home > Bayer > news   "Bayer Sustainable Development Report 2007"   9 Jun 2008 : We deliberately chose to present our new Sustainable Development Report to you here in the German capital. We see the promotion of sustainable development as a task facing society as a whole that industry must address together with politicians and social groups. As a company we want to make specific contributions to further improving the conditions on this planet for humankind and the environment. In this endeavor, we always operate within a framework that is primarily determined by political specifications and social expectations. In our new report, we document our commitment to sustainability. Our aim is to openly and comprehensively inform our stakeholders about our activities in this area. We want to provide the most complete possible picture of how our economic performance is associated with targeted measures in the ecological and social fields. That's why we report on all sustainability aspects that are crucial to our company. What's more, this report also focuses on particularly important issues. Bayer was one of the first companies in Germany to publish a report on sustainability. We published our first report in 1993, and the roots of this reporting go back to the 1970s. Bayer was also one of the first companies in Germany that set itself not just commercial targets, but also social and ecological goals – objectives that we have published regularly and by whose achievement we allow ourselves to be judged. In the new publication, we have compactly summarized for the first time our qualitative and quantitative statements, as well as our objectives and the status of their implementation, in the form of a Performance Report. Both the variety of the themes and the importance of reporting have increased significantly since sustainability reporting was first introduced. I would like to give you an overview of the most important themes and the system behind the reporting in our Sustainable Development Report for 2007. Although I have seen the film we showed you at the beginning a number of times myself, it continues to fascinate me, because it very vividly demonstrates the challenges that climate change presents us with all over the world. After all, the children's paintings that we saw in it are much more than mere snapshots. They contain a clear message to us all: take care of this world – it is the only one we have. Bayer takes this message very seriously. We want to contribute to promoting sustainable development, and thus climate protection, with a variety of activities. In this endeavor, we are driven by the conviction on which our view of sustainability is based: We can only be successful as a company in the long term if our business activities are balanced with the social needs of humanity and the ecological demands of our time. Ladies and gentlemen, the environmental debate has recently been revived as a result of climate change. In addition, conventional environmental themes such as drinking water conservation are once again at the top of the agenda for politicians and industry. These and other basic sustainability themes – such as the health and occupational safety of our employees – continue to be a top priority at Bayer. We are pleased to be able to present good results for the 2007 reporting year. I would like to give you just a small selection of these highlights: Absolute greenhouse gas emissions rose slightly, from 7.52 million metric tons in the previous year to 7.60 million tons in 2007. This is a disproportionately small increase compared to the growth in production, which amounted to five percent in 2007. I would also like to take this opportunity to point out that Bayer has reduced its absolute greenhouse gas emissions by 37 percent worldwide since 1990 on a comparable product basis. In other words, in relative terms we now emit a very low level of greenhouse gases. We are pleased that this performance has also been recognized outside the company: In 2007, or example, we were the only European chemical company to be included once again in the Carbon Disclosure Leadership Index, the world's first global climate protection index. For the period between 2005 and 2020, Bayer has set for itself new targets that are particularly ambitious against the background of the greenhouse gas reduction we have already achieved. For instance, in our energy-intensive subgroup Bayer MaterialScience – which produces very large product volumes – we aim to reduce our specific greenhouse gas emissions per metric ton of product by 25 percent worldwide. At Bayer CropScience, which handles a much lower product volume, we plan to reduce absolute greenhouse gas emissions by 15 percent, and at Bayer HealthCare we want to lower our absolute emissions by 5 percent. We currently estimate that absolute greenhouse gas emissions of the Bayer Group will remain at the present level through 2020 despite the growth in production. This means that we plan to continue growing without placing an additional burden on the global climate. In order to correspondingly reduce specific CO2 emissions, we plan to further increase the energy efficiency of our production processes. What's more, we also plan to reduce CO2 emissions in our own energy production and in externally procured energy. Allow me to mention a few more key data: - Total emissions into water held practically steady despite the increased production volume. - The number of reportable environmental incidents declined from 8 to 3. - We are particularly pleased that the number of occupational injuries resulting in days lost per million hours worked dropped to 2.4 from 2.8 in the previous year. Thus we took another step toward our goal of a rate of 2.0 by 2010. These and other data explained in detail in our report were collected worldwide at 435 sites of our subgroups. In choosing the focus issues for the content of our report, we specifically took into account the interests of our various stakeholders – from customers, investors and employees to government agencies and organizations. We surveyed the various target groups in advance about their topic of interest. Their specific areas of interest are also accounted for when we design the content of our sustainability management. In preparing the figures and facts, we aligned ourselves fully to the internationally recognized guidelines of the "Global Reporting Initiative." Thus we guarantee not just the completeness, but also the systematic and transparent nature of our reporting. The Global Reporting Initiative examined this itself and gave our report an "A+" - the highest possible rating. Furthermore, we entrusted the corporate auditing company Ernst & Young with the examination of the report. In a moment you will learn more from Mr. Ruter about the procedure for an appraisal of this nature Ladies and gentlemen, I'd like to direct my comments back to climate change for a moment. This is not just one of today's most important ecological themes, it is also a key focus of our report. We have financially underscored our commitment to climate protection within the framework of our Bayer Climate Program, which was launched at the end of last year. We will invest EUR 1 billion in climate-relevant research, development and projects through 2010. And with our climate program, too, we aim to live up to our reputation as an inventor company and drive forward innovations for climate protection. I would like to stress that Bayer is growing in particular with products and services that help in many everyday ways to reduce energy consumption and thus also CO2 emissions. For example, our raw materials are used as insulating materials in houses and refrigerators. And our materials help to make vehicles lighter and thus more fuel-efficient. In this context, our materials have a very positive energy balance: in housing insulation, our polyurethanes save 70 times as much energy as is required for their production. Our own expertise therefore serves as the basis for the projects we have initiated in connection with our climate program. We are pleased with the good progress we have made with our so-called "lighthouse projects" in the six months since the program was launched. I would like to inform you about the current status of these projects. Our climate projects are focused on three areas of central importance for the global emission of greenhouse gases. For example, approximately 25 percent of global greenhouse gas emissions are caused by industry. We have therefore developed a special analysis tool for CO2 reduction in industrial production: the Bayer Climate Check. By the end of 2009, we will have examined our production facilities worldwide and will thus document about 85 percent of our CO2 emissions – including raw materials, logistics and energy use. In a pilot phase involving the CO2 emissions analysis of five production facilities in Germany, we identified CO2 reduction potential of roughly 10 percent – findings that we will use to further resolutely lower CO2 emissions. The Climate Check is thus an important tool that will help us to achieve our ambitious emissions targets. Other companies have already signaled interest in our Climate Check, which has since been certified by TÜV Süd, an official inspection agency in Germany. Our second lighthouse project involves industrial buildings. Buildings produce roughly 20 percent of all greenhouse gas emissions worldwide, with commercial buildings accounting for one third of this figure – a sector that we believe has so far received too little consideration. We have therefore joined with partners in developing a concept for office and industrial buildings that produce zero emissions. We call it the "EcoCommercial Building." We are currently constructing the first EcoCommercial Building, an administration building for our own use, in India. The EcoCommercial Building is an effective lever for reducing CO2 emissions. 10,000 such buildings as the one currently under construction would reduce CO2 emissions by 10 million metric tons per year – or about 2.5 million tons of CO2 more than Bayer current emits worldwide. We expect that the additional capital expenditures for our building in India will have been amortized within 10 years at the most. What is special about this novel building concept – which is based on a combination of various technical solutions such as the use of photovoltaics and energy-efficient polyurethane-based insulating materials – is that it can be adapted to the world's various climate zones. We are pleased to report that in Germany, too, the EcoCommercial Building has met with specific interest. We have received several inquiries concerning the use of this concept – for example in supermarkets or restaurants. Our third lighthouse project comes from the agriculture sector. The world population continues to grow – and with it the demand for food products to feed people and animals. In view of the CO2 intensity and limited supply of fossil fuels, there is increasing interest in plant-based energy sources. The debate surrounding the cultivation of plants for energy production versus food production has recently intensified due to the increased food prices. A sensible approach for the cultivation of plant-based energy sources is offered by the jatropha plant – which can thrive on barren land that is not suited for growing food plants. Jatropha itself is not edible, but its seeds consist of 30 percent oil – from which bio-diesel can be produced. At the beginning of 2008, Bayer forged a research partnership with Archer Daniels Midland Company and Daimler that is aimed at exploring and further developing application possibilities for jatropha for the production of biodiesel. We want to find out which crop protection products are particularly suited for the cultivation and sustainable growing of jatropha and can be systematically employed for this purpose. In this connection, we focus not just on preserving biodiversity and preventing soil erosion, but also on social aspects such as maintaining existing living and income structures. We will discuss the initial results this year in close dialogue with scientists, representatives from independent specialist institutes and farmers. Ladies and gentlemen, we have designed our climate program as an integrated package of measures. One of these projects is the planned presentation here in Berlin at the end of this year of the inaugural Bayer Climate Award – the first international scientific climate award – which carries prize money of EUR 50,000. The award is designed to honor research breakthroughs that make an outstanding contribution to climate protection and dealing with climate change. As you can see, we have followed up on the announcements we made last fall with specific actions. And we will continue to resolutely implement our Bayer Climate Program – worldwide. We pursue our entire sustainability management process with the same resoluteness. We have firmly anchored the sustainability of our actions as a central corporate value in our Mission Statement "Bayer: Science For A Better Life." This value defines all of our activities, and our actions all along the value chain. A key aspect in this connection is supplier management. Bayer at an early stage began selecting its suppliers not just according to quality and prices, but also according to ecological and social criteria. We have continuously evolved in this respect. Let me give you an example: Asia-Pacific is an important growth market for us. The ecological and social practices we are accustomed to in areas such as western Europe are not established in all parts of that region. Yet this is what we are working to accomplish. For example, we have set up a team to oversee transport and distribution safety that regularly inspects all of our carriers and warehousing providers in China, Indonesia, Malaysia, Taiwan, Thailand and Singapore. We also systematically work with our customers in these countries to further improve aspects such as occupational safety. For example, we inspect our customers' premises with respect to safety and train their employees prior to our first major shipment. Ladies and gentlemen, for Bayer HealthCare – and particularly for Bayer Schering Pharma, which is headquartered here in Berlin – sustainable global health care is a central theme. As a research-based company, our primary goal is to develop new active ingredients that can heal or alleviate diseases. That's why one in ten employees of Bayer works in research and development. At EUR 2.8 billion, Bayer this year once again has the highest R&D budget of any chemical or pharmaceutical company in Germany. Bayer HealthCare accounts for two thirds of these research expenditures. More than 60 percent of the Bayer Group's research and development spending is invested in Germany. Thus we are expressing a clear commitment to Germany as a base of research, as well as to Berlin, which plays a central role in our pharmaceutical research. In the context of our sustainability strategy, we focus particularly on two requirements of global health care provision. The first is access to medicines, and the second is conveying knowledge about the prevention of diseases and the diligent use of medicines. Bayer pays special attention to both aspects within the framework of its corporate social responsibility, and usually cooperates with non-profit organizations in these activities. Let me give you three examples of our sustainability activities. For decades, Bayer Schering Pharma has helped women particularly in developing and emerging countries to gain access to contraceptives, thus contributing to self-determined family planning. We make available various contraceptives at cost price, the distribution of which in the countries is ensured by a global network of governmental and non-governmental organizations. These organizations include the United Nations Population Fund and the International Planned Parenthood Federation. We also support a wide variety of information campaigns that teach people about all aspects of contraception and family planning. Let me give you another example: In 2007 we signed an agreement with the World Health Organization (WHO) aimed at fighting Chagas' disease. This parasite-borne infectious disease is widespread in many Central and South American countries. Its pathogen is transmitted by blood-sucking insects, transfusions with infected blood, or by infected mothers during pregnancy. Between 16 and 18 million people are currently infected. A further 120 million people are at risk of being infected with the disease, which can be deadly. Bayer is providing the WHO with a total of 2.5 million tablets of the medicine Lampit® and additional funding. Thus we are safeguarding care of Chagas' patients worldwide for a period of five years. A third example: since 2005 we have been working together with the "Global Alliance for TB Drug Development" on the clinical development of a new tuberculosis drug. For this purpose we are making available the antibiotic moxifloxacin. For a long time, experts believed that tuberculosis was dying out. Yet each year, nine million new cases of active tuberculosis are diagnosed, and two million people die of the disease every year. Tuberculosis primarily affects the less affluent, with poor hygiene often being the cause of infection. Currently available therapies last at least six months and are very complex and expensive. If the recently launched Phase 3 of clinical development proceeds successfully, moxifloxacin in combination with other existing drugs could replace the current standard therapy for tuberculosis. This would have several advantages for those suffering from the disease: The infection heals more quickly, with the result that the duration of treatment, which is currently a time-consuming process, would be reduced by at least two months. This is particularly important, as there is a greater risk that multi-resistant bacteria strains will develop if the therapy is discontinued prematurely. Should the studies prove successful, the new drug will therefore be made available in developing and emerging countries at reduced prices. I would like to take this opportunity to emphasize an aspect that is particularly important to me. Our activities show that the patent protection that is essential for research-based companies does not contradict the right to access drug products. Without effective intellectual property protection, there would be no incentive for companies to invest in the time-consuming and commercially risky development of new drug products. Patents make it possible for a research-based company like Bayer to make back part of the considerable expenditures – including the costs for projects that never reach market maturity. Bayer currently does not enforce its patent rights in the poorest countries, and we do not plan to register patent rights there in the near future. What's more, 95 percent of the drug products on the so-called WHO Essential Drug List are currently patent-free. With our manifold activities – from health care to our business activities all along the value chain to social needs – we make useful contributions to society. We do this based on our sense of responsibility as a member of this society, and we maintain this commitment wherever we operate. We currently support more than 300 social projects with funding of EUR 45 million yearly. Key areas of focus here are education, health promotion – including sports – and environmental protection. Donations are an important tool when it comes to providing rapid help – particularly when people are placed in a situation of need following natural disasters, for example. Our activities on behalf of the earthquake victims in China and the victims of cyclone Nargis in Burma were aimed on the one hand at providing immediate help through donations of materials and medicines. Our shipments met specific needs in those countries and were delivered in coordination with the aid organizations active there, as well as with the government in China's case. What's more, we supported the efforts of our employees and equally matched their monetary donations. In addition to these immediate measures, we are supporting long-term rebuilding projects in both cases: In Burma, Bayer is providing particularly hard-hit farmers with products to restart their rice cultivation. In China, we are supplying the Red Cross with containers for hospitals, schools and shelter, as well as contributing our expertise in the areas of materials, health care and technology. It is thus particularly important to us that our aid activities not just alleviate acute needs, but also help to lastingly improve people's living situations. Here it is important that we help people to help themselves. I'd like to give you three more examples of our social activities. For years we have been involved in environmental education worldwide. In 2004, Bayer became the first ever private-sector company to partner with the United Nations Environment Programme – or UNEP for short – in the area of youth and environment. Together we regularly organize about a dozen environmental projects for young people and children around the world with the goal of supporting these youngsters in their efforts on behalf of the environment and expanding their environmental knowledge. Last year Bayer hosted the global youth environment summit of UNEP. About 200 young environmental activists from 85 countries discussed and developed solutions for their own countries according to the theme "Technology in the Service of Environment." During this conference, which was taking place in western Europe for the first time, we extended our cooperation agreement with UNEP by another three years. After all, we feel it is important to commit to an important theme at an early stage. And it is almost more important to us to make a lasting, sustained commitment. This also applies to the second example. Three years ago we joined with National Geographic, the world's biggest charitable scientific organization, in establishing the "Global Exploration Fund" for drinking water conservation worldwide. Through this project, we are currently supporting nine German research teams in their goal of finding new solutions for the conservation and effective distribution of drinking water in Latin America, Europe, Africa and Asia. A third example: last year Bayer combined its numerous foundation activities for the promotion of research and education within the Bayer Science & Education Foundation. In addition to the aforementioned Bayer Climate Award, this foundation also presents the Otto Bayer Award and the Hansen Family Award – illustrious prizes in the areas of science and medicine. The foundation also supports students and schoolchildren by awarding scholarships. We have equipped the foundation with a separate funding source for supporting science teaching in schools and endowed it with a sum of EUR 10 million. This endowment contribution is not included in the previously mentioned figure of EUR 45 million for the financing of social projects. With the investment proceeds of roughly EUR 500,000 a year, we support school projects that help to innovatively improve science teaching. Thus we want to make a long-term contribution to strengthening German school education in the communities in which our sites are based, and particularly here in Berlin. The second support phase will begin in a few weeks. Here too, we will support schools from Leverkusen to Berlin in their commitment to providing modern curricula – thus contributing to a better educational situation in Germany. Ladies and gentlemen, you can see how multifaceted our efforts on behalf of a lasting improvement in quality of life are. We are absolutely convinced that these efforts will pay off. After all, they are an expression of our social responsibility, as well as an investment in our future.   home > Bayer > news     Legal Policy | Copyright © 2005-2006 The Information Company Private Limited. All rights reserved.