 Franz Fehrenbach |
Earning back the trust of the people is crucial to helping the global business and finance industry move forward from the crisis, according to Franz Fehrenbach, chairman of German auto parts and technology company Robert Bosch GmbH.
In a written interview with The Korea Times, Fehrenbach said the challenges brought about by the financial crisis have not yet been resolved nor are there agreements on measures to prevent future crises.
``Simply speaking about the financial markets’ need to regain more trust and stability is not enough. That goes for all of us, but most especially for banks, investors, and politicians. This trust must be earned. It has to be apparent that people are willing to assume responsibility,’’ he said.
As the global economic crisis wanes, Fehrenbach said one way to regain trust is for governments to adopt reliable rules for financial markets and for market players to show responsible actions. ``Only in this way can the current positive investment and consumption climate be protected long-term,’’ he said.
Fehrenbach is one of the top global business leaders invited for the Seoul G20 Business Summit, which begins Wednesday at the Sheraton Walkerhill Hotel. With its theme ``The Role of Business for Sustainable and Balance Growth,’’ business leaders will tackle the most pressing issues related to trade and investment, finance, green growth and corporate social responsibility.
Fehrenbach, who has received environmental awards in Germany for spearheading Bosch’s ecologically-driven innovations, worked closely with the green growth working group in coming out with specific recommendations on fuel efficiency standards and bigger investments for smart energy grids and energy-efficient public transportation.
``These recommendations include ratcheting up fuel-efficiency standards that have substantial potential to reduce the energy consumption of conventional vehicles by up to 25 percent in the near future. Reductions can be achieved through the use of highly efficient combustion engines and innovative power trains, as well as through light weighting and other approaches,’’ he said.
But the most important element, Fehrenbach said, is focused action by businessmen and politicians to create lasting ``green’’ jobs in industry, energy, transport, and construction.
Bosch is the world’s largest supplier of automobile components, and also has businesses in industrial technology, consumer goods and building technology. The German group, which posted 38.2 billion euros (59 trillion won) in sales in 2009, is also leading the way in green technology.
Fehrenbach is well aware that environment and energy issues are not solely the concern of individual companies and governments, but affects everyone.
``This is why we in the Bosch Group are very deeply concerned with achieving sustainable corporate growth and a balance between industries that generate power and those that consume it. The CO2 targets that have been set and agreed to date, as well as the limited availability of fossil fuels, are a concrete stimulus to act, both for us and for all other market players,’’ the Bosch chairman said.
However, there should be globally harmonized targets and actions to ensure fair distribution of burden and risk among countries. ``More expensive energy and transport can affect the competitiveness of some nations, regions, and industries more than others. If the process of structural change is not smooth, time-wise and economically, the result could be not only that no new green jobs are created, but also that jobs are lost,’’ Fehrenbach said.
Expectations are also running high as the world’s most powerful leaders gather for the G20 Summit in Seoul this week.
With Korea being the first Asian and non-G8 country to host the G20 summit, Fehrenbach sees this as a positive sign of the Korean government’s willingness to assume the role of mediator between the leading economies and emerging markets.
``The Korea summit will show whether the community of G20 nations can successfully continue along the common route they have chosen, now that the global financial and economic crisis is waning, and in light of the heated debate about monetary policy. Speaking from the perspective of a globally operating company, I expect the G20 summit to send decisive signals. I am very much against unilateral action, which can only result in a step back to earlier trade and investment protectionism,’’ he said.
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