism with
relevant legal provisions scattered and lack of special stipulations coordinating the provisions of each law. In
China, there are only two regulations that contain the term "ecotourism," namely the "Regulations on the
Management of Wetland Protection" and the "Measures for the Management of National Forest Parks ."Take
the "Regulations on the Management of Wetland Protection" as an example. Its Article 20 requires the
orientations of wetland ecosystem protection, rational use of wetland resources, wetland publicity, education,
and scientific research, and in the wetland areas where ecotourism activities can be carried out, wetland parks
can be established. Article 28 stipulates that the forestry departments in charge at or above the county level
shall guide and supervise ecotourism activities and other uses of wetland resources.
There are some national normative documents on ecotourism, formed by the approval of ecotourism plans of
relevant state departments for special protection areas, which are only effective for specific areas and do not
have a universal effect. In comparison, the National 14th Five-Year Plan for Tourism (Plan for short) has a
nationwide impact, although the content of ecotourism occupies only a very small part of it.
The Plan for Tourism released on Dec. 22, 2021, with content related to ecotourism, as follows: prioritize
ecological protection, moderately develop ecotourism, and improve people's livelihood; take ecological
carrying capacity and natural restoration capacity into consideration, launch a number of ecotourism products
and routes, strengthen ecological protection publicity and education, and help tourists realize the magic of
nature and form green consumption and lifestyle; use technical means in reservation control, environmental
monitoring, and flow diversion, and reduce the impact of tourism on the natural environment to a minimum.
In addition, in column 5, the "optimization and upgrading of ecotourism project" also highlights three aspects
concerning ecotourism. First, the continued implementation of the national ecotourism development plan.
Implement major projects of ecotourism supporting system, and increase the construction of infrastructure and
public service facilities in ecological resource-rich areas; expand the space for ecotourism development, and
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jointly build ecotourism collaboration zones, key ecotourism destinations, high-quality ecotourism routes,
national ecological, scenic routes, etc. Second, optimize the construction of national ecotourism
demonstration areas, and innovate the way of transforming ecotourism resources into products. Third,
promote green development of tourism. Support scenic spots, hotels and restaurants, B&B inns, and other
types of tourism enterprises to conduct green demonstrations and implement water and electricity saving and
low-carbon projects; strengthen the promotion of ecotourism concepts and products. Encourage enterprises
and public welfare organizations to build education sites in key ecotourism destinations and advocate the
ecotourism mechanisms being shared between hosts and customers.
The ecotourism development plans in local legislation and ecotourism protection regulations in scenic areas are
mostly focused on ecological protection, and the element of "tourism" is rare. For example, in the Northwest
Ecosphere Development Plan of Hubei Province and the Ecotourism Development Plan for the Northern Qinling
Mountains, the number of contents and pages related to tourism development is relatively small, while there is
a large amount of content about the natural resources protection and ecological environment development; in
the chapter of Tourism Development System, the relevant provisions remain at the level of principles, not very
operable.
Source:
https://zhuanlan.zhihu.com/p/256452223#:~:text September 20, 2020
https://www.forestry.gov.cn/main/3951/20171213/635511.html
https://www.gov.cn/zhengce/content/2022-01/20/content_5669468.htm
34
3.4.3 Sustainability Reporting-Eco Tourism
The planned livelihood Eco-Tourism projects should be designed, and their expected results should be aligned
to fulfill the following sustainability reporting presented in Table 04. The reporting indicators are adopted and
customized based on SASB Standards: The Sustainability Accounting Standards Board (SASB) https://sasb.org.
The advantage here is that these are international best practices, and private enterprises will be able to report
on these indicators as part of their financial reports to shareholders. Also, this project can pilot the design and
implementation of livelihood projects, where lessons could be learned for replication at the national level as
part of livelihood projects in MPAs administration.
Table 04 Sustainability Reporting in Eco-Tourism

Sustainability Reporting Indicators
Eco-Tourism
Ecological Impacts
Healthy ecosystems are linked with local communities and businesses' economic and financial
performance. The influx of tourists and lodging waste can risk sensitive ecosystems such as coral reefs
and nature preserves. In the long term, they could diminish natural tourist attractions that help
generate revenue for communities. In contrast, the protection of the environment may make travel
destinations more attractive and increase demand for lodging and tourist bookings.
The number of lodging facilities operated, owned, leased, or franchised in sites with
protected conservation status or areas of endangered species habitat.
Description of environmental management policies and practices relating to preserving the ecosystem
services. Ecosystem service is defined as a service people obtain from the environment based on
transforming natural assets (soil, plants, animals, air, and water) into directly valued things.
Ecosystem services can be viewed as (a) provisioning, which refers to use for resources such as food
and water; (b) regulating, which refers to uses such as flood and disease control; (c) cultural, which
refers to uses that are spiritual, recreational, or provide cultural benefits; or (d) supporting, which
refers to those systems that maintain the conditions for life on Earth. This definition is derived from
the International Union for Conservation of Nature's Commission on Ecosystem Management.
Climate Change Adaptation
Physical climate risks, including inclement weather and flooding, may impact tourist activities in
climate change-exposed areas. Inclement weather may damage property and disrupt operations,
reducing asset values and revenues. In addition, lodges may face higher insurance premiums for
buildings located in coastal regions or may be unable to insure their properties. Hotel operators must
likely adapt to shifting climate trends such as rising sea levels, hurricanes, and flooding to maintain
their climate-exposed revenue-generating properties.
35
The number of lodging facilities in flood zones.

Customer Safety
Eco-tourism exposes guests to potentially unsafe conditions that may result in injury and even death.
Safety management, therefore, includes managing the safety of lodges, boats, restaurants, and
transportation. The industry is mainly subject to low-probability but high-magnitude safety concerns.
Ensuring the highest safety standards can help businesses minimize reputational damage and
liabilities from costly lawsuits.
Rates of (1) Fatality rate and (2) Injury rate for customers
The percentage of facilities that were inspected for facility safety by a relevant regulatory
oversight authority during the reporting period.
Workforce Safety
The tourist industry can expose employees to injuries if facilities and equipment are not maintained
or precautions and training procedures are not in place. Boats, swimming, or diving may expose
employees to potentially unsafe conditions resulting in injury or death. Potential financial impacts
associated with employee safety violations include regulatory fines, abatement costs, and negative
impacts on brand reputation. These impacts may stem from accidents as well as from chronic safety
issues.
Total recordable incident rate (TRIR) and near miss frequency rate (NMFR) for (a) permanent
employees and (b) seasonal employees
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3.5 Introduction of E-businesses for women groups

Significant gender disparities still exist in education attainment, training opportunities, employment
opportunities, participation, decision-making, and wage equality in the PRC, in the three project provinces, in
the project prefectures and counties, and adjacent to the project MPAs. Women and men have different roles
and responsibilities in the project area. Men are usually in charge of external affairs, attending meetings, and
participating in training. At the same time, women are responsible for domestic affairs, including cooking,
washing, cleaning houses, and taking care of children and older adults. Women are the primary users of the
intertidal zone for collecting sea products, while men are more involved in fishing activities. Rural women's
education attainments are lower than rural men's and much lower than urban women. Women have a low
level of involvement, and are often absent from participating in, public affairs. Rural women have less access to
employment opportunities and less opportunity to be involved in decision-making related to community affairs.
As part of the project outputs, an online Application for a participatory monitoring system to support tourists or
residents in reporting accidents or coastal observations will be developed.
The project management can initiate a market assessment to highlight the required and feasible E-Business
services in the project-area. A capacity-building input by the project management is required to provide the
required training, hardware, infrastructure, and support to interested women groups.
Electronic business is any business or commercial transaction sharing information across the
internet. Commerce constitutes the exchange of products and services between businesses, groups, and
individuals and can be seen as one of the essential activities of any business. E-Business for women groups has
many benefits within the context of this project:
1. Easy to set up: electronic business is accessible from home. The only hardware requirements are
software, a device, and an internet connection.
2. Flexible business hours: There are no time barriers that a location-based business can encounter since
the Internet is always available to everyone. Everyone with an internet connection can access products
and services.
3. Cheaper than traditional business: Electronic business is less costly than a conventional business.
4. No geographical boundaries: The most significant benefit is the possibility of geographical dispersion.
Anyone can order anything from anywhere at any time.
5. Government subsidies: Digitalization is very encouraged by the government, and they provide the
necessary support.
6. Newmarket entry: It has a great potential to enable an entrance to a previously unknown market that a
traditional business could not.
37
7. Lower inventory levels: Electronic business enables companies to lower their inventory level by
digitalizing their assets.
8. Lower costs of marketing and sales: E-business allows the industry actors to advertise their
product/service offer (i.e., eco-tourism, house rental) at generally lower prices than by promoting their
business physically.
9. It does not conflict with women’s choices of starting families and working from home.
10. It does not require high technical skills, and adequate capacity-building support is often sufficient.
3.5.2 Sustainability Reporting in E-Business
The planned livelihood E-Business projects should be designed, and their expected results should be aligned to
fulfill the following sustainability reporting presented in Table 05. The reporting indicators are adopted and
customized based on SASB Standards: The Sustainability Accounting Standards Board (SASB) https://sasb.org.
The advantage here is that these are international best practices, and private enterprises will be able to report
on these indicators as part of their financial reports to shareholders. Also, this project can pilot the design and
implementation of livelihood projects, where lessons could be learned for replication at the national level as
part of livelihood projects in MPAs administration.
Table 05 Sustainability Reporting in E-Business
Sustainability Reporting Indicators
E-Businesses for Women Groups
Hardware Infrastructure
E-Businesses require access to reliable energy supply and communication infrastructures, both
physical and wireless.
Integration of environmental considerations into the planning of data centers. Environmental factors
may include energy-efficiency standards; and location-based elements, such as accounting for
regional humidity, average temperature, water availability and groundwater stress, water permits,
provincial- or state-level carbon legislation or pricing, and the carbon intensity of electricity from the
local grid.
Data Privacy & Advertising Standards
E-Businesses can access consumer information, including financial information, purchase history, and
primary demographic data. Companies in this industry must carefully manage two separate and often
conflicting priorities. On the one hand, businesses compete on their ability to leverage data to provide
users with relevant services and target advertising or product recommendations based on consumers'
preferences and behavior patterns. On the other hand, the fact that businesses have access to a wide
range of user data, such as personal, demographic, and behavioral data, raises
privacy concerns among users and the public. Failure to manage the issue can result in costs
associated with regulatory oversight and reputational risks. Furthermore, effective management in
this area can have financial implications through increased user confidence and loyalty, which are
38
particularly important to maintain market share.

The number of unique users whose information is used for secondary purposes.
User information includes information that pertains to a user's attributes or actions, including but not
limited to account statements, transaction records, records of communications, the content of
communications, demographic data, behavioral data, location data, and/or personally identifiable
information (PII).
Description of the nature, scope, and implementation of policies and practices related to user privacy,
with a specific focus on how it addresses user information collection, usage, and retention.
Description of the information "lifecycle" (i.e., collection, usage, retention, processing, disclosure, and
destruction of information) and how information-handling practices at each stage may affect
individuals' privacy.
Data Security
E-Business depends on the ability to process electronic payments securely. As consumers become
more educated about cybercrime threats, particularly in the wake of continued high-profile attacks,
having a reputation as a secure company will become increasingly essential to maintain or gain
market share. There is an opportunity for the most trusted brands to position themselves favorably in
the eyes of consumers and gain a significant competitive advantage. This makes user loyalty, which is
highly influenced by the perception of the safety of the user's valuable financial and personal
information, essential in maintaining market share.
Description of the approach to identifying vulnerabilities in its information systems that pose a data
security risk.
Vulnerability is a weakness in an information system, system security procedures, internal controls,
and/or implementation that could be exploited.
Data security risk is defined as any circumstance or event with the potential to adversely impact
organizational operations (including mission, functions, image, or reputation), corporate assets,
individuals, other organizations, or nations through an information system via unauthorized access,
destruction, disclosure, modification of information, and/or denial of service.
Inclusion & Performance
Comprehensive and equal inclusion of all beneficiaries in the management and operation of E-
Business is critical.
Percentage of gender and racial/ethnic group representation for (1) management, (2) technical staff,
and (3) all other operators and owners
Presence of measures that include training on diversity, mentorship, and sponsorship programs.
Product Packaging & Distribution
E-Business has an incentive to minimize the use of packaging. Where efficient packaging can lead to
39
cost savings by reducing the amount of material that needs to be purchased, as well as
saving on logistics costs, as more products can fit into a single shipping load.
Strategies to reduce the environmental impact of fulfillment and delivery of its products,
including impacts associated with packaging materials and those associated with product
transportation.
40

Livelihood Action Plan July 2023

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Livelihood Action Plan July 2023

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Strengthening Marine Protected Areas in SE China to conserve globally significant coastal biodiversity

(China-Protected Areas System Reform (C-PAR) Program Child Project #4)

Action Plan for Enhanced Safeguards Risk Management-Livelihood Action Plan

Annex 01 Livelihoods of Fishermen in the Project Area

XBCW Xiamen Bay Coastal Waters

The proposed mitigation measures shall include the following:

1. Legal, regulatory, and institutional frameworks

3 Proposed Livelihood Model

3.2 Cooperation with Enterprises-Social Corporate Responsibility

3.2.1 Background of CSR

The Organization for Economic Cooperation and Development OECD Guidelines

3.2.2 National Regulations of CSR

Table 02 National CSR Regulation

3.2.3 Academic Perceptions of Corporate Social Responsibility (CSR)

Carroll's CSR Pyramid Model, which is highly

3.2.4 Risk Management of CSR-Environment Pillar

natural disasters, population growth, and water stress

The world map of the GRAS Tool https://gst-prod.gras-system.org/webui/index.html#/worldmap/show

Figure 03 GRAS Tool-Biodiversity in Project Area

3.3 Introduction to best practices in Vertical Farming

3.3.1 Definition & Benefits

3. Deforestation and desertification caused by agricultural encroachment on natural biomes could be

Figure 04 Smart Farm Project in Hebei Province

Smart Farm Project in Hebei Province

Other experience of the Smart Farm operations:

3.3.2 National Regulation-Vertical Farming

3.3.3 Sustainability Reporting- Vertical Farming

3.4 Introduction to best practices in Eco-Tourism

3.4.1 Definition & Benefits

1. The incentive to protect natural environments

3.4.2 National Regulations -Ecotourism

3.4.3 Sustainability Reporting-Eco Tourism

Table 04 Sustainability Reporting in Eco-Tourism

The number of lodging facilities in flood zones.

3.5 Introduction of E-businesses for women groups

3.5.1 Definition & Benefits

3.5.2 Sustainability Reporting in E-Business

particularly important to maintain market share.

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