Strong Governance Measures Accompany Our Strategy
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Our Sustainability Governance Framework is a holistic approach ensuring sustainable execution and advancements:
Clearly defined roles and responsibilities ensure effective sustainability management throughout the organization. The top level of responsibility is held by the Chairman of the Board of Management in his role as Chief Sustainability Officer (CSO) together with the entire Board of Management.
Gradual integration in processes of functions & divisions such as Strategic Planning, Risk Management, Procurement, Research & Development and Human Resources as well as operational implementation takes place in the divisions and along the value chain. Each of our divisions has an established sustainability organization, with sustainability aspects also being integrated into the processes of the enabling functions.
Since 2022, our new Sustainability Decision Committee, composed of managerial employees from the divisions and enabling functions, comes together regularly to coordinate sustainability measures through-out the Group.
As part of our Integrated Management System, Bayer has established a clearly defined structure of binding internal regulations for the Group (including legal and regulatory regulations) that describe fundamental principles and framework conditions, standards of conduct, proceedings and methods, as well as the related roles and responsibilities. At the global level, each division and enabling function is responsible for its own management system in accordance with business requirements and the applicable legal and regulatory requirements. In addition, compliance management systems and risk management systems are established accordingly.
Transparency and Reporting are the prerequisite to build up and strengthen trust. Besides our annual sustainability reports, we issued the Industry Association Climate review, in which we compare the position of our associations with our own positions and engage to reduce any deviations. Our first report in 2021 currently ranked No. 4 across all industries by Influence Map.
We are dedicated to a climate policy that is in harmony with our ambitious climate targets. To ensure transparency in this process, Bayer published its Industry Association Climate Review – Engagement Update 2022. The review assesses the alignment of our industry associations’ climate positions with our own commitments on climate change. Our industry associations represent us in the public debate. We are transparent about where our climate-change goals are aligned with their actions and where we have different views. Where we find misalignment between our climate ambitions and those of our industry associations, we will take measures to bridge that gap.
Thus, Industry Association Climate Review in 2021 was the first step and forms the basis for Bayer’s continued commitment to advocacy for science-based policies addressing climate change through its member associations. In compiling the analysis, we have engaged with CA 100+. For more background and additional information, please also see the interview with Marco Annas, Head of Public Affairs.
Please see below some initial quotes on the first Industry Association Climate Review from the CA100+ engagement leads:
“We are very pleased to see the publication of Bayer’s first Industry Association Climate Review. The results evidence a lack of positioning on climate-related issues from over half of the organisations assessed and reinforces the critical importance of company engagement around this topic to prevent misalignment between rhetoric and action. Through ongoing dialogue as part of Climate Action 100+, Bayer has shown its openness to investor feedback and its commitment to support and advocate for science-based climate policy. Union Investment looks forward to continued engagement with Bayer on its increased alignment with the Climate Action 100+ Net-Zero Company Benchmark.”
Janne Werning, Head of ESG Capital Markets and Stewardship,
Union Investment“ The Church Commissioners welcome Bayer’s first Industry Association Climate Review and engagement with Climate Action 100+. Bayer’s commitment to transparency and their engagement with misaligned and partially misaligned associations are appreciated, and we look forward to seeing tangible results. We also welcome Bayer’s aspiration to work with relevant organisations that currently have no climate stance to develop positions that support the low carbon transition across the global economy. The Church Commissioners will continue to engage with Bayer on environmental issues and value our ongoing constructive dialogue.”
Bess Joffe, Head of Responsible Investment, Church Commissioners for England
At the beginning of 2022, the Supervisory Board deployed a separate ESG Committee. Within the responsibility of the Supervisory Board, this focuses on Bayer’s sustainable governance and business activities in the areas of environmental protection, social affairs and good corporate governance (ESG).
A major element of our intensified sustainability efforts is the independent Sustainability Council that we have established. This currently comprises nine internationally recognized experts from the areas of healthcare, nutrition, agriculture and the environment, representing a broad range of views, differing geographical origin and different genders.
Our annual Sustainability Report is assured with limited assurance by the external Audit Firm Deloitte GmbH. They assure that all information contained in our Sustainability Report has been prepared in all material in accordance with the Global Reporting Initiative Standards.