Metrics and Targets in the Area of Climate Change

We measure our target attainment based on clearly defined metrics and thus make our progress and challenges as regards climate change transparent.

Targets related to climate change mitigation and adaptation [E1-4]

Our climate protection objectives are focused on our reduction targets.

Scope 1, 2 and 3 reduction targets

To reduce our own greenhouse gas emissions and those along our value chain, we have established the following reduction targets that have been developed in a structured process involving internal and external stakeholders.

Targets 2029:

In 2020, we set ourselves a target of achieving a 42% reduction in absolute combined Scope 1 and 2 greenhouse gas emissions¹ compared to the base year 2019 by the year 2029. The base year for our reduction target is 2019, at 3.76 million metric tons of CO₂ equivalents. Our combined Scope 1 and 2 target was once again validated by the SBTi in 2024; it is commensurate with the target path of 1.5 °C. We will offset the remaining greenhouse gas emissions from our own operational processes by 2030 by purchasing certificates from verified climate protection projects.

In 2025, we reduced our combined Scope 1 and Scope 2 greenhouse gas emissions by 25.9% (2024: 21.3%) compared to the base year 2019. In 2025, we reduced our Scope 1 greenhouse gas emissions by 9.4% (2024: 9.4%) compared to the base year 2019. This corresponds to a reduction of 0.19 million metric tons of CO₂ equivalents (2024: 0.2 million metric tons of CO₂ equivalents). In 2025, we reduced our (market-based) Scope 2 greenhouse gas emissions by 46.3% (2024: 36.8%) compared to the base year 2019. This corresponds to a reduction of 0.78 million metric tons of CO₂ equivalents (2024: 0.63 million metric tons of CO₂ equivalents). In 2025, we reduced our (location-based) Scope 2 greenhouse gas emissions by 16.3% (2024: 6.8%) compared to the base year 2019. This correspondsto a reduction of 0.29 million metric tons of CO₂ equivalents (2024: 0.12 million metric tons of CO₂ equivalents).

In 2020, we had set ourselves a target of achieving a 12.3% reduction in absolute Scope 3 greenhouse gas emissions compared to the base year 2019 by the year 2029. The reduction was based on the five categories of Scope 3 greenhouse gas emissions according to the GHG Protocol that were target-relevant for us at the time: (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. This target was validated by the SBTi in 2020 and supports the target path “well below 2 °C.” Scope 3 greenhouse gas emissions based on the five target-relevant Scope 3 categories amounted to 8.82 million metric tons of CO₂ equivalents in the base year 2019. With the target that was adjusted in 2024 and validated once again by the SBTi, we now want to achieve a 25% reduction in Scope 3 greenhouse gas emissions by 2029 (compared to the base year 2019); this is commensurate with the target path “well below 2 °C.” This adjusted reduction target includes all Scope 3 categories. In addition to expanding our reporting by including additional Scope 3 categories, we undertook adjustments to the methodology that enable a more complete calculation of greenhouse gas emissions. The inclusion of all Scope 3 categories also changes our Scope 3 greenhouse gas emissions in the base year 2019 to 10.34 million metric tons of CO₂ equivalents. In 2025, we reduced our Scope 3 greenhouse gas emissions by 12.0% compared to the updated reference value from 2019. This corresponds to a reduction of 1.24 million metric tons of CO₂ equivalents. For more information on the Scope 3 categories, please see the section “Greenhouse gas emissions of Scope 1, 2 and 3 and total greenhouse gas emissions [E1-6].”

Net zero target 2050:

Our target is to achieve net zero greenhouse gas emissions including the entire value chain by 2050². This corresponds to a 90% reduction in absolute Scope 1, 2 and 3 greenhouse gas emissions compared to the base year 2019. We intend to offset the remaining 10% greenhouse gas emissions through the purchase of certificates with long-term carbon capture³. We will thereby ensure that these residual emissions are offset in the long term. This target was validated in 2024 by the SBTi and is in line with the UN Sustainable Development Goals, the Paris Agreement to limit warming to 1.5 °C and the Business Ambition for 1.5 °C of the UN Global Compact Initiative. Our target of net zero greenhouse gas emissions by 2050 relates to the absolute figure compared to the base year 2019 and also includes any future changes or fluctuations in our greenhouse gas emissions (e.g. due to changed production volumes). Through the inclusion of all Scope 3 categories and through adjustments in the method of some Scope 3 categories, the baseline value of our total greenhouse gas emissions (Scope 1, 2 and 3) in the base year 2019 changes to 14.10 million metric tons of CO₂ equivalents.

In 2025, we reduced our total greenhouse gas emissions (Scope 1, 2 and 3) by 15.7% compared to the updated baseline value for 2019. This corresponds to a reduction of 2.21 million metric tons of CO₂ equivalents. For more information on the Scope 3 categories, please see the section “Greenhouse gas emissions of Scope 1, 2 and 3 and total greenhouse gas emissions [E1-6].”

We have set our greenhouse gas emissions reduction targets for the years 2029 and 2050. We have not defined any other target years. Our reduction targets for Scope 1, 2 and 3 greenhouse gas emissions are in line with the findings from our double materiality assessment and the global requirements of the GHG Protocol, as well as the cross-sector guideline of the SBTi. We regularly review our targets, target attainment based on the achieved reductions, and our total inventory of greenhouse gas emissions. For more information, please see the section “Greenhouse gas emissions of Scope 1, 2 and 3 and total greenhouse gas emissions [E1-6].” In 2024, our reduction targets were revalidated by the SBTi. We measure the effectiveness of our activities and actions based on target attainment. In implementing the measures, there are numerous dependencies, particularly as regards the available technologies, suitability for implementation along the value chain and regulatory requirements. When it comes to the reduction targets for Scope 3 greenhouse gas emissions in particular, there are only indirect, limited opportunities to exert influence. At present, we can see that the global community is not doing enough to meet the Paris climate goals. One example is the insufficient availability of renewable energies. Our target attainment measures are described in the section “Management of impacts, risks and opportunities in relation to reducing greenhouse gas emissions and energy.” We use two scenarios in our climate analysis that we also take into account when shaping our reduction plans.

Reducing greenhouse gas intensity in agriculture

The target for reducing greenhouse gas emissions in agriculture is based on our double materiality assessment. According to a report by the Intergovernmental Panel on Climate Change (IPCC) published in March 2023, agriculture, forestry and other land use account for around 22% of global greenhouse gas emissions. We have set ourselves the target of enabling 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 greenhouse gas intensity. The overall base-year greenhouse gas intensity includes the weighted greenhouse gas intensities of different crop-country combinations. Base years are defined individually for each crop-country combination, using data from either harvest year 2021 or 2022 depending on the availability of data. Base years were adjusted in 2024 due to additional data requirements based on an updated greenhouse gas emissions calculation methodology and missing data from prior years. To calculate the overall base-year greenhouse gas intensity, individual greenhouse gas intensities per crop and country were weighted according to our footprint in these crops and regions. To do that, we use the total production volume of a particular crop in a particular market as stated in the database of the Food and Agriculture Organization (FAO) of the United Nations, our market share in this market and the greenhouse gas intensity of this crop in this country. Using this methodology, our customers’ overall greenhouse gas intensity weighted across all crop-country combinations in the scope of our target was 726 kilograms CO₂ equivalents per metric ton of crop produced (base-year greenhouse gas intensity of our target). We have published our methodology in a report titled “Bayer Reduction of on-field GHG Emissions – Methodological Report,” which is available on our website.

Based on the data collected for the harvest years 2024 or 2025 (depending on the base year for the respective crop-country combination), our customers’ total greenhouse gas intensity weighted across all crop-country combinations in the scope of our commitment fell by 20% (to 581 kilograms CO₂ equivalents per metric ton of crop produced) against the total weighted base-year greenhouse gas intensity (726 kilograms CO₂ equivalents per metric ton of crop produced). Key drivers for improvement are primarily due to India-rice- and US-cotton-reduced GHG intensity. We measure the effectiveness of our activities and actions based on target attainment. The target attainment measures are described in the section “Management of impacts, risks and opportunities in relation to reducing greenhouse gas emissions and energy.” With this target, we directly address the implementation of regenerative farming practices and thus support both decarbonization and adaptation to future environmental conditions.

Energy consumption and mix [E1-5]

Production at our sites accounts for the most significant share of our energy requirement, which depends on the production processes applied and the depth of our value chain. Primary and secondary energy consumption required for production processes is usually dependent on the production volume: the more that is produced, the greater the energy consumption and also the associated greenhouse gas emissions. When calculating total energy consumption, we differentiate between primary and secondary energy consumption. The sources of primary energy consumed are renewable and fossil fuels that we use to generate electricity, steam and cooling energy for our own use and, to a small extent, for sale to other companies. Secondary energy consumption reflects the purchase of electricity, steam and cooling energy at our sites worldwide. Energy consumption data is collected annually within the scope of the environmental reporting of all environmentally relevant sites. Designated officers at the sites directly enter the data measured for the period January through October and estimated values for November and December into a central reporting platform. The estimate is based either on the prior-year data, where necessary adjusted to reflect special events in the current reporting period, or on updated data from the current reporting period. The data is then validated by a central team and reviewed for completeness. We regard all sites with an annual energy consumption exceeding 1.5 terajoules and/or annual water withdrawal that is greater than or equal to 50 Tm³ as environmentally relevant. The environmental data of the other sites that lie below the thresholds has no relevant impact on the overall environmental data result. All metrics reported in our Sustainability Statement are verified by our auditor but are not subject to any additional certified external audit.

Total energy consumption of our company in 2025 fell slightly to 8,855 thousand MWh (2024: 9,055 thousand MWh). This includes both primary energy consumption, mainly of fossil fuels, and secondary energy consumption.

All business areas of our company are classified as high climate impact sectors according to the NACE definition (Commission Delegated Regulation (EU) 2022/1288). Our Crop Science Division is allocated to Section A, “Agriculture,” while our Pharmaceuticals and Consumer Health divisions are allocated to Section C‚ “Manufacture of basic pharmaceutical products and pharmaceutical preparations.” The calculation of our energy intensity thus takes into account the total energy requirement in proportion to sales of the Group (please see the section “Bayer Group Consolidated Income Statements” in Chapter B Consolidated Financial Statements).

Greenhouse gas emissions of Scope 1, 2 and 3 and total greenhouse gas emissions [E1-6]

At our company, direct greenhouse gas emissions (Scope 1) primarily result from the combustion of primary energy sources (mostly gas and oil) to produce electricity and thermal energy. Greenhouse gas emissions are also generated by our vehicle fleet and in the extraction and processing of raw materials (32.5%). Another portion of greenhouse gas emissions is attributable to chemical processes (35.1%). The purchase of electrical energy and of further energies, primarily for heating and cooling, accounts for the biggest shares of indirect (Scope 2) greenhouse gas emissions, at 20.2% and 12.2% respectively.

In accordance with the SBTi and the GHG Protocol, we take into account all Scope 3 categories for reporting on the attainment of our reduction target for Scope 3 greenhouse gas emissions. As we do not operate any franchise activities, while category (3.14) franchises is taken into consideration, it is currently not applicable. For more information, please see the section “Targets related to climate change mitigation and adaptation [E1-4].”

In 2025, changes were undertaken particularly in the calculation of Scope 3 greenhouse gas emissions. This encompasses the following areas:

• The number of reportable Scope 3 categories was increased to 15 categories. As part of the revalidation of the reduction targets by the SBTi, all parts of the upstream and downstream value chain were examined to identify additional greenhouse gas emissions. Although the calculation of the other Scope 3 categories showed that these additional greenhouse gas emissions are low in relation to overall emissions, we nonetheless included them in Scope 3 reporting and the calculation of the reduction target for Scope 3 greenhouse gas emissions.

• Changes also occurred in the transport-related Scope 3 categories (3.4) and (3.9). This includes changes resulting from the use of so-called well-to-wheel-based product carbon footprint (PCF) data from the EcoTransIT database, the separate reporting of the Scope 3 category (3.9) downstream transportation and distribution and the indicative quantification of greenhouse gas emissions from the storage of our products by wholesalers and retailers.

In 2025, we reduced our total Scope 1 and Scope 2 (market-based) greenhouse gas emissions by 5.8% compared with 2024. This could be achieved in particular through a further increase in electricity procured from renewable energies. In Scope 3, our greenhouse gas emissions rose slightly by 0.28 million metric tons of CO₂ equivalents. Category (3.1) purchased goods and services accounts for the most significant share of our Scope 3 greenhouse gas emissions, at around 69%.

There were no significant changes in the corporate structure and value chain in 2025 that could impact the reportable greenhouse gas emissions. Nor were there any significant results or changes with regard to greenhouse gas emissions between our closing date and that of the companies in our supply chain.

We report our greenhouse gas emissions according to ESRS in line with the requirements of the Greenhouse Gas (GHG) Protocol. For the calculation of direct greenhouse gas emissions from our own production plants, vehicles and waste incineration plants (Scope 1) and indirect greenhouse gas emissions from the procurement of electricity, steam and cooling energy (Scope 2), the relevant activity data is determined at all environmentally relevant sites as part of annual environmental reporting. Designated officers at the sites directly enter the data measured for the period January through October and estimated values for November and December into a central reporting platform. The estimate is based either on the prior-year data, where necessary adjusted to reflect special events in the current reporting period, or on updated data from the current reporting period. The respective greenhouse gas emissions are then automatically calculated at the system level while taking into account site- or country-specific emissions factors. The data is then validated by a central team and reviewed for completeness. In our calculation of Scope 1 and 2 greenhouse gas emissions, we take into account the entire Group in accordance with the financial scope of consolidation, provided a site is environmentally relevant. We regard all sites with an annual energy consumption exceeding 1.5 terajoules and/or annual water withdrawal that is greater than or equal to 50 Tm³ as environmentally relevant. The environmental data of the other sites that lie below the thresholds has no relevant impact on the overall environmental data result. The calculation of our Scope 3 greenhouse gas emissions is based on the GHG Protocol’s Corporate Value Chain (Scope 3) Standard. For all Scope 3 categories, activities are understood as including greenhouse gas emissions. Activity data are quantitative indicators of an activity level (e.g. fuel consumption in liters) that we derive from different internal systems or external sources for each Scope 3 category. Emissions are estimated using emissions factors that vary depending on the Scope 3 category. We obtain them from input-output models, life-cycle-assessment databases or directly from upstream and downstream value chain participants. The information on which our calculation is based is summarized below:

• (3.1) Purchased goods and services: We take into account the upstream processes (cradle-to-gate) of the purchased goods and services. The activity data (expenditures and volume disclosures) is extracted from our purchasing system. Beginning in 2026, we want to transition to a new input-output model and introduce additional emissions factor strategies (supplier-specific PCF factors and industry average factors from LCA databases). The introduction of these factors enables more precise quantification of the greenhouse gas emissions relating to these materials, and thus improved management of greenhouse gas emissions attributable to our suppliers.

• (3.2) Capital goods: We take into account all upstream processes (cradle-to-gate) of the purchased capital goods. The activity data is extracted from our purchasing system. We estimate greenhouse gas emissions with the help of an environment-related input-output model. The calculation is inflation-adjusted.

• (3.3) Fuel- and energy-related activities: We take into account all upstream processes (cradle-to-gate) of purchased primary and secondary energy. The activity data is extracted from our system for recording environmentally relevant metrics. We estimate greenhouse gas emissions using the average data methodology, for which we use data from an LCA database.

• (3.4) Upstream transportation and distribution: All direct and indirect (cradle-to-gate) greenhouse gas emissions from incoming, outgoing and stored transport, as well as transport and storage paid for by us, are taken into account. The activity data is extracted from our enterprise resource system and our purchasing system. Transportation emissions are calculated using the EcoTransIT logistics software and its transportation-specific emissions factors. We calculate emissions from storage with the help of emissions factors from an environmental input-output model that enables inflation-adjusted calculations.

• (3.5) Waste generated in operations: In the case of waste that is disposed of externally, we take into account the direct greenhouse gas emissions (gate-to-gate) of our waste disposers. The activity data is extracted from our system for recording environmentally relevant metrics. We source the emissions factors from our sites, our waste disposers and the literature (Intergovernmental Panel on Climate Change (IPCC)).

• (3.6) Business travel: We source activity data from rental car companies with respect to rented vehicles, from travel agencies with respect to air travel and from railway companies with respect to rail travel. In the case of rented vehicles, we source the emissions factors directly from rental car companies. In the case of air travel, we use the average emissions factors of the UK Department for Environment, Food and Rural Affairs (DEFRA), and in the case of rail travel, we use the specific emissions factors or the average data from LCA databases.

• (3.7) Employee commuting: We take into account the well-to-wheel emissions factors. We source the activity data from our enterprise resource system, while the emissions factors are derived from an LCA database.

• (3.8) Upstream leased assets: Data on our properties is sourced from a central database. Total emissions for this category are calculated together with site-typical energy consumption data sourced from the central environmental reporting system and emissions factors from an LCA database. For this, we use emissions factors from LCA databases.

• (3.9) Downstream transportation and distribution: In this category, we calculate greenhouse gas emissions from downstream transportation paid for by our customers and emissions generated in the storage of our products by wholesalers/retailers. For the former, we use the method described above under Scope 3 category (3.4); for the latter, we use sales volumes from our enterprise resource system for all products sold by us. These are calculated using average emissions factors for storage from the Global Logistics Emissions Council Framework.

• (3.10) Processing of sold products: Sales volumes of intermediates sold by us to processors are sourced from our enterprise resource system. The volumes contained therein are multiplied by an emissions factor for a typical product. This emissions factor is calculated based on internal production factors.

• (3.11) Use of sold products: We report the greenhouse gas emissions generated through energy consumption by equipment produced or operated by us. In the area of pharmaceuticals, this refers to contrast agent injectors and the related technical equipment. In the area of crop science, we market the FieldView™ data cube. The energy consumption of these applications is estimated using typical application cases and calculated using emissions factors from an LCA database. Crop protection products that are used on crops and soils are degraded in the environment into simpler substances. This degradation process depends on their molecular structure and various other factors and leads to the release of CO₂ and N₂O emissions. Since the degradation processes of crop protection products are very complex, these emissions have so far not been included in the calculation of Scope 3 Category 3.11

• (3.12) End-of-life treatment of sold products: We take account of all upstream processes (cradle-to-gate) that occur in the disposal of our product packaging. We source the activity data from our purchasing system, while the emissions factors are derived from LCA databases.

• (3.13) Downstream leased assets: Data from properties leased by Bayer is collected locally and calculated using site-typical energy consumption values from the central environmental reporting system and emissions factors from an LCA database.

• (3.14) Franchises: Bayer does not maintain any franchise activities, which is why no greenhouse gas emissions of franchise companies can be reported.

• (3.15) Investments: Greenhouse gas emissions from capital expenditures are calculated using shareholding and sales data of subsidiaries and affiliates, as well as sector-specific emissions factors from an environment-related input-output model.

Primary data about greenhouse gas emissions from our upstream and downstream value chain can currently only be obtained from a small number of parties. For that reason, we support our direct business partners in the calculation of this data and attempt in this way to increase the share of PCF data included in the calculation of our Scope 3 greenhouse gas emissions. Another goal is to support our suppliers in their decarbonization efforts (e.g. by transitioning to electricity from renewable energy sources) to achieve the global goal of net zero greenhouse gas emissions. In 2025, we could draw on primary data in the Scope 3 categories (3.5) waste generated in operations and (3.6) business travel. The share of emissions that can be estimated using the primary data is 0.32%.

Due to the varying depth of value creation, direct and indirect greenhouse gas emissions (Scope 1 and Scope 2) are unequally distributed among our divisions. Our raw material extraction activities, including treatment and downstream processing, for the manufacture of the crop protection intermediates of Crop Science are especially energy-intensive – this division therefore accounts for the greatest share of our greenhouse gas emissions.

Carbon dioxide (CO₂) accounts for the biggest share of our greenhouse gas emissions.

In 2025, approximately 14% of our Scope 1 greenhouse gas emissions were generated at sites that are subject to a regulated emissions trading scheme in which we participate (2024: 13%). In 2025, we participated in European emissions trading with a total of five plants (2024: five plants). The greenhouse gas emissions of these plants amounted to approximately 256,550 metric tons of CO₂ equivalents in 2025 (2024: approximately 248,000 metric tons of CO₂ equivalents).

As part of our energy procurement policy, we use various contractual instruments for the purchase of electricity from renewable sources depending on different regulatory requirements and local circumstances.

Biogenic CO₂ emissions at our company stem mainly from the combustion of biomass to generate energy and from the procurement of electricity derived from biomass. We calculate the biogenic CO₂ emissions for Scope 1 through our site-based reporting. We model the biogenic CO₂ emissions for Scope 2 based on the reported secondary energy derived from the incineration and biodegradation of biomass using the emissions factors of the International Energy Agency. We calculate the biogenic CO₂ emissions for Scope 3 at the level of the individual Scope 3 categories. For the Scope 3 category (3.5) waste generated in operations, greenhouse gas emissions are calculated based on the emissions factors determined for the sites for externally recycled or incinerated bio-based waste. For Scope 3 Category (3.12) end-of-life treatment of sold products, the volume of bio-based packaging materials (e.g. paper, cardboard packaging, wooden pallets) is extracted from our purchasing system and multiplied by material-specific emissions factors for biogenic CO₂ from an established life cycle assessment database.

We assume that biogenic CO₂ emissions will increase in the future due to our decarbonization strategy, as the transition from fossil- to plant-based raw materials is a lever for our decarbonization. For example, the rise in biogenic Scope 2 CO₂ emissions is due to an increased purchase of renewable energy from biomass.

Our greenhouse gas intensity reflects total greenhouse gas emissions as a ratio of Group sales (please see the section “Bayer Group Consolidated Income Statements” in Chapter B Consolidated Financial Statements). Our greenhouse gas intensity in 2025 was 274 metric tons of CO₂ equivalents/€ million net sales (2024: 256 metric tons of CO₂ equivalents/€ million) according to the location-based method and 261 metric tons of CO₂ equivalents/€ million (2024: 243 metric tons of CO₂ equivalents/€ million) according to the market-based method.

We have been calculating our own greenhouse gas emissions (Scope 1 and 2) for several years, including in the period prior to our reduction target base year 2019.

GHG removals and GHG mitigation projects financed through carbon credits [E1-7]

Our focus is on reducing our greenhouse gas emissions and on the associated targets and actions. We also participate in voluntary carbon markets.

Within the scope of our activities on the voluntary carbon markets, we offset 0.91 million metric tons of CO₂ equivalents in 2025 (2024: 0.71 million metric tons of CO₂ equivalents). These offsets result from reductions outside of our value chain. We thereby cover our own greenhouse gas emissions from operational processes (Scope 1 and 2). We exclusively purchased certificates from nature-based solutions in 2025, especially forest conservation and agriculture projects. 56% of the CO₂ certificates originated from projects aimed at reducing CO₂ emissions. Through the purchase of CO₂ certificates, we supported projects aimed at carbon reduction and capture. All certificates we purchased in 2025 were used for that year. The projects are implemented in the following countries: Brazil, Cambodia, Indonesia, Paraguay, Sierra Leone, the United States and Uruguay. Additional information about the projects can be found on our website. No projects were supported in the European Union. All of our certificates lie outside the scope of corresponding adjustments for trade in carbon credits between governments.

We have defined the following specific criteria for our purchase of certificates from climate protection projects with the goal of a high standard that we want to continuously improve and further develop. These criteria comprise transparency, additionality, permanence, measurability, quality/standards, innovation, impact, co-benefits, no leakage, no double counting and no net harm.

In 2025, 100% (2024: 100%) of our purchased certificates were verified according to external standards such as Verified Carbon Standard (VCS), CCB or EcoRegistry. We also obtain the opinion of an independent external service provider to assess their quality and integrity.

We will need long-term emissions-reduction CO₂ certificates in the future to attain our net zero target by 2050. We define net zero greenhouse gas emissions by 2050 as a 90% reduction in our total greenhouse gas emissions⁴ compared to the base year 2019. We intend to offset the remaining 10% greenhouse gas emissions through long-term emission credits⁵.

Through our own initiatives, which we drive forward particularly in our downstream value chain, we contribute to the reduction and storage of greenhouse gas emissions. For example, the Bayer Carbon Program financially supports farmers who adopt agricultural practices through which, for example, more greenhouse gas emissions can be stored in the soil. We manage the risk of nonpermeability by using remote sensing and field samples to regularly monitor carbon captured in the soil and the agricultural practices used. Any deviations that would lead to lower actual carbon capture are minimized by focusing on altered practices without land-use changes, as well as tracking and deducting external inputs where necessary. Reversal events are identified through regular data reviews. Corrective measures and buffering capacities are used to offset losses. The processes are independently audited and updated based on new data and feedback from stakeholder groups. The relevant data for quantifying the volume of GHG emissions stored in the soil is collected directly from farmers with the help of FieldView™ and surveys. This data is collated into project submissions to carbon credit certification bodies, validated and subsequently verified by an independent verification body. The resulting Verified Carbon Units (VCUs) can then be sold on the market. All the fields of the farmers participating in the program are reviewed annually for potential reversals. No notable reversals were determined for Bayer programs. We acquired the equivalent of 0.17 million metric tons of CO₂ from this program in 2025 (2024: 0.1 million metric tons of CO₂ equivalents). Owing to delays in the registration authorities, no greenhouse gas certificates were issued in 2025 (2024: more than 359,000 greenhouse gas emissions certificates). The next presentations for our projects in India and the United States are planned for 2026.

We also support a number of smaller projects that we do not, however, include in our published additional contribution. In addition, we offset greenhouse gas emissions resulting from air travel. In 2025, we offset 0.13 million metric tons of CO₂ equivalents of greenhouse gas emissions from air travel (2024: 0.21 million metric tons of CO₂ equivalents). In 2025, we did not make any product-related statements on or assert any claims to greenhouse gas neutrality in connection with the use of CO₂ certificates.

Internal carbon pricing [E1-8]

We want to align our capital expenditures with our target of achieving net zero greenhouse gas emissions by 2050. To make the carbon footprint of a capital expenditure visible for the decision-making process, we have introduced for the calculation of a capital expenditure an internal CO₂ shadow price of 100 €/metric ton of CO₂ equivalents for the greenhouse gas emissions expected with a 10-year use of the investment. Through this, we want to support decisions in favor of more climate-friendly capital expenditures. The internal CO₂ shadow price covers both the expected Scope 1 emissions and the Scope 2 emissions from the capital expenditures. Excluded here is any use of electricity that is associated with the capital expenditure for which our strategy for the transition to electricity from renewable energies is authoritative. The calculation of the internal CO₂ shadow price is part of our capital expenditure decision analysis for projects with a volume exceeding €10 million. This calculation is part of the environmental assessment, which takes into consideration both emissions reductions and energy efficiency measures. The internal CO₂ price is also voluntarily applied for projects with a volume below €10 million that are directly related to the consumption of fossil fuels or the use of heating or cooling energy. An allocation of the current greenhouse gas emissions (Scope 1 and 2) to the internal CO₂ shadow price is currently not applicable since the internal CO₂ shadow price is applied on a project-related basis.

Although there were no projects with a volume exceeding €10 million in 2025 for which the CO₂ shadow price was applied, the concept serves as a decision-making aid for our capital expenditure projects. Beyond being used as a decision-making aid, the internal CO₂ price is not additionally applied in the assessment of the useful lives, residual values or impairment of our assets, or of the fair value of assets acquired through corporate acquisitions.

The following criteria were used to determine our CO₂ price of €100/metric ton of CO₂ equivalents:

• Conformity with the price of CO₂ emissions certificates within an emissions trading system

• Conformity with the price of a carbon tax

• Societal costs of carbon

• Price/cost of voluntary carbon compensation certificates

• Cost of measures needed to attain greenhouse gas emissions reduction targets

• Valuation compared with competitors

¹ Comprises direct (Scope 1) and indirect (Scope 2, market-based) greenhouse gas emissions from Bayer sites with an annual energy consumption exceeding 1.5 terajoules and/or annual water withdrawal that is greater than or equal to 50 Tm³. The target includes biogenic, land-related emissions and the degradation of greenhouse gases from bioenergy raw materials.

² Comprises direct (Scope 1) and indirect (Scope 2, market-based) greenhouse gas emissions from Bayer sites with an annual energy consumption exceeding 1.5 terajoules and/or annual water withdrawal that is greater than or equal to 50 Tm³. The target includes biogenic, land-related emissions and the degradation of greenhouse gases from bioenergy raw materials. With respect to our net zero target, all Scope 3 categories are taken into account when calculating the Scope 3 greenhouse gas emissions for the base year.

³ The neutralization of the remaining emissions is carried out in accordance with the standards of the Science Based Targets initiative (SBTi).

⁴ Total Scope 1, Scope 2 and Scope 3 greenhouse gas emissions. Comprises direct (Scope 1) and indirect (Scope 2, market-based) greenhouse gas emissions from Bayer sites with an annual energy consumption exceeding 1.5 terajoules and/or annual water withdrawal that is greater than or equal to 50 Tm³. Scope 3 includes all Scope 3 categories defined in the Greenhouse Gas (GHG) Protocol.

⁵ The neutralization of the remaining emissions is carried out in accordance with the standards of the Science Based Targets initiative (SBTi).