Foreword
Sustainability
Sustainability management:
Lived in all areas of the company
Lived in all areas of the company
 Responsible Care |
Supplier management |
| Management systems |
Stakeholder dialogue |
Sustainable development is a core activity at Bayer; it is lived in all parts of the company. Group-wide control of this task is handled by the Bayer Corporate Sustainability Board, the most important committee for sustainability management at Group level. The Corporate Sustainability Board is made up of the members of the management boards of the subgroups responsible for research and technology and the heads of the Corporate Center departments Corporate Human Resources & Organization, Communications and Governmental & Product Affairs. Chaired by the Group Management Board member responsible for Innovation, Technology and Environment, this body meets quarterly to jointly establish the sustainability strategy and objectives, adopt Group directives and decide on key initiatives.
On the basis of the values and leadership principles, we have developed a Group-wide Sustainable Development Policy. This policy is enacted through corporate directives and positions, our obligations and our sustainable development performance management system. It applies in all countries and regions of the world in which Bayer is present.
On the basis of the values and leadership principles, we have developed a Group-wide Sustainable Development Policy. This policy is enacted through corporate directives and positions, our obligations and our sustainable development performance management system. It applies in all countries and regions of the world in which Bayer is present.
In 1994 Bayer made a commitment to uphold the Responsible Care principles of the chemical industry. These principles define responsible conduct toward people and the environment in all our activities, including our products along their entire life cycle. We endorsed these principles as early as 1986 in our “Policy guidelines for environmental protection and safety.” We were one of the first companies in the world to renew this obligation to the Responsible Care initiative, with the signing by our Management Board Chairman of the “Responsible Care Global Charter” of the International Council of Chemical Associations (ICCA) in January 2006.
New features of these principles include in particular the consistent application of product stewardship across the entire value-added chain, and a management system approach to all aspects of safety, health protection and environmental protection. Another component of the Global Charter is more intensive dialogue with the public. The charter has also given us the opportunity to firmly embed in our policy the implementation of Responsible Care principles in our subgroups and service companies.
New features of these principles include in particular the consistent application of product stewardship across the entire value-added chain, and a management system approach to all aspects of safety, health protection and environmental protection. Another component of the Global Charter is more intensive dialogue with the public. The charter has also given us the opportunity to firmly embed in our policy the implementation of Responsible Care principles in our subgroups and service companies.
The graphic shows how the issue of sustainability is implemented within the Bayer Group: The Corporate Sustainability Board controls sustainability management and represents the Group’s interests in this area both externally and internally. It is supported in terms of planning and implementation by the Sustainable Development Planning Group.
All subgroups and service companies maintain effective management systems for health, safety, environmental protection and quality (HSEQ). Also in place are systems and rules for specific requirements of individual subgroups and service companies, such as Good Manufacturing Practice (GMP) for drug products at Bayer HealthCare.
As a result of our realignment into a management holding structure, we have supplemented these systems with a Group-wide procedure specified in our “Directive on Health, Safety, Environment and Quality (HSEQ) Audits,” which took effect in October 2005.
An important role with regard to HSEQ is played by our Group-wide health protection activities. At the sites in Leverkusen, Krefeld-Uerdingen and Dormagen, for example, the Health Protection and Occupational Safety (GHA) Department within the Safety/Environmental Protection/Analytics Business Unit of Currenta performs a number of services in this connection. The goal of our comprehensive health management system is to identify at an early stage and prevent potential health risks. Outpatient clinics run by BIS are open around the clock so that employees can quickly receive initial medical treatment in cases of emergency.
As a result of our realignment into a management holding structure, we have supplemented these systems with a Group-wide procedure specified in our “Directive on Health, Safety, Environment and Quality (HSEQ) Audits,” which took effect in October 2005.
An important role with regard to HSEQ is played by our Group-wide health protection activities. At the sites in Leverkusen, Krefeld-Uerdingen and Dormagen, for example, the Health Protection and Occupational Safety (GHA) Department within the Safety/Environmental Protection/Analytics Business Unit of Currenta performs a number of services in this connection. The goal of our comprehensive health management system is to identify at an early stage and prevent potential health risks. Outpatient clinics run by BIS are open around the clock so that employees can quickly receive initial medical treatment in cases of emergency.
Sustainability management is integrated into all levels of the Bayer Group.
Approximately 40,000 different companies supply us with roughly 500,000 raw materials, products and services from nearly 80 countries around the world. Most of the raw materials are aromatic compounds, olefinic products, organic intermediates, inorganic chemicals or active substances. We receive about 95 percent of our procurement volume from member states of the Organization for Economic Cooperation and Development (OECD), which adhere to minimum ecological and social standards. Yet we have also taken precautions for deliveries from non-OECD countries: Our Group-wide procurement organization – the Bayer Procurement Community – supports our commitment to observe “internationally recognized ethical principles in the areas of human rights, labor conditions (includes the fight against child labor), environmental protection and anti-corruption,” as defined in the “Procurement Community Policy” revised in 2005.
In the “Supplier Relationship Management System” (SUPREME) introduced in the spring of 2003, our Group-wide procurement organization has at its disposal an instrument that enables us to evaluate our suppliers not just as regards quality and pricing, but also according to ethical aspects: In the pre-selection of suppliers, we check whether they comply with the United Nations’ Universal Declaration of Human Rights and the core labor standards of the International Labor Organization (ILO). Further aspects are also taken into account depending on the area and subgroup. For example, we require construction companies to provide certificates of international safety, health and environmental protection standards (e.g. SCC = Safety Certificate Contractors). If these companies do not satisfy our requirements, they are generally excluded from the selection process.
In newly industrializing countries, however, we are increasingly relying on a cooperative approach: By working together with the Abrinq Foundation in Brazil, for example, we were able to abolish child labor among one of our suppliers. We are taking a similar approach in India.
In the “Supplier Relationship Management System” (SUPREME) introduced in the spring of 2003, our Group-wide procurement organization has at its disposal an instrument that enables us to evaluate our suppliers not just as regards quality and pricing, but also according to ethical aspects: In the pre-selection of suppliers, we check whether they comply with the United Nations’ Universal Declaration of Human Rights and the core labor standards of the International Labor Organization (ILO). Further aspects are also taken into account depending on the area and subgroup. For example, we require construction companies to provide certificates of international safety, health and environmental protection standards (e.g. SCC = Safety Certificate Contractors). If these companies do not satisfy our requirements, they are generally excluded from the selection process.
In newly industrializing countries, however, we are increasingly relying on a cooperative approach: By working together with the Abrinq Foundation in Brazil, for example, we were able to abolish child labor among one of our suppliers. We are taking a similar approach in India.
We traditionally maintain a particularly intensive dialogue with the communities in which our production sites are located. Residents receive insight into our operations and are able to discuss issues with Bayer experts during guided tours of our facilities for visitor groups, at events for schoolchildren or on our annual “open house” day. At “BayKomm” – the Bayer Communication Center, which opened in 1991 at our headquarters in Leverkusen – we hold events that address a broad section of our stakeholders. Each year about 140,000 guests from Germany and around the world respond to our invitation to enter into dialogue with the company.
In addition to traditional groups such as customers, employees, community members and authorities, further external stakeholders are important to us at a national and international level. These include investors, governmental representatives, non-governmental organizations (NGOS) and consumer groups. We aim to expand and further systematize dialogue with these stakeholders in the coming years. After all, on the one hand their opinion of our activities has an increasingly important impact on our business success. And on the other hand, we hope the dialogue with them will provide us with insight into how we can increase our contribution to sustainable development and thus reduce risks. By the beginning of 2007, therefore, we aim to develop a Group-wide policy for stakeholder dialogue.
In October 2004 we became the first German chemical company to join the Global Reporting Initiative (GRI) as an organizational stakeholder. This underscored our willingness to contribute our own experience in sustainability reporting to the international discussion surrounding the further development of the GRI guidelines and in turn learn from other companies. The first conference of GRI stakeholders in Germany took place in December 2005 at Bayer’s headquarters in Leverkusen. Discussed at this conference were the new GRI guidelines for sustainability reporting, in the development of which Bayer participated intensively as one of just a few German companies.
In addition to traditional groups such as customers, employees, community members and authorities, further external stakeholders are important to us at a national and international level. These include investors, governmental representatives, non-governmental organizations (NGOS) and consumer groups. We aim to expand and further systematize dialogue with these stakeholders in the coming years. After all, on the one hand their opinion of our activities has an increasingly important impact on our business success. And on the other hand, we hope the dialogue with them will provide us with insight into how we can increase our contribution to sustainable development and thus reduce risks. By the beginning of 2007, therefore, we aim to develop a Group-wide policy for stakeholder dialogue.
In October 2004 we became the first German chemical company to join the Global Reporting Initiative (GRI) as an organizational stakeholder. This underscored our willingness to contribute our own experience in sustainability reporting to the international discussion surrounding the further development of the GRI guidelines and in turn learn from other companies. The first conference of GRI stakeholders in Germany took place in December 2005 at Bayer’s headquarters in Leverkusen. Discussed at this conference were the new GRI guidelines for sustainability reporting, in the development of which Bayer participated intensively as one of just a few German companies.
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