Bayer - external and internal collaboration unlock progress in sustainable procurement BOX 2 Bayer’s leadership in sustainable procurement is underpinned by its skill in collaborating, both externally and internally. A key member of Together for Sustainability (TfS) and the Pharmaceutical Supply Chain Initiative (PSCI), Bayer shows how a collaborative mindset, strong cross-functional integration and a clear articulation of value create the conditions for seeking and forging impactful partnerships. “Collaboration should be the default,” says Thomas Udesen, Bayer’s Chief Procurement Officer. “Many solutions for sustainable procurement already exist. If people just talked to each other, we would all move a lot faster. Collaboration is good for business, good for people and good for our planet.” Bayer’s collaborative culture is reflected in its engagement in transformative initiatives such as TfS, including active participation in the development of such leading industry frameworks as The Product Carbon Footprint Guideline for the Chemical Industry. Through TfS and PSCI, Bayer also collaborates externally with other chemicals and pharma players to ensure it can procure goods and services in the most sustainable way – since aligning procurement with ESG targets and regulation is an integral part of Bayer’s sustainability strategy. This kind of external collaboration has helped Bayer to overcome initial challenges in implementing the new PCF methodology across its internal teams. Bayer’s commitment to collaborative procurement is a function of the cross-functional engagement of its procurement and sustainability teams, which together shape key internal frameworks such as the company’s supplier code of conduct. This close internal collaboration is supported by formalized governance, provided by an internal sustainability council of senior leaders from across functions and supported by an external sustainability council of thought leaders whose expertise informs Bayer’s sustainability strategy. Source: see endnote.26 Enabler 4: Long-term planning and flexibility As Jennifer Morris, Chief Executive Officer of The Nature Conservancy noted, in an interview conducted for this report: “Conservation and landscape-level change cannot always be measured for quarterly reports or on an election cycle. To promote durable, community-led results, funding sources must be patient, long-term and reliable.” As noted earlier, transformative climate and nature projects often require long-term commitment and patience from all partners. Organizations should strengthen internal capabilities, including systems thinking and scenario planning, to sustain long-term engagement. Aligning differing incentives demands flexibility and a willingness to adapt established ways of working, particularly with less familiar partners. For example, philanthropies and development banks may need to redesign infrastructure project structures to attract private investment, while companies engaging local suppliers may need to adapt global procurement processes.Enabler 5: Dedicated resourcing, capabilities and skills To fully contribute to and benefit from transformational partnerships, organizations must commit appropriate resources – time, budgets and capable people. In models such as TfS, dedicated resources and engagement from senior management are membership prerequisites. Even when not formally required, partner organizations should ensure they provide the skills to support complex and innovative collaborations, such as relationship management, partnership-specific financial expertise, and capability in monitoring, evaluation and learning (MEL). One example of an important but often underdeveloped capability, as recognized by the GAEA Awards, is effective collaboration between generations. The Youth Climate Justice Fund addresses this capability gap directly, facilitating donor training and providing advisory services for traditional philanthropies to partner more effectively with youth-led initiatives (see Box 3). Through the GAEA Awards, we’ve learned that collaboration is not just about the structure or model itself – it’s about the everyday behaviours and choices organizations make. The most impactful partnerships are those in which participants invest in being good collaborators. Calin Brown, Programme Lead, GAEA Awards, World Economic Forum Making Collaboration Work for Climate and Nature: Practical Insights from GAEA Award Winners 24