Bayer is a world leader in climate protection. This is confirmed by the company’s renewed inclusion in two global indices used by investors who place importance on corporate climate strategies when making their investment decisions. In the broader area of sustainability, too, Bayer remains “best in class” and is listed in the principal indices.
Zoom imageUsing oxygen-depolarized cathode technology reduces electricity consumption during the production of chlorine by 30 percent. The photo shows Blas Riquelme Moreno from Bayer MaterialScience working on a unit of this type in the chlorine plant at the Chempark site in Dormagen, Germany.
Recognition of the Group’s climate protection efforts is reflected in the fact that Bayer is one of 29 companies listed in the Carbon Performance Leadership Index. Bayer has also achieved a top international ranking in the Carbon Disclosure Leadership Index, which lists the 52 companies that display the greatest transparency in climate reporting. As last year, this index ranks Bayer as the best company in its sector.
For both indices the Carbon Disclosure Project (CDP) annually evaluates the 500 largest publicly traded companies. Only 23 companies are included in both indices. Bayer is the only chemical and pharmaceutical company that has been included in the Carbon Disclosure Index for seven consecutive years. The company achieved its best overall rating to date with a score of 99 out of 100 and shares first place with three companies from other sectors. Bayer is included for the second time in the Performance Index, which was established in 2010. Here, instead of absolute points, companies are assigned to performance bands, and Bayer has been awarded the maximum “A” rating.
“We are delighted by the renewed listing in these two significant climate indices and believe this confirms the success of our climate strategy,” said Prof. Wolfgang Plischke, the member of the Bayer AG Board of Management responsible for Innovation, Technology and Environment. “In the future, we will continue to contribute to CO2 reduction in various ways and openly communicate climate-relevant data to investors and other interested parties.”
The index organizer CDP, which is based in London, represents a group that now includes 551 institutional investors with combined assets of US$71 trillion under management. According to these investors, their investment decisions are partly based on the extent to which a company is equipped for the challenges of climate change. “Organizations that reduce their emissions, maximize business resilience and capitalize on opportunities are in the best position to help protect the climate and counter the effects of climate change,” says Paul Simpson, Chief Executive Officer of the CDP.
The company’s excellent position as regards sustainability is demonstrated by its renewed inclusion in both the Dow Jones Sustainability World Index (DJSI World) and the Dow Jones Sustainability Europe Index (DJSI Europe). Bayer has been listed continuously in the DJSI World since its inception in 1999.
The evaluation of corporate sustainability performance is performed on behalf of the index provider Dow Jones by the Swiss rating agency SAM. This year, Bayer achieved its best overall result ever. Central categories assessed comprise responsible corporate governance and innovation management, environmental management and environmental performance, human resources policy and customer and supplier relations.
Zoom imageCO2 as a precursor for valuable materials: Dr. Torren Carlson from the Catalysis Center at RWTH Aachen University, where research on Dream Production is being conducted.
Inclusion in the DJSI World and DJSI Europe is based on the “best in class” principle: to warrant inclusion, it is not sufficient for companies to meet basic economic, ecological and social criteria. Rather, they must have the best sustainability performances in their respective industry sectors. The DJSI World lists the top 10 percent of the world’s 2,500 largest listed companies. The best 20 percent of Europe’s 600 largest listed companies qualify for the DJSI Europe. Investors who place importance on sustainability use the Dow Jones Sustainability Indices as a guide for their decisions. The assets under management in DJSI-based portfolios currently total more than US$8 billion.
The company’s commitment to sustainability has also been honored by the judges of the German Sustainability Prize, which will be presented in Düsseldorf on November 4. Bayer is among the top three candidates in the category “Germany’s Most Sustainable Initiatives.” Bayer was nominated for the Dream Production research project, which aims to turn the greenhouse gas CO2 into a useful raw material. This could ultimately provide the chemical industry with an alternative to increasingly scarce resources such as petroleum.