Performance Report
Reporting principles
Our Performance Report provides clear and concise information on all issues that we and our stakeholders consider to be of relevance for sustainability. It meets the requirements established in the current Global Reporting Initiative (GRI) guidelines and covers all internationally recognized financial and non-financial indicators corresponding to GRI level A+. You can find the full GRI index
here.
In 2006, for the first time, Bayer formulated specific five-year sustainability objectives to allow itself to measure its sustainability performance. The majority of the objectives will end their term in 2010. Meanwhile, in individual areas such as climate protection, we have already defined targets that go beyond those originally set. We shall take stock of the level of achievement of the 2006+ objectives in our Sustainable Development Report 2010 and also then publish new, focused Group objectives.
When selecting and measuring indicators, we took recommendations by the following into consideration:
- World Business Council for Sustainable Development (WBCSD)
- Greenhouse Gas Protocol (GHG Protocol)
- European Chemical Industry Council (Conseil Européen de l’Industrie Chimique, CEFIC) and
- Society of Investment Professionals in Germany (Deutsche Vereinigung für Finanzanalyse und Asset Management, DVFA) in conjunction with the European Federation of Financial Analysts Societies (EFFAS), for the reporting of non-financial indicators.
We also base our reporting on the content of the 10 principles of the UN Global Compact. Progress in the implementation of these principles is reported on an annual basis (COP – Communication on Progress
).
Recording sustainability indicators
Transparent reporting is based on the acquisition of valid and plausible data. All HSE (health, safety and environment) performance indicators for the Group are summarized in BaySIS®, our Group-wide, site-based information system. The data undergo plausibility checks and cross-checks to ensure a high level of data integrity. We use various other information systems to gather HR performance indicators and social data, such as ProKon, the Global HR Productive (GHP) system and the reporting database HRCT (Human Resources Controlling Tool).
We capture data from all of the relevant organizational units and companies worldwide which fall within the scope of the Bayer Group’s consolidated financial statements. Our health, safety and environment (HSE) data cover all companies in which we have a holding of at least 50 percent. The key performance data of these companies have been fully consolidated, regardless of Bayer’s precise share in the respective company. The years 2005 to 2009 reflect the continuing business operations without the divested Wolff Walsrode, H. C. Starck and Diagnostics sites. Schering sites have been included in the figures from the date of acquisition, June 23, 2006.
We present our greenhouse gas emissions from 2005, the baseline year for the climate targets up to 2020 set in the Bayer Climate Program. Greenhouse gases are presented on a portfolio-adjusted basis in accordance with the financial control approach of the GHG Protocol.
The data capture process and the statements made in the focus issue sections and throughout the Performance Report have been reviewed by the auditing company
Ernst & Young to verify that they are consistent, appropriate and plausible. Furthermore, on-site visits were made to 10 reporting objects in Germany, Switzerland, China, Japan and Mexico. During these visits, random checks were made on the gathering and reporting of HSE data.
Interpreting performance indicators
Our Performance Report provides a clear depiction of the development in our sustainability performance indicators. In order to rank the performance indicators, it is important in the case of many of the parameters to present the values in relation to the annual production volume. The volume of products sold fell by 1.3 million metric tons during the reporting year to 8.7 million metric tons
.
| Volume of products sold |
|---|
| 2005 | 2006 | 2007 | 2008 | 2009 |
Volume of products sold
(million metric tons) | 9.7 | 10.1 | 10.6 | 10.0 | 8.7 |
| Change compared with the previous year (percent) | +6.6 | +4.1 | +5.0 | -5.7 | -13.3 |
Management systems for attaining company-wide HSEQ objectives
Bayer’s goal is to achieve an appropriate and uniform level of performance in the areas of health, safety, environment and quality (HSEQ) throughout the Bayer Group worldwide, and to make continuous improvements. In order to attain this goal, Bayer has established corresponding HSEQ management systems in all subgroups and service companies. These systems are based on international standards and are regularly reviewed and updated.
At the end of 2009, Bayer CropScience completed the auditing of relevant sites in accordance with the HSEQ core requirements. The subgroup also reviewed all 36 production sites with regard to process and plant safety between 2007 and 2009.
Bayer HealthCare is also optimizing and auditing its HSEQ management systems on a continuous basis in accordance with an annually specified, risk-based program. In 2009, the subgroup enacted seven new HSE directives.
The Bayer MaterialScience (BMS) Integrated Management System is monitored continuously as part of a global internal HSEQ auditing program and is externally certified to ISO 9001.
In all, 87 percent of our production sites had a Bayer-audited HSE management system in 2009.
International standards and certifications
Around 40 percent of our production sites have been externally certified according to internationally recognized regulations such as the environmental management standard ISO 14001 or validated according to the European environmental management regulation EMAS (Eco-Management and Audit Scheme).
All subgroups and service companies have quality management systems. Because quality requirements and standards are commonly defined on an industry-specific level, their implementation lies within the responsibility of our subgroups and service companies.
In order to support our goal of further reducing the occupational injury rate, further sites underwent certification during the reporting year in accordance with OHSAS (Occupational Health and Safety Assessment Series) 18001, an international standard focused primarily on prevention.
Due to an overall reduction in the number of certified production sites (e.g. due to sales or closures) and the expiry of various certificates at some sites, we have observed a downward trend in the percentage of our sites that are certified. As part of our company objectives, we will strive in the coming years to increase this percentage once again.
| Certifications and audits (as a percentage of the total number of Bayer production sites) |
|---|
| 2005 | 2006 | 2007 | 2008 | 2009 |
| Sites with a management system certified to ISO 14001 or validated to EMAS | 36 | 36 | 33 | 34 | 31 |
| Sites with an HSE management system based on other external standards * | 4 | 7 | 10 | 21 | 14 |
Sites with a management system
certified to OHSAS 18001 | 5 | 8 | 8 | 8 | 15 |
| Sites with a Bayer-audited HSE management system | - | 62 | 64 | 77 | 87 |
* e.g. RCMS (Responsible Care Management System) in the United States or Industria Limpia (clean industry) in Mexico