Bayer (BAY) Climate Transition Analysis
A new analysis of German multinational pharmaceutical and biotechnology company Bayer finds that the company shows extremely modest plans to reduce its Scope 3 emissions, despite these accounting for over three quarters of its emissions. Although the company is committed to ambitious climate targets, including to become Net Zero by 2050 across its entire value chain, there is no roadmap for investors to show how it will achieve this.
UPDATE: By July 2024, Bayer provided additional data showing positive changes in the company’s climate transition plans.
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| Image | Title | Summary | Date |
|---|---|---|---|
 | Toray Industries Climate Transition Analysis Update | Toray aims for carbon neutrality by 2050 but is most likely heading towards a 2°C to 3°C scenario by 2030. Without stronger absolute reduction commitments, enhanced supply chain accountability, and clearer links between incentives and Net Zero goals, Toray appears unlikely to align with the more ambitious 1.5°C target. | 4 February 2025 |
 | BASF CTA Update | Planet Tracker’s latest analysis reveals critical gaps in BASF’s climate transition strategy. Whilst the company may be on track for a 2°C pathway by 2030, significant challenges remain to achieve the more ambitious 1.5°C target. | 18 December 2024 |
 | Dow (DOW) Climate Transition Analysis Update | Dow, the global chemical company aims for carbon neutrality by 2050. However, analysis by Planet Tracker suggests Dow’s mid-term climate strategy is not ambitious enough to align with the well-below 2°C pathway, instead aligning closer to a 3°C warming scenario by 2030. | 31 October 2024 |
 | LyondellBasell (LYB) Climate Transition Analysis Update | LyondellBasell could be aligned with a 1.5 °C warming scenario by 2030. LyondellBasell aims to achieve Carbon Neutrality by 2050, targeting a 42% reduction in Scope 1 and 2 emissions and a 30% reduction in Scope 3 emissions by 2030, from a 2020 baseline. While Planet Tracker believes LYB is likely to meet its 2030 targets, the company could strengthen its position by enhancing its transparency, especially on financial disclosures related to climate-related risks and the expected impact of its investments on emissions reductions. | 19 September 2024 |
 | Saudi Basic Industries Corporation (SABIC) Climate Transition Analysis | SABIC is expected to be on a 2°C pathway by 2030 according to analysis by Planet Tracker. The company aims for carbon neutrality by 2050, targeting a 20% reduction in Scope 1 and 2 GHG emissions by 2030 from a 2018 baseline. However, Planet Tracker’s analysis shows that SABIC lacks a specific Scope 3 emissions target, which accounts for 70% of its footprint, and therefore the company will miss the alignment with the latest Paris Agreement ambition. | 3 September 2024 |
 | Bayer CTA Update | Bayer is projected to align with a 2°C warming scenario by 2030, according to an updated analysis by Planet Tracker. This compares to an earlier 3°C projection in August 2023. The company aims for Net Zero GHG emissions by 2050, with interim goals for 2030, and achieved an 11% reduction in total GHG emissions from 2019 to 2023. However, Planet Tracker’s analysis shows significant variability in emissions trends, suggesting Bayer might struggle to meet its 2030 targets. | 4 July 2024 |
 | Tomorrow’s Chemistry | Planet Tracker’s report, Tomorrow’s Chemistry, presents a comparative analysis of the Climate Transition Assessments (CTAs) of seven leading chemical companies, Air Liquide (AI), BASF (BAS), Bayer (BAY), Dow (DOW), Incitec Pivot (IPL), LyondellBasell (LYB), and Toray Industries (3402), shedding light on their commitments, strategies and readiness to align with the Paris Agreement and achieve Net Zero emissions by 2050. | 24 April 2024 |
 | Is Bayer a litigation leading indicator? | Planet Tracker analysis of Bayer filings and presentations (e.g. annual reports, earnings calls, shareholder meetings) demonstrates that mentions of litigation have risen since 2020, notably in the annual report. On earnings calls, where analysts are given an opportunity to question the management team, it is also being raised. This hints that the ongoing threat from litigation is seen as of significance to the financial market valuations. | 14 March 2024 |
 | Climate Transition Mismatch | Company membership in trade associations has emerged as a critical area of concern, particularly when corporate management teams claim to be supportive of lowering their carbon footprint but are members of associations that appear to be at odds with the goals set out in the Paris Agreement. A new report from Planet Tracker urges corporations to reassess their affiliations with industry associations that diverge from their stated environmental objectives. | 13 February 2024 |
 | Toray Climate Transition Analysis | Despite Toray Industries’ stated goal of achieving Paris-aligned status by 2031 and net zero by 2050, analysis by Planet Tracker concludes that Toray lacks a robust plan to achieve net zero for Scope 1 & 2 by 2050 and highlights the absence of a clear strategy for Scope 3 emissions. While Toray aims to reduce absolute emissions by 50% per unit of revenue by 2031, Planet Tracker argues that the company is not on track to meet these targets. | 10 January 2024 |
 | Air Liquide SA (AI) Climate Transition Analysis | From 2019 to 2021 Air Liquide experienced a weighted absolute increase of 16% in total Scope 1, 2 and 3 emissions. Without further mitigation, Air Liquide will overshoot SBTs by a significant 243%, failing to align with a 1.5°C pathway by 2030 or a well-below 2°C warming scenario by 2035. However, Planet Tracker does not anticipate that this will happen if the company follows through with its forward-looking disclosed initiatives. | 7 December 2023 |
 | Incitec Climate Transition Analysis | Incitec Pivot demonstrates a robust commitment to its climate transition with ambitious greenhouse gas (GHG) reduction targets and proactive risk management. The company’s revised transition plan aims to achieve a 42% absolute reduction in emissions by 2030 and Net Zero by 2050. A more detailed connection between mitigation projects and transition investments would enhance Incitec’s transparency and align the company’s efforts more clearly to its 1.5°C target by 2030, and subsequent Net Zero by 2050. | 1 December 2023 |
 | LyondellBasell (LYB) Climate Transition Analysis | LyondellBasell has a short-term climate transition plan which is much more credible than many of its CA100+ chemical sector peers. As a result, it is on target to meet its 2030 emissions target. Beyond this date, however, there is a lack of clarity, making it difficult for investors to understand how it will achieve its net zero target by 2050. | 9 November 2023 |
 | Dow (DOW) Climate Transition Analysis | Planet Tracker’s analysis shows that Dow is on track for a +3ºC climate scenario by 2030, although the company claims it is ‘aligned with a 1.5°C world’. With 72% of emissions coming from Scope 3 and Dow having no Scope 3 target, it is difficult to have confidence in the management’s statement. | 12 October 2023 |
 | BASF (BAS) – Climate Transition Analysis | An analysis of German multinational chemicals company, BASF, in July 2023 found that the company was failing to meet its stated climate goals of Net Zero emissions by 2050 and was instead relying on unproven future technologies. | 20 July 2023 |
| Title |
|---|
| Toray Industries Climate Transition Analysis Update |
| Dow (DOW) Climate Transition Analysis Update |
| LyondellBasell (LYB) Climate Transition Analysis Update |
| Saudi Basic Industries Corporation (SABIC) Climate Transition Analysis |
| Bayer CTA Update |
| Tomorrow’s Chemistry |
| Is Bayer a litigation leading indicator? |
| Climate Transition Mismatch |
| Toray Climate Transition Analysis |
| Air Liquide SA (AI) Climate Transition Analysis |
| BASF (BAS) – Climate Transition Analysis |
