9.2 Environment, Climate Protection and Safety

Key Performance Indicators		[Table 3.37]
Category	Key Performance Indicators Health, safety and environment	2008	2009
Health and Safety	Industrial injuries to Bayer employees resulting in at least one day’s absence (number of injuries per million hours worked)	2.2	2.0
	Reportable industrial injuries to Bayer employees (number of injuries per million hours worked)	3.6	3.1
	Major environmental incidents	9	13
	Transportation incidents	10	10
Emissions	Direct greenhouse gas emissions (CO₂ equivalents in million metric tons)*	5.09	4.57
	Indirect greenhouse gas emissions (CO₂ equivalents in million metric tons)*	3.57	3.53
	Volatile organic compounds (VOC) (thousand metric tons/year)	3.16	2.59
	Total phosphorus in waste water (thousand metric tons/year)	0.78	0.74
	Total nitrogen in waste water (thousand metric tons/year)	0.67	0.63
	Total organic carbon (TOC) (thousand metric tons/year)	1.59	1.34
Waste	Hazardous waste generated (million metric tons/year)	0.37	0.38
Waste	Hazardous waste landfilled (million metric tons/year)	0.08	0.09
Use of resources	Water use (million m³/day)	1.20	1.11
Use of resources	Energy use (petajoules [10¹⁵ joules]/year)	82.79	77.33
2008 figures restated * as per Greenhouse Gas Protocol

Environmental protection, safety and product stewardship

Bayer has long placed great importance on protecting the environment and conserving natural resources. We are constantly on the lookout for solutions that promote growth cost-effectively without further depleting natural resources or producing more emissions or waste. We are committed to leveraging our expertise in technology, process optimization and product innovation to protect nature, the environment and the climate. For example, Bayer is developing a method that holistically analyzes, and determines ways to minimize, the consumption of resources such as energy, water and raw materials. This resource efficiency check – based on the “Bayer Climate Check” – is currently being tested in pilot projects.

To ensure uniformly high health, safety, environmental protection and quality standards, Bayer has established HSEQ management systems in all subgroups and service companies that are aligned to recognized international standards. In 2009, 87% of Bayer sites had an audited HSE management system in place. The audits were performed according to an internal Bayer standard. Almost 40% of our production sites have been externally audited in line with international standards such as ISO 14001, EMAS or OHSAS 18001. The respective quality management systems are adapted to industry-specific quality standards.

We improved nearly all of our key performance indicators in 2009. The industrial injury rate again declined, almost reaching our target of <2.0. Emissions of volatile organic compounds (VOC), phosphorus, nitrogen and total organic carbon (TOC) also declined. Resource input decreased in 2009 due to lower production volume. Optimization of our data collection systems for energy input led to a reduction compared with the figure published in the Annual Report 2008 from 88.5 to 82.8 petajoules per year.

In 2009 there was an increase in the number of environmental incidents, including minor emissions reported in line with a voluntary internal commitment. Unfortunately, even our extensive safety precautions and training procedures cannot entirely prevent environmental incidents or traffic accidents. Any such events are carefully analyzed and evaluated so that steps can be taken to prevent a recurrence. As part of the ongoing development of our commitment in the field of occupational health and safety, we implemented a new Group regulation on transportation safety in 2009 and updated the Group regulations on occupational safety, occupational health, and process and plant safety.

For Bayer, sustainability also means systematically avoiding potential risks in the manufacture, application or disposal of our products. Product safety and compatibility therefore have top priority across all our fields of activity in all the countries where we operate. We examine all Bayer products and monitor them with regard to any potential health, safety, environment or quality (HSEQ) risks arising from their use in applications known to us, right along the value chain.

We are committed to product stewardship and also support the objectives of the E.U. chemicals policy (REACH), which are to ensure the safety of everyone who comes into contact with chemical products throughout their life cycles and to further improve consumer safety and environmental protection. Bayer had already pre-registered 817 substances with the European Chemicals Agency (ECHA) by the end of 2009 as required under the E.U. regulation. By the end of November 2010 we will now compile the necessary registration dossiers for substances that we use in particularly large quantities. For many of these substances, Bayer has formed registration consortia with competitors in order to share data and avert the need for additional animal studies.

Climate protection

The Bayer Climate Program, announced in 2007, addresses one of the great global challenges: climate change. It forms a cornerstone of the new Bayer Sustainability Program. The aim of the Bayer Climate Program is to find ways to protect the climate and address the consequences of climate change. In 2009 Bayer was named the world’s best company in the Carbon Disclosure Leadership Index, honoring our transparent reporting on climate strategy and greenhouse gas emissions.

Improving energy efficiency is a major factor in reducing our own greenhouse gas emissions. We use the Bayer Climate Check as an analysis tool to identify CO₂ emission reduction potential at our production facilities. By mid-2010 we plan to assess more than 140 facilities and buildings that currently account for over 85% of production-related CO₂ emissions. The analysis results so far point to an energy reduction potential of 10% by 2013 relative to 2008 in the production facilities of our subgroups and service companies. The identified reduction potential is being realized through a systematic energy efficiency program that is intended to reduce our greenhouse gas emissions by 350,000 tons per year. Process innovations are another focus of our efforts to reduce greenhouse gas emissions, one example being an innovative, climate-friendly chlorine production process developed jointly by Bayer and its partners that uses some 30% less energy. In the future we aim to market this technology outside of Bayer as well as using it in our own facilities.

Bayer also provides solutions for climate protection. With energy consumption in buildings accounting for nearly 20% of greenhouse gas emissions worldwide, the purpose of the “ info

EcoCommercial Building” lighthouse project for zero- and low-emissions structures, launched two years ago, is to help reduce these emissions. This project has been developed into a comprehensive program to bring together all the partners along the value chain, so that integrated and sustainable design concepts can be developed for commercial and public building projects.

The Bayer Climate Program also adopts other approaches, including measures such as the “ECO Fleet” program to reduce emissions caused by company cars, the use of new telecommunications technology to reduce business travel, and the improvement of energy efficiency in the IT environment.

Bayer bases its reporting of greenhouse gas emissions on the international standard of the Greenhouse Gas (GHG) Protocol. The company aims to hold total emissions to 2007 levels through 2020 despite growth in production. In 2009, direct greenhouse gas emissions fell by 10.2%, mainly as a result of process improvements and the general economic situation. Energy-related indirect greenhouse gas emissions fell by only 1.1%, mainly because of much less favorable conversion factors for the German electricity mix. The total of direct and indirect greenhouse gas emissions was down by 6.5% because of lower overall production volume, especially at MaterialScience.

The 2008 figure for direct greenhouse gas emissions published in the Annual Report 2008 rose from 4.0 to 5.1 million tons CO₂ equivalent, partly because we acquired a nitric acid facility in the United States in 2009 that had to be included retrospectively in line with the GHG Protocol.

Each Bayer subgroup has set its own ambitious climate goals for the period from 2005 through 2020. To track our target achievement more transparently, we publish detailed information on emission levels in our Sustainable Development Report.