Management of impacts, risks and opportunities related to diversity and inclusion
In our double materiality assessment, we identified a positive impact related to fairness and respect at work. Accordingly, Bayer’s diverse teams represent a diversity of perspectives and life experiences, which leads to better decisions. Among other measures, we support women in leadership positions, advance gender equality and aim to ensure equal treatment of external and internal employees through various initiatives. We are convinced that establishing a fair and respectful work environment promotes a positive sense of belonging among our employees, so that they feel a stronger connection with one another and with Bayer. We have clear company principles and clear rules for fair, respectful and inclusive interactions in the workplace to promote our attractiveness as an employer. Risks related to the loss of reputation and legal consequences due to a lack of fairness and respect in the workplace can also materialize if, for example, inclusion-related activities are perceived to be unfair because they prioritize certain population groups over others.
Policies related to fairness and respect at work [S1-1]
Our policies on fairness and respect at work are based on the Bayer Code of Conduct and the Bayer Supplier Code of Conduct.
Promoting an inclusive and ethical workplace in keeping with the Code of Conduct
Our Code of Conduct is the central guideline for supporting our commitment to inclusion. It comprises all standards our employees must fulfill, including complete adherence to relevant laws and provisions, integrity in business practices, respect for human rights, environmental responsibility and commitment ensuring the fair and respectful treatment of all stakeholder groups. Through the Code of Conduct, we create a common understanding of the most important, globally applicable guidelines. It defines how our employees work together with colleagues and external partners and serves as a compass to ensure that we act with integrity, make informed decisions and strengthen the identity of our company. We instruct our employees about its content and on conduct through web-based training courses. We investigate any violations and resolve them consistently. Confirmed violations are sanctioned in accordance with our sanction regulations. For more information on our 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.
Actions related to fairness and respect at work [S1-4]
Our talent acquisition practices include our package of measures to promote equal employment opportunity in our global workforce.
Fairness and respect at work through fair talent acquisition practices
One of our most important actions is the implementation of fair and inclusive talent acquisition and talent management processes, including training measures for managers on important practices during the hiring process (e.g. robust sourcing activities to identify the broadest pool of qualified candidates). This action applies to all our hiring processes and helps managers to become aware of the importance of inclusive recruitment and hiring practices. This approach has led to an improved recruitment process in recent years. Another important action in terms of training is the globally available learning journey, which offers all employees extensive resources and learning opportunities throughout their personal learning journey. These training measures and resources apply to all our employees and have led to a stronger awareness worldwide of the importance and implementation of respective practices. The training measures are always accessible and can be carried out voluntarily, with regular updates and continuous improvements. Our progress in this area also includes the use of inclusive language in job advertisements and of market insights to identify the availability of talents and thus adapt a targeted strategy for enhancing our pool of qualified candidates.
To remedy the material impacts related to potentially unequal opportunities and to promote greater cultural awareness, we offer continuous global exchanges and training measures such as “Understanding prejudices worldwide” to generate greater awareness of this issue, as well as the global mentorship program “Leadership Link.” We will also continue to offer these measures in the future. By developing and applying corresponding guidelines such as the Fairness and Respect at Work policy contained in our Code of Conduct, we aim to promote a positive work environment and avoid risks and negative impacts on our employees in this area. The Employee Survey described below also ensures that we enhance awareness among our employees, create a respectful work environment and collect feedback to establish satisfaction and measure potential problem areas.
The Employee Survey allows us to obtain insights once a year into the perception of inclusion. All employees had the opportunity to take part in this survey in 2025. The promotion of an inclusive work environment in which employees are encouraged to be creative and express their ideas freely garnered a high approval rating (4.1/5 compared with 4.0/5 in 2024). If actions should become necessary due to the feedback received, which has not been the case in 2025, we would discuss this internally. Other resources we utilize in the management of material impacts in inclusion are our system landscape and applicable reporting tools.
Culture, education and awareness through our Business Resource Groups
Another aspect that supports our culture strategy is the work being done by our global Business Resource Groups (BRGs):
ENABLE (supporting employees with disabilities/diverse abilities)
MERGE (enhancing multigenerational competence within the company)
GROW (supporting women’s equality)
BayAfro (supporting employees of Black/African descent and their allies)
BLEND (supporting lesbian, gay, bisexual, transgender and queer [LGBTQ+] employees and their allies)
Our BRGs are voluntary, company-sponsored groups of employees who work together to promote cultural awareness and corresponding education. The BRGs give a voice to employees within our company. BRGs assist us in cultivating an inclusive workplace. They help us create an inclusive workplace by pursuing a one-year strategy plan in which they demonstrate their progress. Both in the past and in the current reporting period, our BRGs worked to meet their goals by elevating the perspectives of their membership and promoting cooperation and exchange between employees from various backgrounds within the organization.
We support several initiatives to underscore our positive impact on fairness and respect, such as through our participation in the Wings for Life World Run to highlight the importance of amplifying voices for people with disabilities and their allies. Each global BRG is supported by a member of the Board of Management and an executive sponsor from the company, has its own plans of action and coordinates the strategy and progress in this area with its business areas and its sponsor from the Board of Management. In addition, we have BRGs at a country and site level, with local executive sponsors who support BRGs’ local efforts.
Another resource we utilize with regard to the management of material impacts in this area and our BRGs is the representation of these groups in the respective global council.
Management of impacts, risks and opportunities related to training and development
We endeavor to ensure continuous development for all employees. Within our double materiality assessment, we have identified positive impacts and opportunities in connection with our training and development measures. Through continuous training, our employees improve their skills and specialist expertise and thus remain employable over the long term. In addition, special training programs heighten awareness of human rights, which contributes to a respectful and inclusive work environment and a positive company culture. In our double materiality assessment, we have also identified the improved innovation and performance power of our new operating model DSO, supported by enablers such as the Talent Marketplace. We are convinced that the correct deployment of talented employees increases innovation opportunities, which improves employee performance and retention.
Policies related to training and development [S1-1]
Our policies focus on autonomous learning in the Bayer learning ecosystem.
Continuous development in the Bayer learning ecosystem
The Bayer learning ecosystem requires the completion of obligatory training courses and provides an opportunity for self-development. The monitoring of obligatory training completion is ensured by the system and can be tracked if required. Our employees assume responsibility for their own personal learning and development. Managers are responsible for actively supporting and encouraging their employees’ development.
Within our learning ecosystem, employees can prioritize within the scope of their regular working hours what they learn and when, where and how. The necessary time for this is integrated into the work routine. This enables continuous learning, supports current and future skills and is described and communicated accordingly on our intranet.
Actions related to training and development [S1-4]
Independent learning and compulsory training courses are the core elements of our actions to promote training and development.
Opportunity to learn compulsory contents and personalized learning offerings
The Learning Management System (LMS) enables the assignment of compulsory learning contents for predefined target groups, as well as individual selection based on specialized catalogues.
Compulsory course contents are regularly given a due date. The default setting in the LMS – a due date 30 days after a training course is assigned – can be adjusted by the training assigner. Learners receive a notification by email when an assignment is given and before the due date arrives. If the due date passes without the training having been completed, learners receive further reminders, including from the supervisor if required. To obtain feedback on the quality and relevance of the course contents, the LMS provides a survey that can be filled out by the participants once they have completed a learning element.
With the help of our Learning Experience Platform (LXP), we also offer participants personalized learning offerings that align with the skills they would like to develop. Tailored contents can be selected from internal and external sources. Our globally available, digital Talent Marketplace platform is designed to also increase the flow of talent. The artificial-intelligence-based platform links employees with suitable projects, further development opportunities and colleagues within the organization based on qualification requirements. Talent management of this nature helps to achieve more innovation within the company, improved employee performance and stronger employee development.
We continuously update various learning materials such as videos, courses, podcasts and articles. For example, in recent years we have added new contents from the areas of digitalization, artificial intelligence, inclusion and leadership to our learning offering and expect our employees to engage in this continuously and autonomously.
To meet the need for skilled employees, we hire apprentices in various occupations, primarily in Germany. Around the world, we also offer apprentice programs in various areas for those embarking on a career, as well as internships for school and university students.
Management of impacts, risks and opportunities related to adequate wages
As part of our double materiality assessment, we have identified how important paying adequate (living) wages is for the working conditions of our employees. Living wages are designed to enable our employees to achieve a basic cultural and social standard of living. This realization underscores our commitment to fair compensation and the creation of a work environment in which all employees are able to improve their quality of life. By ensuring adequate wages, we promote the well-being of our employees and help establish a positive company culture.
Policies related to adequate wages [S1-1]
Our Living Wage Program is a core element for ensuring adequate wages.
Safeguarding adequate wages through our Living Wage Program
We apply uniform standards to ensure that employees are fairly compensated throughout the entire Group and, as a positive impact of this policy, can achieve a minimum standard of living from a cultural and social standpoint. Our performance- and responsibility-based compensation system combines a base salary with performance-related elements and additional benefits. Adjustments based on continuous benchmarking processes make our compensation internationally competitive. We have a global procedure on living wages that applies to all employees worldwide with permanent and temporary employment contracts. We compensate our employees beyond the statutory minimum wage prescribed in the respective countries and pay at least a living wage.
By integrating the living wage concept into our operational procedures, we also support the Universal Declaration of Human Rights and the global Sustainable Development Goals (SDGs) of the United Nations. The global Total Rewards Team is responsible for regularly reviewing adequate wages. Living wages are examined and determined annually worldwide by the nonprofit organization Business for Social Responsibility (BSR).
Actions related to adequate wages [S1-4]
We review employee salaries to ensure the payment of adequate wages.
Annual review of salaries
The salaries of all our employees are reviewed annually. If it is determined during this process that employees have not received an adequate wage, a corresponding increase is arranged.
The review covers all employees worldwide with permanent and temporary employment contracts and has taken place once a year since 2015. The analysis is carried out by the Human Resources department with its own resources. The resulting salary increases are included in personnel expenses.
Management of impacts, risks and opportunities related to preventive health
Within our double materiality assessment, we have identified the positive impacts of our health promotion measures on the working conditions of our employees. Promoting and maintaining the health of our employees through company health programs is of central importance for our efforts to promote well-being in the workplace. These programs not only contribute to our employees’ physical and mental health but also promote a safe and supportive work environment. By providing such health offerings, we strengthen our employees’ resilience and create the foundation for a productive and positive company culture.
Policies related to preventive health [S1-1]
Our preventive health concepts are focused on transparency and information.
Information on health and quality of life through the BeWell@Bayer framework
We have established a global framework entitled BeWell@Bayer to promote our employees’ health and quality of life. This concept expands the core aspect of health into a comprehensive approach, is geared toward health improvements in the daily work environment and is specially designed to suit our employees’ needs. The framework is a globally valid position paper and was implemented by the respective HR head and the global health project team. Application and continuous evolution are managed by the respective local HR and HSE heads and the global health working team. The BeWell@Bayer framework is available to all employees via the intranet as a voluntary measure and is not monitored.
Actions related to preventive health [S1-4]
The core elements of our actions related to preventive health are programs and materials, as well as a comprehensive approach to health and well-being.
Comprehensive approach to health and well-being
BeWell@Bayer is an ongoing framework with various focus issues. In 2025, we continued to focus particularly on mental health and women’s health. Through the global MyHealth platform, we offer programs and materials to help promote a comprehensive approach to health and well-being. The global platform and global framework are supplemented by numerous local health offerings. We accounted for stakeholder interests through a mix of dialogues, stakeholder meetings and surveys when implementing this concept, and a comprehensive approach for the four pillars of well-being was agreed on. We thus focus on physical, emotional, social and financial aspects. BeWell@Bayer also goes beyond the provision of occupational health and safety and adequate health insurance – it ensures appropriate working conditions, supports health-conscious behavior and promotes appropriate leadership principles.
Management of impacts, risks and opportunities related to health and safety
Through our double materiality assessment, we have identified positive and negative impacts related to the health and safety of our employees, who could experience physical or mental injuries through the work assigned to them or through safety incidents. This applies particularly to all employees who work with hazardous materials or under dangerous conditions. At the same time, as a responsible employer, we help promote a healthy and safe workplace.
Health impairments due to work could also lead to financial risks that, in turn, could damage our reputation. In addition, possible safety incidents could lead to operational interruptions. Material, recurring defects in this area could lead to consumer boycotts, trade restrictions and reduced attractiveness as an employer.
Policies related to health and safety [S1-1]
At the center of our promotion of occupational health and safety is our Health, Safety, Environment (HSE) Management and HSE Key Requirements Policy.
Occupational health and safety
Our Health, Safety, Environment (HSE) Management and HSE Key Requirements Policy summarizes all issues related to occupational health and safety and defines what is required of the management systems. It applies to all employees worldwide and is implemented under the auspices of the Board of Management, which holds overall responsibility for occupational health and safety. The policy is published in our internal document management system. Current topics associated with the HSE requirements are communicated in the monthly HSE Newsletter. In establishing this policy, we listened to and considered the opinions of various stakeholders such as HSE experts and the HSE management system. The policy was also coordinated with the business partners in the divisions and the enabling functions. Furthermore, prior to its publication, the policy was examined and approved by the Group Works Council as the employees’ representative body. A web-based training program on the HSE key requirements and on selected chapters such as “Emergency Preparedness and Response” and “Leaders’ Responsibilities” are available in the HSE management system, as are procedures and knowledge documents describing how to implement the HSE key requirements. Compliance with these requirements is reviewed through site-independent, internal HSE audits and separate self-assessments by the sites. For more information on the Health, Safety, Environment (HSE) Management and HSE Key Requirements Policy, please see the section “Holistic policies for managing material sustainability matters [MDR-P]” in Chapter A 4.1 General Information on the Sustainability Statement.
Actions related to health and safety [S1-4]
We carry out surveys at our sites to ensure occupational health and safety.
Surveys on heat stress at our sites
The impacts of extreme heat (heat stress) can present a risk for agricultural workers and have negative impacts on their health and safety. Farm laborers are particularly vulnerable to heat stress because they are exposed to high temperatures, high humidity and direct solar radiation while performing strenuous outdoor work. In 2025, we developed and adopted a global set of standards that all sites must comply with as regards work under extreme temperature conditions. We also developed supporting tools to assist and guide the global teams in the design and implementation of suitable programs. Furthermore, to ensure that contract workers are also protected, we mandated that contracts must contain appropriate provisions to safeguard workers from extreme environmental factors.
Management of impacts, risks and opportunities related to job security
As part of our double materiality assessment, we identified the potential negative impact of a risk to job security due to restructuring and transformation measures.
For example, any restructuring measures necessitated by the introduction of the new Dynamic Shared Ownership (DSO) operating model are implemented in a socially responsible way. If job reductions become necessary, we want to minimize the impacts on our employees in all countries and find mutually agreeable solutions. This also applies in Germany, where agreements with employee representatives are in place that fundamentally rule out business-related dismissals in the intercompany personnel network of Bayer AG until the end of 2026. Flexible severance package models with attractive terms are offered for employees in various age groups. They can also receive advice on career reorientation and are supported with job application training measures.
There are no German or global collective arrangements as regards the issue of permanent employment contracts. This is not necessary because the vast majority (more than 95%) of our employees have a permanent employment contract, which contributes significantly to job security.
A special (collective) arrangement on this matter is not necessary in Germany because the conclusion of a permanent employment contract is already the norm according to German law and temporary contracts are only possible under very strict legal conditions. This is designed to prevent the circumvention of German dismissal protection through the conclusion of several consecutive temporary employment contracts. Due to the fact that temporary employment contracts account for only a very small share of total employment contracts, no initiatives are currently being implemented here or planned as future objectives.