1.4 Targets and Performance Indicators

To consistently implement our strategy, we have set ambitious targets for our company and measure their attainment annually in terms of selected performance indicators. This program encompasses not only financial targets and innovation goals, but also sustainability objectives that are aligned to important areas along the value chain. Our aim is to make clear the challenges we have identified in our core business in the context of sustainable development, and at the same time to highlight the continuous improvements we are committed to making across the enterprise.

Following the legal independence and stock market flotation of Covestro, this company is not included in the new innovation, sustainability and employee targets. Where necessary, we have adjusted the reference data for unchanged targets to eliminate the contributions for Covestro.

The current status of our progress in respect of our targets and performance indicators is documented in the following table and the respective chapters.

Profitable Growth

Target
Target attainment (as of 2015)
New or adjusted target

Increase in Group sales (Fx & portfolio adj.); forecast issued in February 2015: low-single-digit percentage increase to approx. €46 billion

2.7 % increase to €46.3 billion

Low-single-digit percentage increase (Fx & portfolio adj.) to more than €47 billion

Increase in EBITDA before special items; forecast issued in February 2015: low- to mid-teens percentage increase

18.2 % increase

Mid-single-digit percentage increase

Increase in core earnings per share; forecast issued in February 2015: low-teens percentage increase

16.0 % increase

Mid-single-digit percentage increase

Innovation

Target
Target attainment (as of 2015)
New or adjusted target

Group: increase in R&D investment to over €4.0 billion (2015)

€4.3 billion

Increase in R&D investment to €4.5 billion (2016)

HealthCare: transition of more than 10 new molecular entities (NMEs) into development (2015)

12 new molecular entities (NMEs) transferred

Pharmaceuticals: transition of 10 new molecular entities (NMEs) into development (2016)
Consumer Health: transition of 20 consumer-validated concepts into early development (2016)

CropScience: transfer of 2 new molecular entities (NMEs) or plant traits into confirmatory technical proof-of-concept field studies (2015)

Start of field studies on 1 new plant trait, 1 new molecular entity (NME) and 2 new biologics

Transfer of 3 new molecular entities (NMEs), plant traits or biologics into confirmatory technical proof-of-concept field studies

Covestro (formerly MaterialScience): improvement in production process technology to achieve better energy efficiency (2015)

Further use of improved production technologies (e.g. in TDI, MDI and chlorine production)

See Chapter 4 Research, Development, Innovation and 10 Environmental Protection for more information

Icon-employees.pngIcon-employees.png Sustainability

Target
Target attainment (as of 2015)
New or adjusted target
Supplier management

Evaluation of all strategically important suppliers (2017)

84 %

Target unchanged

Evaluation of all potentially high-risk suppliers with significant Bayer spend (2020)

73 %

Target unchanged

Development and establishment of a new sustainability standard for our supply base (2020)

In implementation

Target unchanged

See Chapter 7 Procurement, Production, Logistics, Distribution for more information

Resource efficiency

Improvement of 10 % in Group-wide energy efficiency (2020); reference year 2012: 3.50 MWh/t

3.34 MWh / t (4 % improvement)

Target unchanged; new reference value (2012): 8.86 MWh / t

Reduction of 20 % in Group-wide specific greenhouse gas emissions (2020); reference year 2012: 0.98 t CO2 / t

1.09 t CO2 / t (+11 %)

Reduction of 15 % in Group-wide specific greenhouse gas emissions (2020); new reference value (2012): 1.88 t CO2 / t

Establishment of water management at all sites in water-scarce areas (2017)

Approx. 58 %

Target unchanged

See Chapter 10 Environmental Protection for more information

Safety

Reduction of 35 % in occupational safety incident rate (2020); reference year 2012: RIR (Recordable Incident Rate) 0.49

RIR 0.42 (−14 %)

Target unchanged; new reference value (2012): RIR 0.50

Reduction of 30 % in transport incidents (2020); reference year 2012: 6 incidents

12 (+100 %)

Target not being continued.

Reduction of 30 % in process and plant safety incidents (2020); reference year 2012: LoPC-IR (Loss of Primary Containment Incident Rate) 0.38

LoPC-IR 0.22 (−42 %)

Target unchanged; new reference value (2012): LoPC-IR 0.21

See Chapter 9 Safety for more information

Product stewardship

Conclusion of assessment of hazard potential of all substances (>99 %) used in quantities exceeding one metric ton per annum (2020)

66 %

Target unchanged

See Chapter 8 Product Stewardship for more information

Compliance

Conducting of precautionary risk assessments in all three subgroups (2015)

Successfully completed

Annual compliance training for all Bayer managers (> 99 %)

97 %

Annual compliance training for close to 100% of Bayer managers

See Chapter 16.3 Compliance for more information

Icon-sustainability.pngIcon-sustainability.png Employees

Target
Target attainment (as of 2015)
New or adjusted target

Continuous improvement in employee engagement; reference year 2012: 85 %

87 %

Target unchanged

Increase in the proportion of women in senior management to 30 % (2015); reference year 2010: 21 %

28 %

Increase in the proportion of women in senior management to 35 % (2020); reference value remains.

Increase in the proportion of senior managers from outside the European Union, the United States or Canada to 25 % (2015); reference year 2013: 18 %

21 %

Increase in the proportion of senior managers from outside the European Union, the United States or Canada to 25 % (2020)

See Chapter 6 Employees for more information

Details of further key financial data are found in Chapter 18 “Future Perspectives.” Information on Bayer Group targets is also provided in the relevant chapters, indicated by “Bayer Group Target” in the margin.