Foreword
Our Performance Indicators
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Dr. Wolfgang Grosse Entrup, Head of Governmental Product Affairs at Bayer AG
Within our corporate values, we have entered into a sustainability commitment. To direct our contribution to sustainability, we require a performance management process. For this reason, we have created a clear organizational structure, developed a set of key performance indicators and defined sustainability targets. By way of annual reporting – through the present Report in particular – we strive to be transparent, both internally and externally. We will allow ourselves to be judged by the targets we have set ourselves.
Within our corporate values, we have entered into a sustainability commitment. To direct our contribution to sustainability, we require a performance management process. For this reason, we have created a clear organizational structure, developed a set of key performance indicators and defined sustainability targets. By way of annual reporting – through the present Report in particular – we strive to be transparent, both internally and externally. We will allow ourselves to be judged by the targets we have set ourselves.
In compiling this Report, Bayer is continuing its long tradition of reporting on its HSE performance indicators, which have been published annually since 2004. This time round, indicators relating to employees and social issues have also been included. We aligned the selection and measurement of these indicators to the international recommendations and guidelines of the Global Reporting Initiative (GRI), the World Business Council for Sustainable Development (WBSCD) and the European Chemical Industry Council (CEFIC).
The data capture was carried out in the areas of HSE, employees and social issues by means of a variety of processes and systems and in accordance with our own, internal directives. The HSE data were ascertained using the Group-wide site information system BaySIS®. As in previous years, the data were compiled using an electronic questionnaire sent to all of the organizational units at the Bayer sites in which the Group held a participating interest of at least 51 percent during 2005. The performance data of these affiliated companies have been fully consolidated, irrespective of the precise size of Bayer’s share in the relevant company. The data have been approved internally by the Head of Governmental & Product Affairs of Bayer AG. The data capture within BaySIS® includes all Bayer sites worldwide including research facilities, administrative sites and warehouses. In terms of reporting on employees and social issues, the global BayInfo System is the most important source. For the information on diversity in management the employee master data from the global SAP HR system were also evaluated. Training and continuing education costs were calculated by surveying all Group companies with more than 200 employees and extrapolating the result for the Group as a whole.
The auditing company Deloitte was commissioned by the Bayer Group to assure the quality and credibility of the data compilation (assurance process), a process carried out from March to May 2006. In addition to disclosure of the data compilation system, this assurance also comprised interviews with representatives of various different parts of the Group. On a spot check basis, a further nine reporting objects spanning four continents were incorporated into the assurance by way of interviews, on-site visits and telephone interviews. The Assurance Statement issued by Deloitte has been included here.
Key changes in 2005
For the first time we are also publishing performance indicators for employees and social issues in 2005. These describe the areas in which we wish to improve over the coming years by setting ourselves targets. Our performance will then be measured against these targets. Lanxess, which ceased to be part of the Group at the start of 2005, is no longer included in the performance indicators for the Bayer Group in this data section. To illustrate the effect of the spin-off on HSE performance, the share of the figures applicable to Lanxess up to 2004 – where Lanxess figures were available – has been included and listed separately for 2004. The Roche sites that were acquired in 2004 were first included in full in the data capture for 2005. As the energy consumed by those sites constitutes significantly less than one percent of total energy consumption, they have not been listed separately in the figures.
For the first time we are also publishing performance indicators for employees and social issues in 2005. These describe the areas in which we wish to improve over the coming years by setting ourselves targets. Our performance will then be measured against these targets. Lanxess, which ceased to be part of the Group at the start of 2005, is no longer included in the performance indicators for the Bayer Group in this data section. To illustrate the effect of the spin-off on HSE performance, the share of the figures applicable to Lanxess up to 2004 – where Lanxess figures were available – has been included and listed separately for 2004. The Roche sites that were acquired in 2004 were first included in full in the data capture for 2005. As the energy consumed by those sites constitutes significantly less than one percent of total energy consumption, they have not been listed separately in the figures.
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