Environmental Protection

We meet our responsibility to protect the environment in many different ways. We continuously work to reduce the environmental impact of our business activities and develop product solutions that benefit the environment. For us, a resource-friendly and low-emissions approach to raw materials and energy is ecologically and economically expedient and efficient. These measures are designed to reduce environmental impact and, at the same time, cut the costs associated with materials, energy, emissions and disposal. As a pure life science company too, we remain committed to climate protection.

Responsibilities and framework conditions are stipulated at Group level, such as through corporate policies, targets and key performance indicators (KPIs). We use certified HSEQ stands for health, safety, environment and quality. management systems to control operational implementation. Our environmental standards apply worldwide.

Our commitment extends beyond the scope of legal requirements. We perform a voluntary ecological assessment for capital expenditure projects exceeding €10 million. As part of the integration process, the corresponding corporate policy will also be extended to the acquired agriculture business. In the case of acquisitions, we examine compliance with the applicable environmental and occupational safety regulations as well as fundamental employee rights at the production sites in question.

In connection with the acquired agriculture business, Bayer took over another 162 Environmentally relevant sites are Bayer locations with annual net energy consumption of over 1.5 terajoules. . These are included in our environmental performance indicators as of the closing date of June 7, 2018. As a result, nearly all our environmental performance indicators are considerably higher year on year.

Energy consumption

Higher total energy consumption through inclusion of the acquired agriculture business

Compared with 2017, Bayer’s total energy consumption rose by 53.4% to 39.6 petajoules in 2018. In connection with the acquisition of Monsanto, Bayer has taken over sites for seed production and for the extraction of raw materials for the manufacture of intermediates for crop protection products, which involves energy-intensive treatment and downstream processing. The integration of these process steps into the value chain substantially increases all performance indicators for energy consumption.

When calculating total energy consumption, we differentiate between primary and secondary energy consumption. Primary energy consumption mainly comprises fossil fuels for our own generation of electricity and steam for our own use and for sale to other companies. Secondary energy consumption reflects on the one hand the purchase of electricity, steam and cooling energy at our sites worldwide and, on the other, the proportion that is made available by our service provider Currenta at the Chempark sites in Germany to other companies. The proportion of renewable energies is determined by the energy mix of our energy suppliers. In our latest report to CDP is a nonprofit organization that works on behalf of institutional investors to compile annual rankings of detailed environmental data, especially in respect of greenhouse gas emissions (CDP-Climate) and water management (CDP-Water), from over 2,400 companies worldwide. According to CDP, more than 650 investors representing fund assets of around US$87 trillion currently draw on this information for their investment decisions. (formerly the Carbon Disclosure Project), we address these topics in detail. (This report does not yet include the acquired agriculture business.)

Energy Consumption

 

 

2017

 

2018

 

 

TJ

 

TJ

2017 figures restated

1

Liquid fuels include heating oil and fuels used in the Bayer Group vehicle fleet. The method for calculating the fuel consumption of the acquired agriculture business’s vehicle fleet differs from that used for the remaining Bayer Group fleet. The calculation methods are to be harmonized in 2019.

2

For example hydrogen

3

Our service company Currenta operates its own highly energy-efficient combined heat and power plants at the Chempark sites in Germany and sells the electricity and steam generated there along with cooling energy additionally generated primarily to other companies with energy-intensive production processes. Offsetting this against the volumes we purchase can lead to negative totals.

4

The proportion of primary energy sources used in generating the electricity consumed depends on the respective national electricity mix.

Primary energy consumption

 

35,457

 

43,928

Natural gas

 

22,332

 

26,187

Coal

 

10,618

 

10,606

Liquid fuels1

 

230

 

3,491

Waste

 

539

 

985

Other2

 

1,738

 

2,660

Secondary energy consumption3

 

(9,625)

 

(4,300)

Electricity3,4

 

4,281

 

9,540

Steam3

 

(19,271)

 

(19,249)

Steam from waste heat (process heat)

 

6,274

 

6,711

Cooling energy3

 

(909)

 

(1,302)

Total energy consumption

 

25,832

 

39,628

Energy efficiency

Bayer reports energy efficiency as the ratio of energy used to external sales. For 2018, we are including the acquired agriculture business in our reporting of energy efficiency for the first time. As a result, the value for this performance indicator is now much higher.

Energy Efficiency

kWh / €1,000 external sales

 

2017

 

2018

2017 figure restated

Energy efficiency

 

205

 

278

Air emissions

Climate protection

At Bayer, air emissions are caused mainly by the generation and consumption of electricity, steam and auxiliary energy for the production of our products and by our vehicle fleet.

Climate protection has been a priority at Bayer for decades. As reported in previous years, we were able to reduce our absolute greenhouse gas emissions between 1990 and 2015 through production and process innovations. This was possible in spite of production increases, particularly in the energy-intensive plastics businesses. Following the strategic realignment, we reduced our absolute greenhouse gas emissions as a pure life science company by a further 26.8% between 2015 and 2018 (excluding Currenta and the acquired agriculture business).

In integrating the acquired agriculture business, we are currently reviewing our climate program and, in the future, want to make positive contributions to protecting the climate and managing the effects of climate change on several levels. Our comprehensive approach also includes initiatives that seek to reduce the emissions of nonproduction operations. For example, we are looking at our vehicle fleet, the optimization of logistics, and the further development of our information and communications technologies in terms of environmental aspects (Green IT).

Transparency on greenhouse gas emissions

In selecting and measuring greenhouse gas emissions, we consider recommendations of the Greenhouse Gas (GHG) Protocol. Direct emissions from our own power plants, vehicles, waste incineration plants and production facilities (Scope 1) and indirect emissions from the procurement of electricity, steam and cooling energy (Scope 2) are determined at all environmentally relevant sites.

In line with the GHG Protocol The Greenhouse Gas Protocol is an internationally recognized tool for recording, quantifying and reporting greenhouse gas emissions. Its standards cover all emissions within a company’s value chain. Bayer aligns itself to the Corporate Standard for direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions and also to the Corporate Value Chain (Scope 3) Accounting and Reporting Standard, which covers further indirect emissions along the value chain. Dual reporting was introduced for Scope 2. Indirect emissions have to be reported using both the location-based and the market-based methods. The location-based method uses regional or national average emissions factors, while the market-based method applies provider- or product-specific emissions factors based on contractual instruments. , indirect emissions (Scope 2) are reported according to both the location-based and the market-based methods.

Because we are reporting emission data for the acquired agriculture business for the first time, all Bayer Group emissions are considerably higher year on year.

Greenhouse Gas Emissions

Million metric tons of CO2 equivalents

 

2017

 

2018

2017 figures restated

1

In 2018, 94.9% of direct greenhouse gas emissions were CO2 emissions. Other greenhouse gases such as nitrous oxide, partially fluorinated hydrocarbons and methane made a negligible contribution to direct greenhouse gas emissions.

2

In line with the GHG Protocol, we also report the direct emissions of our service company Currenta, which also generates electricity for other companies at the German Chempark sites in Leverkusen, Krefeld-Uerdingen and Dormagen. Consequently, the figures for the direct emissions of the Bayer Group are higher than the actual emissions resulting from the business activities of Bayer excluding Currenta alone.

3

The calculation of direct CO2 emissions from the acquired agriculture business’s vehicle fleet differs in 201from that used for the remaining Bayer Group fleet. The calculation methods are to be harmonized in 2019.

4

Typically, CO2 accounts for 98% of all energy-related greenhouse gas emissions. The remainder comprises methane and nitrous oxide. When determining indirect emissions, our calculations are therefore limited to these greenhouse gases and indicate all emissions in CO2 equivalents.

5

For Bayer, the market-based method of the GHG Protocol most reliably reflects the values for Scope 2 emissions and the success of emissions reduction measures, so we apply emissions volumes calculated using this method when calculating the total and specific greenhouse gas emissions.

6

Specific Bayer Group emissions are calculated from the total volume of direct emissions and indirect emissions calculated using the market-based method of the GHG Protocol (Scope 2), divided by the external sales volume. Quantities attributable to the supply of energy to external companies are deducted from the direct and indirect emissions.

Direct emissions1,2,3

 

2.50

 

3.90

Indirect emissions4 according to the location-based method

 

1.28

 

1.64

Indirect emissions4 according to the market-based method5

 

1.13

 

1.55

Total greenhouse gas emissions according to the market-based method5

 

3.63

 

5.45

Specific greenhouse gas emissions (kg CO2e / €1,000 external sales) according to the market-based method5,6

 

104

 

138

In 2018, the Bayer Group was involved in European emissions trading with 13 plants in total. The CO2 emissions of these plants amounted to approximately 2.27 million metric tons.

The reporting of all relevant indirect emissions from the value chain is bindingly regulated by the GHG Protocol Corporate Value Chain (Scope 3) Accounting & Reporting Standard. Bayer has identified eight key Scope 3 categories that we describe in detail in the current CDP report (excluding the acquired agriculture business and Currenta).

Efficient logistics strategies

Means of Transport

Means of Transport (pie chart)

Excluding the acquired agriculture business

Logistics at Bayer comprises not just the transport and warehousing of goods, but also the steering and monitoring of flows of goods and logistics data for the Bayer Group. The acquired agriculture business will use its own legacy systems and processes until integration is completed. For this reason, the following information and data on means of transport apply only to Bayer excluding the acquired agriculture business.

Utilizing digital technologies, we work continually to develop logistics strategies that take account of safety, environmental and cost aspects. Areas of environmental focus include the reduction of CO2 emissions, for example by minimizing air transport or using logistics strategies that include railways and waterways.

Increase in other direct air emissions

Particulate emissions rose considerably in 2018, from 60 to 2,370 metric tons, on account of the first-time inclusion of the sites of the acquired agriculture business in reporting. This is due in part to the mining and processing of raw materials for the manufacture of intermediates for crop protection products. In addition, seed production (corn and soybeans) results in relatively large quantities of particulates.

The increase in CO emissions and in volatile organic compounds (VOC) excluding methane is largely attributable to the inclusion of the vehicle fleet of the acquired agriculture business.

Other Direct Air Emissions

 

 

2017

 

2018

 

 

1,000 metric tons

 

1,000 metric tons

2017 figures restated

1

Ozone-depleting substances (ODS) in CFC-11 equivalents

2

Volatile organic compounds (VOC) excluding methane

ODS1

 

0.0085

 

0.0093

VOC2

 

0.87

 

1.41

CO

 

0.61

 

4.42

NOX

 

1.52

 

4.36

SOX

 

0.92

 

1.36

Particulates

 

0.06

 

2.37

Environmental incidents

There were two environmental incidents – i.e. incidents that resulted in the release of substances into the environment – in 2018 (2017: two). Factors that determine whether there is a reporting obligation include, in particular, the nature and quantity of the substance, the amount of damage caused and any consequences for nearby residents. In accordance with our internal voluntary commitment, we report any leakage of substances with a high hazard potential from a quantity of 100 kilograms upward. Both environmental incidents were also transport incidents. Regrettably, one person lost their life in one of these incidents. You will find details of the environmental and transport incidents in 2018 on our sustainability website.

Water

Responsible water usage is a cornerstone of our commitment to sustainable development. Clean water in sufficient quantities is essential for the health of people, animals and plants. That is why it is crucial that, in the future too, industrial water usage will not lead to local problems such as a shortage of water for the people living in the catchment areas of our production sites. We therefore commit in our Water Position to comply with international, national and local legislation to protect water resources, use them as sparingly as possible and further reduce emissions into water. We have introduced a water management system at our sites in water-scarce areas or areas identified as being threatened by water scarcity. For 2019, we plan to examine the production sites of our acquired agriculture business in this regard.

In our water stewardship strategy we address a variety of factors connected with water, from operational water use and innovative products such as seeds that do not need as much water to our commitment in the value chain and cooperation with partners. We support the CEO Water Mandate of the U.N. Global Compact with the goal of working with key stakeholders to develop sustainable strategies for water usage. In our annual response to the CDP is a nonprofit organization that works on behalf of institutional investors to compile annual rankings of detailed environmental data, especially in respect of greenhouse gas emissions (CDP-Climate) and water management (CDP-Water), from over 2,400 companies worldwide. According to CDP, more than 650 investors representing fund assets of around US$87 trillion currently draw on this information for their investment decisions. Water Disclosure, we report in detail and transparently on our water management approach. In recent years, we have repeatedly been included in the CDP Water A List (leadership status).

Water use

In 2018, total water use in the Bayer Group was 124 million cubic meters (2017: 98 million cubic meters). This year-on-year increase in use is due to the first-time inclusion of the sites of the acquired agriculture business.

Some 42% of all water used by Bayer is cooling water that is only heated in this process and does not come into contact with products. It can be returned to the water cycle without further treatment in line with the relevant official permits.

At our production facilities, we endeavor to use water several times and to recycle it. Water is currently recycled at 51 sites, accounting for 52.4% of the total water used. The various forms of recycling include closed cooling cycles, reuse of treated wastewater and recirculation of steam condensates as process water. We use water several times, in particular at our recently acquired production sites at locations such as Antwerp in Belgium and Muscatine, Iowa; St. Louis, Missouri; and especially Luling, Louisiana, in the United States. The total volume of 124 million cubic meters of water originally deployed is used approximately 1.8 times on average.

Water Use in the Bayer Group 2018 (million m3)

Water Use in the Bayer Group 2018 (million m³) (chart)

1 The differences between volumes of water consumed and water discharged can be explained, for example, by quantities of water used as raw materials in products, unquantified losses due to evaporation, leaks and volumes of condensate generated through the use of steam as a source of energy.
2 Sum from production processes, sanitary wastewater and cleaning processes in production

Wastewater

The total quantity of wastewater, including process and sanitary wastewater, was 29 million cubic meters in 2018, which is 25.2% more than in 2017. This increase in use is due especially to the first-time inclusion of the sites of the acquired agriculture business.

All wastewater is subject to strict controls before it is discharged into the various disposal channels. In 2018, 85.1% of Bayer’s wastewater worldwide was purified in wastewater treatment plants (Bayer or third-party facilities). Following careful analysis, the remaining volume was categorized as environmentally safe according to official provisions and returned to the natural water cycle.

We aim to minimize our emissions into water. In 2018, we therefore also applied alternative means of disposing of product-containing wastewater such as incineration, distillation and chemical treatment.

In 2018, most of the higher emissions into water were attributable to the first-time inclusion of the sites of the acquired agriculture business. Additional factors were more precise methods of data acquisition at the site in Kansas City, Missouri, United States, and production adjustments at the site in Dormagen, Germany.

Emissions into Water

 

 

2017

 

2018

 

 

1,000 metric tons

 

1,000 metric tons

1

Total organic carbon

2

Chemical oxygen demand; calculated value based on TOC figures (TOC x 3 = COD)

Phosphorus

 

0.04

 

0.18

Nitrogen

 

0.40

 

0.45

TOC1

 

0.39

 

0.62

Heavy metals

 

0.0019

 

0.0034

Inorganic salts

 

188

 

169

COD2

 

1.17

 

1.86

Waste and recycling

We want to minimize material consumption and disposal volumes through systematic waste management. Safe disposal channels with separation according to the type of waste and economically expedient recycling processes serve this purpose. Production fluctuations, building refurbishment and land remediation work also influence waste volumes and recycling paths. In accordance with Bayer’s corporate policies, all production sites are obliged to prevent, recycle and reduce waste and to dispose of it safely and in line with good environmental practices.

Waste volumes decline slightly

The total quantity of waste generated declined slightly by 3.3% in 2018.

The volume of hazardous waste decreased by 13.3%, primarily on account of the conclusion of demolition work at the site in Belford Roxo, Brazil. The volume of hazardous waste from production fell by around 6.9%, mainly due to changes in the production portfolio at the Dormagen site in Germany.

The volume of nonhazardous waste, on the other hand, rose by 10.3% compared with the previous year, due primarily to the first-time inclusion of the sites of the newly acquired agriculture business.

Waste Generated

 

 

2017

 

2018

 

 

1,000 metric tons

 

1,000 metric tons

2017 figures restated

1

Definition of hazardous waste in accordance with the local laws in each instance

Total waste generated

 

846

 

818

Nonhazardous waste

 

361

 

398

Hazardous waste1

 

485

 

421

Hazardous waste from production

 

417

 

388

Reflecting the reduction in the volume of waste generated, the amount of waste disposed of decreased by 2.6%. In turn, this made it possible to reduce by 33.1% the volume of hazardous waste disposed of in landfills. Of the waste disposed of, 35.9% was successfully recycled.

Waste by Means of Disposal

 

 

2017

 

2018

 

 

1,000 metric tons

 

1,000 metric tons

2017 figures restated

1

Waste can also be stored at sites as an intermediate step. For this reason, the volume of waste disposed of can differ slightly from the volume of waste generated by Bayer.

2

Recycling refers to processes through which waste is reused or treated for reutilization.

3

For exmple passed on to third parties (e.g. providers / waste disposal companies)

4

Waste generated by Bayer only; definition of hazardous waste in accordance with the local laws in each instance

Total volume of waste disposed of1

 

840

 

818

Volume removed to landfill

 

314

 

212

Volume incinerated

 

211

 

227

Volume recycled2

 

214

 

293

Others3

 

102

 

86

Hazardous waste disposed of4

 

485

 

421

Volume removed to landfill

 

99

 

66

Volume incinerated / recycled

 

386

 

354

Recycling

Legislation prohibits the recycling and processing / treatment of a large proportion of our materials, especially pharmaceuticals and crop protection products. In our segments, we make use of opportunities for recycling within the framework of legal regulations. Production-specific and substance-specific recycling is carried out in compliance with the individual requirements of a given production site. Packaging materials are recycled in line with national regulations as part of the country-specific infrastructure for waste disposal.

Compare to Last Year