Index of the Global Reporting Initiative (GRI) and the 10 UN Global Compact Principles

For fiscal 2016, we are once again applying the GRI G4 Guidelines in accordance with the “comprehensive” option. Where there is insufficient information for a particular GRI indicator, we have explained this. In addition, the detailed GRI Content Index includes the corresponding principles of the UNGC and the assignment of our areas of activity to the GRI aspects. Moreover, we indicate whether our scope to exercise influence lies within or outside the company (GRI G4-19, G4-20, G4-21).

For the implementation of the GRI Materiality Disclosure Service the GRI had access to the “Annual Report 2016 – Augmented Version.” The correct positioning of the “G4 Materiality Disclosures” (G4-17 – G4-27) was confirmed by the GRI.

GRI Service Feb 2017 (Logo)

General Standard Disclosures

Strategy and Analysis

Organizational Profile

G4–3 Name of the organization

G4–4 Primary brands, products, and services

G4–5 Location of the organization’s headquarters

G4–6 Countries with significant operations

G4–7 Nature of ownership and legal form

G4–10 Employees by employment type, gender and region UNGC 6

G4–11 Percentage of employees covered by collective bargaining agreements UNGC 3

G4–12 Description of the supply chain

G4–13 Significant changes during the reporting period

G4–14 Implementation of the precautionary principle

Identified Material Aspects and Boundaries

G4–17 Entities included in the consolidated financial statements

G4–18 Process for defining the report content

G4–22 Restatemtents of information provided in previous reports

G4–23 Significant changes in the Scope and Aspect Boundaries

Stakeholder Engagement

G4–24 Stakeholder groups engaged

G4–25 Identification and selection of stakeholders

G4–27 Key topics and concerns raised through stakeholder engagement and response

Report Profile

G4–28 Reporting period

G4–29 Date of most recent previous report

G4–30 Reporting cycle

G4–31 Contact point for questions regarding the report

G4–32 “In accordance” option with GRI and Content Index chosen

Governance

G4–37 Processes for consultation between stakeholders and the highest governance body

G4–40 Nomination and selection processes for the highest governance body and its committees

G4–43 Measures taken concerning the highest governance body’s knowledge in sustainability issues

G4–44 Evaluation of the highest governance body’s performance concerning sustainability

G4–47 Frequency of the highest governance body’s review of sustainability impacts, risks, and opportunities

G4–48 Highest committee that formally reviews and approves the sustainability report

G4–49 Process for communicating critical concerns to the highest governance body

G4–50 Critical concerns that were communicated to the highest governance body

G4–51 Remuneration policies for the highest governance body and senior executives

G4–53 Stakeholders’ views regarding remuneration

G4–54 Ratio of the highest annual total compensation to the median annual total compensation

Comments

Not available: we do not consider this compensation detail to be of informative value for the evaluation of the appropriateness of our compensation structures. We report on these in detail in the section “Competitive compensation and variable pay” and in our Compensation Report.

G4–55 Ratio of percentage increase in the highest annual total compensation

Comments

Not available: we do not consider this compensation detail to be of informative value for the evaluation of the appropriateness of our compensation structures. We report on these in detail in the section “Competitive compensation and variable pay” and in our Compensation Report.

Ethics and Integrity

G4–57 Mechanisms for seeking advice on ethical and lawful behavior UNGC 10

G4–58 Mechanisms for reporting concerns about unethical or unlawful behavior UNGC 10

Specific Standard Disclosures

Economic

Aspect: Economic Performance – Management Approach UNGC 7

Bayer area of activity

Employee relations & development

GRI aspect limitation

within

Bayer area of activity

Product and process innovation

GRI aspect limitation

within and outside

Bayer area of activity

Environmental protection / resource efficiency

GRI aspect limitation

within and outside

G4-EC1 Direct economic value created and distributed

G4-EC2 Financial implications and other risks and opportunities due to climate change UNGC 7

G4-EC4 Financial assistance received from government

Aspect: Market Presence – Management Approach UNGC 6

Bayer area of activity

Employee relations & development

GRI aspect limitation

within

G4-EC5 Ratios of standard entry level wage compared to local minimum wage UNGC 6

Comments

We align our compensation with local market conditions in Emerging Markets and developing countries. Furthermore, in keeping with our human rights position, we pursue the goal of paying adequate salaries that ensure a suitable standard of living for our employees and their families. In all Emerging Markets where we are active, the lowest salary paid by Bayer is at least in line with the applicable minimum wage and in most cases higher. We are not currently reporting on the margin between standard entry salary and minimum wage. A new survey on this aspect is currently being performed.

G4-EC6 Proportion of senior management hired from the local community UNGC 6

Aspect: Indirect Economic Impacts – Management Approach

Bayer area of activity

Sustainable food supply

GRI aspect limitation

outside

Bayer area of activity

Access to Medicine

GRI aspect limitation

outside

G4-EC7 Infrastructure investments and services provided

G4-EC8 Indirect economic impacts

Aspect: Procurement Practices – Management Approach

Bayer area of activity

Supplier management

GRI aspect limitation

outside

G4-EC9 Proportion of spending on local suppliers

Environmental

Aspect: Materials – Management Approach UNGC 7, 8

Bayer area of activity

Environmental protection / resource efficiency

GRI aspect limitation

within and outside

G4-EN1 Materials used by weight or volume UNGC 7, 8

Comments

We do not report on the weight and volume of the materials used. This information constitutes a business secret.

G4-EN2 Percentage of materials used that are recycled input materials UNGC 8

Comments

We do not provide any information on volumes relating to the total material use of secondary raw materials since this also constitutes a business secret. We do provide information on production-, material- and, where possible, product-related recycling.

Aspect: Energy – Management Approach UNGC 7, 8, 9

Bayer area of activity

Environmental protection / resource efficiency

GRI aspect limitation

within and outside

G4-EN3 Energy consumption within the organization UNGC 7, 8

G4-EN4 Energy consumption outside of the organization

Comments

Such energy consumption is contained in the details of greenhouse gas emissions for Scope 3, which we publish in the CDP Report www.bayer.com/CDP.

G4-EN5 Energy intensity UNGC 8

G4-EN6 Reduction of energy consumption UNGC 8, 9

G4-EN7 Reductions in energy requirements of products and services UNGC 8, 9

Comments

We do not consider this indicator to be applicable to our product portfolio as a Life Science company. Data are therefore not available.

Aspect: Water – Management Approach UNGC 7, 8

Bayer area of activity

Environmental protection / resource efficiency

GRI aspect limitation

within and outside

G4-EN8 Total water withdrawal by source UNGC 7, 8

G4-EN9 Water resources significantly affected UNGC 8

G4-EN10 Water recycled and reused UNGC 8

Aspect: Emissions – Management Approach UNGC 7, 8, 9

Bayer area of activity

Environmental protection / resource efficiency

GRI aspect limitation

within and outside

G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) UNGC 7, 8

G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) UNGC 7, 8

G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3) UNGC 7, 8

G4-EN18 Greenhouse gas (GHG) emissions intensity UNGC 8

G4-EN19 Reduction of greenhouse gas (GHG) emissions UNGC 8, 9

G4-EN20 Emissions of ozone-depleting substances (ODS) UNGC 7, 8

G4-EN21 NOx, SOx and other significant air emissions UNGC 7, 8

Aspect: Effluents and Waste – Management Approach UNGC 8

Bayer area of activity

Environmental protection / resource efficiency

GRI aspect limitation

within and outside

G4-EN22 Total water discharge by quality and destination UNGC 8

G4-EN23 Total weight of waste by type and disposal method UNGC 8

G4-EN24 Total number and volume of significant spills UNGC 8

G4-EN25 Handling of hazardous waste UNGC 8

Comments

Waste transported across borders is recorded in Europe in line with legal regulations and reported to the responsible authorities.

G4-EN26 Water bodies significantly affected by discharges of water and runoff UNGC 8

Comments

We give detailed information on all water-related issues in our CDP Water Report www.bayer.com/CDP-Water.

Aspect: Products and Services – Management Approach UNGC 7, 8, 9

Bayer area of activity

Product and process innovation

GRI aspect limitation

within and outside

Bayer area of activity

Product stewardship

GRI aspect limitation

within and outside

Bayer area of activity

Environmental protection / resource efficiency

GRI aspect limitation

within and outside

G4-EN27 Mitigation of environmental impacts of products and services UNGC 7, 8, 9

G4-EN28 Reclaimed products and packaging UNGC 8

Aspect: Compliance – Management Approach UNGC 8

Bayer area of activity

Business ethics

GRI aspect limitation

within and outside

G4-EN29 Fines and sanctions for non-compliance with environmental regulations UNGC 8

Aspect: Transport – Management Approach UNGC 8

Bayer area of activity

Safety

GRI aspect limitation

within and outside

Bayer area of activity

Environmental protection / resource efficiency

GRI aspect limitation

within and outside

G4-EN30 Significant environmental impacts of transporting products UNGC 8

Aspect: Supplier Environmental Assessment – Management Approach UNGC 8

G4-EN32 Percentage of new suppliers that were screened using environmental criteria UNGC 8

Comments

We do not report on the percentage of new suppliers screened using environmental criteria because these data are not available. We report on the procedure used for assessment.

G4-EN33 Significant environmental impacts in the supply chain UNGC 8

Comments

We do not report in detail on the negative environmental impact determined during supplier assessment. We give details on the areas in which essential impacts were identified and corrective measures were defined.

Aspect: Environmental Grievance Mechanisms – Management Approach UNGC 8

Bayer area of activity

Business ethics

GRI aspect limitation

within and outside

G4-EN34 Grievances about environmental impacts UNGC 8

Comments

We do not report on the number of grievances with respect to negative environmental impact. We report on the total number of notifications registered with the compliance hotline. We internally record the precise reason for the grievance, track how it is followed up and take corresponding action in line with our corporate policy. More detailed information on this would constitute a business secret.

Labor Practices and Decent Work

Aspect: Employment – Management Approach UNGC 6

Bayer area of activity

Employee relations & development

GRI aspect limitation

within

G4-LA1 New employee hires and employee turnover UNGC 6

G4-LA2 Benefits provided to full-time employees

G4-LA3 Return to work and retention rates after parental leave UNGC 6

Aspect: Labor/Management Relations – Management Approach UNGC 3

Bayer area of activity

Employee relations & development

GRI aspect limitation

within

G4-LA4 Minimum notice period(s) regarding operational changes UNGC 3

G4-LA5 Percentage of total workforce represented in health and safety committees

Comments

We do not report on the percentage of the total workforce represented in health and safety committees as these data are not available. We plan to record these data in the future.

G4-LA6 Injuries, occupational diseases, lost days, and work-related fatalities

Comments

We do not report on occupational injuries by gender, as these data have to be collected in certain regions anonymously. It is important for us to have classification by incident type and a detailed analysis of the causes of the individual incidents.

G4-LA7 Workers with high incidence or risk of diseases

G4-LA8 Health and safety topics covered in formal agreements with trade unions

Aspect: Training and Education – Management Approach UNGC 6

G4-LA9 Average hours of training UNGC 6

G4-LA10 Programs that support the continued employability of employees

G4-LA11 Percentage of employees receiving regular performance and career development reviews UNGC 6

G4-LA12 Composition of governance bodies and breakdown of employees by aspects of diversity UNGC 6

Aspect: Equal Remuneration for Women and Men – Management Approach UNGC 6

Bayer area of activity

Employee relations & development

GRI aspect limitation

within

G4-LA13 Ratio of basic salary and remuneration of women to men UNGC 6

Comments

We do not report quantitatively on the ratio of the basic salary and compensation of women to men. Male and female employees at Bayer receive equal compensation. It is awarded on the basis of qualifications and responsibility.

Aspect: Supplier Assessment for Labor Practices – Management Approach

G4-LA14 Percentage of new suppliers that were screened using labor practices criteria

Comments

We do not report on the percentage of new suppliers screened using labor practices criteria because these data are not available. We report on the procedure used for assessment.

G4-LA15 Significant impacts for labor practices in the supply chain

Comments

We do not report in detail on the negative impact on labor practices determined during supplier assessment. We give details on the areas in which essential impacts were identified and corrective measures were defined.

Aspect: Labor Practices Grievance Mechanisms – Management Approach

Bayer area of activity

Business ethics

GRI aspect limitation

within and outside

G4-LA16 Grievances about labor practices

Comments

We do not report on the number of grievances with respect to the negative impact on labor practices. We report on the total number of notifications registered with the compliance hotline. We internally record the precise reason for the grievance, track how it is followed up and take corresponding action in line with our corporate policy. More detailed information on this would constitute a business secret.

Human Rights

Aspect: Non-discrimination – Management Approach UNGC 6

Bayer area of activity

Business ethics

GRI aspect limitation

within and outside

G4-HR3 Incidents of discrimination and corrective actions taken UNGC 6

Comments

We do not report on the number of incidents of discrimination. We report on the total number of notifications registered with the compliance hotline. We internally record the precise reason for the grievance, track how it is followed up and take corresponding action in line with our corporate policy. More detailed information on this would constitute a business secret.

Aspect: Freedom of Association and Collective Bargaining – Management Approach UNGC 2, 3

Bayer area of activity

Employee relations & development

GRI aspect limitation

within

Bayer area of activity

Supplier management

GRI aspect limitation

within and outside

G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association may be violated or at risk, and measures taken UNGC 2, 3

Aspect: Child Labor – Management Approach UNGC 2, 5

Bayer area of activity

Employee relations & development

GRI aspect limitation

within

Bayer area of activity

Supplier management

GRI aspect limitation

within and outside

G4-HR5 Operations and suppliers having significant risk for incidents of child labor, and measures taken UNGC 2, 5

Aspect: Forced or Compulsory Labor – Management Approach UNGC 2, 4

Bayer area of activity

Employee relations & development

GRI aspect limitation

within

Bayer area of activity

Supplier management

GRI aspect limitation

within and outside

G4-HR6 Operations and suppliers having significant risk for incidents of forced or compulsory labor, and measures taken UNGC 2, 4

Aspect: Security Practices – Management Approach UNGC 1

Bayer area of activity

Employee relations & development

GRI aspect limitation

within

G4-HR7 Percentage of security personnel trained in the field of human rights UNGC 1

Aspect: Supplier Human Rights Assessment – Management Approach UNGC 2

G4-HR10 Percentage of new suppliers that were screened using human rights criteria UNGC 2

Comments

We do not report on the percentage of new suppliers screened using human rights criteria because these data are not available. We report on the procedure used for assessment.

G4-HR11 Significant human rights impacts in the supply chain UNGC 2

Comments

We do not report in detail on the negative impact on human rights determined during supplier assessment. We give details on the areas in which essential impacts occurred and corrective measures were defined.

Aspect: Human Rights Grievance Mechanisms – Management Approach UNGC 1

Bayer area of activity

Business ethics

GRI aspect limitation

within and outside

G4-HR12 Grievances about human rights impacts UNGC 1

Comments

We do not report on the number of formal grievances with respect to human rights violations, but on the total number of notifications registered with the compliance hotline. We internally record the precise reason for the grievance and take corresponding action in line with our corporate policy. More detailed information on this would constitute a business secret.

Society

Aspect: Local Communities – Management Approach UNGC 1

Bayer area of activity

Safety

GRI aspect limitation

within and outside

Bayer area of activity

Stakeholder engagement / partnering

GRI aspect limitation

within and outside

Bayer area of activity

Societal engagement

GRI aspect limitation

within and outside

G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs UNGC 1

G4-SO2 Operations with actual and potential negative impacts on local communities UNGC 1

Aspect: Anti-corruption – Management Approach UNGC 10

Bayer area of activity

Business ethics

GRI aspect limitation

within and outside

G4-SO3 Percentage of operations assessed for risks related to corruption and risks identified UNGC 10

Comments

We do not report such risks in relation to operations but in relation to sales. Complete coverage across segments is key in compliance / anti-corruption in the first instance. Areas at risk are monitored more frequently than others.

G4-SO4 Communication and training on anti-corruption UNGC 10

Comments

We do not report quantitatively on training for the Board of Management, Supervisory Board and business partners. Anti-corruption training is performed globally, we therefore do not disclose such information explicitly according to region.

G4-SO5 Confirmed incidents of corruption and actions taken UNGC 10

Comments

We do not report on the number of confirmed incidents of corruption. We report on the total number of notifications registered with the compliance hotline. We internally record the precise reason for the grievance, track how it is followed up and take corresponding action in line with our corporate policy. More detailed information on this would constitute a business secret.

Aspect: Public Policy – Management Approach UNGC 10

Bayer area of activity

Business ethics

GRI aspect limitation

within and outside

G4-SO6 Total value of political contributions UNGC 10

Aspect: Anti-competitive Behavior – Management Approach

Bayer area of activity

Business ethics

GRI aspect limitation

within and outside

G4-SO7 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

Aspect: Compliance – Management Approach

Bayer area of activity

Business ethics

GRI aspect limitation

within and outside

G4-SO8 Fines and sanctions for non-compliance with laws and regulations

Aspect: Supplier Assessment for Impacts on Society – Management Approach UNGC 2

G4-SO9 Percentage of new suppliers that were screened using criteria for impacts on society

Comments

We do not report on the percentage of new suppliers screened using criteria for impact on society because these data are not available. We report on the procedure used for assessment.

G4-SO10 Negative impacts on society in the supply chain and actions taken UNGC 2

Comments

We do not report in detail on the negative impact on society determined during supplier evaluation. We give details on the areas in which essential impacts occurred and corrective measures were defined.

Aspect: Grievance Mechanisms for Impacts on Society – Management Approach UNGC 2, 3

Bayer area of activity

Business ethics

GRI aspect limitation

within and outside

G4-SO11 Number of grievances about impacts on society UNGC 2, 3

Comments

We do not report on the number of formal grievances with respect to the negative impact on society. We report on the total number of notifications registered with the compliance hotline. We internally record the precise reason for the grievance, track how it is followed up and take corresponding action in line with our corporate policy. More detailed information on this would constitute a business secret.

Product Responsibility

Aspect: Customer Health and Safety – Management Approach

Bayer area of activity

Sustainable food supply

GRI aspect limitation

outside

Bayer area of activity

Product stewardship

GRI aspect limitation

within and outside

G4-PR1 Percentage of significant product and service categories for which health and safety impacts are assessed

G4-PR2 Incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services

Comments

We do not report on the number of incidents of noncompliance with regulations and voluntary codes concerning the health and safety impact of products and services. Any proceedings on account of violations would be reported in B Notes to the Consolidated Financial Statements, Chapter “Legal Risks.”

Aspect: Product and Service Labelling – Management Approach UNGC 7

Bayer area of activity

Product stewardship

GRI aspect limitation

within and outside

G4-PR3 Principles/procedures for product and service information and labelling UNGC 7

G4-PR4 Incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling

Comments

We do not report on the number of incidents of noncompliance with regulations and voluntary codes concerning product and service information and labeling. Any proceedings on account of violations would be reported in B Notes to the Consolidated Financial Statements, Chapter “Legal Risks.”

G4-PR5 Results of surveys measuring customer satisfaction

Aspect: Marketing Communications – Management Approach UNGC 7

Bayer area of activity

Product stewardship

GRI aspect limitation

within and outside

G4-PR6 Sale of banned or disputed products UNGC 7

G4-PR7 Incidents of non-compliance with regulations and voluntary codes concerning marketing communications

Comments

We do not report on the number of incidents of noncompliance with regulations and voluntary codes concerning marketing communications. Any proceedings on account of violations would be reported in B Notes to the Consolidated Financial Statements, Chapter “Legal Risks.”

Aspect: Compliance – Management Approach

Bayer area of activity

Business ethics

GRI aspect limitation

within and outside

G4-PR9 Significant fines concerning the provision and use of products and services

Further G4 Standard Disclosures

Aspect: Biodiversity – Management Approach UNGC 8

G4-EN11 Operational sites in protected areas UNGC 8

Comments

We use our site register to record all site-related data (including size). For confidentiality reasons, we do not publish any size data on our sites, for example.

G4-EN12 Impacts on protected areas or areas of high biodiversity value UNGC 8

G4-HR1 Significant investment agreements and contracts that include human rights clauses or screening UNGC 2

G4-HR2 Employee training on human rights issues UNGC 1

Aspect: Customer Privacy – Management Approach

G4-PR8 Substantiated complaints regarding breaches of customer privacy