Group Objectives	BIS
BCS	BBS
BMS	BTS
BHC

Group Objectives
Objectives from 2001	Achievement of objectives
All relevant Bayer production sites are to be evaluated by qualified outside auditors by 2004.	The objective was achieved. The audit system was also adapted with the reorganization of the Bayer Group. The HSEQ management systems are being operated under the responsibility of the subgroups. A new Group-wide Audit Directive stipulates the scope and procedure for audits.
By continuing to pursue a systematic safety management program, the aim is to reduce work-related injuries by 50 percent by 2004.	By the end of 2005, a further reduction in work-related injuries was achieved. A continuation of systematic safety management program, accompanied by campaigns focusing on areas where there are a high number of accidents, should result in a further reduction.
By continuing/ further developing cooperation with contractors in the area of occupational safety at Group sites, the aim is to improve accident levels for these external companies.	The objective was achieved. The rate of injuries with lost work days for our contractors in relation to 1 million working hours fell from 8.9 (2001) to 4.7 (2004). In 2005, the rate for the new Bayer Group only came to 2.2.
Conversion of chlor-alkali electrolysis from a mercury-cell process to a membrane process should result in a clear reduction in mercury loads in wastewater from 75 kg/a (2000) to < 30 kg/a (equates to a 60 percent reduction). Mercury levels should be significantly cut as early as 2004.	The objective was achieved. In 2004, only 28 kg mercury was still being emitted. In 2005, this figure was only 11 kg for the new Bayer Group.
Acrylonitrile, butadiene and styrene emissions are to be cut from 443 t/a to 250 t/a (2004), equating to a 44 percent reduction.	The objective was not fully achieved, although the emissions of these substances were significantly reduced by 2004. In 2004, only 285 metric tons of acrylonitrile, butadiene and styrene were still being emitted. For the new Bayer Group, these emissions are no longer an issue, as they almost exclusively originated from LANXESS (271 of the 285 tons), which has been spun off. As they are now of little significance and there is hardly any potential left for reduction, emissions of acrylonitrile, butadiene and styrene will, in future, no longer be contained in the Bayer Sustainable Development Report.
By continuing to pursue a systematic safety management program, the aim is to achieve further major reductions in reportable incidents by 2004.	Reportable incidents were only recorded in our reporting up until 2002. Until then, any incidents at Bayer sites worldwide were reported if they were reportable to the authorities under the local regulations. From 2003, this definition was replaced by a new, standard definition across the whole Group. This records environmental incidents in three categories of severity, where the two categories with the greatest impact on the environment are summarized under the indicator “Major environmental incidents”. After 47 incidents in 2001, 53 reportable incidents were registered in 2002. From 2003, the number of major environmental incidents declined under the new definition from an initial 21 to 6 in 2004. For the new Bayer Group, only two major environmental incidents were registered in 2005.
The Eco-Check is to be further developed as an instrument for quality-based portfolio management as part of sustainable corporate development and open dialog both internally and with the public.	In the course of major changes to our product portfolio as well as more consideration for product contributions to sustainable development, the previous “Eco-Check” method was fundamentally revised. We are meeting our commitment to a holistic consideration of our products and procedures by restructuring the evaluation method. In 2006, we will present a revised concept.

BCS
Objectives from 2003/2004	Activities	Achievement of objectives
Introduce a knowledge information system for recipes, hazardous goods and safety data for Bayer CropScience’s products to provide globally consistent specifications and material safety data sheets.	Develop and implement a QHSE knowledge information system for global use by Bayer CropScience and its customers.	The global system has been successfully introduced in many countries in Europe as well as in the USA and Canada, with firm schedules for a global roll-out. We provide our customers with safety data sheets and sales specifications via EH&S.
Develop and introduce new crop protection products with reduced application rates	Expand the use of sulfonylurea-containing products (MaisTer®, Atlantis®, etc) in some crops.	The use of products containing sulfonyl has been extended by over 50 % in all cultures since 2002 and has thus contributed to a major reduction in the output quantity.
Continue the gradual replacement of formulations in WHO (World Health Organization) class I.	Introduce new products and new formulations.	In 2004 a new active ingredient called clothianidin was registered in the US. It received the status of Organophosphate (OP) “alternative status.” Since OPs feature prominently among the Class I products this was a significant step forward. Also Calypso, a new product, was introduced in several countries in 2004 and 2005, which will replace Class I products in the pome fruit markets. The new oil-based formulation O-TEQ was introduced in the market and will also be suitable as a replacement alternative.
Continue developing attractive bait formulations.	Launch new bait formulations for insects, which currently are not managed in this fashion.	The development of new bait formulations was pursued, but none of them were economically viable.
Improve application methods for the control of termites.	Launch Premise® perimeter (band) treatments, which significantly reduce the spray volume / active ingredient content required.	Premise Foam was introduced in an aerosol container in the USA during 2004 and in Australia during 2005. This enables the targeted application to infestation points, minimizing use of larger volumes of sprayed termiticide. The label expansion for Premise to Exterior Perimeter Application will be completed at US-EPA during 2007. Market research has shown that current uses can reduce the volume of termiticide used by 30 % per treated house.

BMS
Objectives from 2003/2004	Achievement of objectives
Work safety: Reduction in accidents/injuries	Thanks to a series of local initiatives and measures to increase safety awareness, the number of injuries with lost work days has been reduced from MAQ 2.8 (2004) to MAQ 2.3 (2005).
Environment: Reduction of emissions into the water, air and soil	In spite of increasing production volumes, nitrogen and TOC emissions into  water were considerably reduced and the CO2, VOC and phosphorus emissions as well as the incidence of hazardous waste from production processes were maintained at the previous year’s level. Due to one-off demolition and remediation measures, an increase in landfilled waste was recorded.
Development of a Group-wide integrated HSEQ management system.	Based on the principles of the Responsible Care Global Charter, BMS has an integrated management system for all aspects of health protection, safety, environmental protection and quality. On the basis of the integrated management system, certification according to ISO 9001 applies to all sites and divisions.
Use of polymers for flexible and economic solar energy application.	New Bayer plastics for solar energy applications provide great possibilities to optimize this technology of the future: The polyurethane Bayflex® is not only a cost and energy-saving alternative to the aluminum frames used up until now in solar modules, but also allows easier and quicker assembly. In addition, solar modules can be produced very easily with the Bayer material Desmopan®. Here, the Desmopan® fulfils the function of embedding the silicon cells as well as bonding with the polycarbonate or glass panes. The properties of Desmopan® enable the solar module manufacturing process to be structured more effectively.
Development of new raw materials for coatings with significantly reduced emissions of volatile organic compounds (VOC).	UV-hardenable water-borne polyurethane dispersions have proved to be a very efficient technology for the future. The new product group Bayhydrol® UV has comparable properties to solvent-borne coatings. It is quickly cured by UV radiation after application and therefore has ecological advantages, as the products are water-borne. The Bayhydrol® UV products meet all current and expected future market requirements.
Further development of Makrolon® polycarbonate as a glazing material in the automotive industry.	In the current Mercedes A and B Class, a lamellar roof is used with five transparent, gray tinted panels made of the polycarbonate Makrolon® AG2677 from Bayer MaterialScience. With its property profile this material is a type of polycarbonate specially optimized for automotive glazing. In various thicknesses, it can be tinted in any colors required by the customer and stands out through a very high degree of purity. The use of polycarbonate allows totally new design possibilities to be realized, which had previously been unthinkable with the use of glass. Polycarbonate offers a significant reduction in system costs by integrating various functions due to the varied processing possibilities, e.g. injection molding.
Development of new rigid insulating foams to reduce the energy consumption of domestic appliances (refrigerators and freezers).	Increasing energy costs and regulations as well as rising environmental awareness are leading to an increased demand for energy-efficient refrigerators and are, therefore, providing major incentives for development activities in the appliance industry.  In cooperation with customers, polyurethane rigid foam types have therefore been developed with improved insulating properties: Prototype refrigerators demonstrate the potential for a reduction of up to 5 % in energy consumption compared with refrigerators insulated with conventional polyurethane systems.
Broadening the field of applications for metal-plastics hybrid technology.	As this technology was handed over to Lanxess, this objective will no longer be pursued by BMS.

BHC
Objectives from 2003/2004	Achievement of objectives
Improve product safety in regard to environmental aspects.	Investigations are being carried out on our retail products with regard to environmental compatibility. Emissions are being monitored at the production sites.
Increase drug safety.	The software to generate hospital discharge letters has been developed and is available for widespread clinical use.
Strengthen consciousness for prevention.	Together with the Argentinean heart foundation, “Argentine Cardio Heart Foundation”, there was a national campaign “Corazón Día a Día”. (Free risk factors detection in hospitals). The main event took place in September 2005, but the campaign was supported throughout the year with PR activities. BHC’s Biological Products Division supported the WHF in 2004 with US$ 40,000 for its own implementation of the project.
Strengthen the control mechanisms for drug safety.	The BHC Critical Action Committee has been established successfully and has started its work.
Development of a new drug to treat malaria.	After a detailed evaluation of the Artemifone Project by MMV (Medicines for Malaria Venture) as well as by ESAC (Expert Scientific Advisory Committee), it was recommended to end this project. The results expected from Artemifone could not justify any further development work. Detailed information on the termination of the project can be found on the Internet at http://www.mmv.org/
Continuation of the optimization of an in vitro model to reduce the number of animal studies.	The optimization of an in vitro model to reduce the number of animal studies has been completed.
Increase diabetics’ personal responsibility for their management by introducing the Ascensia® blood glucose meter and disseminate the measures derived from the results of STOP-NIDDM (Study to Prevent Non-Insulin-Dependent Diabetes Mellitus).	Increase in diabetics’ personal responsibility by introducing Ascensia blood glucose meters. Later consequences for diabetics, such as blindness and amputations can be prevented, if the blood sugar level is maintained within the normal range by appropriate treatment. Diabetics should therefore regularly measure their blood sugar level themselves. The Ascensia range of glucose meters make it easier for diabetics to test themselves due to their simple and safe operation. To maximize the output of STOP-NIDDM data and to bring the Glucobay results from the STOP-NIDDM Study to the attention of international experts, in 2004/2005 several STOP-NIDDM sub-analyses (including IMT data, Stroke 2004, Silent MI data Int. J. Cardiovas. Prevent & Rehab, 2004, DNA Analyses Diabetologia 2004, health economy evaluations Diabetes Medicine 2004) and a STOP-NIDDM debate article (Diabetologia 2004) were published in well-respected specialist international journals. The publications were rounded off by a series of review articles on Glucobay (2004/2005).

BIS
Objectives from 2003/2004	Achievement of objectives
Implementation of an HSEQ management system for BIS.	At BIS, a standard, integrated and process-oriented HSEQ management system was introduced. This is certified or accredited to ISO 14001 and in relevant areas to ISO 9001:2000, ISO 17025, SCC, Ordinance on Specialized Waste Management Companies, GLP and GMP.
Realization of the 2003 Responsible Care campaign ‚“Individual Responsibility“ and 2004 campaign ‚“Resource Conservation“ at the Bayer sites Leverkusen, Dormagen, Elberfeld, Brunsbüttel, Krefeld-Uerdingen and Bitterfeld.	The annual RC campaigns were held at the sites in 2003 and 2004 and supported by communication measures, e.g. leaflets, posters, adverts or the RC intranet/Internet.
Further reduction in accident/ injury statistics.	The MAQ figures for injuries with lost work days were continually reduced in relation to 2002. The figure was 8.5 in 2002, 5.1 in 2003 and 4.2 in 2004.
Get contractors involved in Responsible Care objectives of the respective sites. The aim is to cooperate closely with contractors working at Group sites to help them achieve an improvement in accident/ injury figures.	Building sites inspections with the responsible employers’ accident liability insurance associations as well as exchanges of information on incidents were regularly held during the period.
Improvement of incident management.	In the 2003 / 2004 period, there were a total of six exercises with the professional fire department at the major sites at Leverkusen, Dormagen and Uerdingen. Plans are underway for further large-scale exercises with the professional fire department in future years.

BBS
Objectives from 2003/2004	Achievement of objectives
Intensification of technical vehicle controls.	Initiation of organizational measures relating to the process flow of dangerous goods transportation inspections (GTK) with the objective of achieving a consistent reduction in the rejection rate.
Intensification of dialog.	Involvement in the VCI Open House Day as well as active involvement in organizing the Responsible Care Day. The Responsible Care activities were communicated on several occasions.
Integration of Responsible Care in training and further education.	This objective was achieved thanks to the continued implementation of RC training targets laid out in the new training regulations and the development of didactic concepts to promote individual responsibility among trainees. Particular emphasis was placed on an exemplary project on the subject of resource saving, in which trainees transformed waste cooking fat into biodiesel which could exclusively power a works vehicle. The "Xenos" project  paid particular attention to integration measures and reducing xenophobia.

BTS
Objectives from 2003/2004	Achievement of objectives
Individual responsibility linked to handling of resources –resource management.	Awareness of individual responsibility was sensitized regarding consumption and waste generation in BTS plants and also regarding the planning of installations for our customers. Within the scope of a project to increase BTS revenue, all opportunities to make savings were analyzed and measures were drawn up and agreed upon. These measures are currently being implemented and will be monitored.
Reduction in work-related accidents.	Work-related accidents are recorded world-wide by BTS and reported to management. Causes of accidents are analyzed and avoidance measures are proposed and implemented. A systematic occupational safety management system which also applies to subcontractors is being introduced for construction sites across the globe. Thanks to this, the injury rate for third party employees as well as our own is very low. BTS GmbH established a central occupational safety committee in April 2004 which meets on a quarterly basis. Training and continuing education take place regularly and are supported by information published on the intranet.
Introduction of an HSEQ management system for BTS.	HSEQ policies and instructions have been drawn up. The existing quality management system which is accredited to ISO 9001.2000 was expanded to include HSE aspects and transformed into an integrated HSEQ management system. The system was certified by TÜV according to SCC (Safety Certificate Contractors) for the handling of construction sites. Risk assessments for all workplaces have been updated and measures for employee protection have been established. The effectiveness of the measures is assessed by means of safety inspections and internal audits.

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