The rating agency ISS ESG assesses the sustainability of companies with regard to environmental, social and corporate governance issues. These ratings are public here, where available. In addition, the company can voluntarily provide information and refer to research, reports and ratings from others.
BayWa AG
ISIN: DE0005194005 | WKN: 519400 | Symbol: BYW | Type: Equity
ESG Profile
Global challenges
BayWa is a publicly listed group with over 23,000 employees worldwide. Its business model combines trade, logistics and project development in three business units energy, agriculture and construction. BayWa products and solutions cover basic human needs such as energy, food and housing.
But these basic needs can only be met in the long term if they are in harmony with the environment and human rights – global challenges such as climate change or loss of biodiversity not only significantly harm the basis for life but also BayWa’s business. At the same time, BayWa’s global operations mean it has a major impact on sustainable development and opportunities to influence it. BayWa is aware of this responsibility and therefore aims to develop sustainable solutions along the entire value chain. For BayWa, doing business responsibly means it will be fit for the future and at the same time offers business and growth opportunities.
BayWa's Sustainability Strategy
BayWa's sustainability strategy aims, among other things, to reduce its own greenhouse gas emissions by 22 % (compared to the base year 2017).
To meet global challenges, BayWa developed a new sustainability strategy in 2021 that builds on and further develops its previous strategy. The strategy sets the business’s strategic direction on the topic of sustainability for the next ten years. The sustainability strategy is based on four action areas: value creation, environment and climate, employees and society. Each action area is underpinned by relevant core topics and strategic objectives.
BayWa's Climate Strategy
The core sustainability strategy topic of "environment and climate" is heavily influenced by the group-wide climate strategy. With its climate strategy, BayWa aims to help keep global warming to well below 2 degrees Celsius as part of its ambitious goal of being climate neutral by 2030 (scope 1 and 2). In 2022 the BayWa Board of Management passed a resolution to implement an internal carbon price of €50 per tonne of CO2 equivalents. This price will take effect starting in 2023, and BayWa wishes to use the funds that result from it to finance measures for mitigating greenhouse gas emissions. In addition to this the company plans to significantly reduce its energy consumption and the greenhouse gas emissions attributable to its sites, company cars and in-house logistics activities over the next few years; source more electricity from renewable energy sources; and compensate for remaining greenhouse gas emissions by purchasing high-quality carbon credits. Four further targets complete the ambitious climate strategy, of which two climate targets – 100 percent electricity from renewable energies group-wide from 2020 and 10 gigawatt (GW) on additional generation capacity of renewable energy – were achieved ahead of plan.
BayWa AG has been a member of the United Nations (UN) Global Compact since 2021. By joining, BayWa has underlined its commitment to upholding and promoting the ten principles set out by the UN initiative in the areas of human rights, labour, the environment and anti-corruption.
The German Sustainability Award Foundation has honoured BayWa 2023 with the German Sustainability Award.
BayWa is an international trailblazer in the trade sector when it comes to implementing ESG measures.
Carbon Disclosure Project (CDP) score: A-
The Carbon Disclosure Project (CDP) awarded BayWa AG a climate rating of A- for 2023 for its coordinated measures in response to environmental and climate action issues. This means that the company improved its strong showing from the previous year from B to A-. BayWa’s commitment to sustainability remains above the global and industry average.
ISS ESG Rating: Prime C+
ISS ESG, one of the world’s most reputable ESG rating agencies, awarded the BayWa Group Prime C+ status for the year 2023 in recognition of its sustainability performance again. According to ISS, BayWa is one of the leading companies in all three ESG dimensions in its industry.
MSCI ESG Research rating: AA
MSCI ESG Research again gave the BayWa Group an AA rating for the year 2023, classifying BayWa as a “Leader”.
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