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Science For A Better Life
CEFIC European RC ForumAchieving Credibility through Industry Commitment –case study Bayer
Holger OhstBruxelles , 24-02-2010
GOING SUSTAINABLEGOING SUSTAINABLEGOING SUSTAINABLEGOING SUSTAINABLECreating business opportunitiesin a changing environment
Sustainability has a long tradition at Bayer
1976First Bayer Report on environment and society
1901Foundation of the "Abwasser-Commissionder Farbenwerkezu Leverkusen"
1986"Policy guidelines for environmental protectionand safety"
1999"Guidelines for Legal Compliance and Corporate Responsibility at Bayer"
2000Founding member of UN Global Compact
2001Guidelines for Responsible Care implemented
2006Sustainable Development Policy
2005Partnership TB Alliance
2007 Bayer Human Rights Position
Bayer Climate Program
2009Bayer Sustainability Program
“
Sustainability means to balance commercial success, environmental protection and needs of society
Sustainability means achieving commercial success on the basis of solid business models in a way that it is compatible with meeting the needs of our employees and society and protecting the environment and natural resources.
Sustainability is an integral part of our corporate strategies – and not an add on.
It drives our top line growth by creating business opportunities and improves our bottom line by mitigating risks and reducing costs (e.g., for resources)
Bayer’s Sustainability Definition
Sustainability
Environmentalprotection
Socialresponsibility
Economicresponsibility
„
Voluntary Social
Engagement
Products& Innovation
Business Activities
Sustainability encompasses our products, business activities and our voluntary social commitment
� Foundations� Voluntary projects
(Education, health, sports, environment)
Main examples
� HR policy� Safe operations
� Climate and resource friendly products � Innovation as driver of sustainability� Provide solutions for our customers
� Compliance� Sustainable sourcing
Sustainability management is integrated into all levels of the Bayer Group
Group level - general:
Bayer values Leadership principles Policies
Group level - sustainability:
SD policyUN Global CompactRC Global CharterHuman Rights Position
Subgroups & service company level (incl. countries & regions)
SD initiativesStrategy programsRisk managementHSEQ systems & audits
Community Board Sustainable Development
Chair: Group Management Board Member responsible for Innovation, Technology & Environment
Members:Members of the subgroup management boardsHeads of Corporate Center: Environment & Sustainability, Investor Relations, Corporate Development, Corporate Office, Human Resources & Organizations, Communications, Law & Patents Heads of BTS and BBS
Community Council Sustainable Development
Chair: Head of Environment & Sustainability
Sustainability & innovation
Sustainability Reporting evolves as sustainability is integrated into business
� Stakeholders state to be influenced by Bayer's SD report, ~ 85% in a positive way
Impact
Key elements of reporting
�Objectives� KPIs/performance� Standards (e.g. GRI)� External assurance
Relevant reporting formats
http://www.bayer.com/en/Responsiblehttp://www.bayer.com/en/Responsible --Care.aspxCare.aspx
http://www.bayer.com/en/position-on-global-product- strategy.aspx
International guidance documents andResponsible Care Global Charter
“All hazardous installations or products should com ply with the same overall safety objectives, irrespective of size, lo cation or other factors”
Associations and enterprises share the overall approach of Responsible Care in all regions
Associations and enterpriseshave to act complimentary:
National associations adopt the GC RC to local needs including cultural aspects
International companiesspread standards globallyand bridge national associations
Specific attention must be paid to the size of enterprises(e.g. OECD guidance for HSE in SME, PRISME2 approach of CEFIC)
Not one size fits it all – coordinated approach need ed by all stakeholders committed to credibility of our industry expressed in our RC initiative !
Interested parties, their needs, expectationsand international standards to address them
Customers, suppliers and partners•Quality, price and delivery performance of products•Mutual benefits and continuity
Society•Environmental Protection•Ethical behaviour•Compliance with statutory and regulatory requirements
Employees in the organization
•Good work environment•Job security•Recognition and reward•Occupational health/safety
EnterpriseCommitments
Owners / shareholders•Sustained profitability•Transparency
ISO 9001
ISO 14001OHSAS 18001
Promises have to be kept ! Walk your talk to susta ined success !
GMP
Implementation of RC within Bayer Group by individual subgroups and service companies
• Minimize HSEQ risks to the people, environment and the company
• Integrate Health, Safety, Environmental and Quality (HSEQ) requirements into business strategies and processes
• Promote HSEQ awareness and an incident-free culture
• Promote dialogue on Responsible Care with our stake holders
Health care is a Human right. In many countries health systems cannot guarantee adequate care for the population.
Bayer aims to play an active rolein global initiatives like Global Access to Medicines and developed a strategy for global health care, the „Social Health Care Programs“ (SHCP).
The SHCP corresponds to EFPIA´s AIMS(Access, Innovation, Mobilization, Security) program, a roadmap of priorities of pharmaceutical companies and their association.
Example: “Social Health Care Programs” at Bayer HealthCare
http://www.sustainability2008.bayer.com/en/global-a ccess-to-medicines.aspx #
www.efpia.org
Example: Responsible Care at Bayer CropScience
Global key requirements and expectations are setfor Product Stewardship and management of QHSE.
Thus standards of BCS are shared globally.
Example: Responsible Care at Bayer MaterialScience
All BMS sites and products are expected to be managed according to the standards of the BMS Integrated Management System in conformance with the internationally recognized standards ISO 9001, ISO 14001 and OHSAS 18001.
The system consists of 26 processes and procedures addressing all aspects of quality, environmental and safety management , supported by global expert networks.
Specific attention is paid to the smaller legal entities of Bayer MaterialScience. A separate organizational unit, the “Center of Excellence”, with dedicated support of good HSEQ practice according to the identified needs and risks.
BMS has a global matrix certificate according to ISO 9001 covering 42 locations/sites. In addition, some sites have 3rd party certificates of ISO 14001 and OHSAS 18001.
With its practices BMS contributes to spread HSEQ s tandards around the globe.
Example: Global Product Strategy (GPS) at Bayer MaterialScience
http://www.bayer.com/en/position-on-global-product- strategy.aspx
GPS page to complement ResponsibleCare on the Bayer Group internet site supporting the supply chain dialogue.
Focus is on “chemicals in commerce”, andtherefore on activities at Bayer MaterialScience.
GPS at Bayer builds on the long establishedtradition of our BayCare Product Stewardship Program started in 2000 in USA.
Bayer is focused on bringing product safetyinformation in local language to everybodyinvolved in the product chain and to the public.
GPS needs globally consistent approaches for international companies, supported byassociation-driven regional approaches and initiatives regarding content/ timelines
Product Stewardship along the life cycle -Cooperation, Dialogue and Innovation are key elements
Credibilitycreates trust
Dialogue:Public Perception,
Technology Acceptance,Product Safety
Cooperation:Politics, Academia,
Industry
Innovation:Many product applications
in fields with high importance for society
“Where trust is missing, there will be uncertainty or even fear. Fear about the future is definitely not the way to win the future.”
Johannes Rau, Former German Federal President
Conclusions:Achieving Credibility through Industry Commitment
Sustainability is fundamentally integrated in Bayer’s business strategy.
Not “one size fits all”: many ways can be chosen to implement Responsible Care activitities meeting the expectations of its interested parties,in a balanced way, over the long term.
Industry commitment as given in our Responsible Care Initiative and the Global Product Strategy is the key for achieving credibility of society.
Credibility of industry commitments depends on:
• Keep the promises that are made
• Comply with the same HSEQ and sustainability objectives, irrespective of size, location or other factors
• Consistently meet or exceed internationally recognized standards.
Performance is credibility for the present, innovat ion is credibility for the future.