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Bayer in North America

Sustainable Development Highlights 2009

Meeting the Sustainability Challenge with Vigor Not only do we pay attention to the alternatives, we are putting sustainable options into practice Each year the Bayer Group publishes a Sustainable Development Report. It provides details about the Group’s activities to advance sustainability worldwide. The most recent report can be found online at www.sustainability2009.bayer.com. This booklet describes how Bayer worked to meet sustainability challenges in North America during 2009. As a research- and technology-driven company, we have the know-how — and the obligation — to balance business strategies with social, economic and ecological needs. It’s all in keeping with our philosophy: Bayer: Science For A Better Life.

Bayer Corporation 100 Bayer Road Pittsburgh, PA 15205-9741 www.bayerus.com


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C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y M AT E R I A L S C I E N C E

Taking a ‘Silver Pellet’ Approach to Sustainability To Our Customers, Shareholders, Employees and Communities:

CONTENTS

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A Strong Commitment to Building Sustainable Communities B AY E R M AT E R I A L S C I E N C E

‘A Really Cool Pad’ B AY E R B U S I N E S S A N D T E C H N O L O G Y S E R V I C E S

Computing Efficiencies to Protect the Environment B AY E R C R O P S C I E N C E

Calculated Approaches to Promoting Sustainability B AY E R H E A LT H C A R E P H A R M A C E U T I C A L S

Waste Not … Recycle More B AY E R C O N S U M E R C A R E

In Packaging, Less Can Mean More NORTH AMERICA

Cover photograph: Students of Bayer Corporation’s Summer Day Camp, coordinated by the YMCA of Greater Pittsburgh, learned hands-on science while planting around Bayer’s zero-energy, EcoCommercial Building Conference Center in Pittsburgh. The annual 11-week program for children of employees includes Making Science Make Sense® experiments led by Bayer volunteers, crafts, sports and field trips.

Our approach is anything but a scattershot effort. On the contrary, it’s systemic and systematic. Our sustainability programs are systemic because they take place in all of our operations. They are systematic because they are coherent, thorough and mutually reinforcing. That coherence and mutual support are provided, in part, through Bayer’s North American Corporate Sustainability Community Council. The Council coordinates our efforts toward sustainability in all our strategies and operations. Those efforts are further shaped and refined through a network of Bayer Sustainability Working Groups, which spur sustainability initiatives at more than 50 Bayer North American locations. These initiatives bind us closer to our communities and customers. They help us meet environmental and social challenges within our own locations and within our supply chains.

We’re proud and gratified that third parties have noticed our efforts this past decade. – We were named one of “Canada’s Greenest Employers” by Mediacorp Canada Inc. – Our Making Science Make Sense® program has won two Presidential awards and one from the National Science Board. – We were included on the “Global Green 100” by the Uptime Institute, a leading Information Technology professional organization. – Environmental education programs at the corporation’s headquarters campus in Pittsburgh were re-certified under the Wildlife Habit Council’s Corporate Lands for Learning program.

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Corporate Sustainability Community Council Members

Meeting the sustainability challenge is not a matter of pursuing a single silver bullet. Instead, it’s the pursuit of what have been called “silver pellets” — an ever-expanding series of improvements in products and processes across a wide array of activities.

This booklet contains a sampling of our sustainability programs. They include the Bayer USA Foundation’s partnerships with organizations that create vibrant, sustainable communities. You’ll learn how Bayer MaterialScience and Penn State University teamed to produce a net zero-energy, net zero-emission home. You’ll learn about returnable and refillable bulk containers Bayer CropScience developed to increase efficiency, and Bayer Consumer Care packages that save energy and decrease waste. You’ll discover how Bayer HealthCare Pharmaceuticals dramatically reduced trash generation and how Bayer Business and Technology Services greatly reduced power consumption.

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Learning to Embed Sustainability Company Wide

Successfully meeting the sustainability challenge requires a clear definition and an energetic response. Sustainable development means meeting the needs of the present without compromising the ability of future generations to meet their own.

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Editorial

BUSINESS AND TECHNOLOGY SERVICES

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Note that our sustainability programs are linked at many points with a broad range of education initiatives. That reflects our view that the most lucrative areas of sustainability exploration are between the ears of the current and rising generations of scientists, technologists and other experts — their minds, creativity and commitment. We also work to promote workforce diversity. We know that to successfully address the varied aspects of sustainability, and to do it in a way that enhances business successes, requires tapping into the widest variety of different perspectives.

Greg Babe President and CEO, Bayer Corporation

A Strong Commitment to Building Sustainable Communities

and universities), who explored Bayer North America’s position on its sustainability journey and how it can accelerate its quest to become a recognized leader. An Executive Sustainability Summit drew 22 of Bayer’s top U.S. executives for a full day to establish contextual intelligence for the strategic implications of sustainability and develop leadership capabilities to face challenges and leverage opportunities. The Bayer MaterialScience North America Sustainability Community Council and Global Bayer Environmental Science PTT (Protecting Tomorrow Today) Community Council continued in 2009 to guide their respective organizations on the best path to deliver business value from sustainability.

For decades, MSMS has advanced science literacy across the United States through inquiry-based, hands-on science education, employee volunteerism and a national public education campaign. Led by longtime spokesperson, Mae C. Jemison, M.D., the country’s first African-American female astronaut, our MSMS activities increasingly focus on diversity in U.S. STEM fields. Through national forums, reports

The Bayer USA Foundation’s mission is to create sustainable partnerships with organizations that improve communities by enhancing quality of life, providing enriching opportunities that connect diverse groups and ensuring preparedness for tomorrow’s leaders. In doing so, the foundation supports health and human services, arts and cultural groups, education and workforce development, and environment and sustainability programs — everything from a women’s shelter that offers sanctuary to victims of domestic violence and a program that gives backpacks filled with healthy foods to underserved children to outreach programs for ballets and symphonies as well as innovative environmental education. The International Bayer Summer Sustainability Camp is one such program created through foundation funding. Each summer on Pittsburgh’s storied rivers, international high school students gather for a two-week camp hosted by RiverQuest. This award-

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CONSUMER CARE

In addition, a new Corporate Sustainability Community Council (CSCC) was formed. Governing the corporate sustainability strategy for Bayer North America, the CSCC provides leadership, establishes intent and goals, measures progress — and advocates for a future built on very different standards.

At Bayer, we know what’s true for each country is true for its communities. What better way to create vibrant, sustainable communities than by providing quality science, technology, engineering and mathematics, or STEM, education to those who will become the next generation of inventors and innovators? That is why we are committed to supporting STEM education through our Presidential award-winning Making Science Make Sense® (MSMS) initiative, our environmental education partnerships with the United Nations Environment Programme (UNEP) and others, and through the philanthropic activities of the Bayer USA Foundation.

and public opinion research, Bayer raises awareness of the need to bring more women and minorities into these fields, while the Bayer USA Foundation, through grants, supports an array of education programs aimed at achieving STEM diversity.

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A two-day BASIN (Bayer Advancing Sustainability by Identifying Needs) Forum drew a gathering of Bayer senior managers (representing employees and Bayer business partners) and external sustainability experts (representing NGOs, government,

Corporate Social Responsibility

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In efforts to spark awareness and begin to embed sustainability company wide, STEP (Sustainability Thinking Education Program) was piloted with 80 North America Bayer employees. They, in turn, provide opportunities for more employees to develop and embrace initiatives that advance sustainability principles while driving innovation and business value.

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Economist Robert Solow won the Nobel Prize in 1987 for his work demonstrating that a nation’s prosperity and its citizens’ quality of life are tied directly to scientific and technological advancements and a workforce that is scientifically literate.

Learning to Embed Sustainability Company Wide For years, Bayer in North America has worked to design strategies that help human activities better mesh with our planet’s limited natural resources. This concept, called sustainable development or sustainability, involves smart planning and technological advances to not merely adapt, but rethink basic actions and functions.

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BUSINESS AND TECHNOLOGY SERVICES

We pledge to continue to work hard to meet the challenges of an increasingly complicated and crowded planet.

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– Bayer CropScience earned the North Carolina Biotechnology Center’s 2009 Industrial Biotechnology Leadership Award for its strong support for university research and science education. – Bayer HealthCare LLC was named Bay Area Educator of the Year for corporate citizenship by the San Francisco Business Times and earned the Kansas City Business Journal Champion of Business award for outstanding performance, innovation and community involvement. – Our Pittsburgh headquarters was one of just 10 U.S. sites to earn Building and Operating Management magazine’s FMXcellence award for sustainability. – We captured the Leadership and Achievement in Sustainability award from the Stop Waste Partnership, an Alameda County (California) Waste Management Authority program. – For the seventh year, Working Mother magazine included us on their 100 Best list.

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Photograph: Sylvia Gong, an eighth grader at Hopkins Junior High School in Fremont, Calif., was the United Nations Environment Programme’s (UNEP) 19th annual International Children’s Painting Competition (ICPC) North American winner. Her painting addresses the theme, “Biodiversity — Connecting with Nature.” >>

winning not-for-profit education organization connects individuals to the natural beauty and importance of our waterways so they develop an enhanced sense of stewardship toward the environment. Aboard RiverQuest’s Explorer, the world’s first “green” passenger boat, the students conduct hands-on experiments and field explorations of marine biology and freshwater ecology.

M AT E R I A L S C I E N C E BUSINESS AND TECHNOLOGY SERVICES

Our collaboration with UNEP also helps today’s students make the vital connection between science literacy and environmental literacy and fosters an understanding of their role as earth’s future caretakers. The collaboration involves two key initiatives — the International Children’s Painting Competition (ICPC) and UNEP’s World Environment Day (WED) celebration, which is held around the globe each year on June 5. With ICPC, the old adage, “a picture is worth a thousand words,” is definitely on display. The competition invites students, ages six to 11, to

submit paintings that depict their ideas about complex environmental issues, such as climate change. Bayer has helped UNEP roll out the competition throughout North America to schools in Bayer site communities with active Making Science Make Sense programs. “With both our RiverQuest and UNEP collaborations, Bayer’s commitment to sustainability, science education and corporate social responsibility converge into programs that address environmental issues and demonstrate the importance of sustainability to today’s students,” said Greg Babe, President and CEO of Bayer Corporation and Chairman of the Bayer USA Foundation. “As the world gets smaller, these are the very people who will find themselves increasingly working together across continents to solve pressing global problems. The initiatives give students a solid head start.”

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Corporate Social Responsibility is integral to any conversation about sustainability. After all, businesses cannot thrive in communities that fail, nor can communities that are unsustainable support a robust business sector. Rebecca Lucore Executive Director, Bayer USA Foundation

CROPSCIENCE

H E A LT H C A R E P H A R M A C E U T I C A L S CONSUMER CARE

Our partnership with Bayer Corporation is helping us provide students with a way to learn about the environmental issues facing the world and to communicate powerful environmental messages through their artwork. UNEP’s relationship with Bayer goes back more than a decade. In fact, Bayer is the first company to forge a long-term youth and environment partnership with UNEP. Amy Fraenkel

Director, United Nations Environment Programme’s Regional Office for North America (UNEP RONA)


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Bayer MaterialScience

‘A Really Cool Pad’

It’s not just aesthetically cool. The building is also environmentally cool because it’s designed to address the challenge of global warming. According to the Pew Center for Climate Change, greenhouse gas emissions from residential, commercial and industrial buildings in the U.S. are at 43 percent. Electricity use is the biggest piece, representing 67 percent of the carbon dioxide emissions of residential buildings and 76 percent for commercial buildings.

The structure makes extensive use of BMS products, which contribute to the building’s high-energy efficiency. Walls, floor and ceiling are encapsulated in highly insulating spray polyurethane foam, and energy-efficient, light-emitting-diode (LED) lighting is used throughout.

CONSUMER CARE

The Solar Decathlon was an opportunity for BMS to demonstrate possibilities that can advance progress toward sustainability in building construction and

The building has been moved to Bayer Corporation’s headquarters campus in Pittsburgh, where it serves as the corporation’s EcoCommercial Building Conference Center. It showcases Bayer MaterialScience’s sustainable building products and is a working center for evaluating sustainable construction technologies.

H E A LT H C A R E P H A R M A C E U T I C A L S

other areas — like renewable energy. The design of the Natural Fusion home maximizes daylighting and passive solar gain through clerestory windows that rise above the roofline and through south-facing trifold doors made airtight with high-performance sealants formulated with Bayer resins. Natural and recycled materials used include sustainably harvested lumber, reclaimed chalkboards and hardwood floors coated with low volatile organic compound coatings and sealed with low-emitting adhesives based on Bayer technology and raw materials.

CROPSCIENCE

Every two years, the U.S. Department of Energy holds an international competition to inspire students and faculty to design, build and operate an entirely solar-powered house. Last year, Bayer MaterialScience (BMS) provided support to Penn State University to enter the contest, called the Solar Decathlon. From the pictures of the Penn State entry, “Natural Fusion,” you can understand why Jeffrey Brownson, Ph.D., the faculty adviser said, “When you walk into the house, it doesn’t seem like some futuristic home with huge solar panels. It’s just a really cool pad.”

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Some of us may come at sustainability based on a concern for polar bears, while others out of anxiety over our reliance on foreign oil. But we can all find common ground around a desire to improve the energy efficiency in our buildings and automobiles, and thereby reduce CO2 emissions. And lest we forget, there’s more to sustainability than the ‘green’ movement. It also encompasses the products and processes we develop and the communities we build and preserve.

M AT E R I A L S C I E N C E

Bob Kumpf

Chief Administrative Officer, Bayer MaterialScience LLC Head of the Bayer North American Corporate Sustainability Community Council

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Bayer Business and Technology Services

Computing Efficiencies to Protect the Environment Talk about sensitive! Back when computers used vacuum tubes, they had to be kept in special rooms with carefully controlled temperatures (usually Arctic cold). Otherwise the huge computers would crash.

H E A LT H C A R E P H A R M A C E U T I C A L S

Climate control is just one of the ways the Bayer professionals at the Data Center improve energy efficiency. Other efforts include using virtual servers, a practice that has increased more than six-fold, from 10 percent to 45 percent, resulting in an average energy savings of about 20 percent for each server — and a reduced carbon footprint. The Data Center is also considering shutting down under-utilized,

These days, microchips rather than vacuum tubes run our data technologies, and our computers are no longer as sensitive as their vacuum tubedependent predecessors. Today we recognize that it’s the global environment that is becoming more and more sensitive. Bayer’s Data Center works each day to make sure we tread lightly, and our environmental footprint is minimized.

CROPSCIENCE

Computers don’t crash any more if the temperature around them is not just right. But as experts at Bayer Business and Technology Services’ North American Data Center will tell you, getting the temperature right through climate control is still very important: because getting it right, along with other improvements, can substantially improve the energy efficiency of today’s state-of-the-art information technologies. Optimizing airflow and minimizing excessive temperature control yields a significant cost reduction for each server.

uninterrupted power supplies for an additional reduction of 100,000-kilowatt hours each year.

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C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

M AT E R I A L S C I E N C E

M AT E R I A L S C I E N C E

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Bayer HealthCare Pharmaceuticals

Waste Not … Recycle More

Bayer CropScience (BCS) has developed an innovative returnable and refillable bulk container system — replacing one-way 10-liter bottles with reusable 460-liter bulk containers. Not only are the containers more efficient for farmers, they last 10 times longer and help the environment, because they use less energy and travel less. Moreover, they don’t require triple rinsing, which reduces any potential operator exposure and water use. Bayer cleans, refurbishes and refills them at our Canadian industrial facilities in Regina, Saskatchewan.

Last year, Bayer HealthCare Pharmaceuticals undertook a vigorous effort to reduce the amount of trash generated each day in Wayne and Montville, N.J. Simple to state but more complex to accomplish, the mission was achieved through a careful and systematic approach, beginning in 2008 with a thorough audit. That same year we established a “Green Team” with leaders representing every level of the organization.

The level of attendance at the Center’s first conference was a barometer of the high level of awareness of this topic. UFPA expects this strong interest to continue, and a number of members have indicated they would participate on the Center’s Advisory

In addition, BCS is involved as a member of the Steering Committee of the precedent-setting Field to Market (F2M) initiative that is bringing together non-governmental organizations, grower associations, agribusinesses and food, feed and fiber companies to reach an agreement on the definition of agricultural sustainability. F2M created an on-line grower tool, the Fieldprint Calculator, that uses science-based mechanisms for establishing baselines and progress against key impact areas of land, soil and water use, energy consumption and greenhouse gas emission. Future iterations of the calculator will measure and track additional impact areas like biodiversity, water quality, producer income, rural quality of life and more.

In the spring of 2009, we trained our employees, making it easy for them to assign waste into one of three separate streams: compostables, recyclables and plain unusable trash. We made it easy by placing new waste stream receptacles in easily accessible locations, including under desks. The compostable waste stream is transported to a facility that uses a closed vessel to capture greenhouse gases and create fertilizer, rather than take up landfill space. We learned significant lessons from these efforts, including using a phased-in approach, gaining management support at the start of the process, creating an internal support network and continuing to measure and foster improvement.

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This program has achieved striking success: Two years ago, total recyclables were just 38 percent of the total waste streams. Today, the compostable and recyclable streams are more than 84 percent of the total.

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H E A LT H C A R E P H A R M A C E U T I C A L S

BCS is also helping farmers get their messages to Washington and other sites, like state capitals, where they will do the most good. We do that as the exclusive sponsor of the United Fresh Produce Association’s (UFPA) Center for Global Produce Sustainability, which brings a grower-focused voice to shape best ways to promote sustainability at each stage along the produce supply chain.

Committee and take active roles in developing programs and services for the produce industry. One Center objective is to be the “go-to” resource for growers and shippers who want to develop their own sustainability programs.

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Calculated Approaches to Promoting Sustainability

BUSINESS AND TECHNOLOGY SERVICES

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Bayer CropScience


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Corporate Sustainability Community Council Members George Bartha Director, IT Operations Bayer Data Center Bayer Business and Technology Services LLC Pittsburgh, PA 412-778-6686

You’ll discover examples throughout Bayer in North America, where sustainability thinking transforms into new ideas that generate business value and meet our sustainability responsibilities. This new kind of thinking helps us look at our supply chains with new eyes and identify innovative sources of business value by eliminating risk or reducing costs while minimizing the potential for adverse environmental impact. Valerie Patrick

James Breitlow Head, Health, Environment and Safety Bayer HealthCare Pharmaceuticals Inc. Berkeley, CA 510-705-5403

Brandon Buell Environmental Specialist Bayer MaterialScience LLC Baytown, TX 281-383-6436

Sustainability Coordinator, Bayer Corporation M AT E R I A L S C I E N C E

Thomas Daszkowski Vice President, Process Technology Bayer Technology Services Americas Berkeley, CA 510-705-6878

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Bayer Consumer Care

In Packaging, Less Can Mean More

CROPSCIENCE H E A LT H C A R E P H A R M A C E U T I C A L S

Americans love their personal computers. In fact, over the past five years, so much content has been posted on YouTube it would take an individual two centuries to view it all. Nevertheless, personal computers lag far behind Bayer’s flagship product when it comes to Americans’ view of their importance in daily life. A study carried out by the Massachusetts Institute of Technology found that twice as many Americans say aspirin is an invention they can’t live without as say the same about their personal computers.

bottle features the signature blue and white. Doing away with the traditional carton not only provides a more sustainable package but also allows retailers more shelf space and Bayer more strategic ways to brand and differentiate the products.

The development of aspirin over the last centuries and the constant chain of improvements and innovations have been inextricably bound up with the history of Bayer’s steady improvements of its signature product. Today, that tradition continues as Bayer introduces a package that is worthy of its wonder drug. Genuine Bayer® Aspirin, Bayer® Low Dose Aspirin, and Aleve® are now presented in new oval bottles, with an easy-to-open/easy-grip cap. The Bayer Aspirin bottles feature the historic yellow and brown or green and red colors while the Aleve

Another beneficiary of this package is our environment, because eliminating the carton reduces the amount of packaging waste that ends up in landfills and the amount of energy that would be expended to produce them. In sum, when it comes to Bayer’s new packaging for some of its signature products, everyone will appreciate why less is more.

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Santo Guillermain Senior Manager HES Bayer HealthCare Pharmaceuticals Inc. Wayne, NJ 973-305-5408 Nick Hamon Vice President and Head of Sustainability Bayer CropScience North America Research Triangle Park, NC 919-549-2527

Byron Jacobson Director Planned MEU Bayer HealthCare LLC Shawnee, KS 913-268-2387

Irene McGee Vice President, Regional Business Support Bayer MaterialScience LLC Pittsburgh, PA 412-777-4997

Drew Johnston Program Director Global Facilities MEDRAD A Business of Bayer HealthCare Warrendale, PA 724-940-7904

Valerie Patrick Sustainability Coordinator Bayer Corporation Pittsburgh, PA 412-777-3930

Bob Kumpf Chief Administrative Officer and Head of the Bayer North American Corporate Sustainability Community Council Bayer MaterialScience LLC Pittsburgh, PA 412-777-2010 Halwyn Lewis Director, Engineering North America Bayer HealthCare LLC Myerstown, PA 717-866-3848 Rebecca Lucore Executive Director, Bayer USA Foundation Manager, CSR Activities Bayer Corporation Pittsburgh, PA 412-777-5725

Published by: Bayer’s North American Corporate Sustainability Community Council in cooperation with Bayer Corporate Center Communications NA Pittsburgh, PA We thank all those who contributed expert information for this report. Copyright: Bayer Corporation Pittsburgh November 2010

Jeff Reynolds Director, Technology Innovation Bayer HealthCare LLC Tarrytown, NY 914-333-6268 Ahmad Soltani Vice President and Chief Procurement Officer Bayer Business and Technology Services LLC Pittsburgh, PA 412-777-2100 Paul Thiel Vice President, Innovation & Public Affairs Bayer CropScience Inc. Calgary Alberta Canada 403-723-7435

CONSUMER CARE

Bayer NA Sustainability Highlights  

Edited and designed by A to Z Communications for Bayer USA Foundation.

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