Sustainability 2007 (Textversion)


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Climate change

The Bayer Climate Program

Bayer plays a pioneering role in climate protection. In 2007, the company bundled its extensive climate-related activities in a Group-wide program, in which it has not only set itself ambitious targets for its production facilities but through which it will also invest specifically in the development of climate-friendly products and processes
Dr. Wolfgang Große Entrup, Head of Environment & Sustainability at Bayer AG and Chairman of the Bayer Climate Program

“We deploy our innovative power and know-how to develop new products and solutions to protect the climate and deal with climate change.”

“Bayer takes climate change very seriously and regards it as an ecological and economic challenge,” says Dr. Wolfgang Große Entrup, Head of Environment & Sustainability at Bayer and Chairman of the Bayer Climate Program. The company was able to reduce its direct and indirect greenhouse gas emissions by 37.2 percent between 1990 and 2007. Independent initiatives like the Carbon Disclosure Project (CDP) have ranked Bayer as “Best in Class” on several occasions for its achievements. At the end of 2007, the company was once again included in the worldwide “Climate Disclosure Leadership Index” – the only European chemical company to be listed.

The Bayer Climate Program
“But we do not intend to rest on our laurels,” continues Große Entrup. “Instead, we have set ourselves very ambitious targets with our new corporate climate strategy.” 2007 saw the launch of a global process initiated by the Group Management Board, the result of which is the “Bayer Climate Program.” This program will extend over a period of several years and is based on the newly formulated Bayer Policy on Climate Change, which is called “We help with solutions”. It embraces a comprehensive package of measures on climate protection and dealing with the consequences of climate change. “Climate protection is basically a matter of innovating in processes and products to ensure more efficient handling of energy and to lower greenhouse gas emissions,” explains Große Entrup. “For Bayer, climate protection means taking responsibility, tapping new markets and utilizing economic potential.”

Ambitious targets

For all three subgroups, Bayer has formulated new and ambitious global greenhouse gas reduction targets for the period from 2005 to 2020:
  • Bayer MaterialScience will lower its specific greenhouse gas emissions by 25 percent per ton of sales product
  • Bayer CropScience will reduce its absolute greenhouse gas emissions by 15 percent, and 
  • Bayer HealthCare will reduce its absolute greenhouse gas emissions by five percent.
The Bayer Group will invest €1 billion between 2008 and 2010 in climate-related research and development and in specific projects ranging from the development and manufacture of climate-friendly products to the construction of energy-saving production plants. The existing method for the ecological assessment of new investments is being supplemented by climate-related criteria. This will come into effect on principle for projects involving capital expenditures of over €10 million. According to today’s estimates, the Bayer Group’s greenhouse gas emissions will remain at the current level up to 2020 despite an expected growth in production.
Groundbreaking solutions for climate protection and for dealing with the consequences of climate change are contained in the lighthouse projects, which have already been launched. These include the concept of the EcoCommercial Building, the raising of the stress tolerance of crops, the further development of renewable energy sources and the Bayer Climate Check. Further projects will follow.

EcoCommercial Building

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Bayer employees Stefan Brinker and Rüdiger Utsch with architect Dietmar Riecks in front of a 3D animated film of the zero-emission building currently being erected by Bayer in New Delhi, India.
Energy consumption in buildings is responsible for nearly 20 percent of global greenhouse gas emissions. Before now, the fast-growing segment of commercial buildings has been rather neglected. Based on the globally adaptable concept of the EcoCommercial Building, Bayer MaterialScience is designing office and industrial buildings as low or zero-emission structures. They are architecturally adapted to the relevant local climate. At the same time, their energy consumption is reduced through the use of high-grade polyurethane insulating materials to such an extent that, in ideal circumstances, the remaining consumption can be met entirely by renewable energy sources such as photovoltaic modules on the roof.

The concept, which has been developed jointly with external experts, is being implemented for the first time in the construction of the new Bayer MaterialScience Innovation Center in the Indian city of New Delhi. To drive the development on a global basis, Bayer invites all players in the construction industry to take part in dialogue via an open knowledge platform.
 

Agriculture and nutrition

An ever-increasing number of people need to be fed from agricultural land whose area will at best remain constant. The world’s population is continuing to expand at the rate of about 80 million people annually. The fact that the available arable land is so limited means that it is vital to make agricultural production more efficient on a sustainable basis. This is why we at Bayer are researching intensively to produce solutions that help to meet the growing need for agricultural products.
This goal can only be met with a comprehensive approach that combines new crop protection products and seeds with enhanced yield potential with optimized crop rotation, irrigation and fertilization. In addition, in Bayer’s opinion, much greater use needs to be made of the opportunities presented by modern plant-breeding techniques and plant biotechnology.

Stress tolerance in plants

Climate change is also causing the conditions under which farmers have to grow their crops in the 21st century to deteriorate. One of the reasons for this is the wide variety of stress factors, such as heat, drought, cold and salinity, that crops have to face. Bayer CropScience is pursuing two approaches in its efforts to reduce the impact of these factors:
  • The biological approach is based on biotechnological solutions designed to equip plants with a special ability to tolerate stressful situations. Reduction of a naturally occurring protein involved in the response to stress minimizes the plants’ energy loss. Current research efforts are focused on canola, cotton, corn and rice.
  • One chemical approach focuses on the stress-reducing effect of established active ingredients used in crop protection. Certain classic insecticides can have a positive effect on plant growth irrespective of whether the plant has been attacked by insects. The Bayer product Confidor® Stress Shield considerably increases the salt tolerance of rice. The company’s Stress Shield products are already established on the market.
 

Sustainable plant-based energy resources

The opportunities and risks associated with the use of biofuels as an alternative to fossil fuels are the subject of controversy. Doubts are being cast on the wisdom of using food crops to produce fuel. Bayer CropScience is supporting approaches which do not compete with the production of food. In this context, sustainable cultivation of jatropha is an interesting option. This plant grows on dry, inhospitable soils, and its seeds contain more than 30 percent oil which can be used to produce biodiesel, for example. Bayer CropScience believes that, in the future, second-generation biofuels based on biomass and plant residues are set to play an increasingly important role.

The Bayer Climate Check

A central tool for achieving emission targets is the Bayer Climate Check developed by Bayer Technology Services. This provides a basis for taking climate factors systematically into account when designing production processes and facilities, supplementing the existing system of profi tability calculations . The Bayer Climate Check covers all emissions, not only those connected with the production process, but also those linked to the provision of the raw materials and their conversion into products and energy.
The Bayer Climate Check covers two components:
  • The climate footprint is the key performance indicator for evaluating the climate effects of different process variants or production sites. The respective climate footprint serves as an important decision-making basis, for example for planned investment and technology projects.
  • The climate impact analysis involves the systematic climate-related analysis of production processes and facilities. Once the potential for CO2 savings has been identified, measures for optimizing processes and plants can be evaluated.
With the upcoming evaluation of its global sites, Bayer will cover around 85 percent of the emissions generated by its production processes and facilities. This will allow the company to identify and implement specific measures to reduce emissions. These may range from simple optimization – for example of individual pump systems – to the development of complex circuits for heat flows or the introduction of groundbreaking process innovations.
 

Bayer Climate Award

“As part of the Bayer Climate Program, we also want to encourage scientists and young people who are interested in finding solutions for climate change,” explains Große Entrup. “With the Bayer Science & Education Foundation created in April 2007, we are intensifying our long-term commitment to improve conditions in education and science.” The Foundation has established new programs in the field of climate change and climate protection. These include the Bayer Climate Award, which will in future be presented every two years as an international prize for fundamental research in the interdisciplinary climate sciences worth €50,000. The aim of the “Bayer Climate Fellows” program, with which the Foundation will encourage particularly committed and gifted young people, is to raise awareness of climate protection and arouse ambitions in this direction.

Contribution of our employees

Bayer sees its climate program as an integrated initiative. To implement and carry forward its climate targets, the 100,000 plus employees around the world will play a key role. Through constant dialogue, Bayer will therefore ensure that they are aware of the urgency of the problem of climate change and will show them possible ways of protecting the climate.
Specifically, Bayer will begin by reducing the business trips that impact the climate. Under the “Business Travel” initiative, Bayer meetings around the world will make every possible use of modern conference techniques to cut travel. With its “EcoFleet” initiative, Bayer has launched a campaign in which Bayer will reduce CO2 emissions caused by its company vehicles by 20 percent by 2012. Initially in Germany and then internationally, Bayer will show its employees how to change to lower-emission company cars. In addition, site vehicles will be modified over the long term to run on alternative fuels. Both projects are being implemented jointly with Bayer Business Services.

The service company CURRENTA has initiated a climate protection program of its own. Here, too, the employees will be intensively involved under the company’s suggestion plan.

Dialogue with stakeholders

Bayer supports an effective climate policy at global level through intensive dialogue with politicians, non-governmental organizations and other companies. It actively contributes its expertise to international committees and organizations, including 3C: Combat Climate Change, the Global Roundtable on Climate Change, and the Gleneagles Dialogue on Climate Change.

Transparent information policy

“We are deploying our innovative power and know-how to develop new products and solutions for protecting the climate and dealing with climate change,” says Große Entrup summing up. “A stringent organization, clear commitment and the ambitious dedication of our employees form the basis for its successful implementation.” The elementary component is a comprehensive, transparent information policy. “We will not rest on our laurels but will intensify our efforts in the future,” says Große Entrup emphatically, “because the Bayer Climate Program lives from sustainability and ongoing further development. We want to be measured by how we achieve our targets.”

Extract from the Bayer Policy on Climate Change

“We help with solutions”

In our Mission Statement, we define our role as being a good and responsible corporate citizen. In keeping with the principles of sustainable development, we strive to balance economic, ecological and social benefit with one another through our activities.

Bayer also wants to meet its responsibilities in matters of climate change. We take climate change seriously as an environmental and economic challenge. It affects the foundations of our commercial activity. On the one hand, endeavors in the field of climate protection have to be strengthened. On the other, greater attention needs to be paid to innovative solutions to deal with the consequences of climate change. Bayer intends to make specific contributions to both.

Our starting point is a favorable one. Bayer has already been recognized internationally as “Best-in-Class” in climate protection and as a leading company in its sector. In production, we have been able to increase energy efficiency in recent years through technological innovations and have significantly reduced greenhouse gas emissions. In addition, Bayer products are making a direct contribution to saving energy and conserving resources in our daily lives, for example through insulating materials. We intend to intensify our efforts even further.

We will use our innovative capabilities and know-how as an inventor company to develop new products and solutions for climate protection and for dealing with climate change. With this in mind, Bayer AG’s Board of Management has launched the Bayer Climate Program. This is scheduled to run for several years and bring together the wide-ranging areas of expertise of our subgroups and service companies.

Lighthouse projects at a glance

Under its climate program, Bayer has initiated its first lighthouse projects. These represent groundbreaking approaches to climate protection and dealing with the consequences of climate change. They are also oriented to the motto of the Bayer Climate Program: “We help with solutions.”
EcoCommercial Building
  • is a concept for energy-optimized industrial and office buildings, adaptable to all climate zones
  • aims at zero emissions
  • combines Bayer materials with innovative technologies
  • serves as an open knowledge platform for dialogue between all interested players in the construction industry
Sustainable renewable energy resources
  • reduce potential conflict between climate protection, biodiversity and food production
  • aim at higher yields (e.g. hybrid canola seed InVigor®)
  • target crop cultivation on land that cannot be used for food production (jatropha research project)
Development of stress-tolerant crops
  • improves the stress tolerance of plants to heat, drought, cold and salty soils
  • strengthens plants and increases yields through the use of biotechnology
  • reduces effects of climate stress by using traditional crop protection products (e.g. Confidor® Stress Shield)
Bayer Climate Check
  • supplements the standard profi tability calculations with a comprehensive climate-related decision-making basis
  • describes the systematic analysis of production and near-production processes
  • systematically includes emissions in the upstream chain
  • has been certified by TÜV Süd
Professor Andreas Troge, President of Germany’s Federal Environment Agency

As far as climate protection is concerned, a great deal is nowadays expected of economic enterprises and many of them are indeed very active in a wide variety of ways. As a result, they save costs and conserve the climate for everyone. Nowadays, companies are making their production processes increasingly energy-efficient and take care when procuring raw materials and feedstocks and when transporting them that they exert a minimum impact on the environment. With its “Integrated Energy and Climate Protection Program,” the German government helps trade and industry to achieve significant energy savings through intelligent company energy utilization concepts.

Some companies are also developing and producing durable, long-lasting products that are not only economical in use but also exert a minimal influence on the environment. They also specifically label these products as such. In addition, the producers inform the public about the climate-protecting activities in their company and encourage such measures.

The Bayer Climate Program is an admirable example of how extensive climate protection measures can be logically and usefully bundled. Bayer is not only setting itself demanding targets for its production, it is also specifically investing in the development of climate-friendly processes and products. Let us hope Bayer will attract a lot of “competitors” in this field. We would all benefit from this – the economic enterprises and the climate.

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