Strategy and Management

Our sustainability management

We have steadily established and expanded our sustainability management in recent years, accounting for major portfolio changes, rapid economic growth and the further internationalization of our business activities. Through a clear strategic perspective and a detailed sustainability program, we aim to prepare ourselves in good time to meet current and future challenges and to operate in a goal-oriented way.

Our values and policies

We make a firm commitment to our corporate responsibility in our Mission Statement “Bayer: Science For A Better Life.” Sustainability is a key element not just of the Bayer Mission Statement, but also of our values and leadership principles (see graphic "Our Values") – which are supplemented by the Bayer Sustainable Development Policy, our positions on human rights and working conditions, our commitment to the global Responsible Care initiative of the chemical industry and our membership in the United Nations’ Global Compact.

Common values are the basis of our daily actions. They are of critical importance as regards a common identity – particularly in view of the diversity of the markets and cultures in which our Group operates.

The Bayer sustainability concept

Successful sustainable development in balance with social needs and goals – this is the overriding objective of our sustainability concept. The development and implementation of our concept and the measures derived from it involve a constant interaction process between the company, our stakeholders and society. The key in this connection is always our innovation capability. Whether it is protecting the climate, fighting disease or improving global food supplies – we constantly strive to balance economic, ecological and social perspectives through innovations at the product level. Parallel to this process, we align all business activities along the value chain to sustainability criteria – as an employer, a business partner and a corporate citizen. This enables us to enhance our company’s competitiveness and future-orientation while minimizing our business risks. At the same time, we see ourselves as a socially responsible company worldwide that helps to improve the quality of life in its immediate surroundings and creates future perspectives for others through social volunteerism.

On one hand, Bayer is a member of society that makes important contributions through products, business activities and a voluntary social commitment. On the other hand, social trends, needs and objectives influence our activities on these three levels.

Sustainability – a team effort

The Bayer Corporate Sustainability Board, in which all subgroups are represented, is responsible for the Group-wide management of our sustainability strategy. On the basis of this strategy, this body each year defines goals, adopts the corresponding Group policies and oversees the implementation of the measures in the subgroups and service companies.

The Corporate Sustainability Board is supported and advised by the Sustainable Development (SD) Planning Group. The Environment Sustainability Department of the Corporate Center works closely with the sustainability officers in the subgroups and service companies, as well as with further Group functions, and manages the implementation of the planned objectives. The global sustainability organization is completed by councils at the regional and subgroup levels. Group-wide cooperation in this context is governed by our Sustainable Development (SD) Policy.

Group-wide policies as a framework of action We create a clear framework of action for all organizational units through Group-wide policies and requirements. The implementation of the policies is supported in all subgroups and service companies by efficient management systems for health, safety, environment and quality (HSEQ). Also in place are systems and rules for special requirements of the subgroups. The steering of opportunities and risks – our risk management policy – is an integral part of our Group-wide corporate leadership system.

The graphic shows how the theme of sustainable development is being implemented in the Bayer Group: The Corporate Sustainability Board steers sustainability management and represents the theme internally and externally. It is supported by the Sustainable Development Planning Group in planning and implementation.

Group-wide policies as a framework of action

We create a clear framework of action for all organizational units through Group-wide policies and requirements. The implementation of the policies is supported in all subgroups and service companies by efficient management systems for health, safety, environment and quality (HSEQ). Also in place are systems and rules for special requirements of the subgroups. The steering of opportunities and risks – our risk management policy – is an integral part of our Group-wide corporate leadership system.

Sustainability management is integrated into all levels of the Bayer Group.

An important step in 2007: “Fit for REACH”

The E.U.-wide REACH legislation, which went into effect on June 1, 2007, completely redefines the European chemicals policy. The legislation applies to the chemical industry and all companies that use chemical substances or preparations. Bayer actively accompanied the process right from the beginning and made constructive contributions. After all, we are affected by the legislation not only as a producer and importer, but also as a user. We require many starting products for the production of active ingredients (crop protection products, pharmaceuticals) and polymers. We work together intensively with our suppliers to guarantee the availability of these substances.

As REACH requires exact knowledge about the use of the substances, we already maintain intensive contact with our customers. We shall support and monitor the necessary exchange of information along the supply chain. By dealing with the REACH legislation at an early stage, Bayer has taken advantage of the possibility to recognize long-term opportunities and consequences and to react accordingly. The parts of the company affected are preparing themselves for the necessary adaptations. In the subgroups, we established implementation projects that cover all important points.

Bayer is fit for REACH – we will meet the requirements. The costs in the next 11 years will amount to a figure in the high two-digit millions.

Further milestones in 2007

A major focus of both the public discourse and Bayer’s efforts in 2007 were the themes of climate protection, anti-corruption and human rights. In November 2007, we presented our Group-wide “Bayer Climate Program”

– an ambitious package of measures that we plan to implement by 2020. To draw heightened attention to the topic of anti-corruption within the Bayer Group and underscore our commitment to stringent rules of conduct and compliance, we declared 2007 “Bayer Year of Anti-Corruption.” About 70,000 employees took part in anti-corruption training courses that we offered at all sites. A further milestone was the implementation of our “Human Rights Position,” which we published in May 2007

The Sustainability Check – a tool of the future

Bayer is working together with a prominent institute for futurology on a new concept to document in detail the sustainability impact of its processes and products. At the center of these efforts is the economic, ecological and social assessment of products, processes and projects using uniform criteria. We expect this tool to provide additional important impulses for the long-term alignment of our company. The first internal pilot project is currently under preparation.

Our Sustainability Program 2006+

Our Sustainability Program provides a detailed overview of our specific sustainable development objectives through 2010 and the measures defined to achieve them. The program is made up of the action fields “Innovation,” “Product stewardship,” “Excellence in corporate management,” “Social responsibility” and “Responsibility for the environment.” It comprises the Bayer Group objectives and those of all subgroups and service companies. The Group Management Board, the subgroup management boards and the management teams of the service companies oversee and hold responsibility for their achievement. The Sustainability Program is thus one of the most important steering elements for the implementation of our sustainable development strategy, serving as the central foundation for our sustainability activities in 2007. We have updated and restructured our program to reduce its complexity and focus more closely on the goals.

Key sustainability objectives of the Bayer Group through 2010 (unless described otherwise)

This overview gives a detailed look at the current status of the program and the specific target achievement. Below is a selection of the main sustainability objectives of the Group through 2010.

Therapeutic proteins
Development of patient-specific medicines by 2015 through the expression of therapeutic proteins from tobacco plants (plant-made pharmaceuticals).
Cancer therapy
Expansion of the field of application for the cancer drug Nexavar® to include the indications liver, skin and lung cancer.
Energy-efficient production process
Optimization of a production process for monomeric diisocyanate with the goal of reducing energy consumption by about 15 percent.
Occupational safety
Reduction in the incidence of industrial accidents with lost working days to less than 2 per million hours worked.
Emissions into water
Reduction in the discharge of total organic carbon (TOC) and nitrogen into receiving waters by 10 percent per metric ton of product sold.
Emissions into air
Reduction in VOC (volatile organic compounds) emissions by 30 percent per ton of product sold.
Climate protection
Reduction in global greenhouse gas emissions (in t CO₂ equivalents) between 2005 and 2020. Details for the individual subgroups can be found in the information on the Group Sustainability Program 2006+.
Protection of the ozone layer
Adherence to a maximum threshold of less than 20 metric tons of ods (ozone-depleting substances) emissions per year (CFC- 11 equivalents).
Waste
Reduction in the volume of waste requiring special supervision (hazardous waste) to less than 2.5 percent per metric ton of product sold.