Management of potential impacts on affected communities
Through our double materiality assessment, we identified impacts that could have consequences for the communities near where our business activities take place. Thus, the excessive consumption of natural resources in the value chain could restrict local communities’ access to basic resources for elementary needs or livelihoods, for example with regard to drinking or irrigation water.
Furthermore, potential incidents in our own operations that cause pollution (of air, water and soil) could restrict access by the community to basic resources for elementary needs and livelihoods (such as drinking or irrigation water). These findings underscore the need to responsibly manage natural resources and take into account the needs of the affected communities.
In 2024, a grievance pertaining to affected communities was submitted by six nongovernmental organizations (NGOs) to the German National Contact Point of the OECD. The grievance is entitled “Human Rights and environmental impacts of Bayer AG’s genetically modified soy seeds and glyphosate-based pesticides in Argentina, Bolivia, Brazil and Paraguay.” In essence, the grievance related to allegations that in some regions we had not undertaken sufficient steps in our business practices to comply with environmental standards and avoid negative impacts on the local population. We reacted to this grievance and released a statement. The National Contact Point has not yet decided whether to accept the grievance or whether the submission by the nongovernmental organization provides sufficient cause to initiate voluntary mediation proceedings. Furthermore, there were no indications of serious human rights violations, cases of noncompliance with the United Nations Principles on Business and Human Rights, or other complaints according to the OECD guidelines for multinational companies.
Policies related to affected communities [S3-1]
Our Human Rights Policy and the Bayer Supplier Code of Conduct are at the center of our concepts and policies to mitigate the impacts and risks for the affected communities. However, as potential impacts on affected communities are rooted both in the value chain and in unforeseen environmental incidents at our sites, we attempt to mitigate these potential impacts where they could occur. These corresponding policies and measures pertain especially to the areas of pollution, water use and waste management.
Human rights requirements from Bayer’s Human Rights Policy and the Bayer Supplier Code of Conduct
Through our Human Rights Policy, we undertake to responsibly manage resources and take into account the needs of affected communities. Through our Bayer Supplier Code of Conduct, we also obligate our suppliers to responsibly manage resources and take into account the needs of affected communities. The Bayer Human Rights Policy and the Bayer Supplier Code of Conduct therefore both include the commitment to respect human rights in all business activities worldwide.
We endeavor always to act in accordance with national legislation. Where discrepancies exist between national law and international standards, we align ourselves with the more stringent standards. Our commitments pertain to respect for human rights along the entire global value chain and also include the members of local communities. For more information on our Human Rights Policy and the Bayer Supplier Code of Conduct, please see the section “Holistic policies for managing material sustainability matters [MDR-P]” in Chapter A 4.1 General Information on the Sustainability Statement.
The inclusion of local communities usually occurs at the site level. For the issue of water stress, for example, this takes place through joint local projects (please see the section “Management of impacts and risks related to water scarcity resulting from water consumption” in Chapter A 4.2.4 Water and Marine Resources). Due to the heterogeneity of the sites and the circumstances in which they operate, there is no general approach for including local communities that is globally binding for all sites. As a result, there are no generally applicable and standardized measures to remedy impacts on human rights. Suitable measures are decided on and implemented at the site level.
Reducing the impacts of accident-related pollution at our own sites on communities
To protect surrounding communities, we want to avoid accidents that impact the quality of air, water and soil. Our Health, Safety, Environment (HSE) Management and HSE Key Requirements Policy is therefore geared toward preventing accidents associated with pollution that could occur due to unforeseen events within the scope of our business activities. For more information on our Health, Safety, Environment (HSE) Management and HSE Key Requirements Policy, please see the sections “Holistic policies for managing material sustainability matters [MDR-P]” in Chapter A 4.1 General Information on the Sustainability Statement and “Managing incidents through the Health, Safety, Environment (HSE) Management and HSE Key Requirements Policy” in Chapter A 4.2.3 Pollution.
Protecting water as a community resource at our own sites
Our Water Policy shows how we want to protect water resources and improve water use efficiency both internally and externally. Our goal is to optimize water management in our operations, involve our suppliers, develop innovative solutions for our customers, and support municipal projects and the affected communities. This is how we want to ensure affected communities’ access to important resources. For detailed information on our Water Policy to avoid water stress, please see the section “Our water management strategy to manage and mitigate water stress” in Chapter A 4.2.4 Water and Marine Resources.
Managing waste to reduce impacts on affected communities near our own sites
The Bayer Health, Safety, Environment (HSE) Management and HSE Key Requirements Policy governs how we deal with waste through comprehensive waste management practices. The policy addresses the renunciation of the use of new resources, recycling wherever possible, and the safe and environmentally compatible disposal of unavoidable waste to protect affected communities. For more information on the Health, Safety, Environment (HSE) Management and HSE Key Requirements Policy, please see the section “Promoting waste management through the Health, Safety, Environment (HSE) Management and HSE Key Requirements Policy” in Chapter A 4.2.6 Circular Economy.
Actions related to affected communities [S3-4]
With our efforts to reduce potential negative impacts at the source, such as effective water management, waste management and the integration of very strict safety practices in our facilities, we want to help ensure that local communities are adequately protected. Apart from the actions described below, we currently do not implement additional overarching measures with specifically allocated budgets or effectiveness measurements in the area of affected communities. Our focus is on continuously improving existing standards and practices to ensure that we act responsibly and conserve resources.
More economical water use in the downstream value chain through direct seeded rice
Rice is one of the most important staple foods. The irrigation of rice crops is responsible for up to 43% of global freshwater use in irrigation, which could lead to challenges for affected communities such as water scarcity. One of the most promising solutions to support more sustainable rice production is direct seeded rice (DSR). We are working on the premise that this technologically driven and less resource-intensive cultivation system can reduce water consumption in rice growing by up to 40%, which is why we promote the use of direct seeded rice. For more information, please see the section “Promoting water-efficient cultivation systems” in Chapter A 4.2.4 Water and Marine Resources.
Integrating health, safety and environmental practices in our operations
To prevent accidents effectively, we have developed a comprehensive package of measures centered around safety in our operations and our value chain. These measures are designed to impact affected communities by preventing pollution and the resulting negative impacts that jeopardize communities’ access to important resources, right from the point of origin. For more information on our measures to address pollution, please see the section “Integrating health, safety and environmental practices in all global operations” in Chapter A 4.2.3 Pollution.
Water management to avoid water stress for affected communities
As part of our water strategy, we are currently establishing water management systems at all relevant sites, including those in regions affected by water scarcity. This is how we want to avoid, among other impacts, restricted access to water for affected communities. The establishment of the water management systems at all sites is scheduled for completion by 2030. For more information on our measures for efficient water management, please see the section “Establishment of a water management system for sites in water-scarce regions” in Chapter A 4.2.4 Water and Marine Resources.
Reducing potential impacts on communities through our waste management
We pursue a comprehensive approach to waste management, partly to protect affected communities from waste-related consequences. Our approach is commensurate with our Health, Safety, Environment (HSE) Management and HSE Key Requirements Policy. For more information on our management of waste, please see the section “Management of waste-related impacts by our waste management” in Chapter A 4.2.6 Circular Economy.
Processes for engaging with affected communities about impacts [S3-2]
We do not currently pursue a generally applicable and standardized approach for the involvement of affected communities. The inclusion of affected communities takes place at the site level.
Processes to remediate negative impacts and channels for affected communities to raise concerns [S3-3]
We pursue various approaches to prevent and mitigate any negative impacts we might have on affected communities. One approach is our global Speak Up Channel, the grievance mechanism for raising concerns. For more information on the grievance mechanism, which is globally available to any person, please see the section “Processes to remediate negative impacts and channels for own workers to raise concerns [S1-3]” in Chapter A 4.3.1 Own Workforce and the section “Corporate culture and business conduct policies [G1-1]” in Chapter A 4.4.1 Business Conduct.
In general, all persons outside the company, including impacted communities worldwide, can access the Speak Up Channel, which we also make available via our website. The large number of persons who can access the channel presents a significant challenge for us. A conclusive evaluation of the degree of trustworthiness of and satisfaction with the grievance process from the viewpoint of the affected communities is therefore not currently possible.