Sustainable Conduct

Safety

Safety management and the continuous development of a safety culture are a cornerstone of corporate responsibility in the Bayer Group. 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 may suffer harm or damage has top priority for us. Responsibility for safety is defined through appropriate directives such as our Corporate Policy “Safety at the Bayer Group.” Our safety management is based on four pillars:

Safety Pillars

Safety Pillars (chart)Safety Pillars (chart)

Occupational health and safety

Safeguarding the occupational health and safety of our employees, and of the employees of contractors and suppliers on our company premises and under the supervision of Bayer, is one of our core tasks. This entails preventing work-related accidents and occupational illnesses, assessing potential hazards, ensuring comprehensive risk management and creating a healthy working environment. The rate of occupational injuries has been falling for several years. Intensive training once again contributed to this success in 2016.

Group target 2020:

reduction of 35% in occupational safety incident rate (RIR)

The basis of our reporting on occupational injuries is the Recordable Incident Rate (RIR), which covers all injuries to employees requiring medical treatment that goes beyond simple first aid. This includes injuries both with and without lost workdays. In 2016, the RIR rate dropped to 0.39 cases per 200,000 hours worked, corresponding to 489 occupational injuries worldwide. This means that, in statistical terms, one recordable incident occurred for around almost every 516,000 hours worked. We were also able to improve with respect to our Group target (RIR excl. Covestro). The Lost Time Recordable Incident Rate (LTRIR), which exclusively records reportable injuries with lost workdays, was higher than in the previous year.

Online Annex: A 1.4.3.2-1

limited assurance

Occupational illnesses are included in both parameters (LTRIR and RIR), regardless of whether or not they are listed in national registers of occupational diseases. As lists of occupational diseases are not globally standardized and in many countries do not exist at all, we document all occupational illnesses, provided they have been diagnosed and recognized by a physician. 14 new cases of occupational illnesses were reported throughout the Bayer Group in 2016. Most of these were related to the musculoskeletal system and were caused, for example, by computer work or lifting.

Bayer universally and regularly subjects all workplaces to a risk assessment and a hazard analysis. These analyses are used to derive risk mitigation measures that, in conjunction with targeted studies, are designed to prevent occupational illnesses from arising. In accordance with our occupational health and safety policy, we offer our employees regular medical examinations – in some cases on a mandatory basis – in all countries in which this is legally permissible. The focus here is on the risks that exist at each workplace. Furthermore, all respective country-specific provisions for mandatory examinations are complied with.

Regrettably, four people lost their lives in work-related accidents in 2016. Two Bayer employees were killed in traffic accidents and two contractor employees who died after falling from heights, including from scaffolding. All the fatalities occurred in India.

Recordable Occupational Injuries

 

 

2012

 

2013

 

2014

 

2015

 

2016

1

RIR = Recordable Incident Rate

2

LTRIR = Lost Time Recordable Incident Rate

3

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

Occupational injuries without lost workdays (RIR1)

 

0.49

 

0.47

 

0.43

 

0.42

 

0.39

Occupational injuries without lost workdays (RIR1) Life Sciences

 

0.50

 

0.49

 

0.44

 

0.43

 

0.40

Occupational injuries with lost workdays (LTRIR2)

 

0.27

 

0.26

 

0.22

 

0.21

 

0.23

Fatal injuries (total)

 

2

 

2

 

4

 

2

 

4

of which Bayer employees

 

2

 

1

 

3

 

2

 

2

of which contractor employees3

 

 

1

 

1

 

 

2

Online Annex: A 1.4.3.2-2

limited assurance

Recordable Incident Rate (RIR) by Region

 

 

2012

 

2013

 

2014

 

2015

 

2016

2015 figures restated

Europe / Middle East / Africa

 

0.58

 

0.75

 

0.68

 

0.62

 

0.46

North America

 

0.53

 

0.49

 

0.64

 

0.58

 

0.65

Asia / Pacific

 

0.21

 

0.20

 

0.14

 

0.12

 

0.14

Latin America

 

0.42

 

0.31

 

0.25

 

0.32

 

0.38

Total

 

0.49

 

0.47

 

0.43

 

0.42

 

0.39

As in previous years, we hardly recorded any accidents involving contact with chemicals in 2016. A significant proportion of our accidents and injuries have behavior-linked causes. Our Behavioral Safety Program launched by the Group Board of Management is addressing this problem.

Online Annex: A 1.4.3.2-3

limited assurance

Behavioral Safety Program heightens safety awareness

This initiative focuses on safety-conscious conduct by our employees. To prevent behavior-related accidents, we introduced an extensive Behavioral Safety Program in 2015. To this end, the existing safety culture was recorded and evaluated in all fields of work, primarily, however, in the production units. We evaluated 54 sites of the Crop Science, Pharmaceuticals and Consumer Health segments around the world in 2016 and, based on the results of these evaluations, drew up plans of action. Intensive training measures are in place to prevent accidents and injuries in the future before they happen. Initial behavioral improvements have been identified in areas in which the program has already been implemented. Specific training goals are designed to help reduce the Recordable Incident Rate.

Process and plant safety

We aim to design and operate our processes and facilities in such a way that they do not pose any inappropriate risks to employees, the environment or the community. To improve the safety of our production facilities and processes worldwide, Bayer is continually working to further develop the safety culture, the expertise of employees and the relevant standards for assessing risks. The corresponding Corporate Policy “Process and Plant Safety” updated in 2016 specifies globally harmonized procedures and standards. This is regularly reviewed to take into account changes in legislation, new procedures and additional quality assurance processes.

Online Annex: A 1.4.3.2-4

limited assurance

In a key move to maintain and improve safety awareness, the globally binding training program TOPPS (Top Performance in Process and Plant Safety) has been further extended. Participation in this program is compulsory for all Bayer employees who are able to influence process and plant safety at production and auxiliary facilities and is documented in the Bayer training system. This rule has become an integral part of the Group’s HSEQ stands for health, safety, environment, quality. management systems. TOPPS training documentation for face-to-face training and web-based training material is available in several languages.

The central Bayer competence center for process and plant safety in Leverkusen, Germany, the regional centers in Asia and the United States, and plant safety experts at all production sites work together in a global network.

Online Annex: A 1.4.3.2-5

limited assurance

Our experts work in international working groups such as the European Chemical Industry Council (CEFIC) on developing a global reporting standard for key performance indicators in plant safety and are also heavily involved in sharing experiences in this area, both nationally and internationally, at an industrial level.

Group target 2020:

reduction of 30% in process and plant safety incidents

A globally standardized KPI – Loss of Primary Containment (LoPC) – applies as an early indicator for plant safety incidents and is integrated into Group-wide safety reporting. LoPC refers to the leakage of chemical substances or energy in amounts above defined thresholds from their primary containers, such as pipelines, pumps, tanks or drums. The LoPC Incident Rate (LoPC-IR) indicates the number of LoPC incidents per 200,000 hours worked. In 2016, the LoPC-IR was 0.32 (2015: 0.22). Bayer’s LoPC reporting is based on the standards of the European Chemical Industry Council (CEFIC), which apply throughout Europe.

Online Annex: A 1.4.3.2-6

limited assurance

The causes of every reported LoPC incident are analyzed to further improve safety at existing plants. The results of the cause analyses are publicized across the Group. The LoPC-IR parameter and the globally established training program for process and plant safety are helping us to improve employees’ safety awareness.

The reporting threshold was set at such a low level that even material and energy leaks that have no impact on employees, neighbors or the environment are systematically recorded and reported. This approach supports our commitment to maintain the integrity of our facilities.

Rate of Plant Safety Incidents (LoPC-IR)

 

 

2012

 

2013

 

2014

 

2015

 

2016

1

Number of LoPC incidents per 200,000 working hours

Loss of Primary Containment Incident Rate (LoPC-IR)1

 

0.38

 

0.35

 

0.23

 

0.22

 

0.32

LoPC-IR1 Life Sciences

 

0.21

 

0.16

 

0.13

 

0.11

 

0.17

As part of its Group-wide crisis management, Bayer operates a global early warning system – the Bayer Emergency Response System.

Online Annex: A 1.4.3.2-7

limited assurance

A corporate policy provides a globally applicable standard procedure for recording and reporting unusual incidents such as hazards to the safety of our employees, plants or facilities, and regulates the Bayer Group’s crisis management. The handling of such incidents is the responsibility of the local crisis organization/emergency response team. For this purpose, organizational precautions with defined responsibilities and procedures have been implemented at the sites/in the countries. Depending on the situation, these involve business partners and the local community around the sites.

Transportation safety

Great importance is attached to transportation safety within the Bayer safety culture. This applies both to the transportation of our products on public routes, particularly of hazardous goods, and to processes such as loading, unloading, classification, labeling, packaging and selecting the right logistics partners. These are decided on using a defined procedure, and their fulfillment of safety and quality standards is assessed. The implementation of a dedicated corporate policy ensures that all materials are handled in line with applicable regulations and the potential hazard they pose. As part of our voluntary Responsible Care activities, transportation safety instructions are also drawn up for nonhazardous materials and corresponding distribution safety audits performed. Our transportation safety management is an integral part of HSE management and is implemented by a network of experts and users with practical experience.

Online Annex: A 1.4.3.2-8

limited assurance

Details are specified in the corporate policies “Health, Safety, Environment and Quality (HSEQ) Audits” and “Transportation Safety.” A globally aligned transportation safety committee acts as a forum for exchanging information and standardizing procedures between the segments. In 2016, the panel focused on issues such as training in transportation safety, the review of internal process instructions and the evaluation, selection and auditing of our logistics service providers.

In total, well over three million transport movements took place in 2016. Bayer aims to minimize the number of incidents through preventive measures. Despite our extensive safety precautions and training activities, residual risks can result in transport incidents. These include accidents that cause personal injury or significant damage to property and environmental impact resulting from the release of substances or leakage of hazardous goods. They are recorded in detail and assessed based on defined criteria. The 12 transport incidents in 2016 were mainly traffic accidents.

Online Annex: A 1.4.3.2-9

limited assurance

Transport Incidents by Means of Transport

 

 

2012

 

2013

 

2014

 

2015

 

2016

Road

 

6

 

8

 

11

 

11

 

12

Rail

 

0

 

0

 

1

 

1

 

0

Sea

 

0

 

3

 

0

 

0

 

0

Total

 

6

 

11

 

12

 

12

 

12

The following table provides an overview of the transport incidents in 2016.

Transport Incidents 20161

Personal injury

Crop Science, Belford Roxo, Brazil, February 13, 2016
During transportation, a truck loaded with Bayer product tipped over, causing a product spill. This was properly cleaned up and disposed of in a professional manner.

No

Covestro, Verona, Italy, March 18, 2016
During transportation, the packaging of a pallet was damaged, leading to leakage of a product. The product was cleaned up and disposed of in a professional manner.

No

Covestro, Erftstadt, Germany, April 12, 2016
During an evasive maneuver, a tank trailer loaded with a Covestro product tipped over on a highway. No product leaked out.

Yes

Crop Science, Thane, India, June 13, 2016
A truck loaded with Bayer product was involved in a traffic accident. A passer-by died as a result of the accident.

Yes

Covestro, Le Muy, France, June 27, 2016
A truck loaded with Covestro product collided with other vehicles at the tail end of a traffic jam. A driver from a transport company died as a result of the accident. No product leaked out.

Yes

Covestro, São Paulo, Brazil, July 5, 2016
During transportation, drums containing product were damaged. These and the product that had leaked into the catchment space were cleaned up and disposed of in a professional manner.

No

Covestro, Springfield, Missouri, United States, July 10, 2016
A truck trailer overturned during transportation. Around 2,500 kg of granules escaped. The content of the container and the released granules were taken up and disposed of in a professional manner. The driver suffered minor injuries.

Yes

Covestro, Oldenburg, Germany, August 17, 2016
During loading at a logistics service provider, a product container was damaged. The material that had leaked inside the truck and the residual amount still in the container were taken up and disposed of in a professional manner.

No

Pharmaceuticals, Leverkusen, Germany, October 27, 2016
A truck loaded with Bayer product collided with a mobile sign truck. A highway maintenance worker died as a result.

Yes

Covestro, Tashkent, Uzbekistan, November 3, 2016
During transportation, two product containers were damaged. The material that had leaked inside the tank and the residual amount still in the containers were taken up and disposed of in a professional manner. One of the customer’s employees suffered a slight injury.

Yes

Crop Science, Belford Roxo, Brazil, November 19, 2016
Following a collision with another vehicle, a truck loaded with Bayer product tipped over, spilling the content of one container on the road. This was cleaned up and disposed of in a professional manner.

No

Crop Science, Villefranche, France, November 22, 2016
While loading a truck, a container of product was damaged by a forklift truck. The product was cleaned up and disposed of in a professional manner.

No

1 Standard practice at Bayer is to record every fatality reported to us relating to our business activities. A difference between the number of fatalities in Table Recordable Incident Rate (RIR) by Region and this Table may occur because for occupational injuries, by definition, we show only fatalities of Bayer and contractor employees who were under immediate Bayer supervision.