Bayer: Renewed inclusion in the Carbon Leadership indices

Bayer is one of 29 companies included in the Carbon Performance Leadership Index in recognition of its endeavours to reduce CO₂. The company has also achieved the 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, Bayer is ranked as the best company in its sector in this index. For both indices the 500 biggest publicly traded companies (FTSE Global 500 Index) are evaluated. Only 23 companies are included in both indices. The climate indices are used as a guide by investors wishing to invest in companies with a sustainable climate strategy.

According to the company, Bayer is the only chemical and pharmaceutical company that has been included in the Carbon Disclosure Index continuously 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. Instead of absolute points, companies are assigned to performance bands and Bayer has been awarded the highest rating of A.

“We are delighted by the renewed listing in these two significant climate indices, which we regard as confirmation of the success of our climate strategy,” said Prof. Wolfgang Plischke, the member of the Board of Management of Bayer AG responsible for Innovation, Technology and Environment. “In the future, we will continue to make a diverse contribution to reducing CO₂ 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 under management of USD 71 trillion. They claim that in their investment decisions they take account of the extent to which a company is prepared to deal with the challenges of climate change. They therefore expect companies to display specific strategic management of the business risks and opportunities arising from climate change. That includes energy-efficient production that reduces both emissions and costs, and products that contribute to cutting CO₂ emissions and address the impact of climate change. The increase in the number of investors represented by the CDP and the rise in their combined assets under management – in 2005 the group comprised just 155 investors with combined assets under management of USD 19 trillion – reflect the increasing importance of so-called sustainable investment.

Through its climate program, Bayer is aiming for a further improvement in the energy efficiency of its production processes in order to reduce specific greenhouse gas emissions by 35 % by 2020 compared with 2005. At the same time, it is stepping up its focus on products for applications that help cut CO₂ emissions. Examples are high-quality materials for building insulation and raw materials for lightweight components for automobiles, rotor blades for wind turbines and components for photovoltaic installations. Bayer is also working on the development of plants with greater resilience to heat and drought.

“Companies that make the Carbon Disclosure Leadership Index have demonstrated good internal data management practices for understanding greenhouse gas emissions,” explained Paul Simpson, Chief Executive Officer of the CDP. “Companies in the Carbon Performance Leadership Index are demonstrating significant maturity in the actions they are taking on climate change and their commitment to manage greenhouse gas emissions. Those organizations which reduce their emissions, maximize business resilience and capitalize on opportunities, will be the best placed to succeed as we move towards mitigating and adapting to climate change.”

The Carbon Disclosure Leadership Index and the Carbon Performance Leadership Index are both compiled following detailed research and analysis of climate-relevant corporate data by corporate auditors PricewaterhouseCoopers (PwC) on behalf of the CDP. As well as data on CO₂ emissions and reduction targets, action and strategies to protect the environment and deal with climate change are taken into account. This database is the largest of its kind in the world. The companies’ reports are published on the Internet.