Performance Indicators

Ecological indicators


Energy use	Water
Direct greenhouse gas emissions	Wastewater
Indirect greenhouse gas emissions	Waste
Emissions of volatile organic compounds	Reportable environmental incidents
Other air emissions	Transportation incidents

Energy use

Energy use by the Bayer Group in 2006 increased by about five percent compared with the previous year (continuing operations). This correlates primarily with the production volume.

Energy use (in petajoule/a)

This figure differs from the one given in the Annual Report owing to improved knowledge.

Energy balance sheet (in terajoule/a)

The total energy use for the Bayer Group of 86 petajoules (= 86,000 terajoules) is calculated from the sum of primary energy use, electricity procured and waste heat, minus the amount of steam and refrigeration energy sold on balance.

Direct greenhouse gas emissions

Direct emissions of greenhouse gases in 2006 remained at almost the same level as in 2005, despite an increase in production volume. Greenhouse gases include carbon dioxide (CO₂), methane (CH₄), dinitrogen monoxide (N₂0), halogenated hydrofluorocarbons (HFCS), perfluorocarbons (PFCS), and sulfur hexafluoride (SF₆). Using substance-specific equivalence factors, non-CO₂emissions are converted to CO₂ equivalents. In 2006, 98.6 percent of greenhouse gas emissions were CO₂ emissions. These emissions are composed of emissions from power stations and from production and waste incineration plants in which the Bayer Group holds a participating interest of at least 51 percent. Dinitrogen monoxide (laughing gas) accounted for 1.1 percent of the emissions.

Direct greenhouse gas emissions (in million t CO₂ equivalents/a)

Direct greenhouse gas emissions (in million t CO2 equivalents/a)

In spite of an increase in production, specific greenhouse gas emissions have fallen by four percent (continuing operations). We are on course for our target of a ten percent reduction in specific emissions of greenhouse gases by 2015.

Specific greenhouse gas emissions/production volume

cont. = continuing operations. For the sake of clarity, only data from continuing operations in 2005 and 2006 are presented in the above graph

The figures from prior to 2004 include data from Lanxess, while Lanxess data are not included in the figures for 2004 and onwards. This is why the “Specific greenhouse gas emissions/production volume” graph shows a drop in production volume and an increase in specific emissions from 2003 to 2004. If Lanxess data had been included, the level of specific greenhouse gas emissions in 2004 would have been 75 percent.

Indirect greenhouse gas emissions

Bayer procures some of its electricity and steam from external suppliers. At the same time, we also sell off large amounts of these types of energy to external purchasers. We are including so-called indirect emissions for the first time in this Report; these are emissions that result from the external production of electrical and steam energy. These indirect emissions are calculated from the amounts of electricity and steam purchased and sold (excluding steam generated from waste heat) at each individual Bayer production site. Greenhouse gas emissions from the generation of electricity and steam result predominantly from the incineration of fossil fuels such as coal, oil or gas. Typically, CO₂ comprises more than 99 percent of all greenhouse gas emissions resulting from such combustion processes in terms of CO₂ equivalents. We have therefore restricted ourselves to CO₂ emissions in the calculation. Data from the energy balance sheet are used as the basis for the calculations. These energy figures are multiplied by a specific emission factor to obtain the level of CO₂ emissions from external electricity and steam generation. Thus, indirect CO₂ emission levels are determined for each individual production site. These are then added together in order to calculate the total indirect CO₂ emissions. In order to ensure that energy passed on to other users or sold on is not included in the balance sheet, this energy is subtracted from the Bayer energy balance sheet up to a maximum level equal to the amount of energy purchased. The methodology used to calculate indirect carbon dioxide emissions is based on “The Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard, Revised Edition,” published by the World Business Council for Sustainable Development (wbcsd) in collaboration with the World Resources Institute (WRI).

In 2006, Bayer met about 20 percent of its energy requirements by purchasing electricity from external suppliers. Bayer is a net exporter of steam (excluding steam generated from waste heat¹): In relation to its total energy use, Bayer supplies on balance around 13 percent in the form of steam to external purchasers.

It is clear from the results that total greenhouse gas emissions have remained more or less constant over the past three years. Since this was achieved during a period in which production volume was growing, specific emissions actually fell 13 percent between 2004 and 2006. To put it more simply, indirect emissions from the consumption of externally generated electricity and steam account for about the same amount of emissions again as Bayer’s own direct emissions. In order to achieve our goal of further reducing greenhouse gas emissions, we have developed a climate strategy

Sum of direct and indirect greenhouse gas emissions (in million t CO₂ equivalents/a*)

Sum of direct and indirect greenhouse gas emissions?(in million t CO2 equivalents/a*)

The summary parameters shown may differ from the sum of the partial amounts indicated owing to rounding-up effects

Steam from waste heat is a separate item in the balance sheet, as this steam is generated by processes not primarily intended for energy generation (such as exothermic chemical reactions).

Specific and absolute greenhouse gas emissions (direct and indirect)

Emissions of volatile organic compounds

Volatile organic compounds (VOCs) are organic chemicals with a specific vapor pressure that contribute to the formation of smog and ground-level ozone.

The downward trend identified in 2005 has continued. During the reporting year, VOC emissions fell by 15 percent in continuing operations. This positive development is primarily attributable to the continued efforts at the Vapi site in India.

VOC emissions (in 1,000 t/a)

Other air emissions

Other emissions primarily include sulfur dioxide (SO₂) and nitrogen oxides (NOX), most of which originate from incineration processes, but some of which are also generated during production processes. Particulates are released both during energy generation and during production processes such as the pneumatic extraction of solid granules.

In order to be able to record comparative data regarding the harmful effect of substances on the ozone layer, each of these substances is categorized in terms of its ozone depletion potential and is presented as a relative quantity compared with the control substance trichlorofluoromethane (CFC-11) (equivalent). All of the substances that have the potential to cause damage to the ozone layer are then added together to give the total number of CFC-11 equivalents. In 2006, this figure fell by just under 25 percent. This reduction is attributable to process optimization measures, above all at the Vapi site.

Further air emissions (in 1,000 t/a)

	2002	2003	2004	2005	2005 cont.*	2006	2006 cont.*
CO	3.0	-	1.9	1.9	1.7	2.4	2.2
NO_X	9.4	6.7	4.3	4.5	4.3	4.1	4.0
SO₂	7.4	5.9	4.2	4.5	4.5	3.8	3.8
Particulates	0.8	0.9	0.5	0.3	0.3	0.2	0.2
Ozone-damaging substances**	0.038	0.041	0.019	0.017	0.017	0.013	0.013

Bayer Group, continuing operations

in CFC-11 equivalents

Water

Water use by the Bayer Group in 2006 remained at the same level as in the previous year. Cooling water fed into production accounted for the highest share of this use at 0.75 million cubic meters (m³) per day. Since this water is merely heated up and not affected in any other way when used within the Group, it can subsequently be discharged back into the water supply without any further treatment, provided that the water is kept below a maximum safe ecological temperature. The sites take more than half of the water they need from surface water, with around one third being drawn from underground sources (generally groundwater).

Water use (in million m³/d)

Water use according to origin

Bayer Group, continuing operations	2004	2005	2006*
Water use in million m³/d	1.3	1.2	1.2
of which from surface water	60 %	54 %	53 %
of which from bore holes/springs	33 %	35 %	35 %
of which from the public drinking water supply	5 %	2 %	2 %
of which from other sources (e.g. rainwater)	2 %	9 %	9 %

Since the individual entries are rounded off, the total does not equal 100 percent.

Wastewater

The most important parameters used to record water pollution caused by Bayer are the total loads of phosphorus, nitrogen and organic compounds. In 2006, phosphorus discharge levels increased by about eight percent over the previous year (continuing operations). This increase is attributable to increased sales and a changed product mix.

The nitrogen load (nitrates and ammonium nitrogen) also increased in 2006, but continued to remain in a low range as previously. This increase can be explained by a capacity expansion at our Dormagen site and by the fact that more wastewater containing nitrogen has been generated by the waste air treatment system in one waste incineration plant in Leverkusen.

During the past year, the discharge of organic compounds into wastewater has remained at the same level as in the previous year. We have been using a different method of analysis since 2003: Because it is easier to determine the level of organic compounds in wastewater as total organic carbon (TOC), we no longer use chemical oxygen demand (COD) as an indicator.

Wastewater heavy metal levels fell during the reporting period. Discharge levels of inorganic salts remained roughly at the same level as in the previous year (all data regarding changes are taken from continuing operations).

Emissions into wastewater

	2002	2003	2004	2005	2005 cont.*	2006	2006 cont.*
Phosphorus, 1,000 t/a	0.6	0.6	0.76	0.75	0.74	0.81	0.81
Nitrogen, 1,000 t/a	3.4	3.2	0.9	0.7	0.6	0.8	0.7
TOC, 1,000 t/a of total organic carbon	–	6.4	2.2	1.75	1.49	1.7	1.49
Heavy metals, t/a	30	29	28.2	12.0	11.6	9.3	8.0
Inorganic salts, million t/a	1.5	1.6	–	0.8	0.8	0.9	0.8

Bayer Group, continuing operations

Waste

After the comparatively large amount of waste generated in 2005 resulting from large quantities of construction waste and excavated soil, the amount of waste generated in 2006 fell back to the 2004 level.

Total waste generated (in 1,000 t/a)

Hazardous waste generated
We have been keeping Group-wide records of the amount of “hazardous waste” generated since 2003². The definition of hazardous waste differs from one to country to another; the data captured for the Bayer balance sheet are therefore calculated in accordance with national definitions. In Germany, hazardous waste includes items such as sludge from the company’s own wastewater treatment processes, as well as distillation and solvent residues. After an increase in 2005 compared to 2004 due to isolated large amounts of excavated soil and construction waste, levels fell again in 2006. The increase in the amount of hazardous waste generated by production operations since 2004 can be attributed to the change in product mix.

Generation of hazardous waste (in 1,000 t/a)

Generation of hazardous waste in production processes (in 1,000 t/a)

From 2003 the data capture procedure has been revised on successive occasions to bring it into line with current requirements.

Waste disposal
The proportion of waste from Bayer’s continuing operations removed to landfill sites fell. The proportions of incinerated and recycled waste each increased.

Waste disposed of according to means of disposal

Bayer Group, continuing operations	2005	2006
Total amount of waste disposed of in 1,000 t	848	654
Removal to landfill sites	52 %	44 %
Incineration	28 %	32 %
Recycling	18 %	22 %
Waste that cannot be categorized definitively	1 %	3 %

It was not possible to assign this waste to a specific category or the means of disposal could not be recorded. Proper disposal is also ensured in this case. In 2006, a large amount of wastewater containing a high degree of salt was generated at a former Schering site. This wastewater was subjected to chemical and physical treatment and was therefore not assigned to one of the categories recorded to date. We shall review the definition of means of disposal and thereby the allocation for future years.

Hazardous waste removed to landfill sites
The amount of hazardous waste removed to landfill sites fell by almost 40 percent compared with the previous year. The figures for 2005 were affected by a comparatively large amount of mineral materials removed to landfill sites in excavated soil and construction waste

Removal of hazardous waste to landfill sites (in 1,000 t/a)

Reportable environmental incidents

Since the reporting year 2003, we have described environmental incidents of a specific level of severity collectively as “reportable environmental incidents,” based on a unified set of criteria. This designation covers incidents resulting in materials being released into the environment. Depending on the amount and nature of the material, the level of resultant damage, the impact on the local population, and press reporting, these incidents are divided into two categories:

Level 1 incidents (severe environmental incidents): This category is based on criteria such as costs in excess of €2 million resulting from damage to plants, rehabilitation costs, etc.

Level 2 incidents (significant environmental incidents): Examples of level 2 incidents include those that have resulted in costs of at least €100,000 and up to €2 million.

Up to 2002, we reported data on those incidents at production sites that had to be notified to the authorities based on local regulations. For example, in 2002, we recorded 53 “notifiable environmental incidents” and four “incidents resulting in damage.” Due to different definitions, comparisons with earlier years can only be made to a limited extent.

In 2006, there was a considerable increase in the number of environmental incidents from two to eight. These included two level 1 incidents and six level 2 incidents. All incidents have been subjected to a detailed analysis and appropriate measures have been implemented to avoid similar damage in the future.

Environmental incidents and incidents resulting in damage (number per year)

	2002	2003	2004	2005	2006*
Notifiable environmental incidents	53	–	–	–	–
Incidents resulting in damage	4	–	–	–	–
Reportable environmental incidents	–	21	6	2	8

Bayer Group, continuing operations

Transportation incidents

We define transportation accidents as incidents if they occur during paid shipments of chemicals originating from Bayer while these shipments are outside Bayer sites³. Incidents are described as transportation incidents if they result in death or serious injury, if specified amounts of the chemicals being shipped are released into the environment, or if the incident results in severe traffic delays. Since the reporting year 2003, data for this parameter have been captured at all of the Group’s sites, including in locations such as warehouses.

The number of transportation incidents in 2006 was up from 2005, with nine incidents occurring in 2006 against three in 2005. The analysis of each individual case does not reveal any pattern that would suggest that any individual causes or circumstances behind transportation incidents are occurring more frequently than others. In this case, too, all incidents were analyzed and the appropriate steps taken.

Transportation incidents according to means of transport (number per year)

	2002	2003	2004	2005*	2006*
Road	23	28	10	2	6
Rail	2	0	0	1	3
Inland waterways	0	0	0	0	0
Sea	0	0	0	0	0
Air	0	0	1	0	0
Pipeline	1	–	–	0	0
Total	26	28	11	3	9

Bayer Group, continuing operations

Prior to the reporting year 2005, the definition of a transportation incident was based on the ownership of the goods being shipped. Accidents during shipments were only classed as transportation incidents if the goods being shipped were owned by Bayer.