Overview

ESG ratings and rankings

Our goal is a fair assessment of our sustainability performance by our stakeholders. Therefore, an intensive dialogue on all ESG (environmental, social, governance) topics with the leading ESG rating agencies is very important to us. Every ESG rating agency has its own assessment methodology and sets its own priorities in company analysis. This evaluation method does not always allow the specifics of a company's business model to be fully mapped. Nevertheless, the results of the ESG ratings are the basis for continuous improvement measures in the area of sustainability for us.

 

A current selection of ratings and rankings from the areas of sustainability / ESG is listed below.

 

Bayer’s Sustainability Performance

In March 2020, Deutsche Börse launched an index for sustainable companies in Germany. Bayer was included in this index as one of the most heavily weighted companies.

 

About the index
The Dax 50 ESG index is based on the methodology of the Dax index family. For the first time, it also includes what are known as ESG criteria (Environmental, Social and Governance) for the selection of the companies represented in the index. Deutsche Börse uses the results of the international ESG rating agency Sustainalytics to rate companies according to the ESG criteria.

In 2020 Bayer was again confirmed in the FTSE4Good Index. Companies that meet strict ecological and social criteria, such as environmental management and climate protection, employee rights, anti-corruption, sustainability in the supply chain and sustainability reporting, qualify for the index.

 

About the index
The benchmark series of “FTSE4Good” indices are a series of indices initiated by the Financial Times and the London Stock Exchange (FTSE), which have a high priority in the international sustainability indices. Bayer has been listed since the series was established in 2001.

In recognition of our efforts for an equal and inclusive corporate culture, Bayer was one of the few German companies to be included in the Bloomberg Gender Equality Index again in 2021.


About the rating
The Bloomberg Gender-Equality Index therefore includes listed companies that have a proven track record of promoting gender equality. Criteria for acceptance include the proportion of women in management positions and the measures implemented by the company to promote talent and equal pay for women, an inclusive corporate culture and protection against sexual harassment.

On a scale from A (best grade) to D, Bayer was rated C + by the rating agency ISS ESG in 2021, making it one of the top 10% of all companies in the chemical industry examined. The so-called prime status begins with the next higher classification (B-). A summary of Bayer's ISS ESG Rating can be found here

 

About the rating
ISS ESG is a rating agency in the sustainable investment segment that examines companies according to a large number of ecological, social and governance criteria. The areas of employees and suppliers, social responsibility and product stewardship, corporate governance, sustainability of products, environmental management and eco-efficiency are assessed.

sustainalyticsThe Sustainalytics ESG Risk Rating evaluates the sustainability performance of companies in five risk levels on a scale from "negligible" to "severe". Bayer was classified in the “medium risk” category in 2021 with a score of 28.6. This puts Bayer in the 7th percentile within the “subindustry” defined by Sustainalytics and above the branch average of the pharmaceutical industry.

A summary of the Bayer “ESG Risk Rating Report” can be found here.


About the rating
Sustainalytics' ESG Risk Rating defines financially significant ESG risks in companies' portfolios and assesses how these risks could affect performance. More than 12,000 companies were analyzed.

On a scale from AAA (best grade) to CCC (worst grade), Bayer was rated BB in 2021 by the rating agency MSCI and is thus in the industry average of the pharmaceutical companies examined. You can find the link to our current rating here.


About the rating
The MSCI ESG Rating measures a company's resilience to long-term, industry-relevant environmental, social and governance risks (ESG). 8,500 companies worldwide are included in the assessment.

For the fourth time, the international rating agency for sustainability evaluations EcoVadis extensively assessed Bayer and once again awarded it the „advanced“ level for its company-wide sustainability management.

 

This places Bayer among the top 5% of the 75,000 companies assessed.


EcoVadis analyzes companies’ sustainability performance in four categories – Environment, Labor & Human Rights, Fair Business Practices & Ethics, and Sustainable Procurement. With a score of 70/100, Bayer achieved an excellent result. The link to an overview of the results can be found here.

  
About the rating
EcoVadis has been operating an independent collaborative platform that prepares CSR ratings of suppliers for global supply chains since 2007. EcoVadis has set itself the goal of promoting companies’ environmental and social practices through CSR performance monitoring within the supply chain and supporting them in improving their sustainability.

CLIMATE-stamp-2020.jpg

Renowned ratings organization CDP (the “Carbon Disclosure Project”) has once again named Bayer among the leading international companies in the climate and water categories, awarding it the highest rating of “A”. Bayer is the only company of the German DAX that received the “A” rating for climate and water. From a survey of more than 5,800 companies, only 182 achieved an “A” rating for their climate activities and only 72 achieved the highest “A” rating in the water category. Thanks to verifiable measures implemented to combat climate change and ensure the availability of clean water, Bayer is regarded as a global leader when it comes to ambition, action and transparency. The company has been included in the CDP rankings since 2005.

 

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About the rating
CDP’s annual evaluation process is generally recognized as the gold standard when it comes to the transparency of corporate environmental activities. In 2020, more than 515 investors with assets of over 106 trillion US dollars and more than 150 major customers with procurement expenditure in excess of 4 trillion US dollars called on companies to use the CDP platform to disclose data on environmental impacts, risks and opportunities. With 9,600 participants, more companies than ever before were evaluated by CDP this year. The criteria used for the evaluation included completeness of disclosure, awareness and management of environmental risks, and evidence of best practices.


The A List and additional information is available here.

Improving global access to health care is an important part of our sustainability strategy. In the Access to Medicine Index 2021, Bayer has improved by three places compared to the previous ranking and is currently 13th out of 20 pharmaceutical companies. Our improvement can be seen in the “Governance of Access” category, which is due in particular to our values (LIFE), incentive systems (e.g. LTI) and our sustainability commitments. We also improved in the “Product Delivery” category. Our consistent engagement in Family Planning and Neglected Tropical Diseases already builds a strong foundation in this area, as well as the broad geographical footprint in registrations of new products in high burden countries. Our family planning program, The Challenge Initiative and the Ghana Heart Initiative, included two outstanding initiatives that strengthen health systems.

 

About the Rating
The „Access to Medicine Foundation“ ) was founded in the Netherlands with the aim of improving access to sustainable health care, especially in developing countries. Every two years, the Access to Medicine Foundation reports on how 20 pharmaceutical companies are making medicines, vaccines and diagnostics more accessible to people in 126 low and middle income countries. The Access to Medicine Index 2021 comprises 82 diseases, conditions and pathogens that are analyzed in three technical areas: "Governance of Access", "Research & Development" and "Product Delivery". The supporters of this global initiative include the Bill & Melinda Gates Foundation, the Dutch Foreign Ministry and the UK AID as well as over 50 institutional investors.

The Wall Street Journal included Bayer in its ranking of the 100 most sustainable companies in the world in 2020 - Bayer ranks 88th overall. In the social capital category, Bayer even came in 5th place.


About the ranking
For the Wall Street Journal ranking, more than 5,500 listed companies worldwide were evaluated on the basis of sustainability indicators in the areas of business model and innovation, social capital (external social and product issues), the environment and human capital (internal employee and workplace issues). The ranking is based on the framework of the Sustainability Accounting Standards Board (SASB).