The following reporting is strongly aligned with the structural requirements of the European Sustainability Reporting Standards (ESRS). This can lead to duplications in some cases that are attributable to the system of obligatory disclosures.
The nonfinancial statement for the Bayer Group (Section 289b et seq. in conjunction with Section 315b et seq. of the German Commercial Code, HGB) forms a separate part of the Combined Management Report. The framework applied pursuant to Section 289d of the German Commercial Code (HGB) is the European Sustainability Reporting Standards (ESRS). The legality, accuracy and expediency of the nonfinancial statement have been verified by the Supervisory Board.
General basis for preparation of sustainability statement [BP-1]
This management report was prepared on a consolidated basis. The scope of consolidation for sustainability reporting is in general the same as for financial reporting and constitutes the reporting group for information about our own operations. Environmental metrics are determined at all environmentally relevant sites. 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, as in 2024. Information related to reported potential or confirmed compliance violations, metrics on incidents, grievances and serious human rights violations, health and safety metrics and our 100 million targets also includes non-fully-consolidated Bayer companies. Details of the companies included in the Consolidated Financial Statements, the subsidiary and affiliated companies of the Bayer Group pursuant to Section 313, Paragraph 2 of the German Commercial Code (HGB), and a list of domestic subsidiaries that availed themselves in 2025 of certain exemptions granted under Section 264, Paragraph 3, and Section 264b of the German Commercial Code (HGB), are included in the audited Consolidated Financial Statements that have been sent for entry into the Company Registry.
The Sustainability Statement contains information on the material impacts, risks and opportunities in connection with our own operations and our direct and indirect business relations. It therefore also comprises material impacts, risks and opportunities within our upstream and downstream value chain in accordance with the conducted double materiality assessment. We did not have to avail ourselves of the option of omitting certain information corresponding to intellectual property, know-how or the results of innovation.
Disclosures in relation to specific circumstances [BP-2]
We took into account the following specific circumstances in the preparation of the Sustainability Statement:
Time horizons
We have defined clear time horizons for our Sustainability Statement to establish transparency for our strategic planning:
Short-term time horizon: corresponds to the reporting period (fiscal 2025)
Medium-term time horizon: up to five years from the end of the reporting period
Long-term time horizon: more than five years
In our double materiality assessment, we looked at the probability of financial risks and opportunities occurring over a 10-year horizon.
To understand the impacts of climate change on our business, we use the following time horizons in the climate-related scenario analysis, which also covers the resilience of our business fields:
Short-term: through 2027
Medium-term: from 2028 through 2035
Long-term: from 2036 through 2050
Value chain estimations
With regard to our Scope 3 greenhouse gas emissions overall and according to relevant Scope 3 categories, estimation uncertainties can arise due to the data used. These uncertainties result especially from price and currency effects for the Scope 3 categories, as well as from the sector average data used in the input/output model. The input/output model we use is based on the Exiobase database of the US Bureau of Economic Analysis (BEA) and the producer price indices from the Organisation for Economic Co-operation and Development (OECD). We strive to achieve the maximum degree of accuracy by using cutting-edge science. Here we follow a data hierarchy according to which primary data from the upstream and downstream value chain must be used where possible. Alternatively, technology-specific average PCF data and subsequently sector-specific input/output data must be applied. Primary data on greenhouse gas emissions from the products and services purchased by us, capital goods, energy sources, externally disposed of waste and the associated logistics can currently only be provided by a small number of partners. To improve the accuracy of the calculations, we query a steadily growing number of upstream and downstream value chain participants on primary data.
Changes in preparation or presentation of sustainability information
In 2025, changes were undertaken in the calculation of Scope 3 greenhouse gas emissions. As part of the Science Based Targets initiative (SBTi) revalidation process, we examined all parts of our upstream and downstream value chain to identify additional greenhouse gas emissions. This process identified greenhouse gas emissions in six new Scope 3 categories. The additional categories are included in our reporting and our SBTi target for the reduction of Scope 3 greenhouse gas emissions beginning in 2025. In addition, we have adjusted our calculation methodology in certain categories. For further information, please see the sections “Targets related to climate change mitigation and adaptation [E1-4]” and “Greenhouse gas emissions of Scope 1, 2 and 3 and total greenhouse gas emissions [E1-6]” in Chapter 4.2.2 Climate Change. We also further developed the modeling of biogenic Scope 2 CO2 emissions in 2025. To ensure consistency between the calculation of biogenic and nonbiogenic Scope 2 CO2 emissions, in the future we will also use data from the International Energy Agency to calculate biogenic Scope 2 CO2 emissions. For more information and the restated figure for 2024, please see the section “Greenhouse gas emissions of Scope 1, 2 and 3 and total greenhouse gas emissions [E1-6]” in Chapter A 4.2.2 Climate Change.
Revision of sustainability information reported in the previous year
We had reported on substances of concern and of very high concern according to ESRS for the first time in 2024. We had used an externally produced data model that combined data from various internal and external systems. Because of an error that we identified in this external data model, we have changed the calculation over to a revised, internally produced data model, resulting in corrections to the figures reported for 2024. For more information and the restated prior-year figures, please see the section “Substances of concern and of very high concern according to ESRS [E2-5]” in Chapter A 4.2.3 Pollution.
We had reported on the unadjusted gender pay gap according to the requirements of the ESRS for the first time in 2024. The revision of the underlying calculation led to the correction of the calculation error in the gender pay gap published for 2024. For further information and the restated 2024 figure, please see the section “Compensation metrics [S1-16]” in Chapter A 4.3.1 Own Workforce.
Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements
Apart from the disclosures required according to ESRS and Article 8 of Regulation (EU) 2020/852, we have not included any additional disclosures stemming from other legal regulations pertaining to sustainability information or generally recognized standards in the Sustainability Statement.