This Is How We Protect the Climate

Without suitable countermeasures, global temperature will rise by well over 2 degrees Celsius. This will threaten our planet’s ecosystems, jeopardize the health of people, animals, and plants, and place the food supply for a growing world population at risk.

 

Our Climate Objectives and Initiatives

As a science-based company, Bayer has recognized the risks posed by global climate change. We aim to continuously reduce GHG emissions within our company and along our entire value chain in accordance with the UN SDGs and the Paris Agreement to limit global warming to 1.5 degrees Celsius.

 

We have joined the world's leading Science Based Targets initiative, which reviews our reduction targets. This initiative was founded by the CDP, the UN Global Compact, the World Resources Institute (WRI) and the World Wide Fund For Nature (WWF). More than 1.000 companies have committed themselves to actively address the challenge of climate change and setting transparent targets for reducing their emissions in line with the Paris Agreement.

 

Our Net Zero Target

We have set ourselves the target to achieve net zero GHG emissions including our entire value chain1 by 2050 or sooner and signed the Business Ambition for 1.5°C.

 

Our Mid-term Climate Targets until 2030:

  • We will reduce our Scope 1 & 22 emissions by 42% until end of 2029 compared to our 2019 baseline. This target has been approved by the Science Based Target initiative as aligned with a 1.5°C pathway. To accomplish this, we will combine measures, such as more efficient inward and outward ventilation systems, a move to climate-neutral technologies, such as geothermal energy for heating and cooling and a switch to 100% purchased electricity from renewable sources.

    Bayer has set out specific criteria for its own procurement of green energy. These criteria include the proximity of energy production facilities to Bayer sites, the use of new sources of generation and a focus on wind and solar power. They are based on the “next generation green power” guidelines from the WWF (World Wide Fund For Nature).
     
  • Bayer is on a path to become climate neutral by 2030 in its own operations. The remaining emissions after reduction will be offset by purchasing certificates from climate protection projects with recognized quality standards. The offset projects are related to our business. Based on our business purpose we focus on Natural Climate Solutions relating to forest and agriculture. Additionally, we invest in innovative projects and foster development of voluntary carbon markets.
Path-towards-carbon-neutral-operations-v2-EN.PNG
  • We aim to reduce greenhouse gas emissions along the up- and downstream value chain (Scope 33) through cooperation with suppliers and customers by at least 12.3% in 2029 compared to 2019. This target has been approved by the Science Based Target initiative. As such a target cannot be achieved by acting alone, Bayer has joined with other ambitious companies to drive progress as part of the chemical industry’s “Together for Sustainability” initiative. We are also a member of the CDP Supply Chain Initiative and are in direct contact with key suppliers.
  • In addition, Bayer is working with farmers to reduce the ecological footprint of agriculture, which currently accounts for about 25 percent of greenhouse gas emissions worldwide. We want to help reduce greenhouse gas emissions in major agricultural markets – per kilogram of crop yield – by 30 percent by 2030. This applies to the most emitting cropping systems in regions Bayer operates. This includes Bayer helping farmers to use climate-friendly methods, such as reducing plowing and using digital solutions, to reduce CO2 emissions.
  • Bayer is also engaging in further climate-related and environmental efforts – such as reducing the environmental impact of crop protection products by 30 percent by 2030 – , supporting projects to preserve (rain) forests and using more environmentally friendly packaging materials.

 

Interim Targets

  • By 2024 we want to reduce our Scope 1&22 emissions by 20% and our Scope 33 emissions by 6% along our Science Based Target commitments (base year 2019)

 

Capital Alignment and Internal Carbon Price

  • We align our capex spending with our ambition to achieve net zero GHG emissions by 2050, in line with the global goal to limit global warming to 1.5C. To drive internal change, we have set ourselves an internal carbon price of €100 per metric ton when calculating our capital expenditure projects and additionally conduct ecological assessments of relevant investments.

 

Climate Policy Engagement and Governance

  • We are dedicated to a climate policy that is in harmony with our ambitious climate targets and therefore advocate for decarbonization measures in line with the Paris Agreement. Our memberships in relevant industrial associations, whose positions and actions affecting climate policy are regularly examined critically.
  • Sustainability is of outmost importance to Bayer with our CEO being also our Chief Sustainability Officer overseeing all sustainability activities including our climate program
  • 20% of long-term incentive (LTI) of all managers incl. the Board of Management is linked to the group sustainability targets which include climate protection targets. Short-term sustainability targets including climate targets are also a fixed component of annual variable remuneration.

 

Climate Disclosure

  • We are committed to a transparent communication on our climate targets, progress and implications climate change has to Bayer
  • Through continued participation in CDP we disclose a high level of details on our climate related activities and progress
  • We are committed to implement the recommendations of the Taskforce on Climate related Financial Disclosure (TCFD) and use the framework as guidance to disclose climate relevant information.

 

 

1 entire Scope 1-3 emissions. Scope 3 includes all categories defined in the GHG protocol

2 Scope 1 and Scope 2 (market-based) emissions of the environmentally relevant sites, i.e. those with annual energy consumption of more than 1.5 terajoules, including emissions from the vehicle fleet and are expected to cover more than 95% of our emissions

3 Scope 3 covers all categories defined in the GHG protocol. The SBTi target covers the most relevant categories which account for 88% of our total Scope 3 inventory

4 Science-based climate target that complies with the goal of the Paris Agreement to limit global warming to 1.5 degrees Celsius, or well below 2 degrees Celsius