Climate Change Data

Bayer AG

Climate Impact & Sustainability Data (2019, 2020)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:12-15m tons/year (CO2e)
Scope 3 Emissions:~4m tons/year (CO2e)

ESG Focus Areas

  • Climate Change
  • Biodiversity
  • Water Scarcity
  • Smallholder Farmer Support
  • Women's Health
  • Access to Healthcare
  • Gender Equality

Environmental Achievements

  • Commitment to carbon neutrality in own operations and substantial reduction across value chain (-30% greenhouse gas footprint of in-field crop production)

Social Achievements

  • Commitment to support 100 million smallholder farmers in low- and middle-income countries
  • Commitment to provide access to modern contraception for 100 million women in low- and middle-income countries
  • Commitment to expand access to everyday health for 100 million people in underserved communities

Governance Achievements

  • Establishment of an independent Sustainability Council advising the Board of Management
  • CEO to become Chief Sustainability Officer
  • Inclusion of sustainability objectives in variable compensation for managerial employees

Climate Goals & Targets

Long-term Goals:
  • Carbon neutrality in own operations by 2030
  • Support 100m smallholder farmers
  • Provide access to modern contraception for 100m women
  • Expand access to everyday health for 100m people

Environmental Challenges

  • Climate change
  • Water scarcity
  • Loss of biodiversity
  • High levels of gender inequality
  • Lack of access to essential health services
  • Malnutrition and poverty among smallholder farmers
Mitigation Strategies
  • Science-based targets for emission reductions
  • Holistic solutions for smallholder farmers (access to inputs, good agricultural practices, finance, insurance)
  • Increased access to affordable modern contraceptives
  • Increased availability and affordability of OTC brands in underserved communities
  • Self-care education initiatives

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science-Based Targets initiative

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:3.58 million tCO2e
Scope 1 Emissions:2.01 million tCO2e
Scope 2 Emissions:1.57 million tCO2e
Scope 3 Emissions:8.86 million tCO2e
Renewable Energy Share:6.1%
Total Energy Consumption:35,858 MWh
Water Consumption:57 million m3
Waste Generated:937,000 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate and environmental protection
  • Access to health care
  • Sustainable food supply
  • Product stewardship
  • Business ethics
  • Innovation
  • Human rights

Environmental Achievements

  • Reduced Scope 1 and 2 greenhouse gas emissions by 0.18 million metric tons of CO2 equivalents (4.8% reduction)
  • Reduced emissions by 0.99 million metric tons of CO2 equivalents (11.2% reduction) in categories relevant to Scope 3 Science Based Target
  • Offset 0.2 million metric tons of greenhouse gas emissions through climate protection certificates
  • Achieved goal of ensuring that 100% of sites in water-scarce areas have a water management system
  • Reduced total water use to 57 million cubic meters (2019: 59 million cubic meters)
  • Reduced total quantity of industrial and mixed wastewater to 25 million cubic meters (2019: 26 million cubic meters)
  • Reduced hazardous waste to 305,000 metric tons (2019: 316,000 metric tons)

Social Achievements

  • Supported 45 million smallholder farmers in low- and middle-income countries
  • Provided access to modern contraception for 40 million women in low- and middle-income countries
  • Supported the self-care needs of 43 million people in underserved communities
  • Increased the number of training contacts worldwide
  • Reduced Recordable Incident Rate (RIR) from 0.46 to 0.32 cases per 200,000 hours worked

Governance Achievements

  • Established a sustainability council made up of highly qualified experts
  • Integrated sustainability goals into the compensation system of the Board of Management and other eligible employees
  • Issued an unqualified declaration of compliance with the German Corporate Governance Code

Climate Goals & Targets

Long-term Goals:
  • Reach net zero emissions in entire value chain by 2050
Medium-term Goals:
  • Reduce Scope 1 & 2 greenhouse gas emissions by 42% by the end of 2029
  • Reduce Scope 3 greenhouse gas emissions by 12.3% by 2029
  • Achieve climate neutrality in own operations by 2030
  • Empower 100 million smallholder farmers in low- and middle-income countries by 2030
  • Provide access to modern contraception for 100 million women in low- and middle-income countries by 2030
  • Support the self-care needs of 100 million people in underserved communities by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • COVID-19 pandemic impacting business activities (reduced demand, postponed treatments, supply chain disruptions)
  • Challenging market environment and negative currency effects reducing growth expectations in agriculture
  • Glyphosate, PCB, dicamba, and Essure™ litigations
  • Increased competition in seed and crop protection industry
  • Regulatory changes impacting product sales and use
  • Risks associated with innovation (new therapy platforms, business model development)
  • Difficulties in recruiting and retaining specialized employees
  • Risks related to IT systems (cyberattacks, data breaches)
  • Liquidity and credit risks
  • Fluctuations in currency exchange rates, interest rates, and commodity prices
  • Risks associated with pension obligations
  • Tax risks
  • Risks related to external partner compliance
  • Health, safety, and environmental risks
  • Intellectual property risks
  • Legal risks
Mitigation Strategies
  • Implementing protective measures and ensuring product supply during the pandemic
  • Stringent cost management
  • Reaching settlement agreements for litigations
  • Realigning business models, engaging in partnerships, and utilizing R&D capabilities
  • Monitoring regulatory changes and adapting product portfolio
  • Aligning organization and processes to challenges (establishing new units, partnerships)
  • Designing appropriate employee recruitment and development measures
  • Evaluating and utilizing new technologies, implementing security measures
  • Maintaining sufficient liquidity, using derivative financial instruments
  • Balanced strategic investment, monitoring investment risks
  • Continuously identifying and evaluating tax framework
  • Implementing a four-stage management process for supply chain sustainability
  • Implementing principles, standards, and control mechanisms for health, safety, and environmental protection
  • Regularly reviewing patent situation and monitoring for potential infringements

Supply Chain Management

Supplier Audits: 26 on-site audits, 5 virtual audits

Responsible Procurement
  • Supplier Code of Conduct (based on Bayer Human Rights Policy and UN Global Compact principles)

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters (flooding, earthquakes) affecting production facilities
Transition Risks
  • Regulatory changes impacting product sales and use
  • Increased pressure from the COVID-19 pandemic and regulatory and competitive factors
Opportunities
  • Developing climate-smart agricultural practices
  • Developing sustainable solutions to support a healthier planet

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

  • Not disclosed

Company's initiatives contribute to the UN Sustainable Development Goals.

Sustainable Products & Innovation

  • Vitala™ (short-stature corn variety)
  • Iblon™ technology (fungicide)
  • Buteo™ start (insecticidal seed treatment)
  • Bollgard™ 3 ThryvOn™ cotton
  • Intacta 2 Xtend™ soybeans
  • XtendFlex™ soybean technology

Awards & Recognition

  • Not disclosed