Sustainability Program 2006+

Our objectives through 2010 (unless indicated otherwise)

Objective	Implementation status
Area of action: Innovation
Promotion of a culture of innovation by implementing a long-term, Group-wide innovation initiative – the “Triple-I” program (Inspiration, Ideas, Innovation).	The worldwide rollout of Triple-i to enable utilization by the Group of creative business ideas outside existing areas of activity has met with a very positive response. Our employees have submitted around 3,400 ideas, approximately 50 of which are being followed up. The initiative was implemented and has been accepted as a channel for ideas that is open to all employees.
Promotion of research projects on protecting drinking water and freshwater worldwide. Provision of funding and participation in project management for the National Geographic Global Exploration Fund set up by Bayer and National Geographic.	In 2006/2007, initiation of socially relevant and innovative projects by external research groups on the new recovery, conservation and fair distribution of water resources. Reports on the status of research have been submitted by the coordinators of the nine funded projects. An article describing the results was published in the December 2007 issue of the German edition of National Geographic.
Contribution to safeguarding the food supply of a growing world population by developing plants with higher yields and improved stress tolerance of dry conditions. Further development of plant biotechnology and the latest seed breeding technology.	Initial results from field tests with stress-tolerant canola plants show a clear increase in yield. Market launch of hybrid rice (Arize®) in Asia (key countries). Average 20 percent increase in yield compared with the best non-hybrid variety.
Tapping the potential of renewable energy sources and renewable raw materials. Research work and technological developments for promising applications.	Bayer CropScience is investigating the options for growing special crops that could be used as alternative raw materials for biofuels.
Selective, resource-optimized production of active pharmaceutical ingredients using therapeutic proteins from tobacco plants (plant-made pharmaceuticals). Develop patient-specific drugs within the next 7 to 9 years.	Around 50 known active ingredients have already been obtained from plants on a laboratory scale, including proteins for synthesizing vaccines and monoclonal antibodies for treating autoimmune diseases, infections and cancer.
Provision of improved anticancer drugs. Extension of indications of the anticancer drug Nexavar® to include liver, skin and lung cancer.	The oral anticancer drug Nexavar® was approved for the treatment of liver cancer in October 2007 in Europe and in November 2007 in the United States. Nexavar® is the first approved systemic treatment against liver cancer and the only drug that significantly increases the life expectancy of patients with liver cancer. Further studies in other indications such as non-small-cell lung cancer (NSCLC), skin cancer (both Phase III) and breast cancer (Phase II) are ongoing.
Provision of a drug to combat dangerous circulatory disorders. Provision of thrombosis prophylaxis in the form of the oral Factor xa inhibitor rivaroxaban (planned trade name: Xarelto®).	An extensive development program for rivaroxaban is currently in the advanced stage, with a total of around 50,000 patients planned. The program includes the prevention and treatment of venous thromboembolism (VTE). In VTE prophylaxis for patients undergoing major orthopedic surgery, the studies undertaken have shown that rivaroxaban is more effective than the current standard therapy, with similarly low bleeding statistics. In October 2007, the EMEA approved rivaroxaban for VTE prophylaxis following major orthopedic surgery on lower limbs. It is planned to obtain marketing authorization for rivaroxaban in the United States for a similar indication in 2008.
Extension of the duration of efficacy of Kogenate®, a drug recombinant to treat hemophilia, using a new formulation based on liposome technology.	First patient treated in a Phase II study at the end of 2007.
Development of new molecular imaging methods for early detection of cancer, inflammatory processes in the nervous system and Alzheimer’s disease.	Various cooperation agreements in the field of molecular imaging, for example the Molecular Imaging Innovation Alliance with Avid Pharmaceuticals, Inc., Stanford University and Taisho Pharmaceutical Co., Ltd.
Area of action: Innovation
Research into new methods of treating multiple sclerosis. Development of alemtuzumab.	Phase III program started in September 2007 with the aim of providing evidence to confirm the overall efficacy and safety observed in Phase II.
Identification of new mechanisms of action for fertility control using new approaches to non-hormonal contraception.	Research ongoing.
Optimization of a production process for monomeric mdi (MDI = methylene diphenyl diisocyanate) for a new large-scale plant being built in China in 2008 with a target energy saving of approx. 15 percent.	A facility for the production of MDI compounds with an annual capacity of 350,000 metric tons is currently under construction in Shanghai, China. This major facility is due to be commissioned in 2008.
Development of solutions for tropical and other neglected diseases. Cooperation with stakeholders who are following novel approaches to enable more people to be treated.	Support for the WHO clinical development program for the treatment of African sleeping sickness with nifurtimox.
Provision of new treatments for gynecological disorders with a high level of unmet medical need. Identification of new targets.	New objective.
Better treatments for the most common cause of severe visual impairment and blindness in the over- 65s in industrialized nations.	New objective: Development of a fusion protein for the treatment of wet age-related macular degeneration (AMD, Phase III study).
Options for the early diagnosis of diseases with a high level of unmet medical need.	New objective: Development of a PET tracer for early diagnosis of Alzheimer’s disease. Phase ii study scheduled to start in 2008.
Energy conservation by reducing the weight of vehicles using polycarbonate in automotive glazing by 2008.	Objective achieved. Bayer MaterialScience offers customers technological development, service and products for polycarbonate glazing under the brand name BayVision. This system is used, for example, by Mercedes® in the roof module of the GL Class and by Smart® in the panorama roof of the new fortwo®.
Preservation of water resources by establishing innovative coating materials on the market for semi-structural coatings for drinking water pipes by 2008.	Objective achieved. The Coatings, Adhesives & Specialties (CAS) Business Unit of Bayer MaterialScience (BMS) produces and supplies the key raw materials – especially aliphatic isocyanates and prepolymers – required by our major international customer E. Wood Limited in the United Kingdom to manufacture special semi-structural coatings. The semi-structural coating manufactured by E. Wood Limited on the basis of raw materials from bms cas can be applied to pipes that are leaking or in a very poor state of repair. During a single application process that requires just two holes each one meter square to be dug, a pipe length of up to 150 meters can be coated. The entire process can be completed in eight hours, compared with 2 – 3 days for existing processes. In some cases, it would not even be possible to replace the pipes because buildings have been constructed over them. The system has been introduced in Asia, America and numerous European countries. To date, more than 10,000 kilometers of drinking water pipes have been lined using this system.
Area of action: Product stewardship
Further contribution to improved crop yields through highly effective crop protection products with good plant tolerability, coupled with a good environmental and health profile.	Management and further development of the Bayer CropScience product portfolio through the market launch of innovative products:   Tembotrione: New standard for crop selectivity and outstanding weed control in corn crops Spirotetramat: For use against resistant types of pests and new standard for systemic crop protection Infinito® (fungicide): New active mechanism, highly effective against major potato diseases Oberon® and Envidor® (insecticides) with improved selectivity in respect of useful insects New products to replace who class I chemicals (in this case carbamates and organophosphates).
Ensuring environmental compatibility of pharmaceuticals.	Involvement in various projects, such as “ERAPharm.” Development of methods for analyzing pharmaceuticals residues in (ground)water.
Area of action: Product stewardship
Timely implementation of the REACH Regulation in the Group.	A Group-wide reach platform and implementation projects in the subgroups have been established. The pre-registration of substances relevant to Bayer is proceeding according to schedule and the deadline of December 1, 2008 will be met. Registration activities for substances with large production volumes (more than 1,000 metric tons per year) of relevance to Bayer have started and will be completed by the end of 2010.
Area of action: Excellence in corporate management
Employment: Ongoing improvement of internal work processes and employee motivation.	Continuation of regular worldwide managerial staff surveys. Implementation of global leadership principles coupled with performance assessment. Utilization of the experience gained from the country piloted. Agreement of annual leadership objectives (at all levels of management) based on company-wide leadership principles.
Management of the process to implement the Directive on Health, Safety, Environment and Quality (HSEQ) Audits.	Implementation of subgroup-specific HSEQ management systems completed; full auditing under way in all regions. Bayer CropScience: Continuous expansion and updating of hseq directives. Worldwide auditing of management system and other specific HSEQ aspects. By the end of 2008, audits of the key hseq requirements will have been completed at 70 percent of all relevant sites (BioScience, Environmental Science, Development, Industrial Operations and Research). By the end of 2009, this figure should have reached 100 percent (five-year cycle). Process and plant safety will be inspected at all BCS production sites by the end of 2009. Bayer HealthCare: Implementation and continuous updating of HSE requirements in the BHC compliance management system. Performance of HSE audits worldwide on the basis of an annually defined audit program. Bayer MaterialScience: Large-scale HSEQ audit measures are routinely carried out in accordance with a defined audit plan.
Improvement of the performance of all managers, e. g. using 360° Feedback processes.	Ongoing.
Implementation of the objective formulated at the United Nations World Summit on Sustainable Development in Johannesburg in 2002 on the globally harmonized classification and labeling of substances and preparations (GHS= Globally Harmonized System)	Implementation within Europe is supported by the chemical industry associations.
Permanent ongoing safeguarding of compliance with regulations on drug safety and quality assurance with regard to human drugs.	Implementation and monitoring of detailed information obligations, procedures and contact partners for drug safety and quality assurance functions ongoing.
Ongoing work to secure substance information for all our products.	Objective achieved. Our product portfolio is subject to the relevant legislative (e.g. REACH) and registration guidelines. Substance information can therefore be regarded as secured.
Improvement of communication within the global Bayer organization.	Objective achieved. English is the Group working language among managers.
Area of action: Social responsibility
Worldwide promotion of environmental knowledge among young people. Expansion of cooperation with the United Nations Environment Programme (UNEP), including establishment of youth environmental networks and capacity building programs in Asia, America, Africa and Europe.	In 2007, Bayer provided UNEP with funding and additional support to establish further regional youth environmental networks in Asia and the first networks in Latin America and Africa. The Bayer Young Environmental Envoy Program was extended to include Turkey, the 17th country to participate. The program partners organized the 16th International Children’s Painting Competition on the Environment, attracting 13,450 entries from 104 different countries. In 2007, Bayer hosted the International Youth Conference on the Environment in Leverkusen. The occasion was used to extend the partnership agreement between unep and Bayer by a further three years.
Strengthening the basic understanding of natural science in schools by extending to other countries the “Making Science Make Sense” program founded in the United States.	Already established in France, Ireland, Japan and the United Kingdom, the program was extended to Colombia, India, Italy, Singapore and Taiwan in 2007.
Promotion of access to school and vocational education for children and young people, particularly in newly industrializing and developing countries.	Cooperation with regional organizations, initiating programs to protect and educate young people. Raising awareness in relevant locations, such as India. Launch of the “Learning for Life” program at Bayer CropScience in Andhra Pradesh (India). Integration of former child laborers into the public school system. Expansion of the program to include children of pre-school age.
Area of action: Social responsibility
Promotion of education in sustainable development and improvement of environmental awareness in newly industrializing countries (capacity building) in line with the voluntary undertaking by the chemical industry based on the Johannesburg Declaration and the declaration adopted at the International Conference on Chemicals Management (ICCM) known as the Strategic Approach to International Chemicals Management (SAICM). Development of a training program and support for the establishment of a Chair for Sustainable Development at Tongji University in Shanghai, China.	An agreement has been signed between Bayer, the Bayer Science & Education Foundation and Tongji University. The steering committee has held its first meeting, the Chair has been established and a chair holder is to be appointed in 2008. The first six research projects have started and the budgets for 2007 and 2008 have been approved.
Support for education, science and research. Bayer Foundations focus more strongly on promoting knowledge and increasing the budget.	Bayer Science & Education Foundation founded and started work in 2007. Start made on new program focus of assisting schools in Germany. Total capital of Bayer Science & Education Foundation and Bayer Cares Foundation: €17.4 million.
Promotion of solutions as a contribution to the U.N.. Millennium Development Goals for tackling poverty, lowering child mortality and improving health care for mothers.	New objective. Initial project to raise awareness and improve knowledge of reproduction and sexuality in developing countries and improve access to methods of family planning.
Investigation whether the duration of treatment for tuberculosis (TB) can be reduced by around half by using the active substance moxifloxacin.	Our partner, the Global Alliance for TB Drug Development, has started Phase III clinical trials for the treatment of tuberculosis with moxifloxacin at locations in Zambia, South Africa, Tanzania and Kenya. If the trials are successful, the intention is to have moxifloxacin approved for the indication tb and to make it available to patients in developing countries at affordable prices.
Responsible approach to gene technology.	Implementation of the new Bayer Position on Gene Technology and specific regulations in the subgroups and service companies.
Occupational safety: Reduction in the number of occupational injuries with lost days per 1 million hours worked (MAQ < 2).	Significant progress made in 2007, with a 20 percent decrease in occupational injuries. Continuation of our consistent safety management approach, documented by a program that uses the annually updated RC roadmap for visualization. Subgroups will continue their efforts to make a positive contribution to the Group‘s MAQ results. This will be supported in 2008 by the launch of additional programs to promote safe behavior and safe driving.
Diversity: Consistent implementation of our corporate values in the area of equal opportunities for all, regardless of gender, nationality, color, religion, sexual orientation or age.	Consistent implementation of the Group-wide Program for Legal Compliance and Corporate Responsibility of May 2004. Full implementation of a globally harmonized compensation system for Group Leadership Circles. Adoption of a joint declaration from employers’ and employees’ representatives at the Bayer European Forum to continue the commitment to diversity and equal opportunities within the company. Behavior with regard to diversity integrated into the 360° Feedback process. BHC working group set up.
Area of action: Responsibility for the environment
Water emissions: 10 percent reduction in the discharge of TOC (total organic carbon) and nitrogen into receiving waters per metric ton of sales product (base year 2005).	TOC emissions 19 percent higher than in 2006 due to the temporary breakdown of a wastewater treatment plant and higher production volumes for certain crop protection agents.
Air emissions: 30 percent reduction in VOC (volatile organic compounds) emissions per metric ton of sales product (base year 2005).	Same level as 2006, despite higher production volumes.
Air emissions: Compliance with a maximum limit for ODS (ozone-depleting substance) emissions of less than 20 metric tons per year (CFC-11 equivalents).	15 metric tons in continuing operations in 2007.
Air emissions: Bayer MaterialScience: 25 percent reduction worldwide in specific greenhouse gas emissions (CO2 equivalents in metric tons) per metric ton of sales product between 2005 and 2020. The by-products sodium hydroxide and hydrochloric acid which occur during production are not considered because they will in future occur in much smaller amounts thanks to measures aimed at enhancing energy efficiency. Also not considered are the trade products. The reduction of specific emissions is recognized as an adequate and ambitious emissions objective in this energy-intensive segment because it enables tough energy efficiency targets to be achieved while also increasing sales. Bayer CropScience: 15 percent absolute reduction in greenhouse gas emissions (CO2 equivalents in metric tons) worldwide between 2005 and 2020. Bayer HealthCare: 5 percent absolute reduction in greenhouse gas emissions (co2 equivalents in metric tons) worldwide between 2005 and 2020. Greenhouse gas emissions from Bayer Group to stay at current level up to 2020 according to today’s estimates despite expected growth in production.	New objective. Greenhouse gas emissions now reported in accordance with the Greenhouse Gas Protocol.
Waste: Reduction in the volume of hazardous production waste to less than 2.5 percent per metric ton of sales product.	2.6 percent in continuing operations in 2007.