Improving Sustainability Practices in the Supply Chain
We align our procurement processes to ambitious ethical, social, and environmental principles and support our suppliers to meet these standards – also because sustainable business practices lay the foundation for risk mitigation across the supply chain. Moreover, sustainability is an important strategic lever for Bayer safeguarding both its global competitiveness and the seamless supply of materials, goods and services. More information can be found in the Bayer Impact Report.
Our principles for collaboration are defined in Bayer’s Supplier Code of Conduct. In addition, our comprehensive Supplier Code of Conduct Guidance provides concrete examples of good practices and benchmarks which suppliers can adopt, and references such as the regulatory framework and standards governing Bayer’s sustainability efforts. To improve sustainability practices within the supply chain we follow a Four-Step Management Process.
Supply Decarbonization
In 2020, Bayer set significant absolute reduction targets for both own operations (Scope 1 and 2) as well as value chain emissions (Scope 3), in line with the criteria set by the Science Based Targets initiative (SBTi), all to be achieved by the end of 2029. In 2024, we revalidated our targets with the SBTi and thereby raised the bar for our Scope 3 reduction from 12.3% to a 25% reduction. Our efforts are driven by a cross-functional Supply Decarbonization program. The program is centered around four Outcome Areas: Supplier collaboration, Procurement empowerment, Value chain engagement, and Performance management. We expect suppliers to reduce GHG emissions, source renewable energy, and provide Product Carbon Footprint (PCF) data to us.
Responsible Procurement Program
Bayer is committed to building the capabilities of small and diverse suppliers and social enterprises to support their readiness to scale with Bayer and to strengthen an inclusive, future-ready supplier ecosystem. Learn more about our Responsible Procurement commitments, our signature capability building initiative - the Momentum Supplier Development Program - and awards here.
Human Rights
Respecting human rights along the supply chain is anchored in Bayer’s sustainability strategy and Procurement plays a key role in implementing all necessary measures. Our human rights strategy is anchored in the UNGP on Business and Human Rights and OECD Guidance for Responsible Business Conduct, and we commit to comply with mandatory regulations (e.g. SCDDA). We foster socially responsible purchasing practices in our sourcing strategy and aim to generate a positive impact to the rightsholders in our supply chain.
Through the Energize program that Bayer sponsors, we are providing a pathway for our suppliers to reduce emissions by transitioning to renewable energy. This program offers renewable energy education and expert consultation, orchestrated by Schneider Electric, at no cost to all Bayer suppliers.
Bayer uses EcoVadis to assess the sustainability performance of companies in our global supply chain. The assessments are covering topics of Environmental, Labour & Human Rights, Ethics and Sustainable Procurement and are verified with proof documents and 360° screening.
