Performance Indicators

Group Sustainability Program for 2006 onwards

Our Sustainability Program is based around the key areas of innovation, product stewardship, excellence in corporate management, social responsibility and responsibility for the environment. Within each of these areas of action, specific measures are assigned to each objective to ensure that it is achieved by the deadline. The objectives of all the subgroups and service companies have been incorporated into the Group Sustainability Program. Their Boards of Management and Executive Committees are responsible for the successful implementation of the objectives.

Our objectives by 2010 (unless indicated otherwise)

Objective	Measure	State of implementation*)
Area of action: Innovation
Promotion of a culture of innovation so that creative business ideas beyond existing areas of work can become utilizable for the Group.	Long-term, Group-wide innovation initiative: Implementation of the “Triple-i” program (Inspiration, Ideas and Innovations).
Promotion of research projects on protecting drinking water and freshwater.	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.	Nine funded projects involving field research in Latin America, Europe, Africa and Asia initiated and supported with €250,000.
Contribution to safeguarding the food supply of a growing world population.	Further development of plant biotechnology; development of plants with improved stress tolerance of dry conditions and creation of health-promoting types of canola.	First 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). 20 percent increase in yield compared with the best non-hybrid variety.
Tapping potential of renewable resources.	Research work and technological developments for promising applications.
Selective, resource-optimized production of active pharmaceutical ingredients.	Creation and preparation of therapeutic proteins from plants (plant-made pharmaceuticals).
Provision of improved anticancer drugs.	Extension of indications of the anticancer drug Nexavar® to include liver, skin and lung cancer.	A Phase III study has shown that Nexavar® increases overall survival in patients with liver cell carcinoma or primary liver cancer by 44 percent. BHC is preparing applications for approval of the indication liver cancer for submission to the FDA and the European regulatory authority. Further studies in other indications such as nsclc and breast cancer are ongoing.
Provision of a drug to combat dangerous circulatory disorders.	Provision of thrombosis prophylaxis in the form of the oral Factor XA inhibitor (BAY 59-7939).	An extensive Phase III program with a total of around 35,000 patients is ongoing. The aim is to investigate the efficacy and safety of rivaroxaban in the prevention and treatment of venous thromboembolism and the therapy of stroke in patients with atrial fibrillation.
Extension of the duration of efficacy of Kogenate®, a drug recombinant to treat hemophilia.	New formulation based on liposome technology.	Clinical development (Phase I) in progress.
Molecular imaging.	Joint research and development within a partnership network to develop new methods for early detection of cancer, inflammatory processes in the nervous system, and Alzheimer’s disease.	New objective.
Research into new methods of treating multiple sclerosis.	Development of Campath® to treat multiple sclerosis.	New objective.
Identification of new mechanisms of action for fertility control.	New approaches to non-hormonal contraception.	New objective.
Energy conservation by reducing the weight in vehicles using polymer materials, e.g. for windows and structural parts.	Pilot projects with selected car makers and suppliers, for example for roof modules.	Introduction of mass production for enhanced polycarbonate roof modules with a surface area of over 1 m².
Preservation of vital resources by developing innovative polyurethane systems.	Ensuring the availability and high quality of water through the use of innovative and high-quality polyurethane systems for the simple, economical and time-saving rehabilitation of drinking water pipes.	Launch of the system in towns within a total of five European countries.
Energy conservation in production processes.	Optimization of a production process for monomeric MDI (MDI = methylene diphenyl diisocyanate, a raw material used to make polyurethane) for a new large-scale plant in China with a target energy saving of approx. 15 percent.	Construction is underway on a facility for the production of MDI compounds on a global scale, with an annual capacity of 350,000 metric tons. Commissioning of this Shanghai plant, which will be the largest of its type anywhere in the world, is scheduled for 2008.
Development of solutions for infectious tropical diseases such as malaria, dengue fever, etc.	Cooperation with stakeholders who are following holistic approaches, in order to broaden our spectrum.	New objective.
Area of action: Product stewardship
Ongoing work to secure substance information and its availability for all of our products.	Continuous updating of data records for own production > 1 metric ton, in line with changes to the product portfolio.
Implementation of the objective formulated at the United Nations’ World Summit on Sustainable Development in Johannesburg on the globally harmonized classification and labeling of substances and preparations.	Support of political interpretation and implementation in conjunction with other relevant regulations (GHS = globally harmonized system).	Implementation within Europe is supported by the committed cooperation of industry associations.
Improvement in biological effectiveness of crop protection products, coupled with a favorable environmental and health profile.	Management and further development of the Bayer CropScience product portfolio.	Market launch of innovative products • Infinito® (fungicide): New active mechanism, high effectiveness against major potato diseases. • Atlantis® (herbicide): Dose is 1 percent of that required with the current alternatives. • Oberon® and Envidor® (insecticides): Do not harm useful insects. • New products that replace WHO class I chemicals (in this case carbamates and organophosphates).
Permanent ongoing safeguarding of compliance with regulations on drug safety and quality assurance with regard to human drugs.	Implementation and monitoring of the policy on detailed information obligations, procedures and contact partners for drug safety and quality assurance.
Ensuring environmental compatibility of pharmaceuticals.	Several measures, including a study program to assess the ecotoxicological characteristics of levenogestrol.	New objective. Involvement in various projects, such as “ERAPharm.” Development of methods for analyzing pharmaceuticals residue in (ground)water.
Timely implementation of the reach Regulation in the Group.	Implementation of the Regulation in the subgroups; establishment of a Group-wide reach platform.	New objective.
Area of action: Excellence in corporate management
Employment: Ongoing improvement of internal work processes and employee motivation.	Continuation of regular worldwide satisfaction analysis of managerial staff; implementation of global leadership principles coupled with performance assessment, utilization of the experience gained from country piloted.	Setting of annual leadership objectives. Basis: Company-wide leadership principles. Target group: Entire management sector. Consequence: Evaluation of the extent to which principles have been achieved.
Management of process to implement the Directive on Health, Safety, Environment and Quality (HSEQ) Audits.	Implementation of subgroup-specific HSEQ management systems and complete auditing of these in all regions.	BCS: Continuous expansion and updating of HSEQ directives. Worldwide auditing of management system and other specific HSEQaspects. BHC: Measurement of HSE performance by means of Group-wide indicators extended to acquired areas. BMS: Large-scale HSEQ audit measures in accordance with a set audit plan are routinely carried out.
Improvement of communication within the global Bayer organization.	Full implementation of English as Group working language among managers including through the introduction of broadly based training programs.
Improvement of performance of all managers.	Further extension of HSE360° Feedback processes to include employees with managerial responsibility.	Continuous use of HSE360º Feedback processes for employees with managerial responsibility, targeted use of management audits by external consultants as an objective selection procedure for filling management positions (e.g. following reorganization or acquisitions such as of Roche and Schering).
Area of action: Social responsibility
Worldwide promotion of environmental knowledge among young people.	Expansion of cooperation with the United Nations Environment Programme (UNEP), including strengthening of youth environmental networks and capacity building programs in Latin America and Africa.	Support for the establishment of the first unep youth environment networks in Latin America and Africa and two additional networks in Asia; expansion of the Young Environmental Envoy Program to include Malaysia, Vietnam and Turkey so that a total of 17 countries now participate.
Strengthening of basic understanding of natural science in schools.	Establishment in other countries of the “Making Science Make Sense” program founded in the United States.	Established in France, Ireland, Italy, Japan and United Kingdom.
Promotion of access to school and vocational education for children and young people, particularly in newly industrializing and developing nations.	Cooperation with regional organizations, initiating programs to protect and educate young people. Raising of awareness in relevant locations, such as India.	Launch of the “Learning for Life” program at Bayer CropScience in Andrah Pradesh (India): Integration of former child laborers into the public school system. Expansion of the program to include children of pre-school age.
Promotion of education in sustainable development and improvement of environmental awareness in newly industrializing countries (capacity building) in line with voluntary undertaking by the chemical industry based on the Johannesburg Declaration and the ICCM (SAICM).	Development of a training program and financial and HR support for the establishment of a Chair for Sustainable Development at Tongji University in Shanghai, China.	Memorandum of Understanding signed between Bayer and Tongji University.
Support for education, science and research.	Reorganization of Bayer Foundations focusing more strongly on promoting knowledge and increasing the budget.	Pooling of foundation activities through the establishment of the Bayer Science & Education Foundation and the Bayer Cares Foundation and boosting of the total foundation budget by Bayer.
Investigation whether the duration of treatment for tuberculosis can be reduced by around half by using the active substance moxifloxacin.	Bayer is collaborating with The Global TB Alliance to supply the active substance moxifloxacin free of charge for a global study program. 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.	Clinical study programs in progress in cooperation with the TB Alliance.
Responsible approach to genetic engineering.	Implementation of new Bayer position on genetic engineering and specific regulations in the subgroups and service companies.
Occupational safety: Reduction in number of occupational injuries with lost days per 1 million hours worked (MAQ < 2).	Continuation of our consistent safety management approach.
Diversity: Consistent implementation of our corporate values in the area of equal opportunities for all, regardless of gender, nationality, color, religion, sexual persuasion or age.	Consistent implementation of Group-wide Program for Legal Compliance and Corporate Responsibility of May 2004; full implementation of a globally harmonized compensation system for Group Leadership Circles 1 to 3.	Adoption of a joint declaration from employers’ and employees’ representatives in Bayer European Forum for continuation of commitment to diversity and equal opportunities within the company; survey of behavior with regard to diversity as part of the 360º Feedback process. Bayer HealthCare working group for implementation of equal opportunities policies set up.
Area of action: Responsibility for the environment
Water emissions: Ten percent reduction in discharge of TOCS (total organic carbon) and nitrogen into receiving waters per metric ton of sales product.	For competition reasons we do not publicize our measures in this area.	TOC reduction compared with 2005: Five percent in continuing operations.
Air emissions: 30 percent reduction in VOC emissions per metric ton of sales product.		Reduction compared with 2005: 20 percent in continuing operations.
Air emissions: Further ongoing optimization of energy efficiency in our production plants with the goal of reducing emissions of greenhouse gases by ten percent per metric ton of sales product (by 2015).		Reduction compared with 2005: Four percent in continuing operations.
Air emissions: Compliance with a maximum limit for ODS emissions (Ozone Depleting Substances) of less than 20 metric tons per year (CFC-11 equivalents).		Gross value 2006: 13 metric tons in continuing operations.
Waste: Reduction in the volume of hazardous production waste to less than 2.5 percent per metric ton of sales product.		Gross value 2006: 2.3 percent in continuing operations.
Energy consumption: Ten percent reduction in specific energy consumption per metric ton of sold product by 2015.

We report on the state of implementation for those objectives regarding which we have already achieved significant progress in the first year of the five year period.