Progress report on the implementation of the principles
of the UN Global Compact

Bayer has supported the United Nations Global Compact since this was founded in 2000. We want to
play an active part in the endeavors to make globalization more socially and ecologically compatible and
to raise standards in the fields of human rights, labor rights and environmental protection and in the fight against corruption.


Since the end of 2010, the UN Global Compact has offered participants a range of options for putting their own stamp on their progress reports. As a member of the Global Compact LEAD initiative, we base our activities on the Blueprint for Corporate Sustainability Leadership and report on the progress we make in line with the “Advanced Level.” For this level of progress reporting (Communication on Progress / COP), in addition to meeting the basic requirements, participants must also fill in a questionnaire that takes the form of a self-assessment. The questionnaire calls for the fulfillment of 24 criteria relating to strategy, goals, implementation of the Global Compact principles in the supply chain too, and publication of best practices. The Bayer “COP Advanced Level” can be found on the website of the UN Global Compact initiative: http://www.unglobalcompact.org/

The following table provides a concise summary of the activities and management systems at Bayer that support the 10 principles of the Global Compact and the results which were achieved in 2010.

 
Systems
Measures 2010
Achievements 2010
Principle 1:
Support of human rights
  • Human Rights Position link
  • Corporate Compliance Policy link 
  • Bayer Sustainable Development Policy link
  • Bayer policy guideline on procurement link
  • Procedure for selecting
    and evaluating suppliers link, link
  • Supplier Code of Conduct link, link
  • Guidelines on occupational
    health and safety link
  • Establishment of a Safety Council link
  • New program of targets for 2015 link
  • Strategy development and expansion of the alliances for sustainable health care link and partnerships for good harvests link
  • Information campaign (brochure / training presentation) on the theme of human rights extended to all Group countries by the start of 2011 link
  • Continuous information and training on the theme of compliancelink
  • E-learning tool for new employees, "Discovering Bayer” with chapter on human rights link
  • Purchaser training on sustainability and on the Supplier Code of Conduct link
  • Roll-out of the Supplier Code of Conduct from December 2009 link 
  • Occupational safety: ideas and activities link
  • Launch of Group-wide initiative on process and plant safety link
  • Increase in the Group-wide training
    rate for human rights issues link
  • Training rate for our strategic purchasers
    worldwide almost at 100%, plus training for new purchasers link
  • Supplier training sessions on the Code of Conduct and assessmentslink
  • Employee union representatives already elected at six sites of our Group companies in China; three more to follow shortly link
  • In 2010, 61% of managerial employees completed web-based compliance training link
  • Number of occupational injuries to Bayer employees that led to lost days fell again (to 1.7 MAQ) link
Principle 2:
Exclusion of human rights violations
  • Human Rights Position link
  • Corporate Compliance Policy link
  • Supplier Code of Conduct link , link
  • Procurement / Supplier
    management link, link
  • Information campaign (brochure / training presentation) on the theme of human rights extended to all Group countries by the start of 2011 link
  • Supplier management: risk analysis using the Bayer Country Sustainability Risk Index link
 
Principle 3:
Observance of the right to freedom of association
  • Collective agreements
    such as sector or in-house agreementslink
  • Bayer European Forum link
  • Human Rights Position link
  • Supplier Code of Conduct link
  • Constitution of union representation at Bayer China link
  • Information campaign (brochure /
    training presentation) on the theme
    of human rights extended to all
    Group countries by the start of 2011 link
  • Roll-out of the Supplier Code of Conduct from December 2009 link
  • Employee union representatives already elected at six sites of our Group companies in China; three more to follow shortlylink
  • Purchaser and supplier training on the Code of Conduct link
Principle 4:
Abolition of all forms of forced labor
  • Human Rights Position link
  • Corporate Compliance organization link
  • Supplier Code of Conduct link
  • Procurement / Supplier
    management link, link
  • Purchaser training on sustainability
    and on the Supplier Code of Conduct link
  • Roll-out of the Supplier Code of Conduct from December 2009 link
  • Supplier training sessions on the
    Code of Conduct and assessments link, link
Principle 5:
Abolition of child labor
  • Human Rights Position link
  • Corporate Compliance organization link
  • Procurement / Supplier management link, link
  • Supplier Code of Conduct linklink 
  • Bayer Child Care Program link, link, link
  • Expansion of system for countering child labor link, linklink  
  • Purchaser training on sustainability and on the new Supplier Code of Conduct link
  • Roll-out of the Supplier Code of Conduct from December 2009 link
  • Learning for Life initiative (India)
    for improved personal circumstances
    (in cooperation with NGO)link,link
  • Brochure on child labor link
  • Renewed confirmation by auditsm that there is no systematic child labor in the supply chain for cotton seeds in India link
  • Bayer Child Care Program expanded
    to seed production for hybrid rice in 2010link
  • Learning for Life initiative (India): in
    2010, 535 school students received
    educational support at 23 Academic Learning Centers. In the year under review, 834 children attended 29 Early Childhood Education Centers. In Karnataka, 1,949 trainees regularly attended vocational lessons in the 2009 / 2010 and 2010 / 2011 academic years  link
Principle 6:
Elimination of discrimination
  • Human Rights Position link
  • Bayer diversity policy link
  • Bayer diversity councils link
  • Corporate Compliance Policy link
  • Supplier Code of Conduct link
  • Equal opportunities programs at BHC linklink 
  • Promotion of diversity through networks linklink 
  • Bayer USA program for training and employing people with disabilities link
  • New target for 2015: increase the proportion of women in management positions to approaching 30% link
  • Continued increase in percentage of women in senior management
    positions link
  • SPEED program to support talented
    young employees and managerial
    staff in Asia / Pacific region link
Principle 7:
Precautionary environmental protection
  • Bayer Sustainable Development
    Policy linklink
  • HSEQ management
    systems link, linklink 
  • Risk management systems linklink 
  • Global Product Strategy link
  • Supplier Code of Conduct link
  • “BayRisk” instruction link
  • Establishment of a Safety Council link
  • Regular HSE(Q) audits link
  • Analysis of pharmaceuticals in the
    environment link
  • Training in methods of sustainable agriculture worldwide linklinklink 
  • Biodiversity projects link,link
  • Launch of Group-wide initiative on process and plant safety link
  • New target for 2015: roll out Global
    Product Strategy in another 10 countries with different
    languages
  • REACH: successful registration of 125 substances that are produced or imported in volumes greater than 1,000 metric tons per
    year or that are particularly hazardouslink
  • Presentation of the CEO Safety
    Award initiated by BMS link
  • Registration in the Inventory of
    the European Chemicals Agency
    (ECHA) of all substances marketed
    in the E.U. and classified as GHS by
    the deadline of November 30, 2010 link
Principle 8:
Specific commitment to environmental protection
  • Bayer Sustainable
    Development Policy link
  • Group Program of
    Objectives 2006+ link
  • New program of targets for 2015 link
  • Bayer Sustainability
    Program linklink,linklink
  • Bayer Climate Programlink,linklink  
  • UNGC Caring for Climate linklink 
  • CEO Water Mandate of
    the UN Global Compact link, link
  • Application of the Bayer Climate Check link
  • Implementation of the STRUCTese™ energy efficiency management system link
  • Green IT (resource efficiency with
    servers and printers linklink 
  • Climate Check concluded in 2010 link
  • STRUCTese™ successfully installed
    in 30 plants by end of 2010 link
  • Reduction in emissions of carbon
    monoxide, sulfur oxides and
    particulates link
  • Reduction in discharges of phosphorus, nitrogen and TOC into water link
  • Reduction of waste and hazardous wastelink
  • Achievements with respect to the
    CEO Water Mandate link
Principle 9:
Diffusion of environmentally friendly technologies
  • Core business of BTS,
    BMS and CURRENTA link, link, link, link
  • Use of waste material and climate gas carbon dioxide (CO2) from energy industry as alternative raw material for the production of high-quality plastics. A pilot plant was taken
    into operation at the CHEMPARK Leverkusen site to trial
    the new process on a technical scale. linklink  
  • New pre-treatment method for electronic scrap: special thermal
    pre-treatment method to recover valuable metals such as gold, silver and copper from old computer PCBs and cell phones link
  • Development of an automated test
    method to protect the functionality of Bayer’s wastewater treatment plant in Dormagen. Enables the early identification of the harmful impact
    of wastewater on bacteria for nitrification. This increases the operational reliability of the wastewater treatment plant and the reliability of waste management at Bayer link
  • In future, a climate-friendly method of chlorine production (oxygen depolarized cathode technology based on common salt) will make it
    possible to reduce the energy used
    in chlorine production by 30%. Bayer is planning to take a facility with an initial annual capacity of 20,000 metric tons into operation in Germany in 2011. By 2020, this
    method should cut emissions of CO2 equivalents by 250,000 metric tons link
  • Modernization of the central waste air incineration in Dormagen is complete link
  • A new process cuts nitrous oxide emissions in Dormagen by up to 99%, thus reducing CO2 equivalents by 220,000 metric tons per year. Installation of a secondary catalytic unit at the Caojing site (China) has already reduced nitrous oxide emissions by around 50% link
Principle 10:
Measures to fight corruption
  • Corporate Compliance
    Policy and organization link
  • Code of Conduct for
    Responsible Lobbying link
  • Directive on Integrity
    & Responsibility in
    Communications
    and Marketing link
  • Code of the “Voluntary
    Self-Monitoring by the
    Pharmaceutical Industry” (FSA) association link
  • Export controls (directive and manual)
  • Supplier Code of Conduct link
  • Procurement management: risk
    analysis
    using the Bayer Country Sustainability Risk Index link
  • Continuous information and training on the theme of compliance link
  • Entry in lobby register of the E.U. link
  • Corporate compliance training, 61% of managerial employees completed web-based compliance training link
  • Purchaser training sessions link
  • Supplier training sessions on the
    Code of Conduct and assessments link
  • Use of the Bayer Country Sustainability
    Risk Index link
Last updated: May 17, 2011

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