Bayer leads in sustainability
Bayer receives the highest CDP score for its activities in the climate and water categories / Important progress has been made in terms of climate protection this year: Conversion to green electricity has been started, CO2 market has been developed for farmers / Confirmation of the company’s high commitment to sustainability
Leverkusen, December 8, 2020 - Renowned ratings organization CDP (the "Carbon Disclosure Project") has once again named Bayer among the leading international companies in the climate and water categories, awarding it the highest rating of double "A". Only one other company in Germany has received the double "A" rating for climate and water. From a survey of more than 5,800 companies, only 182 achieved an "A" rating for their climate activities and only 72 achieved the highest "A" rating in the water category. Thanks to verifiable measures implemented to combat climate change and ensure the availability of clean water, Bayer is regarded as a global leader when it comes to ambition, action and transparency. The company has been included in the CDP rankings since 2005.
Bayer also appeared in the "CDP Forest" ranking for the first time this year, achieving a respectable "B" status. Only 687 companies took part in that survey. It evaluates the ways in which companies manage forest-related risks and opportunities, report transparently on progress, and actively contribute to restoring forests and ecosystems.
"Over the past year, we have worked to develop sustainability as a cornerstone of our Group strategy. Our operations in the fields of health and nutrition allow us to make a significant contribution to helping people achieve a better quality of life, while respecting planetary boundaries. For us, the CDP rating is an important acknowledgment of the fact that we are one of the world’s leading companies in the field of sustainability," says Werner Baumann, Chairman of the Board of Management of Bayer AG and Chief Sustainability Officer.
Paul Simpson, CEO of CDP, said, "We extend our congratulations to all the companies on this year’s A list. Taking the lead on environmental transparency and action is one of the most important steps businesses can make, and is even more impressive in this challenging year marked by COVID-19. Our A list celebrates those companies who are preparing to excel in the economy of the future by taking action today. "
Progress this year
Over the past twelve months, Bayer has made significant progress in the field of sustainability. For example:
- Over the summer, the Science Based Targets initiative confirmed that Bayer is doing its part to limit global warming to 1.5°C, in line with the requirements of the Paris Agreement. To this end, the company will reduce its emissions by 42 percent by 2029, compared with 2019. This year already, Bayer has switched its electricity contracts in Spain and Mexico to green energy.
- At the beginning of this year, Bayer was the first company in the United States and Brazil to develop a transparent, science-based, and cooperative approach to developing a carbon market for farmers. This means that farmers can earn extra income for the introduction of specific climate-friendly practices.
- For the first time in agriculture, Bayer has an externally developed model with which the environmental impact of every pesticide in every crop cultivation around the world can be measured. The company has already reviewed its entire portfolio and its global applications.
- From 2021, 20 percent of the Group-wide quantitative targets, which include climate protection targets, will be used to determine the long-term variable remuneration of the Board of Management and senior executives. Sustainability is already a fixed component of annual variable remuneration for all employees.
- The external Sustainability Council, established this year, has begun its work.
- In addition to climate activities, Bayer's sustainability strategy aims to improve the quality of life of people. For example, with its "Better Farms, Better Lives" program, this year the company is providing support to up to two million small farmers affected by the COVID-19 crisis. Bayer is also collaborating with "The Challenge Initiative" to develop solutions in the field of family planning and reproductive health for women and girls living in impoverished urban areas in Africa and Asia. This year, Bayer reached 42 million people in economically or medically under-supplied communities with more accessible solutions for health care self-sufficiency. All of these measures contribute to how Bayer intends to achieve its 100-million targets by 2030: In low and middle-income countries, Bayer is aiming to provide 100 million farmers with access to modern farming methods and 100 million women with access to modern family planning resources. Bayer also hopes to give 100 million people access to everyday health care services.
CDP’s annual evaluation process is generally recognized as the gold standard when it comes to the transparency of corporate environmental activities. In 2020, more than 515 investors with assets of over 106 trillion US dollars and more than 150 major customers with procurement expenditure in excess of 4 trillion US dollars called on companies to use the CDP platform to disclose data on environmental impacts, risks and opportunities. With 9,600 participants, more companies than ever before were evaluated by CDP this year. The criteria used for the evaluation included completeness of disclosure, awareness and management of environmental risks, and evidence of best practices.
Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. Its products and services are designed to benefit people by supporting efforts to overcome the major challenges presented by a growing and aging global population. At the same time, the Group aims to increase its earning power and create value through innovation and growth. Bayer is committed to the principles of sustainable development, and the Bayer brand stands for trust, reliability and quality throughout the world. In fiscal 2019, the Group employed around 104,000 people and had sales of 43.5 billion euros. Capital expenditures amounted to 2.9 billion euros, R&D expenses to 5.3 billion euros. For more information, go to www.bayer.com
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.