Metrics and Targets With Respect to Water Resources

Through our metrics and voluntary targets, we want to show our progress in the context of managing water as a resource.

Targets for the efficient use of water in the value chain [E3-3]

In our Crop Science Division, we have set ourselves the target of supporting our smallholder customers in increasing water productivity by 25% by 2030 against a 2019 to 2021 average baseline through the transformation of rice cropping in the relevant regions where Bayer operates, starting in India. Our water target is currently focused on the DirectAcres Initiative, which aims to support farmers in successfully shifting from the traditional rice cultivation method (known as transplanted puddled rice, TPR) to direct seeded rice (DSR).

Our performance is measured using “water productivity” as a key performance indicator, which is defined as kilograms of crop yield per volume of water used (kg/m³). This represents the ratio of area-weighted yield to area-weighted water use across the target rice-growing states in India. Crop yield and water use are normalized to the area of the sampled fields so that the differing contributions of individual fields/plots are taken into account. As a baseline, we use a three-year rolling average from 2019 to 2021, taking into account the specifics of agriculture such as seasonality and climatic variability. The baseline water productivity is 0.2547 kg/m³.

Owing to the period of the rice season and the associated demands on data supply and processing, reporting on performance in this area is delayed by one year. Based on the data collected for the year 2024, the area-weighted water productivity increased by 1% against the 2019 to 2021 baseline. This improvement in water productivity is attributed to a reduction of 24% in water use per hectare and to an increase of 12% in the average yield per hectare in line with the transition from transplanted rice (TPR) to direct seeded rice (DSR). Our reporting accounts for changes in area-weighted water productivity across target states and the adoption ratio of DSR versus TPR. We follow a methodology that documents the target setting, scope, boundaries and quantification approach, including the determination of the comparative values and progress measurement. We use field data and satellite imagery/remote sensing data. A detailed description of our methodology is available on our website.

Alongside our target for the Crop Science Division, by 2030, our Pharmaceuticals and Consumer Health divisions aim to reduce water withdrawal by 20% compared to the base year 2024, weighted by the local water scarcity and our share of the region’s total withdrawal. This relative savings target applies to our global operations and promotes the sustainable use of resources, in line with Bayer’s Health, Safety, Environment (HSE) Management and HSE Key Requirements Policy.

Since water stress is a local issue and our activities only partially contribute to regional withdrawal, the reduction in water withdrawal is weighted based on two parameters: (1) local water stress at the withdrawal site and (2) our share of total regional withdrawal. For weighting, we use projections from the WRI Aqueduct Atlas for 2030 in the Business-as-Usual (BAU) scenario. The reduction in withdrawal and its weighting are thus based on conclusive scientific evidence, but were decided without direct involvement of external stakeholders. In 2025, the weighted water withdrawal was 192 m³. This corresponds to a reduction of 10% compared to the base year 2024 at 214 m³.

Water consumption [E3-4]

Data on water withdrawal and discharges at each environmentally relevant site is collected by local working groups according to local and global internal standards. At almost all sites, data is collected through direct measurement (e.g. through water meters or calibrated pumps). 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 are regarded as environmentally relevant. The environmental data of other sites that are below the thresholds has no relevant influence on the overall environmental data.

This data is entered once a year by a dedicated HSE officer at each site into a central reporting platform that records the measured data for January through October and the estimated data for November and December. The estimate is based either on the prior-year data, where necessary adjusted to reflect special events in the current reporting period, or on extrapolated data from the current reporting period. The data is then reviewed and validated by a central team to ensure its accuracy and completeness.

Our total water consumption in 2025 was 21.35 million m³ (2024: 21.01 million m³). Our total water consumption is calculated as the difference between the volume of water withdrawn and the volume discharged.

Our water consumption in regions impacted by water risks according to ESRS, including regions with high water stress according to ESRS, was 5.36 million m³ in 2025 (2024: 5.36 million m³). We identify these regions using the data from the Aqueduct Water Risk Atlas 4.0 of the World Resources Institute (WRI). The evaluation covers all sites impacted by water risks (the score for the weighted aggregated water risk total based on the default weighing scheme indicator is ≥ 3) and all sites in regions with a high level of water stress (the score for the baseline water stress indicator is ≥ 0.4). The data is extracted for the exact geolocalization of every single site. If a site is operated on more than one land plot, the plot with the highest water stress or water risk at the beginning of the study was evaluated to ensure a conservative approach.

As we recycle water at many of our sites, our total water withdrawal of 51.61 million m³ in 2025 (2024: 53.47 million m³) is much lower than the volume of actually recycled and reused water in 2025, at 379.70 million m³ (2024: 384.80 million m³). This yields a mathematical recycling ratio of 736% in 2025 (2024: 719%). Recycling measures include the reuse of treated wastewater, closure of cooling cycles and recirculation of steam condensates as process water or to irrigate fields. Our production sites for crop protection products (Crop Science Division) account for the biggest share of water recycling. Water recycling is virtually impossible in seed production because water is mainly used to irrigate cropland. In pharmaceutical production (Pharmaceuticals and Consumer Health divisions), the water recycling rate is low due to strict legal requirements. In 2025, approximately 29.6% (2024: 29.9%) of all water discharged by us was cooling water that is heated and does not come into contact with products. It is returned to the water cycle without further treatment in line with the relevant official permits.

Water intensity reflects our water consumption as a ratio of Group sales (please see the section “Bayer Group Consolidated Income Statements” in Chapter B Consolidated Financial Statements). Our water intensity in 2025 amounted to 468 m³ per million euros of net sales (2024: 451m³ per million euros). This was mainly attributable to water consumption at our Crop Science Division.