Company

Sustainable Development Report 2007

Environmental and sustainability reporting has a longstanding tradition in the Bayer Group and is being continually developed. Our goal is to provide transparent and in-depth information for our stakeholders on the Group’s essential activities in the area of sustainability.

In our Sustainable Development Report 2007 we demonstrate how in our Group we create a sustained balance between economy, ecology and social responsibility and what contribution we make to sustainable development worldwide, fully in keeping with our Mission Statement: “Bayer: Science For A Better Life.”

To respond to the growing significance of sustainability reporting we have, for the first time, compiled a Performance Report on the year under review, 2007. This contains all essential quantitative data and qualitative information in the subject areas of economics, employees, human rights, social responsibility, ecology and product stewardship.

The report is aimed at stockholders, business partners, employees, non-governmental organizations, suppliers, authorities and the general public. With it we again express our commitment to the 10 principles of the United Nations Global Compact and the OECD Guidelines for Multinational Enterprises. In the selection of topics and the structure of the report we have taken account of our ongoing dialogue with stakeholders and two recent stakeholder surveys.

In the portrayal of the information we have endeavored to ensure it is clearly laid out and easy to verify. The report contains features on four focus issues which give the reader extensive information on our objectives, strategies and activities in the fields of climate protection, access to medicines, compliance and procurement management. These are followed by our Performance Report, which gives an overview of all other facts and figures relevant to the sustainability management of the Group, allowing the reader quick and easy access to data on our Group-wide sustainability performance.

The statements provided here apply to all sites and activities of the Bayer Group. The data in the features 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 May 15, 2008. Our next Sustainable Development Report is due to be published in 2009.

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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 have complied fully for the first time (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 in which information is provided on the individual gri indicators.