《拜耳集团(BAYER)2022年可持续发展报告(英文版)(145页).pdf》由会员分享,可在线阅读,更多相关《拜耳集团(BAYER)2022年可持续发展报告(英文版)(145页).pdf(145页珍藏版)》请在三个皮匠报告上搜索。
1、Sustainability Report2022 Contents Bayer Sustainability Report 2022 2 Editorial.3 About this Report.4 Sustainability Strategy.5 Performance Report 1.The Company .20 1.1 Corporate Profile .20 1.2 Corporate Structure .20 1.3 Value Added .21 2.Corporate Governance .22 2.1 Corporate Governance Practices
2、 and Principles .22 2.2 Behavioral Principles(BASE).22 2.3 Transparency .22 2.4 Bioethics .23 2.5 Steering and Management Systems .24 2.6 Compliance .25 2.7 Tax .30 2.8 Risk Management .30 2.9 Sustainability Management .31 2.10 Stakeholder Dialogue .33 Focus on:Agriculture .37 Challenges and Approac
3、hes .37 Plant Breeding .38 Plant Biotechnology .39 Enabling a Climate-Smart Agriculture .41 Crop Protection Environmental Impact Reduction (CP EIR).43 3.Product Stewardship .46 3.1 Management Approach .46 3.2 Regulatory Conditions .46 3.3 Assessments and Testing .47 3.4 Animal Welfare .48 3.5 Protec
4、tion against Product Counterfeiting .49 3.6 Crop Science .53 3.7 Biodiversity .65 3.8 Pharmaceuticals and Consumer Health .68 Focus on:Access to Healthcare .74 4.Procurement .78 4.1 Management Approach .78 4.2 Sustainability in the Supply Chain .79 5.Human Rights .83 5.1 Management Approach .83 5.2
5、Implementation Measures .84 5.3 Respect for Human Rights in the Supply Chain .86 5.4 Stakeholder Engagement .87 6.Employees .88 6.1 Management Approach .88 6.2 Employee Data .90 6.3 Inclusion and Diversity .92 6.4 Fair Compensation .94 6.5 Learning and Training .95 6.6 Employee Development and Integ
6、ration .96 6.7 Work-Life Integration .98 6.8 Health Provision .99 6.9 Employee Rights .99 7.Climate Protection .100 7.1 Management Approach .100 7.2 Climate Strategy .100 7.3 Risk and Opportunity Analysis .103 7.4 Greenhouse Gas Emissions .107 7.5 Energy .109 8.Environmental Protection and Safety .1
7、10 8.1 Management Approach .110 8.2 Air Emissions .112 8.3 Water and Wastewater .113 8.4 Waste and Recycling .116 8.5 Environmental Incidents .118 8.6 Occupational Health and Safety.118 8.7 Biosafety .120 8.8 Plant Safety .121 8.9 Transportation and Storage Safety .123 8.10 Emergency,Security and Cr
8、isis Management .124 9.Giving and Foundations .125 9.1 Management Approach .125 9.2 Our Giving in 2022 .125 9.3 Bayer Foundations .129 Further Information Selected Benefits for Employees(by Country).133 Independent Auditors Report .134 GRI Content Index.136 Glossary.144 Contents Editorial Bayer Sust
9、ainability Report 2022 3 Dear Bayer stakeholders,We will remember 2022 as a year of unprecedented events:the war against Ukraine,the massive energy and food supply crisis and the persistent problem of disrupted supply chains.German Chancellor Olaf Scholz talked about the dawning of a new era a parad
10、igm change that is transforming the face of globalization and complicating the attainment of the UN Sustainable Development Goals(SDGs).With regard to food security in particular,2022 was a devastating year and as a leading agriculture company worldwide,we have undertaken significant efforts to supp
11、ort farmers in Ukraine,stabilize the global food supply and continue to resolutely fight climate change.In this context,we must not forget how closely nutritional and climate issues are interlinked.While grain cannot be effectively harvested and exported due to the war in Ukraine,many countries depe
12、nd on these imports particularly because local climate conditions make it(increasingly)impossible for them to produce a sufficient quantity themselves.Be it in times of war or peace protecting the climate must remain the top priority.There are always two sides here:we must reduce emissions and thus
13、limit the further increase in the Earths temperature and we must address the current and future effects of climate change on human health and the cultivation of food.Mitigation and adaptation go hand in hand.They are two sides of the same coin.At Bayer,we resolutely pursue both goals:/In 2022,we onc
14、e again succeeded in reducing our total green-house gas emissions(Scope 1,2 and 3)while at the same time achieving dynamic growth in our businesses.We are well on track to become completely climate-neutral in our own operations(Scope 1 and 2)by 2030./We invest more than almost any other company in a
15、dapting to climate change,particularly in crops that are resilient to extreme climate conditions and require fewer resources.We are now introducing a new corn variety that is climate-resistant and more sustainable.And our teams are working diligently on other groundbreaking innovations for the food
16、staples rice and wheat.For the first time,adapting agriculture to climate change was also a major topic at the recent COP27 Summit in Egypt.That is an important signal.We are also on course and making significant progress on our other sustainability targets:/We are continuously increasing access to
17、our medicines in low-and middle-income countries.In 2022,we entered the top 10 for the first time in the illustrious Access to Medicine index.That is a tremendous success./We are on track with all our social sustainability targets to reach in each case 100 million women,smallholder farmers and peopl
18、e in medically or agriculturally underserved regions by 2030./We are steadily working to achieve a 30%reduction in the environmental impact of our crop protection products by 2030,and had registered an approximately 14%reduction already by 2021./We are making further progress in the acknowledgment o
19、f our contributions to climate protection and sustainability.The rating agency MSCI ESG Research lifted its red flag for Bayer in 2022.The organization CDP designated us as a leader in climate protection for the fifth consecutive time./Since 2020,the Board of Management has been advised by a Sustain
20、ability Council composed of prominent international experts and chaired by Sabine Miltner and Christian Klein.Last year,the Supervisory Board established a separate ESG Committee chaired by Ertharin Cousin.Furthermore,the new position of Human Rights Officer was created in 2022,reporting directly to
21、 the Board of Management.Bayer is dedicated to scientific research and technological progress that has always been the secret of our companys success,and it is also the key to transitioning to a sustainable economy.After all,research laboratories around the world indeed are also currently facing the
22、 dawning of a new era that is evolving ever more rapidly at the interface between biology,chemistry and artificial intelligence.This offers a tremendous opportunity to link green targets with profitable numbers.Thats what we are focused on.Through our expertise and solutions,we want to make an impor
23、tant contribution to the Sustainable Development Goals(SDGs)guided by the principles of the UN Global Compact and in keeping with our vision“Health for all,hunger for none.”You can and should evaluate us based on that ambition again in 2023.My own career as the head of our company will come to an en
24、d this year.I have served Bayer for 35 years with enthusiasm and dedication.On June 1,I will turn over to my successor Bill Anderson a very well-positioned company with outstanding and highly motivated employees,leading businesses of systemic relevance in health and nutrition,with sustainability at
25、our core.I am convinced that on that basis,Bayer has a great future.Thank you for continuing to support our company.Sincerely,Werner Baumann CEO Bayer AG Chief Sustainability Officer We Are Driving the Fight against the Climate Crisis Bayer CEO Werner Baumann About this Report Bayer Sustainability R
26、eport 2022 4 With this Sustainability Report,Bayer aims to provide trans-parent and in-depth insights into both its sustainability strat-egy and its sustainability performance.The report supple-ments the nonfinancial statement pursuant to the CSR Directive Implementation Act(CSR-RUG)that is publishe
27、d in the combined management report of the 2022 Annual Report.The reporting period is the 2022 fiscal year.The closing date for all data and facts was December 31,2022.The Bayer Groups sustainability reporting has been aligned to the guidelines of the Global Reporting Initiative(GRI)and the 10 princ
28、iples of the UN Global Compact(UNGC)since 2000.This report has been prepared in accordance with the GRI Standards.This report also serves as a reference for the questionnaire on the Communication on Progress in line with the UN Global Compact.We also take into account the rele-vant requirements of t
29、he Sustainability Accounting Stand-ards Board(SASB).A summarized index according to the three SASB Industry Standards relevant to us “Biotechnol-ogy&Pharmaceuticals,”“Chemicals”and“Agricultural Prod-ucts”can be found on our website.In our climate report-ing we follow the recommendations of the Task
30、Force on Climate-Related Financial Disclosures(TCFD)and publish a separate report in PDF format also on our website.For the first time,we also publish an overview of the Principal Ad-verse Indicators according to the Sustainable Finance Dis-closure Regulation(SFDR)on our website.We also use,for exam
31、ple,the international recommendations and guidelines of the OECD and ISO 26000 as a guide when defining and selecting nonfinancial indicators and in our re-porting.In selecting and measuring our key data,we take into account the recommendations of the Greenhouse Gas Protocol with respect to greenhou
32、se gas emissions and those of the European Federation of Financial Analysts So-cieties,the World Business Council for Sustainable Develop-ment,the European Chemical Industry Council(CEFIC)and the International Council of Chemical Associations(ICCA)with respect to other nonfinancial indicators.Data c
33、ollection and reporting thresholds The selection of reported content is based on the results of our materiality analysis and the requirements of the GRI Standards.Reporting of the Groups HSE data includes all fully con-solidated companies in which we hold at least a 50%inter-est.Data on occupational
34、 injuries is collected at all sites worldwide.Environmental indicators are measured at all environmentally relevant production,research and admin-istration sites.We consider all sites to be environmentally relevant whose annual energy consumption is greater than 1.5 terajoules.Several indicators(par
35、ticularly related to employees and procurement)are reported only for our significant locations of operation in line with the requirements of the correspond-ing GRI disclosures.In 2022,this covered 15 countries that accounted for more than 80%of total Bayer Group sales.Where information is only relev
36、ant for parts of the Bayer Group,we refer to this.In addition,deviations are indicated in the footnotes of the relevant tables and graphs.External verification The auditing company Deloitte GmbH Wirtschaftsprfungsgesellschaft(Deloitte),Munich,Germany,subjected this Sustainability Report of Bayer AG,
37、Leverkusen,for the fiscal year from January 1,2022,to December 31,2022,to an audit with limited assurance.Additional information/As the indicators in this report are stated in accordance with commercial rounding principles,totals and percent-ages may not always be exact./References to websites are i
38、ndicated by an underlined word./This report is issued in German and English.The Sustainability Report is published in PDF format together with the 2022 Annual Report,the SASB Index,the TCFD Report and the Sustainability Highlight Report on Bayer AGs website.The next Sustainability Report is due to b
39、e published in March 2024.About this Report Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 5 A growing wor
40、ld population and the increasing burden on natural ecosystems are among the biggest challenges humanity is facing.This situation is further complicated by the effects of the COVID-19 pandemic and the war in Ukraine.Furthermore,both crises have clearly shown how important it is to protect health and
41、ensure food security worldwide and how these goals are in jeopardy.As a global leader in healthcare and nutrition,Bayer can contribute more than any other enterprise to solving global challenges through its business.With this goal in mind,Bayer is committed to ambitious targets that it aims to achie
42、ve through its own business activity and the endeavors of its employees.Sustainability is part of our corporate strategy We consider sustainability to be at the core of our corporate responsibility and it also safeguards our future growth.Sustainability is therefore an essential component of our cor
43、porate strategy,our business activities,our corporate values and the way in which we conduct our business.Sus-tainability is at the center of our corporate vision of“Health for all,hunger for none.”The following strategic sustainabil-ity targets apply as a guideline for the actions of all divisions:
44、/Create inclusive growth and value added for society and our investors /Reduce our ecological footprint /Embrace responsible business practices along our value chain Our contribution to the Sustainable Development Goals We align our own strategic sustainability targets to the global Sustainable Deve
45、lopment Goals(SDGs)of the United Nations,which apply through 2030.The global community lags behind the goals in many areas,which means that the contribution we as a company can make to achieving them becomes all the more important.At Bayer,we are convinced that we can have a particular impact here,o
46、wing to our portfolio,our global reach and our innovative power.In this context,we consciously support those Sustainable Development Goals where there is a pressing need to act and where we can make the greatest impact through our businesses and their sustainability-focused transformation.SDG 1 No p
47、overty As farming is often the only source of income in low-and middle-income countries(LMICs),we help to fight poverty there through our engagement with smallholder farmers and by supporting women.SDG 2 Zero hunger Our products and services help the global agricul-tural industry to increase product
48、ion,and thus to feed a growing world population,while consuming fewer natural resources.This also benefits smallholder farmers in LMICs.SDG 3 Good health and well-being Our products directly impact peoples health.Some prevent diseases and others treat illnesses.This applies worldwide but particularl
49、y in LMICs,where we endeavor to make existing products and services accessible and affordable.SDG 5 Gender equality We work to achieve gender equality in our busi-ness and throughout our supply chain.Through modern contraception,we support women around the world in self-determined family planning.We
50、 promote equal opportunity within our company.SDG 6 Clean water and sanitation Our products and services serve to reduce future water consumption in agriculture.We undertake to protect water resources,use them as sparingly as possible and further reduce water pollution.SDG 13 Climate action We pursu
51、e a climate protection and decarboniza-tion strategy that is aligned with the goals of the Paris Agreement.In our value chain,we promote resilient,low-emissions farming that helps to capture CO2 through new methods.SDG 15 Life on land By reducing the environmental impact of crop pro-tection products
52、(Crop Protection Environmental Impact Reduction,CP EIR),we support sustainable farming that helps to protect the environment within our value chain and to conserve biodiversity.Sustainability Drives Value and Growth Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4
53、.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 6 Our strategic approach Bayer aims to promote sustainable development worldwide in accordance with the SDGs,while at the same time focus-ing o
54、n the future in how it aligns its businesses so as to grow in line with the sustainability targets.To achieve this,we link the concept of inclusive growth with a reduction in our ecological footprint based on responsible business practices along our entire value chain.The Group-wide goals for inclus
55、ive growth and climate pro-tection are accounted for in the long-term variable compen-sation(LTI)of our Board of Management and our LTI-entitled managerial employees.Our strategic focuses also address the demands increasingly expressed by the capital market that we transform our business from an ESG
56、 perspective(environmental,social and governance)and report transpar-ently on this using key data.In doing so,we want to be trustworthy and binding in our actions in relation to our stakeholders.Achieve climate neutrality at our sites(incl.42%Scope 1&2)1Reduce emissions in oursupply chain(12.3%Scope
57、 3)1Reach net zero emissions by 2050(Scope 1,2&3)Reduce GHG emissions by 30%in key agricultural crops in main regionsFoodsecurityAccessto healthSupport 100 million people in underserved communities with self-care1Increase availability and affordability of our innovative pharma products in LMICsFulfi
58、ll the need of 100 million women in LMICs for modern contraception1Achieve gender parity at each individual managerial levelSupport 100 million smallholderfarmersin LMICs1Womensempower-mentEnviron-mentalimpactreductionReduce environmental impact of Bayers crop protection products by 30%Transition al
59、l Consumer Health products to 100%recyclable or reusable packagingClimate protectionLMICs:low-and middle-income countriesESG:environmental,social,governanceEnviron-mentalprotectionESG1These targets are accounted for in the long-term variable compensation(LTI)of our Board of Management and our LTI-en
60、titled managerial employees.Sustainability:Strategic Elements,Impacts and 2030 TargetsOur vision:Health for all,hunger for noneSDGs on which we have the greatest impact through our businessesActing responsiblyalong the entire value chain Sustainability Strategy 1.The Company 2.Corporate Governance 3
61、.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 7 Focus areas:Value added for people and the environment In 2019,Bayer initiated an ambitious program that combines inclu
62、sive growth with the reduction of our ecological foot-print and aims to establish responsible business practices throughout our entire value chain.Bayer is thus living up to its responsibility toward the environment and people,and has integrated this into its corporate governance(ESG).Inclusive grow
63、th For Bayer,inclusive growth means not achieving objectives at the expense of others.We want the products and ser-vices we offer to enable growth and well-being worldwide in keeping with our vision of“Health for all,hunger for none.”Healthcare Millions of people still do not have access to basic me
64、dical care.As a leading pharmaceutical company,we believe we have a responsibility to improve access to healthcare for a growing world population.We reach people all over the world with the products and solutions of our Pharmaceuti-cals and Consumer Health divisions.In this,we also align ourselves t
65、o the needs of people in LMICs,for whom we make existing products and services accessible and afford-able.At the same time,we are driving forward innovations to increase access to healthcare worldwide and thus improve peoples health and well-being.In this way,we are making a significant contribution
66、 to the attainment of SDG 3“Good health and well-being.”Nutrition and agriculture Hunger has increased worldwide in recent years,as the im-pact of climate change and the effects of armed conflicts are contributing to food shortages.In the area of agriculture and nutrition,our innovative products and
67、 services help to better feed the growing world population and fight hunger.In this way we are contributing to SDG 2“Zero hunger”by targeting inclusive growth in LMICs.The 550 million or so smallholder farmers worldwide play a central role in improving the food supply in these countries.As farming i
68、s often the only source of income for many people there,our engagement with smallholder farmers helps achieve SDG 1“No poverty.”Reducing the ecological footprint We want to reduce our ecological footprint along our entire value chain.With our solutions for more sustainable farming,we play a key role
69、 in protecting the environment and biodi-versity in accordance with SDG 15“Life on land.”We en-deavor to reduce the environmental impact of crop protec-tion products in farming and support the use of innovative cultivation methods.We also want to help reduce the con-sumption of water resources in th
70、e future and thus support SDG 6“Clean water and sanitation.”Climate protection In view of advancing climate change and its devastating consequences for human nutrition and health,one area of focus for reducing the ecological footprint is an ambitious decarbonization strategy.Our targets are in line
71、with the Paris Agreement.To this end,we pursue extensive measures to support SDG 13“Climate action.”For example,we are reducing our own greenhouse gas emissions(Scope 1&2)and greenhouse gas emissions along our value chain(Scope 3).Our reduction targets were confirmed by the Science Based Targets ini
72、tiative(SBTi).We want to achieve net zero emissions in our entire value chain by 2050.Climate resilience We also help to increase the resilience of our customers against the effects of climate change.Among the approaches we develop in this connection are transformative solutions that aim to enable a
73、griculture to emit fewer greenhouse gases and instead help to capture CO2.This makes agricul-ture an important enabler in the fight against climate change.Responsible business practices Responsible business practices along the value chain define our company values and shape the way in which we con-d
74、uct our business from our commitment to environmental protection to our endeavors in relation to gender equality and respecting human rights.Gender equality We promote inclusion and diversity(I&D)throughout Bayer,including gender equality SDG 5.We achieve the greatest impact through our business,par
75、ticularly through our prod-ucts to promote womens health and family planning or through our targeted support for female smallholder farmers as entrepreneurs in LMICs.We also promote equality in our own company and aim to achieve gender parity at all man-agement levels by 2030.Respect for human right
76、s We fully respect human rights and updated our human rights strategy in 2022 to address risks and effects in that area.The strategy supports the attainment of our company vision and the implementation of the SDGs.Bayer is a founding member of the UN Global Compact and respects the Univer-sal Declar
77、ation of Human Rights of the United Nations.Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 8 The ongoing C
78、OVID-19 pandemic and the tangible effects of climate change are highlighting the importance of social issues and particularly healthcare.People in many parts of the world still do not have access to basic medical care.Regional and global crises are further driving inequality in global society.As par
79、t of our vision of“Health for all,hunger for none”and the business strategy based on it,we are addressing im-portant medical needs and expanding access to our prod-ucts and services,in both the prescription and the over-the-counter sector.We are thus helping to improve access to healthcare for a gro
80、wing world population(SDG 3).Our programs specifically focus on the health of women and children,thus also supporting gender equality(SDG 5).Access to prescription medicines With our prescription medicines,we make a valuable contri-bution to individual health and well-being,as well as sustain-able d
81、evelopment in general.This particularly applies to our globally leading products in womens healthcare,including with respect to family planning,and in areas such as cardio-vascular disease,eye diseases and cancer(SDG 3).Modern contraception a key factor In many parts of the world,self-determination
82、for girls and women depends largely on whether and when they start a family.Young womens desire to participate in education can only be fulfilled if the advantages and opportunities of family planning are recognized and suitable healthcare services and contraceptives are available.It is therefore no
83、t just a question of self-determined health,but also a human right to give women and girls the oppor-tunity to choose the number,timing and intervals of their pregnancies.Data also shows that women who have access to contraceptives can strengthen their societal role,with a corresponding positive ove
84、rall impact on their families,communities and society at large.For many women,a lack of social acceptance for contra-ception along with incomplete information or limited choices as regards the methods of contraception is the biggest obstacle when it comes to deciding how to go about their own reprod
85、uctive life planning.According to the United Nations,more than 200 million women in LMICs would like to prevent pregnancy but do not have access to safe and effective family planning methods.As a component of family planning,modern contraception plays a key role in improving the health,rights and ec
86、onomic situation of women around the world.It thus provides the foundation for more equality and affluence,and plays a cru-cial role in enabling participation in better education and im-proving health(SDG 3)and reducing poverty(SDG 1)and hunger(SDG 2).Family planning also strengthens gender equality
87、(SDG 5),which in turn promotes eco-nomic and social development.According to the United States Agency for International Development(USAID),investment in family planning is therefore a“best buy”for development.Access to modern contraception As a leading global pharmaceutical producer of contracep-tiv
88、es,we have been active in this field for many years.We aim to enable 100 million women in LMICs to have their need for modern contraception fulfilled by 2030.In 2022,we already reached 44 million women in LMICs.Target 2030:Fulfill the need of 100 million women in LMICs for modern contraception /Refe
89、rence year 2019:38 million/Status 2020:40 million/Status 2021:41 million/Status 2022:44 million Access to healthcare as an element of sustainability Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Envi
90、ronmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 9 To attain our target,we focus on the accessibility of our products and on measures for sustainable structure and capacity building.This also takes place through partnerships that we plan to expand further in
91、the coming years.Product accessibility When choosing a method of contraception,a womans personal circumstances can play an important role,as can personal preference and medical indications.Long-acting methods such as contraceptive implants or intrauterine systems are among the most effective reversi
92、ble birth control methods and offer particular benefits in regions where there are gaps in medical care.These methods generally do not require any further effort for lasting,effec-tive use following their insertion.We expect the demand for long-acting methods to further increase in the coming years.
93、In LMICs with a local pharmaceutical market where women have to pay for contraceptives themselves,we aim to apply a fair pricing approach to enable more women to access these products.We also cooperate with international family planning pro-grams and aid organizations to enable women to freely acces
94、s contraceptives.With this goal in mind,we provide our partner organizations with a broad range of contracep-tives at low cost.An important role is played here by long-term contraceptives(implants,hormonal intrauterine sys-tems)that can be found in the product catalogues of the United Nations Popula
95、tion Fund(UNFPA)and the United States Agency for International Development(USAID).For more information,please see Chapter 9.Giving and Foundations.Expansion of production capacities In 2021,we approved capital expenditures of more than 400 million to expand the contraceptive produc-tion facility at
96、our site in Finland and build a new plant in Costa Rica.The planning and construction activities continued in 2022 as scheduled.This will enable us to expand our offering of long-acting products that are in especially high demand in international development projects,such as the Jadelle implant and
97、the Mirena hormonal intrauterine system.Capacity building We understand capacity building to mean the development of knowledge,skills,engagement,structures and systems to strengthen the autonomy and resilience of local healthcare systems.To this end,we are active in numerous initiatives and collabor
98、ations worldwide.In addition to cooperating with our partners in education programs and campaigns such as World Contraception Day,we focus our capacity-building efforts on three main areas:Access to Modern Contraception 2022Number of womenreached 2022:29 millionEurope/Middle East/AfricaNumber of wom
99、enreached 2022:7 millionLatin AmericaNumber of womenreached 2022:8 millionAsia/Pacific Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer
100、 Sustainability Report 2022 10 1.Urban areas Together with the Bill&Melinda Gates Foundation,we sup-port The Challenge Initiative(TCI).TCI is a global platform that supports the sexual and reproductive health needs of women and girls who live in low-income urban areas in Africa and Asia.We support t
101、his initiative irrespective of whether Bayer products are used or not.2.Rural areas TCIs work has already shown that positive impact can also be generated beyond urban areas in the connected rural regions.We will also continue to seek ways to further strengthen family planning options in rural areas
102、 in combi-nation with our smallholder farmer program.3.Humanitarian crisis situations We want to cooperate more intensively with partners with a strong presence and experience in humanitarian crisis situations.At the interface between family planning and humanitarian aid,we want to support partners
103、with Bayers technological,logistical and medical expertise and meet the demand for information pertaining to family planning and sexual and reproductive health.Together with the German Red Cross(DRK)we are developing a family planning module for DRK deployments in immediate and emergency humanitaria
104、n aid and in ongoing crisis situations.Differentiated pricing strategy Our established approach to pricing and access to our prescription medicines not only ensures that our products are sold in so-called reimbursement markets but is also geared specifically toward enabling these products to be offe
105、red in LMICs while taking into account the local purchas-ing power.In this,we work together with patients,charitable organizations,governmental authorities and other players to enable easier,sustainable access to our products based on adjusted pricing.For some of our most important products(AdempasT
106、M,EyleaTM,KerendiaTM,KyleenaTM,MirenaTM,NexavarTM,StivargaTM,VerquvoTM and XareltoTM),we have implemented the framework conditions for equitable pricing.Further engagement For more information on our additional activities in connection with neglected tropical diseases(NTDs),malaria and non-communica
107、ble diseases,please see the Focus on:Access to Healthcare chapter.Access to self-care More than half the worlds population has no access to basic and essential health services due to insufficient income,health deserts and a lack of access to clinics,pharmacies or other treatment options.Consequently
108、,billions of people must rely on self-care to prevent disease,maintain their health or treat illness.Our goal is to provide access to everyday health to 100 mil-lion people a year in economically or medically underserved communities by 2030.As a leader in science-based self-care solutions,we are alr
109、eady present and investing in many countries and regions where self-care is a health lifeline.Target 2030:Support 100 million people in eco-nomically or medically underserved communities with self-care/Reference year 2019:41 million/Status 2020:43 million/Status 2021:46 million(total 59 million1)/St
110、atus 2022:49 million(total 70 million1)1 Including our strategic investments in India In 2022,we therefore reached around 70 million people1 worldwide.To achieve our target,we are adapting our brands,products and solutions to meet the medical,pricing,packaging and distribution needs of people in und
111、erserved communities.We are developing and expanding our self-care education offerings in order to provide people with the information and tools that they need to make well-founded decisions about their own health and that of their families.In 2022,we commissioned a global study to understand the so
112、cioeconomic determinants behind the health outcomes of low-income consumers.The study supports the identification of unmet medical needs in often overlooked populations.Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Clima
113、te Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 11 To maximize our impact,we are making our products acces-sible and affordable in the regions where they are urgently needed,namely in LMICs in Latin America,Africa and Asia/Pacific,as well
114、 as in underserved regions of the United States.For example,in 2022 we launched our product Cardio AspirinaTM in Guatemala with a focus on affordability and access for low-income consumers.A QR code is printed on each sachet,enabling users to access the patient information sheet and additional healt
115、h education information online.Partnerships help us provide people with access to essential self-care solutions and health education in contexts where self-care is often the only option available.In Kenya and South Africa,for example,we partner with the organization reach52 to support people in rura
116、l communities with health education and access to everyday health solutions by train-ing community health workers to provide healthcare using their“offline-first”health technology platform.In Central America,we partner with nongovernmental organizations(NGOs)to train midwives,who act as healthcare p
117、rofession-als in remote communities and also educate women about vaginal health.Nutrient Gap Initiative Vitamin and mineral deficiency,often described as“hidden hunger,”is one of the most significant problems in under-served regions and affects primarily women and children.Nearly 50%of young women a
118、nd adolescent girls in LMICs do not consume sufficient vitamins and minerals.At least half of the worlds children under five suffer from nutrient de-ficiency.The effects worsen over time,leading to long-term health problems and further accelerating the poverty cycle.In 2021,we launched the Nutrient
119、Gap Initiative to enable access to essential minerals and vitamins for 50 million people a year in underserved communities by 2030 through direct interventions and in partnership with NGOs.The Nutri-ent Gap Initiative addresses the main barriers to accessing micronutrients by advocating for affordab
120、le nutrients,educa-tion about vitamins and minerals,and improved nutrition through leveraging our own portfolio and various partner-ships.In a collaboration between our Consumer Health and Crop Science divisions,we intend to expand the Nutrient Gap Initiative to include access to vitamin-and mineral
121、-rich food fruit,vegetables and grains.Pilot projects for this have been initiated in India and Indonesia.Partnership with Vitamin Angels The first days(during pregnancy through age two)are critical for a childs growth and development.Proper nutrition,including the intake of multiple micronutrient s
122、upplements(MMS),is a powerful way of supporting healthy pregnancies,improving birth outcomes and reducing infant mortality.The World Health Organization(WHO)recognized MMS as an evidence-based intervention by adding it to the Essential Medicines List in 2021.Access to Self-Care 2022Number of peoples
123、upported 2022:18 millionNorth America and Latin America Number of peoplesupported 2022:14 millionEurope/Middle East/AfricaNumber of peoplesupported 2022:38 millionAsia/Pacific Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees
124、7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 12 To support the accessibility of MMS as a key component of antenatal care,we partner with Vitamin Angels,a nonprofit organization dedicated to improving nutrition around the world.V
125、itamin Angels works with local organizations,includ-ing governments,to reach the most nutritionally vulnerable populations pregnant women,infants and children who are underserved by existing systems.In 2022,our partner-ship reached over four million underserved pregnant women and their babies across
126、 12 priority countries,including Indo-nesia,Vietnam,Mexico and the United States.We also worked with Vitamin Angels and academic partners in the development of a continuing medical education(CME)curriculum to train healthcare providers on the importance of micronutrients.Further partnerships within
127、the scope of the Nutrient Gap Initiative have been forged with Direct Relief in the United States,the China Health Promotion Foundation,Mercy Corps in Indonesia and Un Kilo de Ayuda and Fundacin Esquipulas in Mexico.Further engagement As part of our chairmanship of the Global Self-Care Federa-tion(G
128、SCF),we partnered across the industry to develop and introduce the WHO-supported Self-Care Readiness Index Phase 2,for which a total of 20 countries were evaluated.The index is designed to draw political decision-makers attention to gaps in national healthcare systems that can be closed through grea
129、ter and better use of self-care solutions.On the occasion of the World Health Assembly(WHA)in Geneva in May 2022,the GSCF published a study on the economic and social value of self-care solutions,which detailed the substantial monetary savings in health systems that would benefit low-income consumer
130、s in particular.Sustainability at the core of our brands Sustainability is firmly anchored in our brand and product strategies.We integrate our sustainability commitments into the earliest stages of product development through our“Sustainability by Design”program.For example,we intro-duced a refilla
131、ble bottle in the development of our new range of BepanthenTM dermatology products.The refill pack uses 80%less packaging by weight.Moreover,we are evolving our brands to ensure their full sustainable impact from environmental and social goals to education and advanced training in health matters.Thi
132、s includes the following measures:/ElevitTM,our prenatal supplement brand,has launched its purpose platform“Every Beginning”in Australia,Mexico,China,Japan,Germany and Vietnam.The program focuses on giving every baby the best start in life by extending access to essential prenatal vitamins for women
133、 and their babies through our partnership with Vitamin Angels./Through its Clarity Parks ProjectTM,our allergy brand ClaritinTM supports the Outsideologist ProjectTM,which was launched in Australia and the United States.The project is designed to encourage children and their parents to spend more ti
134、me outdoors.With this goal in mind,funding was made available to create public green spaces in disadvantaged areas.The Outsideologist Pro-jectTM also supports the development of easy-to-follow,family-friendly activities so that families can spend more time together outdoors./Our skin and intimate he
135、alth brand CanestenTM encour-ages vaginal health education and tackles body shame through its digital platform“Vagina Academy.”The brands campaign achieved the world-first decensorship of the word“vagina”on TikTok in Brazil and Metas plat-forms in Italy.This educational program has already been intr
136、oduced in over 10 countries,with more to follow.More sustainable solutions Wherever quality and safety standards and legal regu-lations allow,we will make the packaging for our Consumer Health products reusable or recyclable by 2030.Furthermore,it is planned for the packaging to include an average o
137、f 50%recycled content.We want to find ways of using biodegradable and innovative materials for flexible packaging solutions.We will in-vest 100 million by 2030 in sustainable solutions to deliver on both our environmental and accessibility tar-gets.As a signatory to the Environmental Charter of the
138、Global Self-Care Federation(GSCF)we want to achieve industry-wide environmental progress focused on delivering greenhouse gas emission(GHG)reduc-tions and more sustainable packaging.In 2022,we supported the GSCF launch of two working groups fo-cusing on reducing greenhouse gas emissions in the suppl
139、y chain and implementing sustainable packaging.Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 13 Global ag
140、riculture and food systems are facing major chal-lenges,such as climate change,water scarcity and biodiver-sity loss.At the same time,the world population continues to grow,and millions of people are suffering from hunger and poverty.We work toward achieving sustainable agriculture that ad-dresses t
141、he biggest challenges with innovation agriculture that is capable of feeding a growing world population while conserving natural resources(SDG 2);agriculture that emits fewer greenhouse gases and instead contributes to capturing CO2;and agriculture that protects biodiversity and helps farmers worldw
142、ide to deal with the effects of climate change and become more resilient.The focus here is on in-creasing yields through innovative seeds,products and ser-vices,as well as on disseminating agricultural practices and forms of cultivation with ever-reduced environmental impact.Smallholder farmers The
143、550 million or so smallholder farmers worldwide play a central role in improving the quality of life in LMICs and thus implementing our vision of“Health for all,hunger for none.”They form the backbone of food security in many rural regions of the world.Many of these smallholder farmers are facing si
144、gnificant challenges,however.Their yields are often low because they do not have access to high-quality crops and practical knowledge about more productive and environmentally friendly cultivation methods.Often,they do not have afford-able financing opportunities and access to markets on which they
145、can sell their products at appropriate prices.At the same time,smallholder farmers are also highly exposed to the impacts of climate change and increasingly to harvest losses.For all these reasons,they are often not able to achieve a stable income through farming.As a global leader in the field of c
146、rop science,we will sup-port a total of 100 million smallholder farmers in LMICs by 2030 by improving their access to agricultural products and services,including in collaboration with our partners.To achieve this,we are increasing the range of our commercial efforts and strategic initiatives tailor
147、ed to the needs of small-holder farmers.Our strategy for strengthening smallholder farmers is embedded in our regional commercial strategies.Target 2030:Support 100 million smallholder farmers in LMICs/Reference year 2019:42 million/Status 2020:45 million/Status 2021:49 million/Status 2022:52 millio
148、n In 2022,together with our partners,we supported 52 million smallholder farmers in LMICs with our products and services three million more than in the previous year.We achieved this by significantly expanding business activities,especially in Asia/Pacific.We are successively expanding our product a
149、nd service portfolio for smallholder farmers,including innovative busi-ness models and digital solutions across the entire crop sys-tem.This includes solutions from the areas of digital farming and market access,a differentiated product portfolio,bio-technological solutions and the formation of part
150、nerships along the value chain.Transformation toward sustainable agriculture Typical Challenges Smallholder Farmers Are FacingLimited access toknowledgeClimate changeLack of access to new tech-nologiesHunger&malnutritionAdditional challenges caused by COVID-19Poor access to marketsLimited productivi
151、tyof their cropsDifficult access to capital Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 14 We aim to cr
152、eate market models that generate benefit and reduce business risks for all partners in the value chain,in-cluding smallholder farmers.This is implemented by helping smallholder farmers gain access to the agricultural value chain and increase their productivity and income,as well as by creating resil
153、ience to ensure the long-term food security of smallholder farmers,their families and rural regions in LMICs.Bayer does not plan to assert its intellectual property rights against smallholder farmers who save seeds on their farms for private and noncommercial use in order to avoid extreme poverty.In
154、stead,we want to work together with these small-holder farmers to introduce them to the world of commercial farming and enable them to improve their livelihoods.Value chain partnerships As no one can overcome every challenge alone,we establish crop value chain partnerships to provide smallholder far
155、mers with high-quality inputs,agronomic knowledge,cost-effective financing and risk mitigation solutions,as well as market ac-cess to sell their products.These include collaborations with government research institutes,nongovernmental organiza-tions(NGOs)and international financial institutions.We h
156、ave already forged a number of key partnerships:Better Life Farming Better Life Farming is a long-term partnership between Bayer,the International Finance Corporation(IFC,part of the World Bank),Netafim and more than 30 local public and private partners as well as NGOs.This partnership helps small-h
157、older farmers make their farms commercially profitable and sustainable.Within the partners network,the Better Life Farming centers improve access to agricultural products in remote rural re-gions through the so-called last-mile delivery model.They also offer access to agricultural education and cons
158、ulting,adapted farming solutions,financing,market access and fair prices.We are also introducing special approaches for the advancement of women such as the targeted development of women as agricultural entrepreneurs.In 2022,we increased the number of Better Life Farming centers in India,Indonesia a
159、nd Bangladesh to more than 2,500 and opened the first centers in Mexico and Honduras.We are planning further growth in the Asia/Pacific and Latin America regions and also aim to expand to Africa.Noncommercial partnerships Together with the Bill&Melinda Gates Foundation,the Bayer Cares Foundation fun
160、ds the Digital Farmer II program of our partner Mercy Corps AgriFin.This leverages the spread of digital technologies to develop more efficient digital infor-mation and financial products and services for smallholder farmers.The goal is for the program to serve up to five mil-lion farmers in Nigeria
161、,Kenya and Ethiopia by 2025.In 2022,we reached some 950,000 smallholder farmers via noncom-mercial partnerships.Smallholder Reach 2022Smallholderreach 2022:2 millionFocus crops:corn,potatoes,vegetables,fruitsLatin AmericaSmallholderreach 2022:12 millionFocus crops:corn,cereals,vegetables,cottonAfric
162、a/Middle East Smallholderreach 2022:37 millionFocus crops:vegetables,cotton,rice,cornAsia/Pacific Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Founda
163、tions Bayer Sustainability Report 2022 15 Agriculture and climate change Climate change is presenting major challenges for farmers worldwide.Crop losses not only threaten the farmers future and that of their families but also pose a risk to the global food supply.At the same time,food cultivation pr
164、oduces greenhouse gas emissions.Farming therefore plays a key role on the road to a climate-neutral global economy(SDG 13).Through innovations in the areas of seeds,crop protection and agricultural practices,as well as through digital solutions,we are helping to make farming both climate-neutral and
165、 climate-resilient.In this,we are working with farmers and partners throughout the entire value chain.Decarbonization We aim to reduce greenhouse gas emissions from our high-est-emitting crops by 30%in our sales regions by 2030.Key levers in this endeavor include climate-friendly cultivation practic
166、es such as plowless soil tillage or the sowing of cover crops.These enable CO2 to be captured in the soil,making the agricultural industry a key player in the fight against climate change.The dry seeding method of rice cultivation also offers tremendous potential for reducing the green-house gas emi
167、ssions traditionally associated with this crop.We work to ensure that farmers benefit financially from such solutions,too,as that is the only way to enable their rapid implementation.Launched in 2020,our Carbon Farming Ini-tiative offers farmers in Brazil,the United States,Europe and Asia financial
168、incentives to apply climate-friendly methods and capture greenhouse gases in the soil.For more infor-mation,please see the Focus on:Agriculture chapter.New technologies We help farmers to increase their resilience against the ef-fects of climate change,for example through our innovative seeds for pl
169、ants that can better withstand extreme weather conditions,and through improved agricultural practices.For more information,please see the Focus on:Agriculture chapter.We also invest in new technologies and conduct research into questions such as how plants could use nitrogen from the air for their g
170、rowth with the help of soil microorganisms.This would enable the use of nitrogen fertilizer to be greatly reduced in the future.Currently,this substance is essential for plant growth,yet its production and use result in signifi-cant greenhouse gas emissions.Through our Leaps by Bayer participation i
171、n Fork&Goode,we are investing in research into animal protein produced from cell cultures to cover the growing demand for protein without stockbreeding.Further reducing the ecological footprint By 2030,we aim to reduce the environmental impact of us-ing crop protection products by 30%.Changes in agr
172、icultural practices and how crop protection products are applied,as well as the use of digital solutions,help ensure that the required crop protection products are applied as precisely and sparingly as possible to the area requiring treatment.For more information,please see the Focus on:Agriculture
173、chapter.We promote the sustainable intensification of farming through innovative,more productive crops.This allows farm-ers to produce more food from the same amount of farm-land with a smaller impact on the environment.In this way,we play an important role in reducing deforestation and the conversi
174、on of forests into farmland.At the same time,this can reduce the consumption of natural resources and the use of crop protection products and fertilizer.For more infor-mation,please see the Focus on:Agriculture chapter.In 2023,we will continue to work on a new water strategy that will reflect the sp
175、ecial challenges of creating value through farming.Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 16 Group
176、 targets at a glance We use these indicators to measure the implementation of our Group targets through 2030.They also serve as a basis for determining the variable compensation component of the Board of Management and entitled managerial employees.A more detailed description of the calculation meth
177、odologies(including adjustments)is available on our website LMICs:low-and middle-income countries 2 Including our strategic investments in India 3 In accordance with the Paris Agreement and the objective of limiting global warming to 1.5C relative to the pre-industrial level 4 Comprises direct emiss
178、ions(Scope 1)and indirect emissions(Scope 2,market-based)from Bayer sites whose annual energy consumption exceeds 1.5 terajoules 5 In accordance with the criteria set out by the Science-Based Targets initiative(SBTi),the following Scope 3 categories of the Greenhouse Gas Protocol Corporate Value Cha
179、in(Scope 3)Accounting&Reporting Standard are relevant for Bayer:(3.1)purchased goods and services,(3.2)capital goods,(3.3)fuel-and energy-related activities,(3.4)(upstream)transportation and distribution and(3.6)business travel.Target:Support 100 million smallholder farmers in LMICsKey figure:/Numbe
180、r of smallholder farmers in LMICs1supported by products,services and partnerships/Partnership:Mercy Corps AgriFinReference year 2019:42 millionStatus 2020:45 millionStatus 2021:49 millionStatus 2022:52 millionTarget:Fulfill the need of 100 million women in LMICs for modern contraception Key figure:/
181、Number of women reached in LMICs1who have their need for modern contraception fulfilled due to interventions supported by Bayer/Partnerships:The Challenge Initiative(TCI),UNFPA EgyptReference year 2019:38 millionStatus 2020:40 millionStatus 2021:41 millionStatus 2022:44 millionTarget:Support 100 mil
182、lion people in economically or medically underserved communities with self-care Key figure:/Number of people in economically or medically underserved communities whose self-care is supported by interventions from Bayer/Partnership:Vitamin AngelsReference year 2019:41 millionStatus 2020:43 millionSta
183、tus 2021:46 million(total 59 million2)Status 2022:49 million(total 70 million2)Target:Climate neutrality at own sites3and achievement of Science Based TargetsKey figure:/Reduction of Scope 1 and 24greenhouse gas emissions by 42 percent/Reduction of Scope 3 emissions5by 12.3 percent/Offsetting of rem
184、aining Scope 1 and 2 greenhouse gas emissionsSupporting figures:/100%electricity procurement from renewable sourcesReference year 2019:Scope 1 and 24:3.76 million metric tons CO2eScope 35:8.82 million metric tons CO2eStatus 2022:Scope 1 and 24:3.03 million metric tons CO2eScope 35:8.90 million metri
185、c tons CO2e Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 17 As the core element of our corporate strateg
186、y,sustainability is integrated into all our major processes.This is ensured not just through binding targets and a broad set of directives but also through fundamental Group management decisions.Responsibility in the Group As Bayers Chief Sustainability Officer,the Chairman of the Board of Managemen
187、t is responsible for implementing the strategic objectives.The Public Affairs,Science,Sustainability&HSE Enabling Function is tasked with the operational design of sustainability.ESG Committee of the Supervisory Board At the beginning of 2022,an ESG Committee was estab-lished within Bayers Superviso
188、ry Board to deal with ecologi-cal and social responsibility matters and sustainable corpo-rate governance.This mainly pertains to the incorporation of sustainability into the business strategy;the establishment of sustainability targets;the nonmandatory ESG reporting and the auditing thereof,where a
189、pplicable;the opportunities and risks;and the organizational structures and processes in ESG areas,provided the Audit Committee is not already re-sponsible for these matters.Within its scope of responsibil-ity,the ESG Committee advises and oversees management and prepares possible resolutions by the
190、 Supervisory Board.The ESG Committee is composed of the Chairman of the Supervisory Board and seven other Supervisory Board members.It includes an equal number of stockholder and employee representatives.The Supervisory Board elected Ertharin Cousin as Chair of the committee(see the interview on the
191、 next page).The Supervisory Board is also closely involved in the imple-mentation of the sustainability targets independently of the ESG Committee.It addresses this issue several times a year along with the nonfinancial statement of the company as part of the Annual Report.Integration of ESG into co
192、mpensation Qualitative sustainability targets have been factored into the compensation systems for the Board of Management and entitled managerial employees since 2020.Since 2021,the quantitative targets have accounted for 20%of the long-term variable compensation(LTI)of Bayers Board of Man-agement
193、and LTI-entitled managerial employees.For more information,please see the Compensation Report in the 2022 Annual Report.Measuring progress To measure progress in the attainment of our Group targets,we have defined key sustainability data that makes our per-formance transparent.Our“sustainability coc
194、kpit”brings to-gether key data in one place and facilitates decision-making by the management.The data is compiled in the countries and centrally validated.We have thus established a reliable due diligence process for our sustainability targets.Sustainability Council We need a large network to reali
195、ze our objectives.We have therefore intensified our cooperation with social organiza-tions in order to understand different perspectives and jointly achieve a greater impact.In 2020,we convened a Sustaina-bility Council composed of independent international experts.This body brings together expertis
196、e and experience in the areas of biodiversity,digitalization,health systems,the food and agriculture industries,fair trade strategies,womens rights,sustainable technologies,sustainable finance and transformation strategies.The nine-member body advises the Board of Management,oversees the implementat
197、ion of the sustainability strategy and reports transparently each year on its work and recommendations,as well as our progress.Stakeholder dialogue Bayer also seeks and maintains dialogue with stakeholders at various levels beyond the Sustainability Council.Of partic-ular importance is contact with
198、those who publicly evaluate Bayer with respect to sustainability aspects,including especially nongovernmental organizations and sustainability-oriented rating agencies.We take all criticism seriously and regard it as an incentive to improve.ESG ratings For many years,we have maintained a close dialo
199、gue with leading ESG rating agencies to achieve a fair and transpar-ent assessment of our company.At the same time,the comparison with other companies has provided us with important information for the expansion of our own sustaina-bility activities.We have achieved significant progress in recent ye
200、ars through constructive dialogue with what we regard as the most important rating agencies.Examples include the lifting of the red flag by MSCI ESG Research,an improved position in the Access to Medicine Index(ninth position)and a leading position in the Access to Seeds Index.The rating organizatio
201、n CDP gave Bayer the highest rating “A”and thus once again confirmed that we are an internationally leading company in the area of climate protection.In the Sustainalytics ESG Risk Rating,Bayer is among the best 12%in its industry,and above the pharmaceutical industry average.Sustainability firmly a
202、nchored in governance Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations Bayer Sustainability Report 2022 18 Interview with Ertharin Cousin We
203、are actively committed to sustainability Since the beginning of 2022,Bayers Supervisory Board has had its own committee dedicated to ESG and sustainability topics.Its chairwoman is Ertharin Cousin.Mrs.Cousin,what made you decide to join the Supervisory Board of Bayer AG?I have dedicated my life to t
204、he fight against hunger.We wont defeat hunger without the multinational agricultural companies.Corporations must be part of the solution.Thats what I want to work toward.Bayer has laid a good foundation with its vision Health for all,hunger for none.As Chair of the ESG Committee,how can you work tow
205、ard greater sustainability?In the ESG committee,we examine how the United Nations SDGs are integrated into the business strategy,whether the ambitious corporate sustainability goals have been achieved and how these goals are linked to the remuneration of the Board of Management and LTI-entitled mana
206、gerial employees.In other words,the compensation system is designed in such a way that it provides real incentives to achieve the sustainability targets.The committee also discusses the ESG-related opportunities and risks for the company.The committee oversees managements operational plans and asks
207、whether the organizational structures and processes are suitable for capturing opportunities and avoid-ing risks.To this end,we maintain open and trusting contact with the Board of Management.What do you see as the biggest challenges for Bayer?The Bayer sustainability vision summarizes and specifica
208、lly addresses the challenges very well.Specifically,the three 100 million targets and the climate protection objectives.The biggest challenge for Bayer is recognizing that sustainability includes not only achieving our targets but also ensuring the principles of ESG are appropriately infused across
209、the entire organizations operation and practices.Consider,hunger has worsened again,and at the same time the worlds population continues to grow.We need an agricultural sector that is capable of feeding more people sustainably and safely.Bayer has developed new biological and digital tools which can
210、 help all farmers everywhere to produce more and better.Therefore,Bayer has initiated good programs that support smallholder farmers worldwide,offering them know-how on new cultivation methods and new digital solutions.Climate catastrophes such as droughts or floods are increasingly to blame when pe
211、ople go hungry.How can Bayer really help in this context?The fact is:sustainable cultivation will potentially make all farmers more resilient,through better soil-specific and context-specific agricultural practices.During my years with the World Food Program,80 percent of the people we served lived
212、in climate-vulnerable places.When properly cultivated,new drought-resistant or drought-tolerant seeds offer these vulnerable farmers the opportunity to withstand the drought.New tools like short-stature corn provide the possibility for corn crops to withstand crop-devastating windstorms.These and ot
213、her new digital and biological tools could truly deliver elusive resilience to all farmers including those in vulnerable places,creating what I call preemptive humanitarian action by avoiding the need in vulnerable places after every climate disaster for emergency food assistance.Because these farme
214、rs would be better able to feed their own families and maintain their livelihoods.What role does the promotion of gender equality play for you?I think its extremely important,especially in low-and middle-income countries(LMICs)where often 40%of all farmers are women.Womens empowerment is central to
215、economic and social development,yet too often,women are being disadvan-taged.We engage for gender equity through various programs and support womens empowerment,including through access to modern contraception.According to the United States Agency for International Development(USAID),investing in fa
216、mily planning is the best investment you can make for sustainable development and the achievement of several SDGs from health to education and climate protection.From my experience,I know that wherever women are engaged in entrepreneurship,new potential and visi-ble positive change occurs for the en
217、tire society.Thats why we must get policymakers and business leaders to offer women equal opportunities.Women care not only about health,feeding their families and educating their children,but also about the well-being of the entire village community.It is a fact:Women are the key to solving a lot o
218、f sustainability problems.Women compose nearly half of Bayers Supervisory Board and are raising the questions to ensure the company provides stakeholder value while not shying away from the hard questions about womens empowerment both inside and outside the organization./Ertharin Cousin Member of th
219、e Supervisory Board and Chair of the ESG Committee of Bayer AG Performance Report/Climate protection targets in harmony with the Paris Agreement and net zero emissions by 2050/Proportion of women in top management 33%by 2025 and 50%by 2030/Sustainability targets as part of the variable compensation
220、of the Board of Management Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations 1.1 Corporate Profile Bayer Sustainability Report 2022 20 The Bay
221、er Group comprises 354 consolidated companies in 84 countries throughout the world and employs 101,369 people.Its headquarters is in Leverkusen,Germany.Sales at the Bayer Group in 2022 amounted to 50.7 billion.1.1 Corporate Profile We are a life science company and a global leader in healthcare and
222、nutrition.Our innovative products support efforts to overcome the major challenges presented by a growing and aging global population.We help prevent,al-leviate and treat diseases.We also aim to ensure the world has a reliable supply of high-quality food,feed and plant-based raw materials.As part of
223、 this endeavor,the respon-sible use of natural resources is always a top priority.In line with our vision“Health for all,hunger for none,”we aim to put an end to hunger and help everyone lead a healthy life,while at the same time protecting ecosystems.That is what we aspire to achieve,guided by our
224、purpose“Science for a better life.”We aim to continuously enhance our companys earning power and create value for customers,patients,share-holders,employees and society.Growth and sustainability are integral parts of our strategy,while our corporate values of leadership,integrity,flexibility and eff
225、iciency,or LIFE for short,lay the foundation for the way we operate.These values shape our culture and ensure a common identity throughout the Bayer Group.Based on this,our Bayer Societal Engagement(BASE)principles provide clear orientation for communicating with social interest groups.1.2 Corporate
226、 Structure Corporate structure as of December 31,2022 As the parent company of the Bayer Group,Bayer AG represented by its Board of Management performs the principal management functions for the entire enterprise.This mainly comprises the Groups strategic alignment,resource allocation,and the manage
227、ment of financial affairs and managerial staff,along with the management of the Group-wide operational business of the Crop Science,Phar-maceuticals and Consumer Health divisions.The enabling functions support the operational business.Our divisions are active in the following areas:Crop Science Crop
228、 Science is the worlds leading agriculture enterprise,with businesses in crop protection,seeds and traits,and dig-ital farming.We offer a broad portfolio of high-value seeds,improved plant traits,innovative chemical and biological crop protection products,digital solutions and extensive customer ser
229、vice for sustainable agriculture.We market these products primarily via wholesalers and retailers or directly to farmers.In addition,we market pest and weed control products and services to professional users outside the agriculture industry.Most of our crop protection products are manufactured at t
230、he divisions own production sites.Numerous decentralized formulation and filling sites enable the company to respond quickly to the needs of local markets.The breeding,propa-gation,production and/or processing of seeds,including seed dressing,take place at locations close to our custom-ers,either at
231、 our own facilities or under contract.Pharmaceuticals Pharmaceuticals concentrates on prescription products,especially for cardiology and womens healthcare,and on specialty therapeutics focused on the areas of oncology,he-matology,ophthalmology and,in the medium term,cell and gene therapy.We have es
232、tablished a strategic unit for cell and gene therapy spanning the entire value creation chain from research and development to marketing and patients.The division also comprises the radiology business,which markets diagnostic imaging equipment and digital solutions together with the necessary contra
233、st agents.Our portfolio includes a range of key products that are among the worlds leading pharmaceuticals for their indications.The prescrip-tion products of our Pharmaceuticals Division are primarily distributed through wholesalers,pharmacies and hospitals.Consumer Health Consumer Health is a lead
234、ing supplier of nonprescription(OTC=over-the-counter)medicines,nutritional supple-ments,medicated skincare products and other self-care solutions in the categories of pain,cardiovascular risk pre-vention,dermatology,digestive health,allergy,and cough&cold.The products are generally sold by pharmacie
235、s and pharmacy chains,supermarkets,online retailers and other large and small retailers.1.The Company Structure of the Bayer Group 2022Board of ManagementCrop SciencePharmaceuticalsConsumer HealthEnabling functions Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.
236、Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations 1.3 Value Added Bayer Sustainability Report 2022 21 Enabling functions The enabling functions,such as Public Affairs,Science,Sustainability&HSE;Group Finance;Information Technol
237、-ogy;and Human Resources,serve as Group-wide compe-tence centers and bundle business support processes and services for the divisions.Our Leaps by Bayer unit,which invests in disruptive innovations,also forms part of the ena-bling functions.For more information on the divisions products and activi-t
238、ies and the distribution of sales across the divisions and our global sites,please see our 2022 Annual Report.1.3 Value Added By delivering innovative products and solutions,Bayer creates value for its stakeholders at all stages of the value chain.We operate production sites worldwide,invest in re-s
239、earch and development,work with international and local suppliers and contribute to the economic development of our target markets.As an employer,we provide jobs in in-dustrialized,emerging and developing economies and there-fore create purchasing power through the salaries we pay.We contribute to p
240、ublic finances and thus support public in-frastructure through the payment of taxes and other levies.The value added calculation shows the direct financial value we generate for our stakeholders with our commercial oper-ations.We define value added as the companys total oper-ating performance in the
241、 previous fiscal year(net sales+other operating income+financial income+net income/loss from investments accounted for using the equity method)less the costs of procured and consumed goods and ser-vices,depreciation,amortization,impairment losses and impairment loss reversals.Our total operating per
242、formance amounted to 54.1 billion in 2022.The cost of materials and other expenses totaled 28.6 billion.We recorded depreciation,amortization,im-pairment losses and impairment loss reversals of 6.5 billion.We posted a value added of 19 billion in 2022.In 2022,the value added we generated enabled us
243、to make the following financial contributions to our stakeholders:em-ployees 12.6 billion,taxes 2.8 billion,providers of equity and debt 1.4 billion and stockholders 2.4 billion(Bayer AG dividend proposal for 2022).Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.
244、Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations 2.1 Corporate Governance Practices and Principles Bayer Sustainability Report 2022 22 Bayer is committed to responsible corporate governance.By adhering to laws,safeguarding val
245、ues and strengthening our reputation,we aim to secure our companys long-term success and to foster a high level of trust among all stake-holders.Our endeavors in this regard are further supported by our increased integration of sustainability aspects into all processes and at all levels of the compa
246、ny.2.1 Corporate Governance Practices and Principles Bayer AG is subject to German stock corporation law and therefore has a dual governance system consisting of the Board of Management and the Supervisory Board.The Board of Management manages the company based on a strategy that is geared toward it
247、s long-term success.The Supervisory Board oversees and monitors the Board of Management.Since 2022,the Supervisory Board has had its own ESG Committee,comprising the Chairman of the Supervisory Board and seven further members of the Super-visory Board.This focuses on Bayers sustainable gover-nance a
248、nd business activities in the areas of environmental protection,social affairs and corporate governance(ESG)within the scope of responsibility of the Supervisory Board.Corporate governance practices that go beyond the legal re-quirements are derived from our vision and our common val-ues,which form
249、the basis for the respectful working relation-ship among our employees and with our external partners.Compliance with responsible practices at every stage of the value chain is crucial in corporate governance.The main guidelines are summarized primarily in our Group regulations on compliance,human r
250、ights,and fairness and respect at work,as well as in our Supplier Code of Conduct and the Bayer Societal Engagement(BASE)principles.In addition,Bayer has established compliance management and risk management systems.In our Annual Report,we report in detail on the main ele-ments of the Bayer Groups c
251、orporate governance struc-tures and conformity with the recommendations of the German Corporate Governance Code,relevant corporate governance practices,the composition and procedures of the Board of Management,the Supervisory Board and their committees,and also on compensation in the Compensa-tion R
252、eport along with the objectives to be defined and the underlying concepts.2.2 Behavioral Principles(BASE)As a leading healthcare and agriculture company,we bear a great responsibility.To ensure that we meet current societal expectations,we introduced the Bayer Societal Engagement(BASE)principles in
253、2019.These principles are set out in a publicly available Board of Management-approved Group regulation,which establishes how we interact worldwide not just with our employees but also with patients,customers,consumers,business partners,political stakeholders,scien-tists,critics and our stockholders
254、.In this way,we want to live up to our social responsibility as a sustainably acting and transparent company that is respected for its contribu-tion to progress in healthcare and agriculture.We want to listen,understand,take concerns seriously and engage in respectful dialogue especially where this
255、is difficult or uncomfortable.The BASE principles are grounded in our purpose“Science for a better life,”our vision“Health for all,hunger for none”and the Bayer LIFE values of leadership,integrity,flexibility and efficiency.The principles describe our actions in eight areas:/Our engagement with soci
256、ety/Our guiding principles and core values/How we drive innovation/How we act in the workplace/How we conduct our business/How we interact with our customers,patients and the consumers of our products/How we interact with media,legislators,regulators and civil society organizations/How we interact w
257、ith stockholders 2.3 Transparency As our activities concern the sensitive areas of health and nutrition,they lead to inquiries and the desire to understand even better what we do.Against this background,we en-deavor to strengthen trust further for which transparent conduct is essential.For example,w
258、e disclose information from various areas of our work and openly communicate how the safety of our products is rated.2.Corporate Governance Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental
259、 Protection and Safety 9.Giving and Foundations 2.4 Bioethics Bayer Sustainability Report 2022 23 We supply information about our transparency efforts in the following areas,for instance:/We make detailed disclosures on,for example,material and project expenses and headcount of the essential politic
260、al liaison offices in the transparency registers of the German Parliament,the European institutions and the US Congress,for instance.We also report data for countries in which there is no legal disclosure obligation.For more information,please see Chapter 2.6 Compliance and our website./As regards t
261、ax transparency,we maintain a discourse with interested stakeholders such as within the trans-parency initiative of the VBDO./Through our website,we provide public access to safety-relevant studies that regulatory authorities use to approve crop protection product registrations.We also publish the s
262、afety results for our genetically modified crops on our website./Our OpenLabs provide insight into the scientific work in our laboratories and field trial facilities./We publish information on planned and ongoing clinical trials on the publicly funded https:/www.clinicaltrials.gov/website.Trials spo
263、nsored by Bayer are published on our Clinical Trials Explorer website./We publish summaries of clinical trial results on our Clinical Trials Explorer website in clearly understandable language./For many years,we have shared patient-based clinical trial data with qualified researchers.Since 2022,this
264、 has been possible via Vivli,the website of the Center for Global Clinical Research Data.For more information,please see Chapter 3.8 Pharmaceuticals and Consumer Health./In relations between the pharmaceutical industry and physicians,other healing professions and healthcare or-ganizations,Bayer ensu
265、res compliance with the EFPIA(European Federation of Pharmaceutical Industries and Associations)Disclosure Code,and,for example,the US Physician Payments Sunshine Act./To generate more transparency around our scientific col-laborations,we launched the Bayer Science Collaboration Explorer in Germany
266、in 2021 and expanded it to the United States in 2022.In this publicly accessible data-base,we disclose information on new contract-based scientific collaborations with universities,public research institutions and individuals to increase public confidence in our innovations,scientific processes and
267、research.We plan to expand the Bayer Science Collaboration Explorer to additional countries in 2023.Publications We strive for maximum transparency in our publications.As stated in our Group Regulation on Bayer Societal Engage-ment(BASE)Principles,all Bayer employees are obliged to properly reflect
268、and disclose our participation in any scien-tific work and publications of third parties and the participa-tion of third parties in the development of our publications.Our Group Regulation on Scientific Publications prohibits ghostwriting and guest authorship.All authors must fully disclose all fina
269、ncial relationships,including material support for research,and other potential conflicts of interest related to the publication.In addition to our sustainability reporting,we published further reports in 2022 that describe topics in detail and are available to interested stakeholders on our website
270、.These include:/lndustry Association Climate Report/Neonicotinoids/Genetically Modified Crops(GMOs)/UN Global Compact Adherence/Leaps by Bayer For more information on our transparency initiative,please see our website.2.4 Bioethics Emerging life science technologies are advancing rapidly and deliver
271、 the opportunity for significant positive impact on society,people and the environment.As a leading healthcare and nutrition company,Bayer can contribute more to this development than almost any other enterprise.The speed at which science is advancing and the possibili-ties these innovations create,
272、however,also raise complex ethical issues for us as a research company.With Bayers Group Regulation on the topic of bioethics,we are currently developing a company-wide,bindingly valid ethical framework for decisions relevant to innovations in life-science research and development.The focus is on me
273、dical issues,bioengineering and artificial intelligence in connection with discovery,development and manufacture,and use of treatments and therapies to advance human health as well as agricultural products and practices.Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardsh
274、ip 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations 2.5 Steering and Management Systems Bayer Sustainability Report 2022 24 Bioethics Council As a core element of our approach to bioethics,Bayer has established the Bayer Bio
275、ethics Council,an external advi-sory body consisting of 10 independent experts.By bringing in an ethical and societal perspective,it helps Bayer identify relevant bioethical questions and consults on how to answer them.The Councils purpose is to support Bayer in further developing bioethical guideli
276、nes for its decision-making.The Bioethics Council:/Advises Bayer on how to ensure bioethics is an integral part of our R&D work/Examines our directives from a bioethics perspective and advises us on shifts in strategy /Evaluates our progress in implementing bioethics strategies and guidelines /Advis
277、es on the main drivers behind current bioethics topics(i.e.technological advances and social change)relevant to our work Its members,who convene twice a year,come from five different continents.Together,they offer expertise in ethics relating to a variety of academic disciplines in the fields of agr
278、iculture and medicine,ranging from expertise in genetic engineering and artificial intelligence to philosophy and sociology.For more information,please see our website.2.5 Steering and Management Systems Planning and steering The Board of Management uses defined,primarily nonfinan-cial targets and k
279、ey performance indicators to steer the companys alignment toward increased sustainability.These are integrated into the Bayer Groups planning and steering process as management and key performance indicators.Our Group-wide sustainability targets are integrated into the compensation system for the Bo
280、ard of Management.In so doing,we aim to continuously increase value for stockhold-ers and other stakeholders and ensure the continuity of our company for the long term.Quantitative targets derived from the sustainability strategy are integrated into the long-term variable compensation(LTI)of the Boa
281、rd of Management and LTI-entitled managerial employees with a weighting of 20%.For more information,please see the Compensation Report(Chapter C 2)in the 2022 Annual Report.For details of the financial indicators we employ to plan,steer and mon-itor the development of our business,please see Chapter
282、 1.2.3 Management Systems of the 2022 Annual Report.Integrated management system Bayer maintains an integrated management system(IMS)based on the overarching Plan-Do-Check-Act(PDCA)principle.The IMS is the overarching framework for all management systems at Bayer,ensuring compliance with laws and in
283、ter-nal and external requirements,while also ensuring efficient ways of working.Thus,it applies to all established manage-ment systems pertaining to quality,health,safety and envi-ronmental protection(HSE),as well as compliance.Group-wide requirements for the management of internal reg-ulations and
284、processes,regular effectiveness evaluation and continuous improvement are core elements of the IMS,which plays a key role in safeguarding our license to operate.All IMS requirements are specified in a Group regulation issued by the Board of Management.Additional information on the IMS is provided th
285、rough internal communication channels.At the global level,each division and enabling function such as Corporate Quality,Human Resources,Compliance,Risk Management,Procurement,or Public Affairs,Science,Sustainability&HSE is responsible for its own manage-ment system in accordance with business requir
286、ements,in-ternational standards and the applicable legal and regulatory requirements.As part of the IMS,Bayer has established a clearly defined structure of binding internal regulations for the Group that describe fundamental principles and framework conditions,standards of conduct,proceedings and m
287、ethods,as well as the related roles and responsibilities.The binding requirements contained therein incorporate both internal and corresponding external international standards,as well as legal and regulatory requirements.Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Steward
288、ship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations 2.6 Compliance Bayer Sustainability Report 2022 25 Group regulations serve as key management tools that are classified in three categories.This structure also applies to
289、country-specific regulations./At the top level of the pyramid are policies with global,interdisciplinary content that are relevant to all employees and approved by the Board of Management./Directives apply to specific groups./Procedures occupy the third level and comprise all specific,detailed proce
290、ss instructions.To ensure effective regulation management,global provi-sions are in place for the creation,approval,publication and distribution,implementation and regular review of inter-nal regulations.Global and local IT applications support the management of regulations as well as general access
291、.The regulations approved by the Board of Management are managed centrally and follow a uniform,global process that includes notifying employees about changes and new aspects via a newsletter and the intranet.Bayer has also actively established a system that transparently describes the enactment and
292、 implementation status of these regulations.A selection of Group regulations representing the respective areas is presented in more detail in chapters 2.6 Compliance,6.Employees and 8.Environmental Protec-tion and Safety.2.6 Compliance Bayer manages its businesses responsibly and in compli-ance with
293、 the statutory requirements and regulations of the countries in which it operates.What we mean by compli-ance is the legally impeccable behavior of our employees in their daily work.After all,the way each employee conducts the companys business can affect our companys public image.We do not tolerate
294、 any violation of applicable laws,codes of conduct or internal regulations.Compliance is es-sential for our long-term commercial success.Bayer compliance management The Board of Management is unreservedly committed to compliance,and Bayer will forgo any business transaction that would violate any of
295、 the 10 principles in our Corporate Compliance Policy approved by the Board of Management and observed throughout the Bayer Group.These principles are as follows:/We compete fairly in every market./We act with integrity in all our business dealings./We balance economic growth with ecological and soc
296、ial responsibility./We observe all trade controls that regulate our global business./We safeguard equal opportunity in securities trading./We keep accurate books and records./We treat each other with fairness and respect./We protect and respect intellectual property rights./We act in Bayers best int
297、erest./We protect and secure personal data.All employees are required to observe the compliance princi-ples and immediately report any violation of the Corporate Compliance Policy.Infringements are sanctioned.This ap-plies in particular to managerial employees,who,as role models,may,for example,lose
298、 their entitlement to variable compensation components and be subject to further disci-plinary measures if violations that they could have prevented have occurred in their sphere of responsibility.Compliant and lawful conduct is also factored into the performance evaluations of all managerial employ
299、ees.The principles are additionally described in more detail in separate Group regulations that were approved by the Board of Management.Please see the graphic“Binding Group Regulations”for more details.Group RegulationsBinding regulationcategoriesPoliciesDirectivesProcedures Sustainability Strategy
300、 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations 2.6 Compliance Bayer Sustainability Report 2022 26 Details of compliance-related topics are specified in further bi
301、nding Group regulations.The global compliance management system is steered by a central compliance organization within the Bayer Group.This organization is headed by the Group Compliance Of-ficer,who,in this capacity,reports directly to the Chief Fi-nancial Officer(CFO)and to the Audit Committee of
302、the Su-pervisory Board.The CFO is responsible for the compliance organization,while the Audit Committee of the Supervisory Board oversees the effectiveness and further development of compliance within the Group.Within the compliance or-ganization,specialized compliance managers are responsi-ble for
303、establishing business-,industry-and country-specific standards.Potential compliance risks(such as corruption)are identified together with the operational units to ensure the systematic and preventive detection and assessment of risks.Potential risks are then entered into global databases that we use
304、 to develop suitable measures for specific processes,business activities or countries,for example.In addition,we assess our business partners according to risk criteria as we look to identify potential compliance risks.Adherence to the corporate compliance principles is among the subjects covered in
305、 audits conducted by Bayers Internal Audit and in the analyses and investigations by the legal and compliance organization.The heads of these organizations provide regular reports on the findings of the audits and analyses to the Audit Committee of the Supervisory Board,while summary reports are pre
306、sented at least once a year.The planning of these audits by Internal Audit follows a func-tion-and risk-based approach that also takes the Corruption Perceptions Index of Transparency International into account.Function-specific audits are conducted worldwide across all important corporate units,suc
307、h as for marketing and dis-tribution.The respective relevant stakeholders(e.g.manage-Binding Group RegulationsCorporate Compliance PolicyAnti-CorruptionManagement of Compliance IncidentsInsider TradingComplianceAntitrust ComplianceCompliance with Export Controls&Economic SanctionsConflict of Interes
308、tData PrivacyIntegrated Compliance ManagementMedia Contacts&PublicityThird Party Due Diligence ProcessManage Interaction with AuthoritiesCode of Conduct for Responsible LobbyingData Privacy for Stakeholder Engagement&ManagementManage Risk MitigationCompliance&Data PrivacyOrganization Sustainability
309、Strategy 1.The Company 2.Corporate Governance 3.Product Stewardship 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations 2.6 Compliance Bayer Sustainability Report 2022 27 ment,employees,distributors or service providers)partici
310、-pate in audits depending on the type of audit.The larger business areas and units are audited at shorter intervals,and the smaller units at longer intervals.A total of 89 audit reports were compiled in 2022,of which nine concerned preventive compliance system audits or incident-related in-vestigati
311、ons.Handling of suspected and actual compliance violations All Bayer Group employees are obligated to report suspected compliance violations.The principles for dealing with com-pliance incidents are described in the Group Regulation on Management of Compliance Incidents,which establishes the respect
312、ive roles and responsibilities and explains the proce-dure for handling suspected and actual compliance viola-tions.This Group regulation was signed by our CFO.Suspected compliance violations can be reported anonymously if desired and if permitted by respective national law to a worldwide compliance
313、 hotline operated by an independent service provider.Suspected violations can be reported by anyone either via the internet or through a phone call made in the callers preferred language and answered by independent specialists.The hotline is also accessible to the general public.In 2022,the complian
314、ce organization received a total of 372 compliance reports in this way(including 254 anonymous reports),with 19 reports coming from Germany and 353 from other countries.Overall,28%of suspected violations reported to the compliance hotline were not compliance-relevant,while 72%were processed by way o
315、f a compliance investigation.In addition,an internal mailbox the Speak-Up Inbox was introduced in 2020 for the submission of suspected compli-ance violations.Alternatively,suspected violations may also be reported to the respective local Compliance functions,Internal Audit,Human Resources or directl
316、y to a supervisor.Since 2021,it has also been possible to report suspected compliance violations by logging a so-called incident re-quest on a newly implemented platform.Furthermore,sus-pected compliance violations are recorded and processed within the scope of monitoring activities conducted by the
317、 Compliance function.A total of 1,243 suspected compliance violations were recorded in 2022.An actual compliance violation was confirmed in 53%of the total cases.Compliance violations include all possible types of infringements of internal and external requirements and are systematically sanctioned.
318、The action taken depends on factors including the gravity of the violation and applicable law.All cases are recorded according to uniform criteria throughout the Bayer Group and dealt with under the rules set forth in Bayers Group Regulation on Management of Compliance Incidents.Where an investigati
319、on confirms that a compliance violation has occurred,the company has a graduated set of measures at its disposal.These include a verbal warning or written reprimand,transfer to a different unit,cancellation of a planned promotion,a reduction in the short-term incentive payment,downgrading to a lower
320、 col-lectively agreed pay rate or managerial contract level,and ordinary or extraordinary termination.Bayer also reserves the right to assert further claims against the employee for cost reimbursement or damages and/or to initiate criminal proceedings.The company ensures that no employees are disadv
321、antaged or exposed to retaliatory measures because they reported a suspected compliance violation in good faith.If it is deter-mined that an employee is responsible for disadvantaging or retaliating against another employee due to the reporting in good faith of a suspected compliance violation,appro
322、priate steps are taken against the employee responsible according to the aforementioned catalogue of measures.Compliance training and communications activities We support all employees in acting with integrity and proac-tively avoiding potential violations by implementing Bayer-wide training measure
323、s and communication campaigns that are tailored to target groups and based on identified needs.The Corporate Compliance Policy forms the basis of our compliance communication and training activities.Both su-pervisors and compliance managers are available to answer employees questions about lawful be
324、havior.Each year,the company publishes a new,obligatory training course for all Bayer employees.In 2022,around 96.5%(41,633)of Bayers managerial employees worldwide com-pleted at least one compliance training program.We launched a new web-based training program in 93 countries dealing with the topic
325、 conflicts of interest,which is also ad-dressed in our Corporate Compliance Policy.The training program is available in 20 languages and had been com-pleted by around 85.1%(88,710)of our employees as of December 31,2022.Sustainability Strategy 1.The Company 2.Corporate Governance 3.Product Stewardsh
326、ip 4.Procurement 5.Human Rights 6.Employees 7.Climate Protection 8.Environmental Protection and Safety 9.Giving and Foundations 2.6 Compliance Bayer Sustainability Report 2022 28 Our annual,company-wide“Speak Up”campaign to foster an open reporting culture communicates the various options for report
327、ing compliance violations.This is designed to cre-ate an environment in which compliance violations can be addressed without reservations.Data privacy Data is very important in todays world it is often accessi-ble worldwide and its financial value is growing.As a result,people have an increasing int
328、erest in their data remaining secure.Bayer is committed to protecting the personal data of all its stakeholders,be they employees,business part-ners,stockholders,suppliers or customers.Fulfilling this commitment is an important business principle and a central condition for the companys success.Sinc
329、e there is no globally binding data privacy law,legisla-tion varies widely from country to country.To establish a standard for all countries in which Bayer operates,a Group-wide approach is required.This is the only way to ensure personal data is afforded sufficient protection while at the same time
330、 facilitating efficient business processes.The Group Regulation on Data Privacy approved by the Board of Management sets out minimum requirements for the way personal data is processed throughout the Bayer Group.Bayer strives to protect peoples privacy and prevent their data from being misused.We ar
331、e aware of the potential harm caused by unlawful data processing and have estab-lished a standard to minimize this risk.The data privacy management system addresses risk situa-tions that are relevant to the companys business.The sys-tem covers the entire data life cycle from collection through trans
332、fer,analysis and storage to deletion.The core elements of the data privacy management system the maintenance of a processing registry,the management of data leaks,in-quiries from affected individuals and risk mitigation are mandatory.Training and guidance along with system-based monitoring ensure th
333、e regulations are adhered to.These measures are being rolled out as an obligatory training course for all new employees.The content conveyed in-cludes the fundamentals of data privacy,the principles and life cycle for the processing of personal data,the affected in-dividuals rights and conduct in the event of a data privacy violation.Harmonized documentation of the data privacy ac-tivities(process