Sustainable Development Report

Sustainable Development Report 2008

Our Sustainable Development Report describes the economic, ecological and social challenges that are linked to our operations and shows the strategies and solutions that we are applying to meet them.

The goal of our report is to give our stakeholders comprehensive and candid information on how we as a company are promoting global sustainable development.

Our Sustainable Development Report is aimed at business partners, employees, stockholders, non-governmental organizations, suppliers, authorities and the general public. It was compiled on the basis of our dialogue with stakeholders and in particular addresses the issues which pose the sternest challenges and where our responsibility is greatest. We devote particular attention to topics that are highly relevant to our business and to which we can contribute efficient and effective solutions owing to our expertise.

The report therefore addresses several focus issues that, in line with the above criteria, currently form the centerpiece of our sustainability commitment owing to their urgency both for us and our stakeholders, namely climate protection, global access to medicines and responsible and efficient use of water. The latest developments regarding the focus issues of “Corporate Compliance” and “Procurement Management” that were featured in the 2007 report have been integrated, for example, into the “Strategy and Management” section.

The focus issue articles are followed by our Performance Report, which gives an overview of all other facts and figures that are relevant to the sustainability management of the Group, allowing the reader quick and easy access to data on our Group-wide sustainability performance.

In the portrayal of the information we have endeavored to ensure maximum transparency, clarity of layout and ease of verification. The statements provided here apply to all sites and activities of the Bayer Group. All data in the focus issue articles and in the Performance Report were subjected to an assurance process by Ernst & Young

The report is published in German and English. The editorial deadline was April 30, 2009. Our next Sustainable Development Report is due to be published in 2010.

We value your opinion. Let us know what you think of the report by answering the questionnaire online at http://www.survey.sustainability.bayer.com/.

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An important orientation for our reporting is provided by the guidelines of the Global Reporting Initiative (GRI), with which, in this report, we comply fully (level A+). The GRI has checked and confirmed that level A+, the highest reporting level, has been maintained. An index

at the end of the report lists the pages on which information is provided on the individual GRI indicators.