Tuesday - May 7, 2013

Sustainable Development Report 2012:

Bayer documents economic, social and ecological performance

Bayer CEO Dekkers: “Innovation and sustainability are the driving force behind our business success” / Integrated reporting from 2014

Leverkusen, May 7, 2013 – Bayer has just issued its Sustainable Development Report for 2012. The 72-page report, which is published in German and English, documents in detail the company's performance in the field of sustainability. Its six chapters – Strategy & Focus Issues, Management & Corporate Governance, Innovation & Product Stewardship, Employees, Ecology and Social Commitment – illustrate how the Group combines commercial success with meeting social and ecological demands. An online version of the report, with additional information, is available at www.sustainability2012.bayer.com

“Innovation and sustainability are the driving force behind our business success,” says Dr. Marijn Dekkers, Chairman of the Board of Management of Bayer AG. “Sustainability is firmly embedded in our core business and a defining element of our corporate strategy.” Dekkers adds: “Our mission 'Bayer: Science For A Better Life' entails the obligation to help improve people's lives. We want to do this with innovative products, responsible corporate policy and resource-conserving production processes. After all, both the 'what' and the 'how' are fundamental to sustainable success. This year we are celebrating the company's 150th anniversary, confirming the fact that operating sustainably is an essential part of Bayer's recipe for success.”

Highest reporting level “A+” and integrated reporting from 2014
Bayer aligns its reporting to the international standards of the United Nations Global Compact and the Global Reporting Initiative (GRI). The GRI certified the Sustainable Development Report 2012 with the “A+” reporting level – the highest possible. The report was also reviewed by the auditors PricewaterhouseCoopers.

From 2014 onwards, i.e. for the first time for the 2013 reporting year, Bayer will combine its annual financial and sustainability reporting in an integrated annual report, one of the first DAX companies to do so. In this way the company will highlight the significance of sustainability for its core business through its reporting too.

Sustainability achievements in the fields of health care, agriculture and high-tech materials
In the field of health care, Bayer's sustainability focus centers on enabling increasing numbers of people to gain access to medicines. In 2012, for example, the company expanded its cooperation with the U.S. governmental aid organization USAID and launched the Contraceptive Security Initiative in sub-Saharan Africa. Since 2012 the contraceptive pill has been offered at reduced prices in Rwanda as well as in Ethiopia, Tanzania and Uganda. Another seven countries are to follow by 2014.

In the area of agriculture, Bayer adopted a comprehensive five-point plan to facilitate food security. Alongside innovative, integrated solutions combining seeds with chemical and biological crop protection, the company is looking to support farmers in building up know-how, increase agricultural productivity, strengthen crop health and establish partnerships in the agricultural sector. Through this, the company wants in particular to be able to respond flexibly to differing production conditions and rising customer expectations.

In the area of high-tech materials, Bayer's EcoCommercial Building (ECB) Program is facilitating access to comprehensive expertise for the implementation of energy-efficient building concepts that are adapted to regional requirements. Up to the end of 2012 the initiative for sustainable construction with a focus on commercial buildings had established seven centers of excellence with 82 network partners from across the entire construction sector. A Bayer administrative building in Greater Noida, India, built according to the ECB standard was awarded the LEED (Leadership in Energy and Environmental Design) Platinum certificate from the U.S. Green Building Council, achieving the highest score ever.

Importance of sustainable business practices for stakeholders
The financial market attaches great value to business activities being aligned to sustainability. “Neglecting sustainability will damage a company’s image on the capital market,” states Gunnar Friede, Senior Fund Manager at DWS Investments, expressing the investors' perspective. As in previous years, Bayer was in 2012 included as one of the leading international companies in its sector in relevant sustainability indices such as the Dow Jones Sustainability Indices World and Europe and the FTSE4Good Index. The company was also listed once again in the Carbon Disclosure and Carbon Performance Leadership Indices, achieving the best possible assessments.

Central sustainability aspects of the company's policy toward employees include not only social protection systems and ongoing training offerings and talent development but also diversity and enabling the employees to share in the company's success. In the year under review, the proportion of women in management was 23 percent at Bayer – the company is committed to raising the proportion of female managers toward 30 percent by 2015. In 2012 employees were awarded in total more than EUR 700 million in voluntary one-time payments based on the company's success. Bayer continued the positive trend in occupational safety. In the year under review, the injury rate was at its lowest level for almost 15 years.

Bayer expects its suppliers to adhere to certain ethical, social and ecological standards, which are formulated in its Supplier Code of Conduct. In 2012 Bayer again checked compliance with this by means of assessments and audits. With these review measures, the company has so far covered more than half of the procurement volume from non-OECD countries and around a quarter of the entire procurement volume. By 2015 the proportion of suppliers assessed should represent at least 75 percent of the Group's complete procurement volume. In the year under review Bayer affirmed its own expectations regarding sustainability to important suppliers at its first global supplier day. The Group was also one of the founders of the “Together for Sustainability” initiative designed, for example, to promote the performance of supplier audits according to harmonized common standards and the exchange of audit reports via a joint platform.

Ecological parameters relating to material and energy use, emissions into the air and water and waste generated improved in many cases at Bayer in 2012 despite a growth in production volume.

In the area of social commitment, too, Bayer wants to meet its claim of being a responsible company. In 2012 the Bayer Group provided funding of some EUR 50 million for the non-profit sponsorship of activities in the fields of education and research, health and social needs, recreational, youth and disabled sports, and culture.

You can order printed copies of the Bayer Sustainable Development Report online free of charge at: http://www.bayer.com/en/sustainable-development-reports.aspx

Find more information at www.bayer.com.

Forward-Looking Statements
This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

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Last updated: May 7, 2013 Copyright © Bayer AG