Management Report & Annexes | Fundamental 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.

As part of our package of targets for the Group, we slightly increased the existing emissions reduction target in 2013 and additionally formulated an energy efficiency target. According to this, between 2012 and 2020, Bayer intends to cut its specific greenhouse gas emissions by 20% and improve its energy efficiency by 10%. 2012 was taken as the base year for both targets. Specific greenhouse gas emissions amounted to 1.02 metric tons of co2 equivalents per metric ton of sales product. Energy efficiency in 2014 was at 3.37 MWh per metric ton.

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

The STRUCTeseTM (Structured Efficiency System for Energy) energy management system has been installed in 58 particularly energy-intensive MaterialScience plants in Europe, Asia and North America. This system, designed by Bayer itself, enables the individual energy consumption of the production plants to be optimally controlled and reduced by an average of a tenth. In 2014 the annual energy saving amounted to around 1.5 million MWh, while co2 emissions were cut by around 428,000 metric tons per annum. MaterialScience completed the introduction of STRUCTeseTM in 2014. The energy management system is also set to be used in other plants, too, however, including in the new large-scale tdi (toluene diisocyanate) production plant in Dormagen, Germany.

Innovative production processes help reduce electricity consumption and greenhouse gas emissions. The use of oxygen depolarized cathode (odc) technology in chlorine production cuts electricity requirements, for example, by 30% compared with the standard process. This was revealed in a test run at a demonstration plant with an annual capacity of 20,000 metric tons of chlorine. The plant has been operating successfully at the Krefeld-Uerdingen site in Germany for almost four years. The process is marketed globally by MaterialScience and our development partner Thyssen Krupp Electro-lysis. 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 locations, the process is used at the new tdi plant with an annual capacity of 300,000 metric tons that went into operation at the Dormagen site in Germany at the end of 2014, at an investment 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 also be manufactured with the help of co2. MaterialScience has developed a process for this that is now market-ready and is to be used commercially. In this connection, plans are in place to build a production line at the Dormagen site in Germany that will manufacture co2-based polyols starting in 2016.

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, thereby 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. Reducing the size of the foam pores by up to 40% compared to conventional products lowers the thermal conductivity of the new material by as much as 10%.

MaterialScience has also demonstrated potential applications for polymers in the construction industry through its EcoCommercial Building Program. This Bayer-led global initiative involves numerous industrial partnerships with leading construction companies that develop and provide product solutions for sustainable construction. Its primary goals are to reduce the energy requirements, emissions and life cycle costs of buildings and to increase user comfort. Reference buildings are used to demonstrate the positive contribution of insulating materials to the energy balance of a building.

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. For example, in the area of wind power the company has developed new polyurethane infusion resins for rotor blades that outperform rotors based on the previously used epoxy resins in terms of production speed, lightness and durability.

CropScience’s seed and crop protection strategy actively helps reduce greenhouse gas emissions per yield. The Tabela program in Indonesia enables a reduction in water consumption of up to 20% through the direct seeding of pregerminated rice. Owing to the minimization of anaerobic conditions it is also possible to reduce emissions of the greenhouse gas methane by up to 30%. In this initiative, the subgroup is working with local partners to demonstrate just what can be achieved with the help of a customized package comprising seeds and crop protection products. The benefits include enhanced water efficiency, lower greenhouse gas emissions, higher rice yields and improved incomes for farmers.

More information about combating the growing threat of malaria resulting from climate change can be found in Chapter 5 “Research, Development, Innovation,” in the CropScience section.

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 number of initiatives to cut emissions and costs in the Group’s non-production areas by saving energy and fuel. These include improvements in the global Group fleet of over 25,000 vehicles, and in information technology. A new reduction target was implemented in 2013 as part of the Bayer EcoFleet initiative. Bayer plans to reduce its specific co2 emissions for new vehicles to 110 g/km by 2020. The average co2 emission level for the approximately 6,700 newly registered vehicles in 2014 was 148 g/km. Training in energy-saving driving will be added to the driving safety training courses in 2015.

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.

The total volume of greenhouse gas emissions Group-wide climbed in 2014 by 4.2%. While direct emissions fell by 1.7%, indirect emissions rose by 9.7%. This increase is also primarily due to the inclusion for the first time of the MaterialScience site in Maasvlakte, Netherlands, in the environmental reporting of the Group.

Group Greenhouse Gas Emissions1         [Table 3.12.2]
  Million metric tons of CO2 equivalents
  2010 2011 2012 2013 2014
Direct greenhouse gas emissions2 4.80 4.23 4.24 4.09 4.02
Indirect greenhouse gas emissions3 3.70 3.92 4.12 4.29 4.70
Total greenhouse gas emissions 8.50 8.15 8.36 8.37 8.72
Specific greenhouse gas emissions (metric tons of CO2 equivalents per metric ton of manufactured sales volume)4 1.09 0.95 0.98 1.00 1.02
Manufactured sales volume5
(million metric tons)
10.4 11.0 11.2 11.1 11.4
1 portfolio-adjusted in accordance with the GHG Protocol
2 In 2014 88.7% of emissions were CO2 emissions, 10.8% N2O emissions, just under 0.5% partially fluorinated hydrocarbons and 0.05% methane.
3 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.
4 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, nor are trade products.
5 The manufactured sales volume includes all products sold in 2014, inclusive of secondary and trade products.

Owing to the inclusion for the first time of the Maasvlakte site, Netherlands, in our environmental reporting, specific greenhouse gas emissions for 2014 were up on the 2013 level, at 1.02 metric tons 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 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 energy 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; see Table 3.12.2-1 in the following online annex.

The waste incineration plants operated by Currenta generate roughly 1 million metric tons of steam per annum from the incineration of approximately 280,000 metric tons of hazardous waste. Compared to fossil fuel use, this reduces emissions by 200,000 metric tons of co2 per year.

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Online annex: 3-12.2-5

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
  2010 2011 2012 20131 20141
HealthCare 0.54 0.54 0.55 0.52 0.52
CropScience 1.09 1.00 0.92 0.95 0.91
MaterialScience 5.24 4.63 4.89 4.98 5.672
Others3 0.02 0.01
Currenta4 1.62 1.97 1.88 1.83 1.52
Specific greenhouse gas emissions for MaterialScience (metric tons of CO2 equivalents per metric ton of manufactured sales volume)5 0.96 0.82 0.86 0.89 0.93
1 Emissions from the Group’s vehicle fleet amounting to 0.1 million metric tons of CO2 equivalents have been recorded since 2013 but are not assigned to specific subgroups. Instead, they are reported in the Group emissions under direct emissions (see Table 3.12.2 “Group Greenhouse Gas Emissions”).
2 The significant increase in greenhouse gas emissions at MaterialScience to 5.67 million metric tons is due to the inclusion for the first time of the propylene oxide production unit in Maasvlakte, Netherlands, in our environment reporting. This site alone is responsible for around 330,000 metric tons of CO2. Without the inclusion of Maasvlakte, specific emissions did not increase in 2014 but fell. Retrospective correction of the yearly figures was abstained from in line with internal regulations.
3 Total greenhouse gas emissions for Technology Services and Business Services. These companies’ production facilities were incorporated into other subgroups in 2012.
4 The emissions reported for Currenta are attributable to the provision of energy to external companies at the Chempark sites.
5 The by-products sodium hydroxide solution and hydrochloric acid generated during production are not included in the manufactured sales volumes, nor are trade products.

The reporting of all relevant indirect Scope 3 emissions under the ghg Protocol is bindingly regulated by the Corporate Value Chain Accounting & Reporting Standard. Following a thorough examination, Bayer has identified nine essential Scope 3 categories, which we report on in detail in the CDP Report.

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Online annex: 3-12.2-6

As part of the CDP, we will again be publishing a detailed report for 2014 on these emissions that result from the value-added chain. We take particular account of those emissions where there is significant potential for reduction. These include our transport-related emissions resulting from business trips.

In 2014 the Bayer Group was involved in European emissions trading with 19 plants in total. The greenhouse gas emissions of these plants amounted to approximately 2.29 million metric tons of co2 equivalents.

Other direct emissions into the air

Emissions of ozone depleting substances (ods) fell by 5.6%. Emissions of volatile organic compounds excluding methane (vocs) decreased by 6.5%. The main source of both types of emissions remains the CropScience site in Vapi, India, which accounts for 68.2% of voc emissions and 94.9% of ods emissions. The project initiated there three years ago to reduce these emissions continues to have an impact. voc emissions have fallen by a further 9.5%, which is equivalent to 7.2% of the Group total. ods emissions there decreased by 3.4%. By 2016 at the latest, a central waste air treatment system will bring together the many different sources of emissions in Vapi and significantly reduce these emissions.

Emissions of Ozone Depleting Substances (ODS)1 [Table 3.12.3]
  2010 2011 2012 2013 2014
ODS in metric tons p.a. 20.8 16.3 16.3 15.7 14.8
1 ozone depleting substances (ODS) in CFC-11 equivalents    
Emissions of Volatile Organic Compounds (VOC)1 [Table 3.12.4]
  2010 2011 2012 2013 2014
VOC in 1,000 metric tons p.a. 2.54 2.69 2.60 2.27 2.12
VOC in kg per metric ton of manufactured sales volume 0.2436 0.2457 0.2316 0.2047 0.1864
1 volatile organic compounds (VOC) without methane

Nearly all other direct emissions also fell in 2014.

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Online annex: 3-12.2-7

Other Important Direct Air Emissions   [Table 3.12.4-1]
  1,000 metric tons p.a.
  2010 2011 2012 2013 2014
CO 1.4 1.3 1.0 0.9 0.9
NOX 3.7 3.7 3.1 2.5 2.4
SOX 2.7 2.3 1.9 1.3 1.2
Particulates 0.2 0.2 0.2 0.2 0.2
Last updated: February 26, 2015  Copyright © Bayer AG
http://www.annualreport2014.bayer.com