Slide 1: ESG Investor Conference Call: Update on sustainability commitments and latest achievements
ESG Investor Conference Call September 17, 2020 Update on sustainability commitments and latest achievements
Slide 2: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the ac
Slide 3: Covid-19 well managed within Bayer's sphere of influence
Covid-19 well managed within Bayer’s sphere of influence The pandemic is boosting sustainability Status Quo 1 Employee Health Securing health and safety of employees 2 Business Continuity Safeguarding supply, production, logistics and business operations 3 Humanitarian Efforts Health for all,
Slide 4: Sustainability commitments and latest achievements
Sustainability commitments and latest achievements Agenda Sustainability fully integrated in our strategy Sustainability targets: Progress & status quo Climate Access Targets Governance achievements Sustainability-based compensation Sustainability Council BASE principles Sustainability as integral p
Slide 5: Considerable progress has been made so far
Considerable progress has been made so far Selected examples June 2019 December 2019 February 2020 May 2020 August 2020 September 2020 Launching of Sustainability Launch of our Position on Science Roadmaps to Raising the targets set: vision „Health Deforestation Based Target targets bar
Slide 6: Sustainability is firmly anchored in organizational set-up
Sustainability is firmly anchored in organizational set-up Subheadline Matthias Berninger Head of Public Affairs, Science & Sustainability Vera Hahn Daniella Foster Dr. Sara Boettiger Dr. Klaus Kunz Dr. Claus Runge Dr. Monika Lessl Head of Head of Public Head of Public Head of Sustainability Head of
Slide 7: A. Sustainability fully integrated in our strategy
A. Sustainability fully integrated in our strategy 7 /// ESG Investor Update 2020-09-17 /// Matthias Berninger
Slide 8: Our new vision: Health for all hunger for none
Our new vision: Health for all hunger for none Sustainability is part of our strategic and normative compass At Bayer, Sustainability is • A key enabler of our company vision • A central component of and value lever within our group strategy and thereby a business opportunity • An ambition to genera
Slide 9: Sustainability is an integral part of our business strategy
Recap on our mandate: Sustainability is an integral part of our business strategy Corporate sustainability archetypes & new mandate for Sustainability at Bayer Shareholder maximizer Corporate contributor Impact generator Social innovator Focus on financial targets / Focus on financial targets Focus
Slide 10: Earth Overshoot Day – many ways to make our world more sustainable
Earth Overshoot Day – There are many ways to make our world more sustainable „The resource budget for We can do a lot to push this date to later in the year: 2020 is spend: By August 22 humanity had consumed the amount of 8 days through reforestation of 350 resources the earth can million hectare re
Slide 11: We combine our strengths across businesses to create bold impact for sustainable development
We combine our strengths across businesses to create bold impact for sustainable development At Bayer, we have impact on most of the 17 SDGs, The SDGs have three dimensions with major impact on the following: Improve livelihoods and reduce poverty, esp. in rural Improve people’s communities health a
Slide 12: Environmental risks have become the most significant risks to the world economy
Environmental risks have become the most significant risks to the world economy World Economic Forum – The Global Risks Landscape (10 year horizon) Climate action failure Biodiversity loss Water crises Extreme weather Source: WEF Global Risks Report 2020 12 /// ESG Investor Update 2020-09-17 /// Mat
Slide 13: B. Sustainability targets: Progress & status quo
B. Sustainability targets: Progress & status quo 13 /// ESG Investor Update 2020-09-17 /// Matthias Berninger
Slide 14: Measurable Group-level targets for Sustainable Development until 2030
Measurable Group-level targets for Sustainable Development until 2030 Help more PEOPLE thrive Decrease ECOLOGICAL footprint Support 100m smallholder farmers in LMIC1) Climate neutrality at own sites + Group-wide reduced emissions in our supply chain Goals that are Expand access to self-care for 100m
Slide 15: We are taking bold climate action across our value chain
We are taking bold climate action across our value chain Our climate commitments by 2030 Scope 31 Scope 1&2 Bayer-wide external Bayer-wide direct and indirect Extended value chain suppliers and services emissions from our operations (Crop Production, only) 10m tons/year2 3.7m tons/year2 100% carbon
Slide 16: Bayer's 2030 ambition with a Science Based Target of 1.5°C
Bayer’s 2030 ambition with a Science Based Target (SBT) of 1.5°C positions us in a group of leading companies 1 Baseline 2 Only 264 companies -42% have a 1.5°C target like Bayer (SBTi or Business 4 Ambition for 1.5°C) 3 Gross Emissions 5 2030 2050 Net Emissions 1 BASF: Carbon neutral growth until 20
Slide 17: Path towards 100% carbon neutral operations in 2030
Path towards 100% carbon neutral operations in 2030 42% reduction target for Scope 1& 2 is in line with limiting global warming to 1.5 C° Scope 1 (direct) & 2 (indirect) Scope 3 (up- and downstream value chain) 3.7 m tCO2e1 10 m tCO42e* other scope 3 emissions CH ≥ 12.3% Reduction of CO²e ≥ 42% othe
Slide 18: Net Zero ambition 2050 solidifies our vanguard position
Net Zero ambition 2050 solidifies our vanguard position Business ambition for 1.5°C support further strengthens our carbon-capture business model 1 Baseline 2 - Ambition for Net Zero in 2050 -42% - Linked to long term goal of Paris Agreement - Achieving ambition will depend on external factors, e.g.
Slide 19: Crop Science: Success factors & building blocks
Crop Science: Success factors & building blocks Success factors: Target: Support 100m smallholder Commercial operations farmers in LMIC1 Portfolio Differentiation: products tailored to local farmer needs at affordable prices Commercial Big Leaps License-to-operate & Biotech Approvals: Forecast regul
Slide 20: Better Life Farming centers provide solutions to smallholders
With the help of our partners, the Better Life Farming centers provide solutions to smallholders along the entire value-chain Smallholder Commitment – Big Leap Example: Better Life Farming Concept Global: Ecosystem of global and local partners providing holistic solutions for smallholders in dedicat
Slide 21: Towards Sustainable Agriculture: More with Less
Towards Sustainable Agriculture: More with Less Reducing environmental impact of crop protection and field greenhouse gas emissions by 30% until 2030 30 Reduction in field greenhouse gases emitted per kg of crops produced Impact generator: Focusing on Crops / Countries with highest potential: Soy/Co
Slide 22: Pharmaceuticals: Success factors & building blocks
Pharmaceuticals: Success factors & building blocks Voluntary Family Planning contributes to a wide range of UN SDG 2030 goals incl. SDG 3 and SDG 5 Success factors: Target: Provide 100m women in LMIC1 with access to Reliable supply, most importantly for long-acting modern contraception contraceptive
Slide 23: The Challenge Initiative will drive access to contraception in urban areas
The Challenge Initiative‘ will drive access to contraception in urban areas Bayer partners through John-Hopkins-University, with initial commitment of 10 mUSD1 • The Challenge Initiative provides cities in Africa and Asia with a bold approach to rapidly and sustainably scale high- impact family plan
Slide 24: We aim to broaden access to our pharmaceutical products to 100m people
Additional target: We aim to broaden access to our pharmaceutical products to 100m people in low and middle-income countries The Challenges Our Approach Traditional pricing models focus on Adopt an equitable pricing approach that developed, affluent countries with incorporates country-level affordab
Slide 25: Consumer Health: Success factors & building blocks
Consumer Health: Success factors & building blocks Success factors: Target: Expand access to self-care for 100m Access driven growth in Centro, Africa and people in underserved ASEAN markets communities Accessible and affordable Products Access Strategic Partnerships Strategic driven growth Partner-
Slide 26: 360 Partnership Approach: The Micronutrients Consortium
360 Partnership Approach: The Micronutrients Consortium will expand access to micronutrients for millions of women and children EXAMPLES OF POTENTIAL PARTNERSHIPS GOVERNMENTS Science & Policy & Advocacy Health education Accessible Supply & Distribution Micronutrients 26 /// ESG Investor Update 2020-
Slide 27: Sustainability offers significant value creation potential for Bayer
Sustainability offers significant value creation potential for Bayer Within 3 months only, tiered pricing delivered access for additional 400+ Nexavar patients in Kosovo, Syria, Iraq and Libya Novel Carbon Capture Business Model a multi- million EUR business The first seven Patient Access opportunit
Slide 28: C. Governance achievements
C. Governance achievements 28 /// ESG Investor Update 2020-09-17 /// Matthias Berninger
Slide 29: Sustainability goals reflected in managerial short- and long-term incentives
Group-wide Sustainability goals are reflected in BoM and managerial short- and long-term incentives Compensation of BoM and other managerial Quantitative LTI-relevant Sustainability KPIs as of Jan 1, 2021 employees linked to sustainability targets (baseline 2019 // targets refer to 2030 targets) Acc
Slide 30: Our external Sustainability Council
Our external Sustainability Council will support us with an outside-in perspective and, hence, external credibility Bayer’s Sustainability Council: Purpose and Role Purpose Advise Bayer’s Board of Management, the Sustainability organization and other relevant functions in all Sustainability matters,
Slide 31: Bayer Societal Engagement principles (BASE)
Bayer Societal Engagement principles (BASE) A strong code of conduct: BASE guides our interactions with all stakeholders 1. How we drive 2. How we act in the Innovation Workplace 6. How we interact 3. How we conduct with Shareholders our Business 5. How we interact with Media, 4. How we interact wit
Slide 32: Sustainability as integral part of Bayer processes
Sustainability as integral part of Bayer processes Sustainability gradually to be integrated into the processes of all enabling functions Example: strategic planning, risk management & M&A processes: Strategic Planning Growing importance of sustainability clarified through inclusion in strategic pla
Slide 33: D. External perspective on Bayer
D. External perspective on Bayer 33 /// ESG Investor Update 2020-09-17 /// Matthias Berninger
Slide 34: Current Bayer rating from key ESG rating agencies
Current Bayer rating from key ESG rating agencies does not fully reflect what we do 2020 2019 2018 Additional “red flag” BB on the topic of BB BBB Rating agencies biodiversity 34.4 (High Risk)1 66/100 (Outperformer) 69/100 (Outperformer) C+ C+ C+ 47 46 52 Results open #16 out of 20 # 12 out of 20 (2
Slide 35: Sustainability is a central factor influencing our external reputation
Sustainability is a central factor influencing our external reputation. Related business opportunities pay a double dividend on reputation Insight from Bayer´s Global Brand Tracking 2020 BRA CHN FRA DEU USA Familiarity 0,04 0,01 0,04 0,06 0,07 Social & Environmental Customer Orientation 0,00 0,03 0,
Slide 36: Achievements to bolster our Sustainability performance
Achievements to bolster our Sustainability performance Our vision “Health for all, hunger for none” & our strategic setup ensure impact generation in terms of Sustainable Development Goals 100% carbon neutral operations in 2030 in line with limiting global warming to 1.5 C° − Science Based Targets a
Slide 37: Q&A session
ESG Investor Conference Call Vera Hahn Dr. Klaus Kunz Head of September 17, 2020 Corporate Head of Sustainability & Business Stewardship, Sustainability Update on Crop Science sustainability commitments and Matthias Berninger Head of Public latest achievements Affairs, Science & Sustainability /////