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Peter
Zollinger
Executive Director, SustainAbility Ltd., London and New
York, and co-author of "The Power to Change" |
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To
align a company's values with those of contemporary society, the
traditional environment, health and safety (EHS) approach alone
- exemplified through the Responsible Care principles in the chemical
industry - is insufficient. A more comprehensive framework is needed.
The
sustainable development (SD) agenda - which at its core is about
balancing economic, environmental and social priorities - poses
different opportunities and risks for each of Bayer's four main
business segments:
Health
Care:
Bayer
must now address not only the increasingly urgent ethical issues
surrounding the medical uses of modern biotechnology but also the
controversial issue of global access to medicines.
Agriculture:
In
the wake of controversies around genetically modified foods, BSE
and foot-and-mouth disease, Bayer will need to redouble its efforts
to engage stakeholders around the globe about their preferred methods
of agricultural and food production.
Polymers:
The
continuous improvement of environmental performance through life
cycle management is key, with focus on Bayer's most successful products.
But new market challenges are also emerging, among them biodegradable
plastics made from renewable raw materials.
Chemicals:
As
the recent European Commission Chemicals White Paper made clear
again, Bayer is called upon to act even more energetically to protect
human health and to promote a non-toxic environment. SD requires
better transboundary information on chemicals, a more rigorous application
of the precautionary principle by using the safest chemicals possible,
and the accelerated phase-out of harmful ones.
Our
analysis of the evolving sustainability agenda for business suggests
that leading international companies will need to address such issues
as:
Business
case for SD:
Bayer
must show financial analysts and institutional investors, among
others, that its SD performance has a positive impact on business
performance. Shareholders want to know how current business models
will be affected and how future ones might look like.
Public
policy:
The
company should come clean about policy positions and lobbying efforts
in relation to significant public policy issues and assure alignment
with Bayer's public statements on SD.
Corporate
governance:
Bayer should assure effective corporate leadership by integrating
sustainability as part of best practice corporate governance. Bayer's
membership of both the UN Global Compact and the World Business
Council for Sustainable Development requires taking this agenda
seriously, and dealing with it in a holistic manner in the context
of the group's strategy.
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