BAYER AG

RATING

SECTOR

Pharmaceuticals, Chemicals

WEBSITE

CONTACT

Kaiser-Wilhelm-Allee 3,

51373 Leverkusen,

Germany

T: +49 21430-1

STOCK EXCHANGE

LISTING

  • FTSE4GOOD
  • CDP A list 2018
  • 75/100 by EcoVadis,

EMPLOYEES

103,824

CEO & CHIEF SUSTAINABILITY OFFICER

Werner Baumann

AWARDS

N/A

CONTENT SOURCE

FURTHER READING

BAYER AG

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

A growing and ageing world population requires an adequate supply of food and improved medical care. With their innovative products, they are contributing to finding solutions to some of the major challenges of their time. With life expectancy continuing to rise, they improve quality of life for a growing population by focusing their research and development activities on preventing, alleviating and treating diseases. they are also making an important contribution to providing a reliable supply of high-quality food, feed and plant-based raw materials.

Their goal is to create value for their customers, stockholders and employees, while also strengthening the company’s earning power. They are committed to operating sustainably and addressing their social and ethical responsibilities. Employees with a passion for innovation enjoy excellent development opportunities at Bayer. All this goes to make up their  purpose:

Exclusive Focus on the Life Science Businesses

The Bayer Group is managed as a life science company with three divisions – Pharmaceuticals, Consumer Health and Crop Science – and the Animal Health business unit, which are also their reporting segments. The Enabling Functions support the operational business. In 2019, the Bayer Group comprised 392 consolidated companies in 87 countries.

Company Sustainable Activity

Bayer uses many means to make their production processes more resource-friendly and lower the emissions they generate. In line with the company claim, they are also committed to minimising wastewater pollution. Systematic waste management and recycling activities reduce the number of materials to be disposed of.

Responsibilities and framework conditions are stipulated at Group level, e.g. by corporate policies, targets and key performance indicators (KPIs). Bayer uses certified HSEQ management systems to control operational implementation. Bayer AG is committed to the chemical industry’s Responsible Care™ initiative and has set out the basic principles of this commitment in its Bayer Sustainable Development Policy. Certified HSEQ management systems control their operational implementation.

ENVIRONMENTAL PROTECTION

The Company meets its responsibility to protect the environment in many different ways. As a company, they continuously work to reduce the environmental impact of their business activities and develop product solutions that benefit the environment. For them, a resource-friendly and low-emissions approach to raw materials and energy is ecologically and economically expedient and efficient. These measures are designed to reduce environmental impact and, at the same time, cut the costs associated with materials, energy, emissions and disposal. As a pure life science company too, Bayer remains committed to climate protection.

The Company commitment extends beyond the scope of legal requirements. They perform a voluntary ecological assessment for capital expenditure projects exceeding €10 million. As part of the integration process, the corresponding corporate policy will also be extended to the acquired agriculture business. In the case of acquisitions, they examine compliance with the applicable environmental and occupational safety regulations as well as fundamental employee rights at the production sites in question.

In connection with the acquired agriculture business, Bayer took over another 162 environmentally relevant sites. These are included in their environmental performance indicators as of the closing date of June 7, 2018. As a result, nearly all of their environmental performance indicators are considerably higher year on year.

ENERGY CONSUMPTION

Higher total energy consumption through the inclusion of the acquired agriculture business. Compared with 2017, Bayer’s total energy consumption rose by 53.4% to 39.6%  in 2018. In connection with the acquisition of Monsanto, Bayer has taken over sites for seed production and for the extraction of raw materials for the manufacture of intermediates for crop protection products, which involves energy-intensive treatment and downstream processing. The integration of these process steps into the value chain substantially increases all performance indicators for energy consumption.

When calculating total energy consumption, Bayer differentiates between primary and secondary energy consumption. Primary energy consumption mainly comprises fossil fuels for their own generation of electricity and steam for the company’s use and for sale to other companies. Secondary energy consumption reflects, on the one hand, the purchase of electricity, steam and cooling energy at all company sites worldwide and, on the other, the proportion that is made available by their service provider Currenta at the Chempark sites in Germany to other companies. The proportion of renewable energies is determined by the energy mix of their energy suppliers.

ENERGY EFFICIENCY

Bayer reports energy efficiency as the ratio of energy used to external sales. For 2018, the company is including the acquired agriculture business in reporting of energy efficiency for the first time. As a result, the value for this performance indicator is now much higher.

AIR EMISSIONS

  • Climate protection: At Bayer, air emissions are caused mainly by the generation and consumption of electricity, steam and auxiliary energy for the production of their products and by vehicle fleet. Climate protection has been a priority at Bayer for decades. As reported in previous years, they were able to reduce their absolute greenhouse gas emissions between 1990 and 2015 through production and process innovations. This was possible in spite of production increases, particularly in the energy-intensive plastics businesses. Following the strategic realignment, they reduced their absolute greenhouse gas emissions as a pure life science company by a further 26.8% between 2015 and 2018 (excluding Currenta and the acquired agriculture business).

In integrating the acquired agriculture business, Bayer is currently reviewing their climate program and, in the future, want to make positive contributions to protecting the climate and managing the effects of climate change on several levels. The Company’s comprehensive approach also includes initiatives that seek to reduce the emissions of non-production operations. For example, they are looking at their vehicle fleet, the optimisation of logistics, and the further development of their information and communications technologies in terms of environmental aspects (Green IT).

  • Transparency on greenhouse gas emissions: In selecting and measuring greenhouse gas emissions, Bayer considers recommendations of the Greenhouse Gas (GHG) Protocol. Direct emissions from company-owned power plants, vehicles, waste incineration plants and production facilities (Scope 1) and indirect emissions from the procurement of electricity, steam and cooling energy (Scope 2) are determined at all environmentally relevant sites. In line with the GHG Protocol, indirect emissions (Scope 2) are reported according to both the location-based and the market-based methods. Because Bayer is reporting emission data for the acquired agriculture business for the first time, all Bayer Group emissions are considerably higher year on year.

In 2018, the Bayer Group was involved in European emissions trading with 13 plants in total. The CO2 emissions of these plants amounted to approximately 2.27 million metric tons. The reporting of all relevant indirect emissions from the value chain is bindingly regulated by the GHG Protocol Corporate Value Chain (Scope 3) Accounting & Reporting Standard. Bayer has identified eight key Scope 3 categories that they describe in detail in the current CDP report (excluding the acquired agriculture business and Currenta).

Logistics at Bayer comprises not just the transport and warehousing of goods, but also the steering and monitoring of flows of goods and logistics data for the Bayer Group. The acquired agriculture business will use its own legacy systems and processes until integration is completed. For this reason, the following information and data on means of transport apply only to Bayer excluding the acquired agriculture business. Utilising digital technologies, they work continually to develop logistics strategies that take account of safety, environmental and cost aspects. Areas of environmental focus include the reduction of CO2 emissions, for example by minimising air transport or using logistics strategies that include railways and waterways.

  • Increase in other direct air emissions: Particulate emissions rose considerably in 2018, from 60 to 2,370 metric tons, on account of the first-time inclusion of the sites of the acquired agriculture business in reporting. This is due in part to the mining and processing of raw materials for the manufacture of intermediates for crop protection products. In addition, seed production (corn and soybeans) results in relatively large quantities of particulates. The increase in CO emissions and in volatile organic compounds (VOC) excluding methane is largely attributable to the inclusion of the vehicle fleet of the acquired agriculture business.

ENVIRONMENTAL INCIDENTS

There were two environmental incidents – i.e. incidents that resulted in the release of substances into the environment – in 2018 (2017: two). Factors that determine whether there is a reporting obligation include, in particular, the nature and quantity of the substance, the amount of damage caused and any consequences for nearby residents. In accordance with BAYER’s internal voluntary commitment, they report any leakage of substances with a high hazard potential from a quantity of 100 kilograms upward. Both environmental incidents were also transport incidents.

WATER

Responsible water usage is a cornerstone of Bayer’s commitment to sustainable development. Clean water in sufficient quantities is essential for the health of people, animals and plants. That is why it is crucial that in the future too, industrial water usage will not lead to local problems such as a shortage of water for the people living in the catchment areas of their production sites. They, therefore, commit in Water Position to comply with international, national and local legislation to protect water resources, use them as sparingly as possible and further reduce emissions into water. they have introduced a water management system at company sites in water-scarce areas or areas identified as being threatened by water scarcity. For 2019, Bayer plans to examine the production sites of their acquired agriculture business in this regard.

In water stewardship strategy the company addresses a variety of factors connected with water, from operational water use and innovative products such as seeds that do not need as much water to their commitment in the value chain and cooperation with partners. they support the CEO Water Mandate of the U.N. Global Compact with the goal of working with key stakeholders to develop sustainable strategies for water usage. In Bayer annual response to the CDP Water Disclosure, they report in detail and transparently on their water management approach. In recent years, the company have repeatedly been included in the CDP Water A List (leadership status).

WATER USE

In 2018, total water use in the Bayer Group was 124 million cubic meters (2017: 98 million cubic meters). This year-on-year increase in use is due to the first-time inclusion of the sites of the acquired agriculture business. Some 42% of all water used by Bayer is cooling water that is only heated in this process and does not come into contact with products. It can be returned to the water cycle without further treatment in line with the relevant official permits. At Company production facilities, they endeavour to use water several times and to recycle it. Water is currently recycled at 51 sites, accounting for 52.4% of the total water used. The various forms of recycling include closed cooling cycles, reuse of treated wastewater and recirculation of steam condensates as process water. they use water several times, in particular at their recently acquired production sites at locations such as Antwerp in Belgium and Muscatine, Iowa; St. Louis, Missouri; and especially Lulling, Louisiana, in the United States. The total volume of 124 million cubic meters of water originally deployed is used approximately 1.8 times on average.

WASTEWATER

The total quantity of wastewater, including process and sanitary wastewater, was 29 million cubic meters in 2018, which is 25.2% more than in 2017. This increase in use is due especially to the first-time inclusion of the sites of the acquired agriculture business. All wastewater is subject to strict controls before it is discharged into the various disposal channels. In 2018, 85.1% of Bayer’s wastewater worldwide was purified in wastewater treatment plants (Bayer or third-party facilities). Following careful analysis, the remaining volume was categorised as environmentally safe according to official provisions and returned to the natural water cycle.

Bayer aims to minimise its emissions into water. In 2018, Bayer AG therefore also applied alternative means of disposing of product-containing wastewater such as incineration, distillation and chemical treatment. In 2018, most of the higher emissions into the water were attributable to the first-time inclusion of the sites of the acquired agriculture business. Additional factors were more precise methods of data acquisition at the site in Kansas City, Missouri, United States, and production adjustments at the site in Dormagen, Germany.

WASTE & RECYCLING 

BAYER AG wants to minimise material consumption and disposal volumes through systematic waste management. Safe disposal channels with separation according to the type of waste and economically expedient recycling processes serve this purpose. Production fluctuations, building refurbishment and land remediation work also influence waste volumes and recycling paths. In accordance with Bayer’s corporate policies, all production sites are obliged to prevent, recycle and reduce waste and to dispose of it safely and in line with good environmental practices.

WASTE VOLUMES DECLINE SLIGHTLY

The total quantity of waste generated declined slightly by 3.3% in 2018. The volume of hazardous waste decreased by 13.3%, primarily on account of the conclusion of demolition work at the site in Belford Roxo, Brazil. The volume of hazardous waste from production fell by around 6.9%, mainly due to changes in the production portfolio at the Dormagen site in Germany.

The volume of nonhazardous waste, on the other hand, rose by 10.3% compared with the previous year, due primarily to the first-time inclusion of the sites of the newly acquired agriculture business. Reflecting the reduction in the volume of waste generated, the amount of waste disposed of decreased by 2.6%. In turn, this made it possible to reduce by 33.1% the volume of hazardous waste disposed of in landfills. Of the waste disposed of, 35.9% was successfully recycled.

RECYCLING

The legislation prohibits the recycling and processing/treatment of a large proportion of their materials, especially pharmaceuticals and crop protection products. Bayer AG makes use of opportunities for recycling within the framework of legal regulations. Production-specific and substance-specific recycling are carried out in compliance with the individual requirements of a given production site. Packaging materials are recycled in line with national regulations as part of the country-specific infrastructure for waste disposal.

Certificates

  • ISO 26000
  • C+ by Oekom Research AG
  • U.S. Environmental Protection Agency (EPA)
  • ISO 14001 certification / EMAS validation
  • ISO 45001 certification / OHSAS 18001

Sustainable Development Goals

How company covers SDGs

SDG 2

→ Bayer focuses on End hunger, achieve food security and improved nutrition, and promote sustainable agriculture. Bayer focuses primarily on smallholders in developing countries and emerging economies, which produce 80 per cent of the domestic population’s food supply. However, they themselves often suffer food shortages, live on the poverty line and do not progress beyond subsistence agriculture. Bayer will develop tailor-made solutions for them, assist them with other problems such as lending, storage, transportation and sales, and offer even more training in good agricultural practice. By 2030, Bayer aims to have supported 100 million smallholders in developing countries and emerging economies as a means of helping improve the local production of food supplies and reduce poverty in rural areas.

SDG 3 & 5

Bayer aims to enable people to share in medical progress, regardless of their income or background. As a Life Science company, health care is an important focus of the business. Based on scientific findings, the company develops innovative products and solutions to improve people’s quality of life through disease prevention and treatment and to make a responsible contribution to the welfare of society.

To achieve this, Bayer AG invests significantly each year in researching and developing new pharmaceuticals and treatments. To offer access to state-of-the-art medication to people in developing countries and emerging economies with low purchasing power and substandard health systems, the company has spent many years supporting patient programs and collaborating with the World Health Organization (WHO), international aid agencies, non-governmental organisations and political decision-makers.

Bayers’s current focus lies on the availability of contraceptives and products for fighting neglected tropical diseases such as Chagas and African sleeping sickness. Their measures always also include information and training offers.

In addition, Bayer will expand access to everyday health for 100 million people in underserved communities around the world with an initial focus on women’s health and expanding access to micronutrients for pregnant women and children. In general, Bayer is working on adapting its pricing policy towards local purchasing power and strengthening the patient access programs to increase the availability and affordability of Bayer products.

Progress

By 2030, Bayer, as a company aims to provide 100 million women in developing countries and emerging economies with access to the modern-day contraception that more than 200 million women worldwide currently lack. This is one way in which the company intend to help improve local food supplies and reduce poverty in rural areas.

Bayer AG also considers this a significant contribution toward reaching the goals set by the United Nations of empowering women and achieving gender equality (SDG 5).

The company has clear measurable steps on their sustainability plans and is successful at reporting about past activities. Company is working to reduce its environmental impact, explain their strategy and very clear about their GHG emissions, water use and recycling. However, they have several recognised listings like FTSE4GOOD, CDP.

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