ESG ratings and rankings
Based on high-quality company data, ESG ratings often form the basis for sustainable investment strategies. We have been in close contact with the leading ESG rating agencies for years. Our goal is to achieve a fair and transparent assessment of our company. At the same time, through the comparison with other companies, we have also gained important information for the extension of our sustainability activities.
Through targeted and constructive dialogue, we have been able to make significant progress in recent years with what we consider to be the most important rating agencies. These include, among others, elimination of the respective MSCI and ISS-ESG red flags, an improved position in the Access to Medicine Index and a leading position in the Access to Seeds Index.
Here you will find an overview of the most important ratings for us:
A current selection of ratings and rankings from the areas of sustainability / ESG is listed below.
Bayer’s Sustainability Performance
On a scale from AAA (best grade) to CCC (worst grade), Bayer was rated A in 2022 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.
On a scale from A (best grade) to D, Bayer was rated C + by the rating agency ISS ESG in 2022, 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-).
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.
The 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 2022 with a score of 29.9. Bayer is thus among the top 12%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 20,000 companies were analyzed.
Renowned rating organization CDP (former known as the “Carbon Disclosure Project”) has once again named Bayer among the leading international companies in the climate category, awarding it the highest rating of “A”. Thanks to verifiable measures implemented to combat climate change, Bayer is regarded as a global leader when it comes to ambition, action and transparency. In addition, Bayer achieved an A- in Water and a B for forest. The company has been included in the CDP rankings since 2005.
The A List and additional information is available here.
Improving global access to health care is an important part of our sustainability strategy. Every two years, the Access to Medicine Foundation ranks 20 of the world's largest pharma companies on how they perform in improving access to medicine for people in low- and middle-income countries (LMICs). In the Access to Medicine Index 2022, Bayer entered into the Top 10, moving from 13th to 9th place. The report acknowledges Bayer’s link between long-term incentives and sustainability goals, as well as Bayer’s regulatory footprint, how the organization ensures supply chain resilience and the transparency on the outcomes of our access activities, to name a few. It also highlighted best practices in family planning and neglected tropical diseases. Find more information here.
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 2022 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 Access to Seeds Index of the World Benchmarking Alliance (WBA) compares seed producers’ efforts to help smallholder farmers in LMICs. The 2021 index compared 67 seed companies in three regions. Bayer took the top spot in the Western and Central Africa and Eastern and Southern Africa regions and placed third in the South and Southeast Asia region, in part for our establishment of support programs to strengthen smallholder farmers.
About the ranking
Every second year, the Access to Seeds Index assesses seed companies on their efforts to make quality seeds accessible to smallholder farmers. By providing insights into companies’ performance, presence and portfolio, the index aims to contribute to building partnerships with the seed industry.
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.
In 2022 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 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.
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.
