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Interview with Dr. Wolfgang Plischke
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Interview with Dr. Wolfgang Plischke
Sustainable development as astrategy for success
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| Dr. Wolfgang Plischke, member of the Board of Management responsible for Innovation, Technology and Environment, and for the Asia- Pacific region |
Absolutely. For our company, the strategic management of sustainable development is a basic prerequisite for our competitiveness and our future viability. All areas of Bayer’s business are affected by global megatrends such as the energy shortage, demographic change, urbanization and, of course, climate change. Engaging these issues is therefore an integral part of our risk management strategy, but this will at the same time lead to the development of future markets. Meanwhile, the financial markets are increasingly rewarding sustainable and responsible corporate policy.
You cite a series of major challenges for sustainable development. How does Bayer determine priorities for its commitment to sustainability?
As a company with a broad portfolio, we regard it as our fundamental obligation in many areas to practice sustainability. We are devoting ourselves to the current challenges particularly intensively and also report on these in detail. In addition to asking ourselves in which areas we as a corporation have a particular responsibility, we are faced with the following question: Where and how can we achieve the greatest possible contribution to sustainable development? This question needs to be asked because only companies that allocate their resources and expertise in a targeted manner are capable of generating visible successes in the area of sustainability. For this reason, last year we selected four issues within a structured, company-wide process to serve as focal points to which we will devote particular attention during this reporting year: climate protection, access to medicines, corporate compliance and sustainable procurement management. Of course, the expectations of our stakeholders and the public also played an important role in the selection of these issues. After all, we are convinced that dialogue is essential if we are to put sustainable development into practice.
What is the relevance of these topics for Bayer’s business?
Enormous - this too was a criterion for the selection of our focus issues. Based on the three pillars of sustainable development – economics, ecology and social responsibility – we are convinced that strategies for ecological and social sustainability can only be realized if they also lead to medium and long-term economic success. At the same time, we can only be commercially successful in the long term if we take into account social and ecological concerns. In the past we have systematically developed our sustainability management and reporting. This year for the the first time we cover the entire catalogue of criteria of the Global Reporting Initiative (GRI) and have achieved GRI Level A+ for this report.
Enormous - this too was a criterion for the selection of our focus issues. Based on the three pillars of sustainable development – economics, ecology and social responsibility – we are convinced that strategies for ecological and social sustainability can only be realized if they also lead to medium and long-term economic success. At the same time, we can only be commercially successful in the long term if we take into account social and ecological concerns. In the past we have systematically developed our sustainability management and reporting. This year for the the first time we cover the entire catalogue of criteria of the Global Reporting Initiative (GRI) and have achieved GRI Level A+ for this report.
What does your concrete commitment to climate protection look like?
If we want to limit the increase in the average global temperature due to human activity to a maximum of two degrees Celsius, which is an acknowledged goal worldwide, we must do even more to bring economic growth into line with the protection of the climate. Therefore, at the initiative of the Group’s Management Board, all of the subgroups and service companies have worked with external energy and climate experts to develop the Bayer Climate Program, the requirements of which include ambitious emissions targets to be attained by all subgroups by 2020.
If we want to limit the increase in the average global temperature due to human activity to a maximum of two degrees Celsius, which is an acknowledged goal worldwide, we must do even more to bring economic growth into line with the protection of the climate. Therefore, at the initiative of the Group’s Management Board, all of the subgroups and service companies have worked with external energy and climate experts to develop the Bayer Climate Program, the requirements of which include ambitious emissions targets to be attained by all subgroups by 2020.
Does climate protection make economic sense?
Of course. Let me give you an example. The basis for the attainment of these goals is a control tool known as the Bayer Climate Check, which has been developed in-house. We can use this tool to evaluate the CO2 emissions not only for our own plants, but also for the production and shipment of the raw materials needed for the manufacturing processes and for energy use. We therefore have a solid decision-making basis for reshaping production processes and making investment decisions. And of course the reduction in energy consumption also cuts costs.
Of course. Let me give you an example. The basis for the attainment of these goals is a control tool known as the Bayer Climate Check, which has been developed in-house. We can use this tool to evaluate the CO2 emissions not only for our own plants, but also for the production and shipment of the raw materials needed for the manufacturing processes and for energy use. We therefore have a solid decision-making basis for reshaping production processes and making investment decisions. And of course the reduction in energy consumption also cuts costs.
In other words, you want to use innovations to create benefits for the climate and the company?
That’s right. Our ability to innovate is the engine driving our growth and our efforts with regard to sustainability. This is why we set up the “Bayer Climate Award” worth €50,000 and our “Bayer Climate Fellows” scholarship project, both of which are also initiatives within our climate program.
That’s right. Our ability to innovate is the engine driving our growth and our efforts with regard to sustainability. This is why we set up the “Bayer Climate Award” worth €50,000 and our “Bayer Climate Fellows” scholarship project, both of which are also initiatives within our climate program.
One issue which has recently drawn increasing attention from the public and industry is worldwide access to medicines and to sustainable health care. What is Bayer’s position on this?In this area too, we have a clear commitment to our responsibilities and have set ourselves the goal of all people around the globe being able to benefit from our innovations and of the right to health becoming a reality. Only in achieving this will it also be possible to win the worldwide fight against poverty. We have therefore launched a strategy project to effectively pool all previous activities in this field and meet the economic and social challenges. To achieve this, we need strong alliances. For example, we are co-operating with the Global Alliance for tb Drug Development and have for several years been involved in the Global Business Coalition on HIV/AIDS, Tuberculosis and Malaria. Meanwhile, we are also working closely with other partners such as the World Health Organization (WHO) on a number of health-related issues. An important focus of our future commitment will also be family planning. The fact that many people still have no control over their own family planning decisions is a significant causative factor for poverty worldwide. Another aspect is also important to me at this juncture: Our activities demonstrate that the patent protection that is so essential for innovation and therefore for research-based companies does not conflict with the right of access to medicines. Besides, 95 percent of the medications on the who Essential Drug List are now patent-free.
The topics of corporate compliance and procurement management also continue to be focus issues for the Bayer Group. Why?
Because they are also of critical importance to our success. With our compliance initiatives – such as last-year’s company-wide communications campaign on the subject of anti-corruption – we are making it clear to everyone that breaking the law will not be tolerated at Bayer. Employees involved in unethical activities have no future anywhere in the company: Each individual must bear his or her share of the company’s responsibilities. This is the only way we can achieve long-term success. However, when we talk about sustainability, we must not just look within the company. We also bear responsibility for our relationships with suppliers. The sustainable development of our procurement process is therefore another important topic. This is not only a matter of compliance issues; it is also fundamentally important for us to comply with sustainability criteria in all supplier relationships. For this purpose, we are continuing to expand our procurement management process and investing in training, as well as in the necessary mechanisms for oversight.
Because they are also of critical importance to our success. With our compliance initiatives – such as last-year’s company-wide communications campaign on the subject of anti-corruption – we are making it clear to everyone that breaking the law will not be tolerated at Bayer. Employees involved in unethical activities have no future anywhere in the company: Each individual must bear his or her share of the company’s responsibilities. This is the only way we can achieve long-term success. However, when we talk about sustainability, we must not just look within the company. We also bear responsibility for our relationships with suppliers. The sustainable development of our procurement process is therefore another important topic. This is not only a matter of compliance issues; it is also fundamentally important for us to comply with sustainability criteria in all supplier relationships. For this purpose, we are continuing to expand our procurement management process and investing in training, as well as in the necessary mechanisms for oversight.
One final question about the future: In the Group Sustainability Program 2006+, you report on the objectives through 2010. How will the Bayer Group’s commitment to sustainability look beyond this?
With regard to climate, we have now set ourselves ambitious emissions goals through 2020 that build in particular on the greenhouse gas reductions already achieved. We have also developed control tools for the implementation of these goals. Our significantly increased presence in the health care market and the importance of the topic have prompted us to have a project team develop a comprehensive, long-term strategy for “access to medicines.” We will certainly be devoting ever greater efforts in the future to another major challenge – the water issue. This is all consistent with our Mission Statement – we want to achieve sustainable and successful business practices that comply with company requirements and objectives. This means that we will also be setting ourselves detailed goals beyond 2010 against which our performance can be measured.
With regard to climate, we have now set ourselves ambitious emissions goals through 2020 that build in particular on the greenhouse gas reductions already achieved. We have also developed control tools for the implementation of these goals. Our significantly increased presence in the health care market and the importance of the topic have prompted us to have a project team develop a comprehensive, long-term strategy for “access to medicines.” We will certainly be devoting ever greater efforts in the future to another major challenge – the water issue. This is all consistent with our Mission Statement – we want to achieve sustainable and successful business practices that comply with company requirements and objectives. This means that we will also be setting ourselves detailed goals beyond 2010 against which our performance can be measured.
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