Management Report & Annexes | Basic Information About the Group

12.2 Air Emissions

At Bayer, air emissions are caused mainly by the generation and consumption of energy. Our commitment to greater energy efficiency helps reduce both costs and emissions. In addition, we aim to contribute to climate protection on several levels and have established a Group-wide Climate Program for this purpose.  

Climate Program

For some years, we have been working through our Climate Program to improve resource and energy efficiency, one objective being to reduce greenhouse gas emissions during production operations. We also offer market solutions aimed at protecting the climate and adapting to climate change.

By introducing this Climate Program, Bayer already reduced its specific emissions by around 18% between 2005 and the end of 2013. We have therefore achieved our ambitious medium-term targets. By implementing energy management systems and investing in energy efficiency measures we have also improved the Group’s energy efficiency by around 18% over the same period as planned.

As part of our new package of targets (see Chapter 1.3 “Targets and Performance Indicators”), the existing emissions reduction target will be raised slightly and relate to a more recent base year. This new, ambitious emissions reduction target will be supplemented by an energy efficiency target. Between 2012 and 2020, Bayer intends to cut its specific greenhouse gas emissions by 20% and improve its energy ­efficiency by 10%.

Alongside aiming to achieve the overall Group climate target, the Bayer Climate Program reflects a commitment to three specific areas:

1. More efficient production: reducing emissions at Bayer’s own production facilities by increasing ­energy efficiency and by developing and utilizing new, innovative technologies.

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Online annex: 3-12.2-1

By the end of 2013 MaterialScience had introduced the STRUCTese™ (Structured Efficiency System for Energy) energy management system at 58 particularly energy-intensive facilities across the globe. The annual energy saving amounted to over 1.2 million MWh, while CO2 emissions were cut by over 360,000 metric tons per annum. German MaterialScience sites that have all implemented STRUCTese™ were successfully recertified to ISO 50001 in 2013.

Innovative production processes also help reduce electricity consumption and greenhouse gas emissions. Using oxygen depolarized cathode (ODC) technology in chlorine production cuts electricity requirements, for example, by 30% compared with the standard process. This was revealed during a two-year test period at a demonstration plant with an annual capacity of 20,000 metric tons of chlorine at the Krefeld-Uerdingen site in Germany. The process has been marketed globally since 2013 so as to raise potential for improved efficiency outside Bayer too. If ODC technology were introduced throughout Germany’s chlorine industry, for example, it would cut the country’s total electricity consumption by 1%.

A further process innovation is gas phase technology in the manufacture of the polyurethane precursor TDI. This technology uses up to 60% less energy and up to 80% less solvent. Among other things, the process is to be used at a new TDI plant with an annual capacity of 300,000 metric tons that is currently being built at the Dormagen site in Germany at a cost of €250 million.

Partially replacing crude oil with CO2 in the production of plastics could help conserve resources. In this process, polyol, another precursor required to make polyurethane, can be manufactured with the help of CO2.

A global review of energy management systems is being performed in our life science businesses with the goal of identifying at which production sites certification to ISO 50001 should be envisaged.

Chemical park operator Currenta started introducing energy management systems at the German sites in Dormagen, Leverkusen and Krefeld-Uerdingen in 2012. Certification to ISO 50001 will be completed by the end of 2015 at the latest.

2. Market solutions: using Bayer products – particularly in the areas of building insulation, lightweight construction and agriculture – to reduce customer emissions. Our products play their part in saving ­energy and conserving resources in many different ways. They help customers reduce emissions and provide them with solutions for adapting to climate change.

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Online annex: 3-12.2-2

Products and solutions from MaterialScience help conserve resources and save energy in a number of key industries and areas of life, at the same time also cutting emissions. Prime examples include lightweight construction in the automotive sector and the insulation of buildings and refrigeration equipment. For instance, a particularly fine-pored rigid polyurethane foam has been developed that can bring about a further significant improvement in the insulating performance of refrigerators and freezers.

MaterialScience is also demonstrating possible applications for insulating materials in the EcoCommercial Building Program – a global network of experts for sustainable construction initiated by the company. It brings together over 80 specialists from a variety of sectors including lighting technology, energy management and renewable energies. The objective is to develop solutions for reducing buildings’ energy consumption and using renewable sources to cover the remaining requirements. Bayer itself makes use of the global network to construct its own reference buildings. Such buildings have so far been constructed Germany, Belgium, the United States, India, China and, most recently, Brazil.

The transparent, high-performance plastic polycarbonate also paves the way for energy-efficient market solutions supporting, for example, energy-saving LED technology that can be used in the automotive industry and for innovative street lights. The latter consume up to 70% less energy than conventional models.

Materials from MaterialScience also play a role in generating renewable energies. The latest development projects include transparent polyurethane coatings for solar cells that require no outer glass panel, thus cutting weight, saving costs and making energy generation more efficient. In the area of wind power, the company has developed a new polyurethane infusion resin for rotor blades that outperform rotors based on the epoxy resins previously used in terms of lightness, fracture toughness and durability.

CropScience’s seed and crop protection strategy actively helps reduce specific greenhouse gas emissions per yield. Chemical crop protection products that, for example, specifically increase stress tolerance enable customers to make efficient use of resources so as to boost yields. CropScience has expanded its Tabela project in Indonesia, which focuses on rice cultivation with direct seeding, to an area of 10,000 ha – a 40% increase compared with 2012. Under this initiative, the company is working with international and local partners to demonstrate just what can be achieved through direct seeding of pregerminated rice and with the help of a customized package comprising seeds and crop protection. The benefits include enhanced water efficiency, lower greenhouse gas emissions, higher rice yields and improved incomes for farmers. It is expected that the project will be continuously expanded in the future, with the goal of supporting the sustainability of rice cultivation in Indonesia. The Republic of Indonesia has recognized CropScience’s Tabela project as a U.N. Clean Development Mechanism through its responsible body.

The successful continuation of the cooperation with the International Vector Control Consortium (IVCC) in combating malaria through targeted defense against the insects transmitting the disease using technological solutions such as long-lasting insecticides helps fight the growing threat of malaria resulting from climate change. 

3. Supporting activities: reducing emissions in non-production areas – such as the vehicle fleet and IT – involving the workforce in the process.

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Online annex: 3-12.2-3

Bayer maintains a variety of initiatives to cut costs in the Group’s non-production areas by saving energy and fuel. Examples include improvements to the vehicle fleet and in the field of information technology. A new reduction target was implemented in 2013 as part of the Bayer EcoFleet initiative. By 2020 Bayer is planning to reduce the specific CO2 emissions of the Group’s global fleet comprising over 25,000 vehicles to 110 g/km. In the area of communication, Bayer is increasingly using energy-efficient workstation solutions with integrated voice and video functions. Such IT solutions reduce the number of business trips necessary and thus emission levels.

Greenhouse gas emissions

Bayer reports all Group greenhouse gas emissions in line with the requirements of the Greenhouse Gas Protocol (GHG Protocol). Direct emissions from our own power plants, waste incineration plants and production facilities (corresponding to Scope 1 of the GHG Protocol) are determined at all production locations and relevant administrative sites.

In the reporting year, greenhouse gas emissions remained Group-wide at about the same level as the previous year (+0.2%). While direct emissions fell by 3.6%, indirect emissions rose by 4.1% in ­arithmetical terms. At the site where we consume the most power, Baytown in the United States, the local energy producer has updated the emission factors for electricity and steam procurement, which led to an arithmetical rise in our greenhouse gas emissions.

Specific greenhouse gas emissions for 2013 rose owing to the fall in manufactured sales volume compared to 2012, reaching 1.00 metric ton of CO2 equivalents per metric ton of sales product.

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Online annex: 3-12.2-4

Thanks to their environmentally friendly and resource-efficient combined heat and power (CHP) technology, our power plants convert approximately 80% of the fuel energy used into electricity and heat. Despite this, they cause a significant proportion of the Group’s direct greenhouse gas emissions.

It is important to note that, in line with the regulations of the GHG Protocol, we include in our figures all greenhouse gas emissions from the conversion of primary energy sources into electricity, steam or refrigeration energy, even though a significant proportion of direct emissions result from the generation of energy that is supplied to third parties (other companies). Consequently, our absolute figures for greenhouse gas emissions are higher than the actual emissions resulting from Bayer’s business activities. The level of specific greenhouse gas emissions is a more meaningful statistic. This indicates only the greenhouse gas emissions for which Bayer is responsible in relation to the manufactured sales volumes of the three Bayer subgroups.

Each year, the waste incineration plants operated by Currenta produce around 1 million metric tons of steam from the incineration of approximately 280,000 metric tons of hazardous waste. Compared to using fossil fuels, this reduces emissions by 200,000 metric tons of CO2 per year.

Information on subgroup-specific greenhouse gas emissions:

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Greenhouse Gas Emissions by Subgroup and Service Company[Table 3.12.2-1]
  Total direct and indirect emissions in million metric tons
of CO2 equivalents
  2009 2010 2011 2012* 2013*
HealthCare 0.55 0.54 0.54 0.55 0.52
CropScience 1.09 1.09 1.00 0.92 0.95
MaterialScience** 4.83 5.24 4.63 4.89 4.98
Others*** 0.02 0.02 0.01
Currenta**** 1.62 1.62 1.97 1.88 1.83
Specific greenhouse gas emissions for MaterialScience (metric tons of CO2 equivalents per metric ton of manufactured sales volume)***** 1.09 0.96 0.82 0.86 0.89

* Emissions from the Group’s vehicle fleet amounting to 0.10 million metric tons of CO2 equivalents are not assigned to specific subgroups but are reported in the Group direct emissions (see Table 3.12.2 “Group Greenhouse Gas Emissions”).

** In collaboration with our energy suppliers we were able to update a large proportion of the conversion factors for calculating ­emissions. These plant-specific values are increasingly replacing the statistically determined factors of the International Energy Agency (IEA) previously used. This step led to a worsening of MaterialScience’s emission reduction (2005 -2013) from 27.1% to 23.7%. Bayer does not intend to adjust its targets.

*** Total greenhouse gas emissions for Technology Services and Business Services. These companies’ production facilities were incorporated into other subgroups in 2012.

**** The emissions reported for Currenta are attributable to the provision of energy to external companies at the Chempark sites.

***** The by-products sodium hydroxide solution and hydrochloric acid generated during production are not included in the manufactured sales volume. Trade products are also not included.

Group Greenhouse Gas Emissions*[Table 3.12.2]
  Million metric tons of CO2 equivalents
2009 2010 2011 2012 2013
Direct greenhouse gas emissions** 4.57 4.80 4.23 4.24 4.09
Indirect greenhouse gas emissions*** 3.53 3.70 3.92 4.12 4.29
Total greenhouse gas emissions 8.10 8.50 8.15 8.36 8.37
Specific greenhouse gas emissions (metric tons of CO2 equivalents per metric ton of manufactured sales volume)**** 1.23 1.09 0.95 0.98 1.00
Manufactured sales volume (million metric tons) 8.7 10.4 11.0 11.2 11.1

* portfolio-adjusted in accordance with the GHG Protocol

** In 2013, 89.5% of emissions were CO2 emissions, 10.0% N2O emissions, just under 0.5% partially fluorinated hydrocarbons and 0.04% methane.

*** Typically, CO2 in incineration processes accounts for over 99% of all greenhouse gas emissions. We therefore base our calculation of indirect emissions on CO2 only.

**** Specific Group emissions are calculated from the total volume of direct and indirect emissions of the subgroups, including from the vehicle fleet, divided by the manufactured sales volume of the three subgroups. Quantities attributable to the supply of energy to external companies are deducted from the direct and indirect emissions. At MaterialScience the by-products sodium hydroxide solution and hydrochloric acid generated during production are not included in the production volume as they will occur in much smaller amounts in the future, thanks to measures aimed at enhancing energy efficiency. Trade products are also not included.

Since 2011 the reporting of all relevant indirect Scope 3 emissions under the GHG Protocol has been bindingly regulated by the Corporate Value Chain Accounting & Reporting Standard. Following a ­thorough examination Bayer has identified nine material Scope 3 categories, which are reported on in detail in the CDP Report.

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Online annex: 3-12.2-6

As part of the Carbon Disclosure Project – Climate Change Program, we will again be publishing a ­detailed report for 2013 on these emissions that result from the value chain. We take particular ­account of emissions where there is significant potential for reduction. These include our transport-related emissions resulting from business trips.

In 2013 the Bayer Group was involved in European emissions trading with 10 incineration plants and five chemical production plants. The greenhouse gas emissions of these facilities comprised approx. 2.17 million metric tons of CO2 (incineration plants) and approx. 0.48 million metric tons of CO2 equivalents ­(chemical production plants).

Other direct emissions into the air

Emissions of ozone depleting substances (ODS) fell by 3.9%. Emissions of volatile organic compounds excluding methane (VOCs) dropped by around 13%. The main source of emissions remains the CropScience site in Vapi, India, which accounts for over 70% of all VOC emissions. The project initiated there to reduce these emissions is starting to have an impact: VOC emissions have fallen by a further 11%, which is equivalent to 8.8% of the Group total. By 2016 at the latest, a central waste air treatment system will bring ­together the many different emission streams in Vapi and significantly reduce these emissions. At the HealthCare site in Bergkamen, Germany, targeted organizational and technical improvements led to a ­reduction of almost 70% in local VOC emissions.

Emissions of Ozone Depleting Substances (ODS)*[Table 3.12.3]
Metric tons p.a.
* in CFC-11 equivalents
VOC* Emissions[Table 3.12.4]
VOC in 1,000 metric tons p.a.2.592.542.692.602.27
VOC in kg per metric ton of manufactured sales volume0.29790.24360.24570.23160.2047
* volatile organic compounds excluding methane

Other direct emissions also fell in 2013.

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Online annex: 3-12.2-7

Other Important Direct Air Emissions[Table 3.12.4-1]
  2009 2010 2011 2012 2013
1,000 metric tons p.a. 1,000 metric tons p.a. 1,000 metric tons p.a. 1,000 metric tons p.a. 1,000 metric tons p.a.
CO 1.4 1.4 1.3 1.0 0.9
NOX 3.5 3.7 3.7 3.1 2.5
SOX 2.8 2.7 2.3 1.9 1.3
Particulates 0.2 0.2 0.2 0.2 0.2
Last updated: July 28, 2014  Copyright © Bayer AG