Bayer Sustainable Development Report 2005 Interview with Dr. Wolfgang Plischke

Interview with Dr. Wolfgang Plischke

“We can only survive in the future through innovation”

Dr. Wolfgang Plischke was appointed to the Bayer Management Board on March
1, 2006. Since May 1, 2006 he has been responsible for Innovation, Technology and Environment, as well as for the Asia region.

Dr. Plischke, on May 1, 2006, you became the Bayer Management Board member responsible for Innovation, Technology and Environment. Where do you plan to particularly make your mark?
It is of special importance to me to make clear how closely these themes are connected to one another. All three areas are crucial to the entire enterprise’s ability to survive in the future. One of our most important tasks is to convert research results into innovations such as environmentally friendly production technologies and high-quality products. Innovation is essential to safeguard Bayer’s competitiveness and forms the basis of our future success. In this connection, we also must not forget our responsible conduct as a good corporate citizen.

Does this mean you view responsible conduct as a contribution to value-added?
Absolutely. A company’s value-added is not limited to economic and financial success. It goes without saying that we create value primarily through our products and services, which safeguard society’s prosperity. Yet a company also creates lasting benefits through its activities and achievements in the social sphere.

Does this position correspond with the stockholders’ expectations?
Yes, because today it is indisputable that a significant proportion of a company’s value is connected with its image and acceptance in society. And this image in turn is heavily influenced by the company’s responsible conduct and its efforts on behalf of society and the environment. When we farsightedly adhere to ecological and social principles, we do not just perform a service to society – we also ensure that in the long run our company will enjoy a good reputation. This makes Bayer very attractive for financial markets that are oriented around ethical and ecological criteria, which are becoming increasingly important in the international arena. This shows that economy and ecology are consistent with one another – and can even be mutually beneficial.

How can you tell?
A company’s corporate social responsibility performance and its efforts on behalf of sustainable development today are evaluated by professional rating agencies. As a result of our commitment, Bayer is represented in the most important relevant indices, such as the Dow Jones Sustainability Indices or the Climate Leadership Index – the first global climate protection index. I believe this is partly an indication that sustainable action pays off economically too.

Yet before an activity begins to pay off, it must first be certain that sustainable development is lastingly and intensively pursued in all areas of the company. How can you ensure this?
A key role here is played by our sustainability management, which is based on a systematic approach. Building on our Values and Leadership Principles, we have developed a Sustainable Development Policy that is valid throughout the Bayer Group. It is substantiated through Bayer Group directives and positions and through our sustainable development performance management. We embody this in all countries and regions in which we are present. After all, we want our production processes and products to be environmentally compatible and safe – along their entire life cycles.

Which products in particular already specifically promote sustainable development?
First of all, in this connection we should remember that our three subgroups Bayer HealthCare, Bayer CropScience and Bayer MaterialScience pursue one goal above all: We want to lastingly satisfy the basic needs of humankind and help to improve quality of life. This means that we develop innovative medicines to treat cardiovascular disease and cancer, for example. At the same time, however, we also help to fight epidemic diseases such as African sleeping sickness and Chagas’ disease, which are particularly widespread in poorer countries. We regard this, too, as a measure of our social responsibility. We are also presented with tremendous opportunities – for example with regard to overcoming the problem of world hunger – as a result of biotechnology, which will definitely be one of the central technologies of this century. The whole field of nutrition is of course important to us in connection with sustainability. Through high-yielding seed, environmentally compatible seed dressings and innovative crop protection products, we want to achieve an urgently needed increase in agricultural yields.

But of course our MaterialScience subgroup also bears a commitment to sustainability. This is evident for example in innovative materials for lightweight construction and thermal insulation, both of which make an important contribution to climate protection. We also should not forget the entire field of production: Here we are constantly optimizing our existing processes and developing new technologies to enhance energy efficiency and conserve resources.

The social responsibility you have talked about of course has a lot to do with corporate strategy – yet the convincing realization of this strategy is closely linked with innovative capability and dedicated employees. This prompts the question: How are you promoting the necessary innovative capability on the part of Bayer’s employees?
This is indeed a central theme for us. After all, Bayer owes its reputation as an inventor company in large part to the creativity of its employees. It is they who for decades have succeeded in furnishing research results that have secured Bayer a leading position among the world’s most innovative companies. And this should remain so in the future. The new Group-wide innovation initiative “Triple-i” – which stands for inspiration, ideas, innovation – should also be viewed against this background. The primary goal here is to exploit the creativity of our employees for the development of new business ideas. At the same time, however, we want to create a new culture of innovation within the company and win over everyone to this cause.

Does innovation play a special role in your efforts on behalf of society?
Yes, very much so. The positive development of education, science and research is very important to us, as it is the foundation for the steady further development of a society. That’s why we have initiated a broad range of scientific programs to promote education and research. These include, for instance, our educational initiative “Making Science Make Sense,” which aims to instil in schoolchildren a fascination for science. This program was first launched in the United States, and it has now been expanded to Japan. More than 1,200 Bayer employees in these two countries thus volunteer their time to engage in a constant dialogue with schoolchildren and teachers. We have initiated similar projects around the world. And through eight different Bayer-sponsored foundations, we also provide targeted support in vocational training to young people around the world, as well as assis-tance for outstanding scientists, for example. In this way, our corporate social responsibility is aimed at complying with our philosophy: “Bayer: Science For A Better Life.”

Speaking of dialogue: How important to Bayer is communication with your various stakeholders? How do you address these target groups?
Very openly, because dialogue with them is indeed extremely important to us. This is evident in part through our Sustainable Development Report, in which we transparently explain our values, our management and our actions.