Bayer : Bayer : Sustainability Highlight Report 2024

Health for all, Hunger for none Sustainability Highlight Report 2024 Sustainability at Bayer Our company set off on a journey to focus the efforts of every Bayer employee solely on our bold mission: Health for all, Hunger for none. Those last six words aren't new to anyone who has followed Bayer over the past five years. What's new is the unrelenting focus we're dedicating to them. We want every person, project and process in the company to be centered on that aspirational mission. Through our three divisions - Pharmaceuticals, Consumer Health and Crop Science - we are uniquely positioned to support access to healthcare, food security and climate action and to promote a more sustainable agriculture. Thus, we contribute significantly to achieving the United Nations' Sustainable Development Goals (SDGs). Bayer is dedicated to scientific research and technological progress - that has always been the secret of our company's success, and it is also the key to transitioning to a sustainable economy. And even in turbulent times, we stay on track: We promised to reach our ambitious sustainability targets and continue working toward them. In line with our corporate mission of "Health for all, Hunger for none," sustainability is central to everything we do and enables us to create inclusive growth and value for society. But no one can do it all alone. The people of Team Bayer are committed to doing their part. If there's one thing I've witnessed from my colleagues in my first year "Let's be clear: with the company, it's been their deep passion to benefit people and the earth partnerships along our value chains. That's why we collaborate with our the days of constantly with their work. Additionally, we believe in and rely on building strong partners in initiatives across the globe to achieve our sustainability goals. setting new targets are over. Through our expertise and solutions, we want to make an important Now is the time to take contribution - guided by the SDGs and the principles of the UN Global Compact. And we report on sustainability in alignment with internationally concrete action." recognized frameworks­ and standards. Bill Anderson, Chairman of the Board of Management (CEO) & Chief Sustainability Officer (CSO) of Bayer AG Sustainability Highlight Report 2024 2 Health for all, Hunger for none A growing world population and the increasing burden on natural ecosystems are among the biggest challenges humanity is facing. As a global leader in healthcare and nutrition, Bayer can contribute more than any other enterprise to solving global challenges through its business. With this goal in mind, Bayer is committed to ambitious targets that it aims to achieve through its own business activity and the endeavors of its employees. Sustainable Development Goals (SDGs) on which we have the greatest impact through our business activities Our sustainability strategy is aligned with the global SDGs of the United Nations. From climate action to more sustainable­ agriculture and food security, from access to healthcare­ products to empowering­ women, we are working consistently and purposefully to reduce risks and increase our positive impact. l e op u e p n t r i l o 2 f 0 s 3 t 0 r g e We will a support a total of 100 million smallholder t r farmers in LMICs 1 by u O 2030 by improving their access to agricultural We want to products and services, including in collaboration support 100 million with our partners. 2 people in economically or medically underserved communities with self-care Food Climate interventions from Bayer in 2030. 2 security protection s t e g r a t r u O f o r 0 3 0 2 l i t n 3 u Reduce own GHG t e by an absolute 42% compared n a l to the base year 2019 by the end h p t e of 2029 (Scope 1 & 2 4 ) Reduce GHG 3 from relevant Scope 3 categories 5 in our supply chain by an absolute 25% (compared to the 2019 base year) by 2029 Bayer aims to achieve climate neutrality at all its own sites (Scope 1 & 2 4 ) by 2030. By 2030, the remaining greenhouse gas emissions of our own operations will be fully offset by purchasing certificates from verified climate protection projects, especially in the areas of forest conservation and agriculture. It is our ambition to improve access to our prescription products for people in LMICs 1 through improved availability and modified drug pricing, as well as through our patient access programs. Access growth Reduced Environ- mental Reach net-zero GHG 3 incl. our entire value chain 6 by 2050 or earlier (Scope 1, 2 & 3) We aim to enable our farming customers to reduce their on-field greenhouse gas emissions per mass unit of crop produced by 30% by 2030 compared to the overall base year We aim to fulfill the to health Inclusive footprint ecological impact reduction emission intensity 7 . This applies to the highest greenhouse gas-emitting crop systems in the regions Bayer serves with its products. 8 need of 100 million women in LMICs 1 for modern contraception by 2030. 2 We aspire to achieve Women's empower- gender balance at all ment management levels by 2030. Acting responsibly along the entire value chain Reduce the treated-area-weighted Environ- environmental impact per hectare of Bayer's global crop protection mental portfolio by 30% by 2030 against a protection 2014-2018 average baseline Support our smallholder customers to increase water productivity 9 by 25% by 2030 against a 2019-2021 average baseline 10 by transforming ¹ LMICs: low- and middle-income countries These targets are accounted for in the long-term variable compensation (LTI) of our Board of Management and our LTI-entitled managerial employees. GHG: greenhouse gas emissions Comprises direct emissions (Scope 1) and indirect emissions (Scope 2, market-based) from Bayer sites whose annual energy consumption exceeds 1.5 terajoules In accordance with the criteria set out by the Science Based Targets initiative (SBTi), the following Scope 3 categories of the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting & Reporting Standard are relevant for Bayer: (3.1) purchased goods and services, (3.2) capital goods, (3.3) fuel- and energy-related activities, (3.4) (upstream) transportation and distribution and (3.6) business travel. Entire Scope 1, 2 & 3 emissions. Scope 3 includes all categories defined in the GHG Protocol. Our reduction target refers to an overall base year greenhouse gas intensity that includes the weighted emission intensities of 17 crop-country combinations (CCC). The crop-country combinations Italy-Corn and Spain-Corn were not selected based on these factors but were additionally included because data were already available. Water productivity is defined as kg of crop yield per volume of water applied (kg/m 3 ). Baseline validation still ongoing Our water target is currently focusing on the DirectAcres Initiative, which aims at supporting farmers shift successfully from transplanted puddled rice to mechanized direct seeded rice. Where safety permits and regulations allow rice cropping in the relevant geographies where Bayer operates, starting in India 11 Transition all Consumer Health products to 100% recycle-ready packaging 12 Sustainability Highlight Report 2024 3 Access to healthcare Europe / Middle East / Africa Modern contraception ~32 million Latin America women reached ~9 million in 2024 women reached in 2024 Target 2030: Fulfill the need of 100 million women in LMICs for modern contraception 1 Asia / Pacific ~10 million women reached in 2024 Key figure in million 38 44 46 51 Number of women reached in LMICs who have their need for modern contraception fulfilled due to inter- ventions supported by Bayer Partnerships: The Challenge Initiative (TCI), World Contra­ Base Status Status Status ception Day 2019 2022 2023 2024 We support individual health and well-being. This applies particularly to our world-leading products in women's healthcare, including ­contraception. Family planning greatly improves the opportunity for girls and young women to complete their education and find employ- ment. This, in turn, contributes to more equality and affluence, which plays a crucial role in improving health, as well as reducing poverty and hunger. Therefore, access to modern contraceptives is essential for future economic and social development. 1 We aim to fulfill the need of 100 million women in low- and middle-income countries (LMICs) for modern contraception by 2030. Sustainability Highlight Report 2024 4 Access to healthcare Target 2030: Support 100 million Self-care people in economically or medically underserved communities with self-care 1 Over half of the world's population lacks access to basic medical care. That's why we are adapting our brands, products and ­solutions to meet the medical, pricing, packaging­ and distribution needs of people in underserved communities. We are developing and expanding our self-care education offerings in order to provide people with the information and tools that they need to make well-founded decisions about their own health and that of their families. North America Europe / Middle East /Africa ~13 million people supported in 2024 Key figure in million Number of people in economically or medically underserved communities whose self-care is supported by interventions from Bayer Partnership: Vitamin Angels 70 2 75 2 73 2 41 53 3 49 51 Base Status Status Status 2019 2022 2023 2024 and Latin America ~26 million people supported in 2024 Asia / Pacific ~34 million people supported 1 We want to support 100 million people in economically in 2024 or medically underserved communities with self-care interventions from Bayer in 2030. Including our strategic investments in India Target-relevant Score Sustainability Highlight Report 2024 5 Food security Africa / Middle East ~13 million smallholder farmers reached in 2024 Focus crops: corn, cereals, vegetables, cotton Focus crops: corn, vegetables, fruits, potatoes Latin America ~2 million smallholder farmers reach