CEFIC European RC Forum Achieving Credibility through Industry Commitment case study Bayer

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Elaine Gilbert
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1 Science For A Better Life CEFIC European RC Forum Achieving Credibility through Industry Commitment case study Bayer Holger Ohst Bruxelles, GOING SUSTAINABLE Creating business opportunities in a changing environment

2 Sustainability has a long tradition at Bayer 1901 Foundation of the "Abwasser- Commission der Farbenwerke zu Leverkusen" 1986 "Policy guidelines for environmental protection and safety" 2000 Founding member of UN Global Compact 2005 Partnership TB Alliance 2007 Bayer Human Rights Position Bayer Climate Program 1976 First Bayer Report on environment and society 1999 "Guidelines for Legal Compliance and Corporate Responsibility at Bayer" 2001 Guidelines for Responsible Care implemented 2006 Sustainable Development Policy 2009 Bayer Sustainability Program

3 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 Economic responsibility Environmental protection Sustainability Social responsibility

4 Sustainability encompasses our products, business activities and our voluntary social commitment Main examples Voluntary Social Engagement Foundations Voluntary projects (Education, health, sports, environment) Business Activities HR policy Safe operations Compliance Sustainable sourcing Products & Innovation Climate and resource friendly products Innovation as driver of sustainability Provide solutions for our customers

5 Sustainability management is integrated into all levels of the Bayer Group Group level - general: Bayer values Leadership principles Policies Group level - sustainability: SD policy UN Global Compact RC Global Charter Human Rights Position Subgroups & service company level (incl. countries & regions) SD initiatives Strategy programs Risk management HSEQ systems & audits Community Board Sustainable Development Chair: Group Management Board Member responsible for Innovation, Technology & Environment Members: Members of the subgroup management boards Heads 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 Reporting evolves as sustainability is

GRI) External assurance Impact Stakeholders state to

positive way Sustainability & innovation http://www.

6 Sustainability Reporting evolves as sustainability is integrated into business Key elements of reporting Relevant reporting formats Objectives KPIs/performance Standards (e.g. GRI) External assurance Impact Stakeholders state to be influenced by Bayer's SD report, ~ 85% in a positive way Sustainability & innovation

7 International guidance documents and Responsible Care Global Charter All hazardous installations or products should comply with the same overall safety objectives, irrespective of size, location or other factors

Associations and enterprises share the overall approach of Responsible Care in all regions Associations and enterprises have to act complimentary: National associations adopt the GC RC to local needs

8 Associations and enterprises share the overall approach of Responsible Care in all regions Associations and enterprises have to act complimentary: National associations adopt the GC RC to local needs including cultural aspects International companies spread standards globally and bridge national associations Specific attention must be paid to the size of enterprises (e.g. OECD guidance for HSE in SME, PRISME 2 approach of CEFIC) Not one size fits it all coordinated approach needed by all stakeholders committed to credibility of our industry expressed in our RC initiative!

9 Interested parties, their needs, expectations and international standards to address them Customers, suppliers and partners Quality, price and delivery performance of products Mutual benefits and continuity ISO 9001 GMP Employees in the organization Good work environment Job security Recognition and reward Occupational health/safety OHSAS Enterprise Commitments Owners / shareholders Sustained profitability Transparency Society Environmental Protection Ethical behaviour Compliance with statutory and regulatory requirements ISO Promises have to be kept! Walk your talk to sustained success!

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,

10 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 stakeholders

Bayer aims to play an active role in global initiatives like Global Access to Medicines and developed a strategy for global health care, the Social

11 Example: Social Health Care Programs at Bayer HealthCare Health care is a Human right. In many countries health systems cannot guarantee adequate care for the population. Bayer aims to play an active role in 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.

12 Example: Responsible Care at Bayer CropScience Global key requirements and expectations are set for Product Stewardship and management of QHSE. Thus standards of BCS are shared globally.

13 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 and OHSAS 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 3 rd party certificates of ISO and OHSAS With its practices BMS contributes to spread HSEQ standards around the globe.

Example: Global Product Strategy (GPS) at Bayer MaterialScience GPS page to complement Responsible Care on the Bayer Group internet site supporting the supply chain dialogue.

14 Example: Global Product Strategy (GPS) at Bayer MaterialScience GPS page to complement Responsible Care on the Bayer Group internet site supporting the supply chain dialogue. Focus is on chemicals in commerce, and therefore on activities at Bayer MaterialScience. GPS at Bayer builds on the long established tradition of our BayCare Product Stewardship Program started in 2000 in USA. Bayer is focused on bringing product safety information in local language to everybody involved in the product chain and to the public. GPS needs globally consistent approaches for international companies, supported by association-driven regional approaches and initiatives regarding content/ timelines

Product Stewardship along the life cycle - Cooperation, Dialogue and Innovation are key elements Cooperation: Politics, Academia, Industry Credibility creates trust Dialogue: Public Perception,

15 Product Stewardship along the life cycle - Cooperation, Dialogue and Innovation are key elements Cooperation: Politics, Academia, Industry Credibility creates trust Dialogue: Public Perception, Technology Acceptance, Product Safety 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

16 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, innovation is credibility for the future.

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