Improving Sustainability Practices in the Supply Chain
We align our procurement processes to ambitious ethical, social, and environmental principles and support our suppliers to meet these standards – also because sustainable business practices lay the foundation for risk mitigation across the supply chain. Moreover, sustainability is an important strategic lever for Bayer safeguarding both its global competitiveness and the seamless supply of materials, goods and services. More information can be found in the Bayer Impact Report.
Our principles for collaboration are defined in Bayer’s Supplier Code of Conduct. In addition, our comprehensive Supplier Code of Conduct Guidance provides concrete examples of good practices and benchmarks which suppliers can adopt, and references such as the regulatory framework and standards governing Bayer’s sustainability efforts. To improve sustainability practices within the supply chain we follow a Four-Step Management Process.
Targets for 2025 and Beyond
Decarbonization
We will continue our efforts to reduce Scope 3 emissions in 2025 as per our Science Based Target Initiative (SBTi) commitment. Based on our SBTi revalidation during 2024, we have updated our Scope 3 emission reduction target for 2029 from 12.3% to 25% compared to our baseline in 2019. Our target boundary will be 68% of our overall Scope 3 emissions.
We will engage with our suppliers to collectively reduce emissions in the value chain by setting specific targets for emission reduction and increasing the share of renewable electricity in their operations. As we enhance our accounting methods with supplier Product Carbon Footprint (PCF) data, we will prioritize spending with suppliers who are taking significant action to decarbonize their supply chains. We ask our strategically important suppliers and those who account for a significantly high proportion of our Scope 3 emissions to disclose their climate protection program with Bayer.
Responsible Procurement Program
Bayer continues to track progress against a KPI for Responsible Procurement, and in 2025 we’re aiming to achieve €1 Billion in impact purchasing with small businesses and businesses owned by underrepresented groups. More information about Responsible Procurement commitments, partners, and awards can be found here.
Human Rights
Respecting human rights along the supply chain is anchored in Bayer’s sustainability strategy and Procurement plays a key role in implementing all necessary measures. Our human rights strategy is anchored in the UNGP on Business and Human Rights and OECD Guidance for Responsible Business Conduct, and we commit to comply with mandatory regulations (e.g. SCDDA). We foster socially responsible purchasing practices in our sourcing strategy and aim to generate a positive impact to the rightsholders in our supply chain.
Through the Energize program that Bayer sponsors, we are providing a pathway for our suppliers to reduce emissions by transitioning to renewable energy. This program offers renewable energy education and expert consultation, orchestrated by Schneider Electric, at no cost to all Bayer suppliers.
Bayer uses EcoVadis to assess the sustainability performance of companies in our global supply chain. The assessments are covering topics of Environmental, Labour & Human Rights, Ethics and Sustainable Procurement and are verified with proof documents and 360° screening.
