Management Report & Annexes | Fundamental Information About the Group

11. Safety

Safety management and the continuous development of safety culture are a cornerstone of corporate responsibility in the Bayer Group. All injuries and incidents we record are analyzed and evaluated in detail to enable adequate measures to be introduced to avoid them in the future. Preventing accidents and incidents in day-to-day work, when operating production facilities, and on work-related travel and transportation routes where people or the environment could suffer harm or damage has top priority for us. Responsibility for health, safety, environmental protection and quality (hseq) is thus directly assumed by the Group Board of Management. Our hseq activities are geared toward ensuring the occupational health and safety of employees, contractors and suppliers on our company premises and under the supervision of Bayer, and the smooth and safe operation of our facilities. In this way, we also reduce running costs by avoiding damage as well as work and production disruptions.

At the Group level, responsibilities and framework conditions for hseq are regulated through appropriate directives. Operational responsibility lies with the boards of management/executive boards of the respective subgroups and service companies and the corresponding line organizations, who have their own management systems, committees and working groups to steer hseq. Continuous review and revision of directives and regular internal audits ensure our hseq management systems at all sites meet the specific requirements in each case.

Occupational health and safety 

The rate of occupational injuries with lost workdays at Bayer has been decreasing for several years. In 2014 intensive training and awareness-raising once again helped enable the Bayer subgroups and service companies to report a reduction in injury figures.

We record all injuries to Bayer employees requiring medical treatment that goes beyond simple first aid. These are indicated by the Recordable Incident Rate (rir), which includes both injuries with lost workdays and those without. In 2014 this rate dropped to 0.43 cases per 200,000 hours worked (2013: 0.47) throughout the Group, corresponding to 534 occupational injuries worldwide. This means that, in statistical terms, one recordable incident occurred for around every 465,000 hours worked.

The rate of recordable occupational injuries with lost workdays (ltrir, Lost Time Recordable Incident Rate) also fell. In 2014 it stood at 0.22 (2013: 0.26).

Unfortunately, there were four fatalities in work-related accidents in 2014, three of which concerned Bayer employees and one a contractor employee. One employee was killed in switching work in Wesseling, Germany. In La Tupia, Colombia, a tank wagon caught fire while gasoline was being transferred. Four workers sustained burns of varying degrees. The Bayer employee’s burns were so severe that he died. A comprehensive root cause analysis was performed. Prevention and improvement measures were introduced. A third employee died in Brazil in a traffic accident, as did a contractor employee in Sanchor, India.

Occupational Injuries   [Table 3.11.1]
  2010 2011 2012 2013 2014
Occupational injuries to Bayer employees with lost workdays (LTRIR1) 0.34 0.31 0.27 0.26 0.22
Recordable occupational injuries to Bayer employees (RIR1) 0.62 0.56 0.49 0.47 0.43
Fatal injuries (total) 4 3 2 2 4
of which Bayer employees 4 2 2 1 3
of which contractor employees2 1 1 1

1 The values up to 2010 were calculated on the basis of the former MAQ values and do not include work-related illnesses.

2 employees working for third parties whose accidents occurred on our company premises and under Bayer supervision

The injury figures varied both within individual regions and between the various subgroups and service companies.

limited assurance

Online annex: 3-11-1

Recordable Occupational Injuries (RIR) by Region [Table 3.11.1-1]
  20121 2013 2014
Europe 0.56 0.72 0.62
North America 0.53 0.49 0.64
Asia/Pacific 0.21 0.20 0.14
Latin America/Middle East/Africa 0.54 0.40 0.33
Total 0.49 0.47 0.43
1 2012 figures restated because of a previous assignment to the wrong region

Since 2012 workplace-related illnesses have additionally been recorded separately from legally listed recognized occupational diseases and are included in the ltrir parameter. In 2014 there were 11 cases attributable to work-related factors recorded throughout the Group. We report such cases when they have been diagnosed and officially recognized by a medical officer.

As in previous years, we hardly recorded any sector-typical accidents involving contact with chemicals in 2014. The absolute number of injuries declined further. A significant proportion of our work-related accidents and injuries relate to behavior-linked errors. In 2014 we therefore placed the topic at the heart of numerous programs and training courses under the umbrella term “Behavioral Safety.” In 2014 behavioral safety was therefore also the focus of our annual global Safety Day.

limited assurance

Online annex: 3-11-2

The Behavioral Safety (bs) initiative was adopted at the start of 2014 by the Bayer Safety Council headed up by the Chairman of the Board of Management. The initiative focuses on the human factor and the safety-conscious behavior of employees. Behavioral Safety involves identifying and preventing unsafe working methods and reinforcing and consolidating safe working methods at all levels. This approach is by no means limited to production plants, but is also intended to cover areas of work such as Research & Development, Marketing & Sales and Administration. In 2014 bs pilot projects were initiated by the subgroups at various locations around the world or were already being implemented. HealthCare has placed emphasis on sales, while CropScience and MaterialScience focus more on production and administrative areas.

Our campaigns on traffic safety and preventing accidents caused by tripping, slipping and falling were continued in 2014 by the subgroups with country-specific accident prevention measures.

Process and plant safety 

Through the Group-wide Top Performance in Process and Plant Safety (topps) initiative, Bayer is continuously working to improve the safety culture and corresponding standards in plants and laboratories and to optimize safety technology. The corresponding Bayer Group Regulation “Process and Plant Safety” specifies uniform procedures and standards. The methods and criteria for identifying and assessing the risks posed to people and the environment by plants and processes underwent further development and were globally standardized.

limited assurance

Online annex: 3-11-3

A key measure from the topps initiative is the intensive training of all Bayer employees who are able to influence process and plant safety in their work environment. This involves approximately 26,000 production and engineering employees around the world who receive regular training in compulsory seminars tailored to their areas of activity. Both traditional and web-based training was devised for craftsmen and chemical technicians in the production facilities. To ensure the standard achieved is maintained in the long term, we have firmly established the process and plant safety training program in the subgroups’ hseq management systems.

A globally standardized kpi for plant safety incidents, Loss of Primary Containment (LoPC), applies to all Bayer plants and is integrated into Group-wide safety reporting. LoPC refers, for example, to chemicals in amounts above defined thresholds leaking from their primary container, such as pipelines, pumps, tanks or drums, and is thus an indicator of incidents in production facilities. We use the LoPC Incident Rate (LoPC-IR) to determine the number of LoPC incidents per 200,000 working hours in areas relevant to plant safety. In 2014 this was 0.23 (2013: 0.35).

Rate of Plant Safety Incidents (LoPC-IR1) [Table 3.11.2]
  2012 2013 2014
LoPC-IR 0.38 0.35 0.23
1 LoPC-IR = Loss of Primary Containment Incident Rate
limited assurance

Online annex: 3-11-4

The causes of every reported incident are carefully analyzed. The results of the cause analysis are published Group-wide to improve employees’ safety awareness. The reporting threshold is set so low that even material and energy leaks that have no impact on employees, members of the surrounding communities or the environment are systematically recorded and reported. This approach is in line with our commitment to maintaining the integrity of our facilities at all times. As expected, the evaluations from the first few years have indicated areas where there is room for further improvement in the safety of existing facilities. The introduction of both this parameter and the globally established training program mentioned above is helping us to raise awareness of the significance of minor leaks and releases.

An example of the systematic, global optimization of our safety programs is the CropScience project for global standardization of safety measures to prevent fire, explosions, leaks and spills.

The Bayer Group’s competence center for process and plant safety, together with the Group hseq Platform for Process and Plant Safety, is managed by Technology Services. This comprises three regional competence centers, which are located in Leverkusen, Germany; Shanghai, China; and a combined center at the Baytown and Kansas City sites in the United States.

limited assurance

Online annex: 3-11-5

We participate in international working groups of the International Council of Chemical Associations and the American Petroleum Institute that focus on developing a global reporting standard for key performance indicators in plant safety. We also are involved in an intensive sharing of experiences in this area at an industrial level.

Transportation safety 

Transportation safety has a very high priority within the Bayer safety culture. The relevant Bayer Group directive specifies procedures that ensure all transported materials are handled in line with applicable regulations and their hazard potential. Logistics service providers are selected following a defined procedure, and their fulfillment of safety and quality standards is assessed regularly. Under the directive, people responsible for implementation are appointed in every organizational unit concerned.

In 2014 the Group-wide Transportation Safety Platform focused, for example, on regulations management, sustainable training tools for transportation safety, reviewing internal procedures and evaluating and selecting our logistics service providers. These topics are documented in appropriate hseq targets. In addition, as part of our Responsible Care activities, transportation safety instructions are also being drawn up for non-hazardous materials, and transportation risk analyses carried out for the transportation of hazardous materials that go beyond what is required under transportation legislation. To support knowledge sharing within the Group, a Global Transportation Safety Symposium was held for the first time in 2014 with 160 participants from 20 countries.

The transportation safety management of the subgroups is part of the audit system of the Bayer Group specified in the Bayer Group Regulation “Health, Safety, Environment and Quality (hseq) Audits.”

We classify critical incidents during the transportation of our products as transport incidents. These include accidents that cause personal injury, significant damage to property, environmental impact through the release of substances, or leakage of hazardous materials. We record transport incidents using defined criteria. Assessment is based on the leaked load, graded according to the volume and hazardous material class, personal injury and blocked transportation routes. We take into account both our own chemical transport movements and those we commission and pay third parties to perform on our behalf.

In total, well over one million transport movements took place in 2014. Despite extensive safety precautions and training activities, it is unfortunately impossible to prevent transport incidents from occurring altogether. We analyze and evaluate all incidents carefully so that adequate steps can be taken to prevent a recurrence. The number of transport incidents increased from 11 to 12 in the reporting period.

limited assurance

Online annex: 3-11-6

Transport Incidents by Means of Transport   [Table 3.11.2-1]
  2010 2011 2012 2013 2014
Road 6 6 6 8 11
Rail 1 1 0 0 1
Inland waterways 1 0 0 0 0
Sea 0 0 0 3 0
Air 0 0 0 0 0
Pipeline 0 0 0 0 0
Total 8 7 6 11 12

Adetailed overview of the transport incidents can be found in Chapter 12.6 “Environmental Protection” in Online Annex 3-12.6-2.

Last updated: March 3, 2015  Copyright © Bayer AG
http://www.annualreport2014.bayer.com