Bayer

Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. The company’s products and services are designed to benefit people and improve their quality of life. At the same time Bayer creates value through innovation, growth and high earning power.

The Group is committed to the principles of sustainable development and to its role as a socially and ethically responsible corporate citizen. Economy, ecology and social responsibility are corporate policy objectives of equal rank. In fiscal 2011, Bayer employed 111,800 people and had sales of €36.5 billion. Capital expenditures amounted to €1.7 billion, R&D expenses to €2.9 billion.

 

Political Principles

Bayer’s researchers maintain a constant dialogue with scientists at leading universities, as well as with customers and cooperation partners. The focus of this communication is on jointly addressing questions related to tomorrow’s challenges – fully in line with our mission “Bayer: Science For A Better Life.”

Bayer: Science For A Better Life. The promise that Bayer gives to society is to use science as a powerful tool to address the major challenges of our world. As an inventor company, providing new ideas and addressing unmet needs is our daily business. That is what we call innovation.

Our ability to supply innovative solutions also depends on the political framework in which we act. We think it is necessary and legitimate for us to participate in political debates and to communicate our political positions to the relevant decision makers.

Accepting our role as a socially and ethically responsible corporate citizen, we create benefits for the communities in which we live. Bayer is aware that a powerful tool like science needs to be used in a balanced way. Granting its benefits to society is just as important as ensuring that its risks are carefully managed. Our advocacy activities are conducted transparently (Code of Conduct), openly and in line with our Corporate Compliance Policy.

There are five areas in which our work is most affected by the political framework:


INNOVATION

Bayer boasts the largest research and development budget of the entire chemical and pharmaceutical industry in our home country, Germany. We support political frameworks that foster innovation. Since providing new benefits to society must be rewarded, this includes secure knowledge protection worldwide. In Germany, Bayer advocates the introduction of a tax credit for R&D investments.

Innovative research is at the center of Bayer’s business strategy – in line with our slogan “Science For A Better Life”. Bayer has the biggest budget for research and development (R&D) in the entire German chemical-pharmaceutical industry.

We support the efforts of the EU member states to substantially increase R&D spending to 3% of gross national product. Both Europe and Germany still have a long way to go before they reach this target.
A comprehensive innovation strategy is required to fully exploit the innovation potential that exists in this country. It should focus on three areas.

  • Improve the overall political and economic framework
  • Specifically promote cutting edge research
  • Foster an innovative culture through dialog and better education

 

Social acceptance of technologies and products

The welfare of societies is closely linked to the ability to develop and use new technologies. Bayer trusts in scientific research to determine the risks and benefits of technologies and products. It is in Bayer’s interest to provide safe solutions to today’s and tomorrow’s problems.

Bayer makes a sustainable contribution to overcoming global challenges with its innovative technologies and high-tech materials. The aim of the “Dream Production” project, for example, is to use the climate gas CO2 as a raw material.

Investments in technologies and production facilities span decades, though, and cost millions if not billions. Stable frameworks which make it possible to plan on such timescales are therefore essential to Bayer. This requires a broad and general acceptance of safe new technologies within societies.

While very few people object to medicine created by biotechnology, the benefits of green biotechnology in plants have yet to be accepted by European societies. Europe still rejects imports of green biotechnology products that are common in the rest of the world. People also have reservations on nanotechnology, which is successfully used in electronics, alternative energy and medicine. Potential health risks are investigated thoroughly. In food production, crop protection makes an important contribution to reducing hunger in the world and improving the quality of food.


Sustainable healthcare systems

Societies all over the world are searching for new ways to organize their healthcare systems.

The challenge is to keep costs under control while at the same time securing high-quality medical care and safeguarding the innovative strength of the pharmaceutical sector. As a pharmaceutical company Bayer has a view on how this can be achieved.

Energy policy & environmental protection

At Bayer, we recognize the scientific evidence indicating that man-made climate change is a fact. We also recognize the chemical industries’ responsibility as a major greenhouse-gas emitter. Bayer therefore strives to reduce its own emissions according to stringent reduction  targets. More importantly, we believe that innovative products made by Bayer – such as materials for thermal insulation – can make a significant contribution to countering climate change.

Energy policy nowadays follows the need for environmental protection, e.g. in emission-trading schemes. We believe it is important that Europe retains energy prices that are comparable to other regions to maintain the overall competitiveness of the chemical industry.

Chemicals regulation

 Bayer is internationally active on product safety

The safety and environmental compatibility of products are top priorities for Bayer. Legal requirements – and voluntary initiatives – are the cornerstones of modern chemicals management.

Since 2007 Bayer has been operating according to the European chemicals regulation called REACH (Registration, Evaluation and Authorization of Chemicals). In 2010 the company registered (on schedule) 125 substances whose annual production or imports exceed 1,000 tonnes a year, or which are particularly dangerous. Bayer also expects its suppliers to confirm the REACH compliance of their products. Bayer is convinced that such regulations are important for protecting people’s health and the environment and organizes its actions accordingly.

In 2006 Bayer was one of the first companies to sign the Responsible Care Global Charter, which also involves a commitment to the Global Product Strategy (GPS). For example, the company has been successfully informing its customers and other interest groups via the BayCare platform since 2000.

Bayer cooperates with its competitors, for example to promote the exchange of data between companies. Among other things, this can raise efficiency and may even reduce the amount of animal testing mandatory in the REACH registration process.

In a similar way to REACH, the Toxic Substances Control Act (TSCA) in the USA also requires the registration of new chemicals.

The Globally Harmonized System of Classification and Labeling of Chemicals (GHS) came into force in 2009 in Europe – and in 2010 in China and several other countries. It regulates the uniform classification and labeling of chemicals. A Group-wide working group coordinates its implementation at Bayer. By November 30, 2010, the company had registered on schedule all substances marketed by Bayer in the EU and classified according to the GHS with the inventory of the European Chemicals Agency (ECHA). Following this notification of more than 1,000 substances, the company will pass on information to the authority on all GHS-relevant mixtures by May 31, 2015.

 

Sustainable Development Policy

We at Bayer carefully develop products and services specifically designed to benefit people. In this endeavor, we are committed to achieving the economic, ecological and social responsibility objectives of Sustainable Development. Sustainable Development is a globally accepted approach to sustaining economic growth without harming our planet or exhausting its resources while improving the quality of life for its current and future inhabitants.

We believe that practicing Sustainable Development makes good business sense. In all our operations we consider each of these actions in making business decisions that demonstrate our commitment to the global Sustainable Development effort:

Our business is the means by which we combine human ingenuity and natural resources to benefit mankind. Hence, economic responsibility dictates that we manage our business profitably to help drive economic growth and prosperity. We believe that innovation is essential to achieving sustainable economic success. We also invest extensively in research, development and new technologies as a foundation for future success.

Bayer is committed to continually improving our ecological performance in accordance with the Global Charter Responsible Care as our product lines and related manufacturing operations evolve. We will continue to monitor how our operations impact the environment and strive for continuous improvements. The health and safety of our employees, neighbors, customers, consumers and stakeholders are paramount, as is our continued stewardship of the environment and the quality and safe handling and use of our products.

We will continue to address our social responsibilities through our commitment to help our employees, customers and community neighbours meet their changing personal and professional needs. We also will monitor and address the impact our business has on our plant neighbors, local communities and global society. To this end, we will continue to seek an active, open and honest dialogue with all stakeholders in appropriate forums. The Bayer Values and Leadership Principles are based on preserving and honouring the fundamental rights of every individual. Bayer will continue to seek to promote and protect human rights as defined in internationally accepted humanitarian standards set forth by the United Nations1.

This Sustainable Development approach to conducting our business aligns with Bayer’s Mission Statement: “Bayer: Science For A Better Life.”2 To assure that we continue to demonstrate continual improvement in the Economic, Ecological and Social Responsibility pillars of Sustainable Development, we have introduced customized management systems to monitor and control progress, document the achievement of objectives, and optimize employee efforts in these areas. And we remain committed to truthfully report on our sustainability performance to all interested parties.

 

Group-wide Organization and Group Responsibilities

As a strategic task with long-term implications, sustainability management is a task for the entire Bayer Group. As such, it can only be carried out jointly with the subgroups and service companies. Accordingly, a Corporate Sustainability Board forms the heart of the sustainability management structure of the Bayer Group. This Board makes decisions on setting objectives, strategies and major initiatives and the need to communicate internally and externally.

The Corporate Sustainability Board is chaired by the Group Management Board Member responsible for Technology, Innovation & Environment. Subgroups and service companies are represented by management board members responsible for Technology, Innovation and Environment. Corporate members are the Head of Environment & Sustainability, the Head of Corporate Human Resources & Organization, and the Head of Corporate Communications.

The Corporate Sustainability Board is supported by the SD Planning Group, chaired by the head of the corporate unit Environment & Sustainability. The SD Planning Group is an interdisciplinary team comprising the heads of relevant functions in the subgroups and service companies and representatives from appropriate corporate departments.

 

Solving global challenges together (The view of Mr. Werner Wenning, Chairman of the Board of Management of Bayer AG)

The strategy should be holistic in nature and apart from the financial and economic crisis, it should also address the long-term social, political, scientific and economic challenges such as climate change, population growth and demographic development. Unfortunately, the communication between politics and economy has of late not always been sufficiently open and constructive. Hence, we need a new balance among politics, the private sector, science and society that is based on common values, as we can only cope with the upcoming challenges together.

For example, the sustainable consolidation of public finances is only possible if we attain more economic growth. This cannot be achieved over the long term without a strong industry, which is the real economic backbone and innovation engine of the economy. But industry is also dependent on the politicians, who must pursue clear and consistent regulatory policies in order to create globally competitive conditions.

The same applies to a diffuse scepticism of future technologies, as is prevalent in Europe. Instead, we need a healthy balance between the opportunities provided by new technologies and possible risks. After all, anything new has an element of uncertainty. Politics can play a role here by ensuring that the regulation of innovative technologies is based on facts and scientific evidence and not on unfounded apprehensions.

The situation regarding climate policy is similar. With its innovative products and increasingly efficient production processes, industry is helping to protect the climate, and tackle climate change. This, however requires that the additional burdens are maintained within tolerable limits and compensated elsewhere, if required. Otherwise, their international competitiveness will be at risk.

 

Bayer Membership in Associations

Memberships of Bayer AG and its subgroups and service companies:

Bayer AG

  • Verband der Chemischen Industrie e.V. (VCI ) (German Chemical Industry Association),
  • European Chemical Industry Council (CEFIC),
  • Gesellschaft Deutscher Chemiker e.V. (GDCh) (German Chemical Society),
  • European Center for Ecotoxicology & Toxicology of Chemicals (ECETOC),
  • American Chemistry Council (ACC),
  • Stifterverband für die Deutsche Wissenschaft (Donors’ Association for the Promotion of Sciences and Humanities in Germany),
  • Bundesverband der deutschen Industrie e.V. (BDI) (Federation of German Industries),
  • Asien-Pazifik-Ausschuss der Deutschen Wirtschaft (APA) (Asia-Pacific Committee of German Industry),
  • BusinessEurope: The Confederation of European Business,
  • World Economic Forum,
  • econsense: Forum Nachhaltige Entwicklung der Deutschen Wirtschaft (Forum for Sustainable Development of German Business),
  • World Business Council for Sustainable Development (WBCSD),
  • Verband forschender Arzneimittelhersteller (VfA) (Association of Research-Based Pharmaceutical Companies),
  • Bundesverband der Arzneimittelhersteller (BAH) (Federal Association of Drug Manufacturers),
  • Verband der Diagnostica Industrie e.V. (VDGH) (Diagnostics Industry Association),
  • Bundesverband für Tiergesundheit e.V. (BfT) (Federal Association for Animal Health),
  • European Federation of Pharmaceutical Industries and Associations (EFPIA),
  • International Federation of Pharmaceutical Manufacturers Associations (IFPMA),
  • Freiwillige Selbstkontrolle für die Arzneimittelindustrie (Association for the Voluntary Self-Control of the Pharmaceutical Industry),
  • German Pharma Health Fund e.V. (GPHF),
  • Deutsche Gesellschaft für Risikomanagement (DGR) (German Risk Management Association) ,
  • membership in selected work groups of the Verband der Chemischen Industrie e.V. (VCI ) (German Chemical Industry Association),
  • International Accounting Standards Board (IASB)

Bayer HealthCare

  • Verband forschender Arzneimittelhersteller (VfA) (Association of Research-Based Pharmaceutical Companies),
  • Bundesverband der Arzneimittelhersteller (BAH) (Federal Association of Drug Manufacturers),
  • Verband der Diagnostica Industrie e.V. (VDGH) (Diagnostics Industry Association),
  • Bundesverband für Tiergesundheit e.V. (BfT) (Federal Association for Animal Health),
  • European Federation of Pharmaceutical Industries and Associations (EFPIA),
  • International Federation of Pharmaceutical Manufacturers Associations (IFPMA),
  • Freiwillige Selbstkontrolle für die Arzneimittelindustrie (Association for the Voluntary Self-Control of the Pharmaceutical Industry),
  • German Pharma Health Fund e.V. (GPHF),
  • Deutsche Gesellschaft für Risikomanagement (DGR) (German Risk Management Association) ,
  • membership in selected work groups of the Verband der Chemischen Industrie e.V. (VCI ) (German Chemical Industry Association),
  • Pharmaceutical Research and Manufacturers of America (PhRMA) and others*

* local memberships in national associations

Bayer CropScience

  • CropLife International (international association of crop protection manufacturers and the bioindustry),
  • European Crop Protection Association (ECPA),
  • EuropaBio – European Association for Bioindustries,
  • Deutsche Industrievereinigung Biotechnologie e.V. (DIB) (German Association of Industrial Biotechnology),
  • Bundesverband der deutschen Pflanzenzüchter (Federal Association of German Plant Breeders),
  • PlasticsEurope (association of plastics manufacturers),
  • Center for the Polyurethanes Industry (CPI),
  • European Diisocyanate & Polyol Producers Association (ISOPA),
  • European Aliphatic Isocyanates Producers Association (ALIPA),
  • Institute of Electronic Business (IEB),
  • IT Service Management Forum,
  • German-language SAP user group (DSAG),
  • Forschungsgesellschaft Verfahrenstechnik e.V. (GVT) (Research Society for Process Technology),
  • Verein Deutscher Ingenieure – Gesellschaft Verfahrenstechnik und Chemieingenieurwesen (VDI – GVC) (Association of German Engineers – Society for Chemical and Process Engineering),
  • Industrieverband Agrar (IVA) (Association of the Crop Protection and Fertilizer Industry in Germany)

Bayer MaterialScience

  • PlasticsEurope (association of plastics manufacturers),
  • Center for the Polyurethanes Industry (CPI),
  • European Diisocyanate & Polyol Producers Association (ISOPA),
  • European Aliphatic Isocyanates Producers Association (ALIPA),
  • EUROCHLOR (organization representing the European chlor-alkali industry) and others

Bayer Business Services

  • Institute of Electronic Business (IEB),
  • IT Service Management Forum,
  • German-language SAP user group (DSAG),
  • Bundesverband für Materialwirtschaft, Einkauf und Logistik e.V. (BME) (Federal Association of Materials Management, Purchasing and Logistics)


Bayer Technology Services

  • Forschungsgesellschaft Verfahrenstechnik e.V. (GVT) (Research Society for Process Technology),
  • Verein Deutscher Ingenieure – Gesellschaft Verfahrenstechnik und Chemieingenieurwesen (VDI – GVC) (Association of German Engineers – Society for Chemical and Process Engineering),
  • Interessengemeinschaft Automatisierungstechnik der Prozessindustrie (NAMUR) (Association of Users of Automation Technology in the Process Industry)