Global Compact

Progress report on the implementation of the principles of the Global Compact

With our support of the United Nations Global Compact, we want to raise standards in the fields of human rights, labor rights and environmental protection. In the year covered by the report, the focus was on climate protection, our Group-wide communication program on anti-corruption and compliance, the expansion of our procurement management system and the integration of our human rights policy into our management systems. Our commitment to sustainable health care serves the goal of strengthening human rights. The following table shows which of the policies, programs and management systems already introduced at Bayer support the 10 principles of the Global Compact, what practical measures we took last year in this respect, and to what extent we were able to register concrete achievements or results in the period under review. Information on the Global Compact can be found at www.unglobalcompact.org/.

	Systems	Measures 2007	Achievements 2007
Principle 1: Support of human rights	Human rights Procurement Community Policy Guide: “Requirements for our suppliers”	Health care programs and partnerships Differentiated drug pricing policy	Integration of Group-wide Human Rights Position into our management systems
Principle 2: Exclusion of human rights violations	Procurement management Human rights	Sensitization of employees and suppliers Supplier survey in non-OECD countries	Rigorously tackling of child labor in India
Principle 3: Observance of the right to freedom of association	Group Works Council Bayer European Forum Human rights
Principle 4: Abolition of all forms of forced labor	Human rights Procurement management	No measures necessary
Principle 5: Abolition of child labor	Human rights Procurement management	Extension of system for tackling child labor in India
Principle 6: Elimination of discrimination	Social Charter Bayer Diversity Policy Bayer Diversity Councils Human rights	e.g. program for promoting talent and diversity in the Asia- Pacific region e.g. program for integrating disabled employees in Brazil
Principle 7: Precautionary environmental protection	HSEQ management systems	e.g. regular HSE audits	e.g. significant reduction in reportable environmental incidents
Principle 8: Specific commitment to environmental protection	Group Sustainability Program Bayer Climate Program	e.g. development of Bayer Climate Check	Renewed inclusion in Climate Leadership Index of Carbon Disclosure Project
Principle 9: Diffusion of environmentally friendly technologies	Core business of BMS and Currenta	e.g. start of construction of hydrochloric acid recycling plant in Shanghai, China	e.g. 18,000 metric ton reduction in CO₂ emissions thanks to the modernization of the thermal waste air incinerator in Dormagen
Principle 10: Measures to fight corruption	Program for Legal Compliance and Corporate Responsibility at Bayer	Group-wide communication campaign on anti-corruption and compliance (United States)	Some 70,000 employees were trained in anti-corruption and compliance issues