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.

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.

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 thes 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.