Biodiversity - Reducing negative impacts and restoring more
Biodiversity is an interdisciplinary topic that is relevant for Bayer and our value chain in various respects. Activities at Bayer therefore focus on the responsible use of natural resources to conserve and protect ecosystems, species and genetic biodiversity. Bayer supports the Global Biodiversity Framework.
Focus on addressing the main drivers of biodiversity loss
According to the latest report of the Intergovernmental Science Policy Platform on Biodiversity and Ecosystem Services (IPBES), more than one million species of animals and plants face extinction, driven by human activity. The most important driver for the loss of biodiversity is land use change, while climate change and pollution also come along with negative impacts. Bayer is putting continuous efforts to addressing these drivers:
Land use change and crop management practices
Agriculture and agricultural production depend on nature – more than any other sector or industry. The dependencies may include water, soil health, weather conditions and ecosystem services (such as pollination, natural pest control, nutrient cycling).
Bayer seeks to balance the need for crop production and nature conservation by generating value for the grower through the preservation and restoration of biodiversity and ecosystem services. And to find this balance, we see the biggest opportunity in the modifications of cropping systems towards regenerative agriculture. Unlike conventional farming, regenerative practices offer a way to improve farm productivity and incomes while delivering benefits for nature. Therefore, we seek to design cropping systems that not only produce more with less, but also become more regenerative in terms of soil health, water, and biodiversity and more resilient towards climate change. To explore and develop corresponding elements for those systems we work along three different pillars of biodiversity: soil health, habitats and genetic diversity.
Climate
As a science-based company, Bayer has recognized the risks posed by global climate change. We aim to continuously reduce greenhouse gas emissions (GHG) within our company and along our entire value chain.
Our Climate Transition and Transformation Plan provides an overarching picture of our climate strategy including key actions for mitigation, adaptation and access.
While climate change affects us all, farmers are especially attuned to the impact of increasingly extreme weather conditions including drought, severe heat, flooding, or other shifting climatic trends. Together, these various challenges make it more difficult for farmers to cultivate their crops, ensure their livelihoods and support the global food system we all rely on.
That is why Bayer is devoted to decarbonizing agriculture by developing new solutions that help farmers withstand the impacts and address the causes of climate change e.g., including new seeds and traits that foster famers’ climate resilience, low-carbon practices like no-till, or new carbon farming business models.
Forest conservation to withholding land use and climate change
Bayer aims for forest conservation as clearly stated in our position on Deforestation and Forest Degradation.
Also, Bayer is a founding member of the LEAF coalition to protect tropical forests. LEAF has mobilized more than US$1.5 billion since 2021 to initiate the biggest public-private effort to protect the rainforests.
Worldwide, trees absorb twice as much carbon as they emit. But many carbon sinks are threatened, and the world is off track to meet its forest conservation targets. In 2022 alone, 6.6 million hectares of trees were lost to deforestation.
However, forest conservation is about more than avoiding emissions; it also brings invaluable co-benefits to people, their communities and biodiversity.
Pollution
Bayer consistently seeks to develop and offer crop protection products that have the same or better benefits for farmers, while having less impact on the environment.
To this end, Bayer adopted a methodology for crop protection environmental impact reduction (CP EIR) and made a commitment to reducing the environmental impact of our crop protection products. The methodology we adopted relies on two leading, externally developed scientific consensus models to enable a quantifiable environmental impact assessment of crop protection.
Specifically, we aim to reduce the treated-area-weighted environmental impact per hectare of Bayer’s global crop protection portfolio by 30% by 2030 against a 2014–2018 average baseline. Based on the data collected between 2018-2022, we have already managed to achieve a 12% reduction against the baseline. This reduction was mainly the result of changes in our crop protection product portfolio in recent years.
Bayer is implementing measures that help to manage and support biodiversity along its value chain: In its own operations, in its engagement with suppliers, and especially in its downstream value chain.
As our own operations might impact local biodiversity at the sites, we have implemented numerous mitigation measures and activities:
- We perform a voluntary ecological assessment for capital expenditure projects exceeding €10 million.
- Environmental management at our sites includes the monitoring and reduction of wastewater. Wastewater at our sites is subject to strict monitoring before it is discharged into the various disposal channels.
- We aim to minimize material consumption and disposal volumes through systematic waste management. Waste separation, safe disposal channels and economically expedient recycling processes serve this purpose. In accordance with our Group regulations, all production sites are obliged to prevent, recycle and reduce waste and to dispose of it safely and in line with good environmental practices.
- Moreover, we have implemented appropriate safety measures at the site that also help to prevent or reduce potential negative impacts on nature, including biosafety, plant safety, and transportation and storage safety.
- Using the international Integrated Biodiversity Assessment Tool (IBAT), we conducted a comparison of the geographical coordinates of our 553 sites with those of internationally recognized protected areas. The comparison showed that 30 of our sites are located within six kilometers of such protected areas. For more information see CDP Climate Change questionnaire.
- Additionally, we publicly disclose the list of environmentally relevant sites in water scarce regions. For more information see CDP Water Security questionnaire.
- Bayer is collaborating with conservation groups, academic experts, farmers and government agencies across the globe. E.g. in North America, Bayer has partnered with the Wildlife Habitat Council (WHC) to promote sustainability, wildlife preservation, biodiversity and environmental education at the company’s 39 WHC-certified sites.
Our suppliers might impact local biodiversity at the sites they operate. This holds especially true for our seed suppliers who rely on and impact nature, including water, soil and ecosystem services, also by the use of inputs such as fertilizers and pesticides. We have implemented numerous measures that shall help to improve the status quo:
- Bayer applies not just economic standards, but also environmental, social and corporate governance (ESG) standards in choosing new suppliers or continuing its relationships with existing ones. These principles are defined in Bayer’s Supplier Code of Conduct, which generally forms the basis for our collaboration with suppliers.
- Bayer has established a four-step process throughout the Group to improve sustainability practices in the supply chain. This process is implemented through cross-functional cooperation between the Procurement and Public Affairs, Sustainability & Safety enabling function. In general, this process also includes environmental topics like the reduction of a supplier’s impacts and dependencies on nature.
- In our seed supply chain, we work on improvements. E.g. we certified zero illegal deforestation in the production of our soybean seeds in Brazil and we will next certify our corn seed production. We continually assess on-going compliance and are looking to expand this work to other crops and other regions.
Our famer customers rely on and impact nature, including water, soil and ecosystem services, also by the use of inputs such as fertilizers and pesticides. We have implemented specific targets and numerous measures that shall help to improve the status quo:
- Bayer addresses the main drivers of biodiversity loss with ambitious action that finally shows effects in its downstream value chain: promoting regenerative agricultural practices in general, reducing GHG emissions and water usage, and improving the environmental impact of its crop protection portfolio:
- We aim to enable our farming customers to reduce their on-field greenhouse gas emissions per mass unit of crop produced by 30% by 2030 compared to the overall base year emission intensity.
- We are committed to improving water use per kilogram of crop by 25% by 2030 by transforming rice-cropping systems for our smallholder customers in the relevant regions where Bayer operates, starting in India.
- Reduce the treated area-weighted environmental impact per hectare of Bayer’s global crop protection portfolio by 30% by 2030 against a 2014–2018 average baseline.
- Bayer has been working towards the identification of measures which balance the conservation of biodiversity and the generation of value for farmers and worked with farmers in several countries to better understand their practices and hindrances. E.g. see our collaboration with ETH Zürich and IFPRI.
- For Bayer, product stewardship is a life cycle approach that begins at the research and development stage of a new product, continues through its production, marketing and safe use, and ends with the final disposal of any waste. Engagement and actions with corporate customers with regard to nature- related impacts and dependencies in relation to our products are key pillars in many of these stewardship activities, e.g. including training and education (Bayer Safe Use Ambassador initiative, Better Life Farming, Bayer ForwardFarming), product monitoring, and empty container management.
Relevant Group Positions and Commitments
Bayer is committed to conserving and restoring biodiversity within and beyond agricultural fields through our technologies and services. We have spelled out our views and contributions:
- Bayer is committed to the objectives of the United Nations’ Convention on Biological Diversity (CBD), including the fair and equitable sharing of benefits arising from the utilization of genetic resources, as well as the goals of the International Treaty on Plant Genetic Resources for Food and Agriculture of the Food and Agriculture Organization (FAO) of the United Nations, which prescribes the balanced and fair division of use of plant genetic resources.
- We are committed to respecting and fostering human rights along the entire value chain and to reporting transparently on the results of our activities, as described in our Human Rights Policy.
- We acknowledge that farming, like many other activities, has an impact on biodiversity. Our commitment to conserving and restoring biodiversity within and beyond agricultural fields through our technologies and services is described in our Position on Conservation and Restoration of Biodiversity in Agriculture and Forestry.
- We take the decline of insects very seriously. Being well aware of the importance of insect diversity for global ecosystems and for agriculture, we are dedicated to developing and implementing measures to halt and reverse insect decline. Find out more in Our Views on Insect Decline | Bayer Global.
- Forests play a vital role in mitigating climate change, fostering biodiversity, and enabling water and soil conservation. We want to make a significant contribution not only to protecting existing forests, but also helping to restore lost forest land. Find out more in our Position on Deforestation and Forest Degradation | Bayer Global.
- Bayer is committed to partnering with farmers and others to help sustainably meet the growing demands of the world for protein while helping to reduce the greenhouse gas emissions of the beef industry through innovation. Find out more in our Position on Sustainable Beef Production.
Impacts, Risks, Opportunities, and Dependencies
With €23 billion sales in agriculture in 2023, Bayer is the world’s leading agriculture enterprise by sales, with businesses in crop protection, seeds and traits.
Therefore, all of Bayer’s
- direct operations in the agricultural business are directly dependent and have impact on nature, including water, soil health, weather conditions and ecosystem services locally as well as globally (regarding effects resulting from climate change).
- purchases of agricultural products are directly dependent while every seed producer locally has an impact on nature. Acknowledging this, all suppliers in the upstream value chain producing agricultural products for Bayer (including seeds production) are dependent on water, soil health, weather conditions and ecosystem services.
- sales in the agricultural business are directly dependent while every farmer locally has a certain impact on nature. Acknowledging this, all end customers in the downstream value chain of Bayer’s agricultural business are dependent on water, soil health, weather conditions and ecosystem services
The material risks regarding nature impacts and dependencies are included in our 2024 Double Materiality Analysis (following CSRD/ESRS).
Bayer has huge opportunities that are related to influencing, limiting or reducing both the dependencies and impacts of agriculture on nature especially in the downstream value chain. All of our R&D in agriculture is focused on either increasing yield (while not increasing the impact on nature) or to reducing the impact on nature of pesticide use or agriculture in general.
Measurement and Reporting
Measurement of biodiversity elements is challenging due the inherent complexity of nature and its interdependences. At the same time, meaningful data and reporting is crucial for management of this multi-layered topic. At Bayer, we carefully investigate current developments related to measurement and reporting and we constructively engage to contribute to science-based advancements.
Our work in the reporting space is closely linked to the requirements of the Corporate Sustainability Reporting Directive (CSRD) of the EU that will serve as our primary framework as we move forward. Based on these requirements, we will report on material nature-related topics in the next Management Report for the full year 2024.
In addition, we strongly belief in the significance of the Taskforce on Nature-related Financial Disclosures (TNFD) as a crucial milestone in scaling up corporate transparency requirements concerning biodiversity and the natural environment. Bayer joined the TNFD and supports nature-related disclosures as a way to drive environmental progress. We believe in playing an active role in delivering a financial disclosure framework that addresses nature-related risks and supports investments in nature-positive outcomes.
Governance
- Sustainability is of outmost importance to Bayer with our CEO being also our Chief Sustainability Officer overseeing all sustainability activities including nature-related topics like biodiversity.
- The Board of Management is responsible for Bayer’s materiality assessment and management of the relevant topics, including the company’s nature-related dependencies, impacts, risks and opportunities.
- The Board of Management holds the overall responsibility for an effective risk management system that also accounts for nature-related risks; our CFO chairs the Bayer Assurance Committee as the relevant committee within the Board. The Board member responsible for Crop Science manages respective nature related activities of this highly affected division that follows the vision of scaling regenerative agriculture and with it nature-related dependencies, impacts, risks and opportunities.
- Thereby the Chairman regularly consults and is supported by Bayer’s Human Rights Officer who oversees risk management in the area of human rights and informs the Board of Management about his or her work. The Human Rights officer directly reports to the Chairman.
- Moreover, Bayer’s Supervisory Board is directly involved in decisions on matters of fundamental importance to the company, regularly conferring with the Board of Management on the company’s strategic alignment and the implementation status of the business strategy. In ESG and sustainability-related topics, this can comprise different interdependent topics like opportunities and risks, as well as reporting.
- There are two Committees in the Supervisory Board that have a dedicated focus on specific ESG and sustainability related topics: the Audit Committee and the ESG Committee. According to their responsibilities they also cover Bayer’s nature & biodiversity-related dependencies, impacts, risks and opportunities, amongst others.
- Reports on the committee meetings are regularly presented at the meetings of the full Supervisory Board. Our CEO/CSO, the presidents of Bayer’s Divisions, and the Head of Public Affairs, Sustainability and Safety hold key positions when it comes to informing the Supervisory Board in sustainability related matters.
- Moreover, starting in 2024, we conduct regular trainings on sustainability, including climate and nature-related issues, for the Supervisory Board.
- Additionally, an independent external Sustainability Council advises the Board of Management of Bayer AG and other functions within the company in all sustainability matters.
- Suspected compliance violations can be reported – anonymously if desired and if permitted by respective national law – to a worldwide compliance hotline operated by an independent service provider.
- Users of our products can contact us through a range of communication channels should they have inquiries or complaints, or if they wish to report any incidents. These channels include both direct contact with our sales staff and hotline numbers printed on our product packaging.
- Bayer conducts all of its direct lobbying in line with the goals of The Biodiversity Plan including all subsidiaries and business areas, and all operational jurisdictions. Moreover, Bayer commits to advocate for lobbying activities aligned with the Biodiversity Plan within the trade associations it belongs to.
- Bayer participates actively to support international delegations advocating for key policy issues during international negotiations including: Biodiversity e.g., COP15 and CBD related intersessional meetings with CropLife International (CLI), the Global Industry Coalition (GIC), International Chamber of Commerce (ICC) and World Business Council for Sustainable Development (WBCSD) delegations.
- We notice that expectations for reporting on the alignment of our trade associations’ advocacy activities with the Biodiversity Plan have increased. We will consider these expectations very seriously in the frame of our next reporting cycles.
