Strategy

Targets and Performance Indicators

Our nonfinancial targets through 2020 will cease to apply in the current form from the end of 2018 as they pertain only to the Bayer Group excluding the acquired agriculture business. The following table illustrates the attainment of these targets through the end of 2018. In view of the portfolio changes, we conducted a new materiality analysis in fall 2018 that will serve as the basis for new, ambitious Group targets that will be defined in 2019.

Nonfinancial Bayer Group Targets (concluded in 2018)

Target Target attainment1
Innovation
Group: target adjusted in September 2018: R&D investment of around €4.9 billion (2018) €5.2 billion
Pharmaceuticals: Transition of nine new molecular entities (NMEs) and one new indication or one new formulation project into development (2018) Five NMEs transferred
Consumer Health: Transition of 25 consumer-validated concepts into early development (2018) 40 new concepts transferred
Crop Science: Transfer of three to four new molecular entities (NMEs), plant traits or biologics into confirmatory technical proof-of-concept field studies Start of field studies on five NMEs
Sustainability
Supplier management
Evaluation of all potentially high-risk suppliers with significant Bayer spend (2020) 100%
Development and establishment of a new sustainability standard for our supply base (2020) Implemented
Resource efficiency
Improvement of 10% in energy efficiency (2020); reference value 2015: 143 kWh/€1,000 external sales 125 kWh / €1,000 external sales (12.6% improvement)

Reduction of 20% in specific greenhouse gas emissions (2020); reference value 2015: 55.7 kg CO2e / €1,000 external sales

42.0 kg CO2e / €1,000 external sales (– 25 %)
Safety
Reduction of 35% in occupational safety incident rate (Recordable Incident Rate – RIR) (2020); reference value 2012: 0.50 RIR 0.36 (– 28%)
Reduction of 30% in process and plant safety incidents (Loss of Primary Containment Incident Rate – LoPC-IR) (2020); reference value 2012: 0.21 LoPC-IR 0.13 (– 38%)
Product stewardship
Conclusion of assessment of hazard potential of all substances (> 99%) used in quantities exceeding one metric ton per annum (2020) 87%
Compliance
Annual compliance training for virtually 100% of Bayer managers 97%
Employees
Continuous improvement in employee satisfaction; reference value 2017: 79% 77%
Increase in the proportion of women in senior management to 35% (2020); reference value 2010: 21% 34%
Increase in the proportion of senior managers from outside the European Union, the United States or Canada to 25% (2020); reference value 2013: 18% 21%
1 Excluding the acquired agriculture business.

As the table above shows, we already attained our 2020 targets for supplier management, safety (LoPC-IR) and resource efficiency in 2018. We had also been making good progress in attaining the other targets. We will generally continue to expand our activities in the target categories in 2019 and report on attainment. However, we will need to fundamentally realign our targets in view of the integration of the acquired agriculture business and the impact it has on our enterprise.

More information can be found in the Annual Report 2018.