Within the reporting period, Bayer separated from its classical chemical business and from about one third of its polymer activities. They were placed at the stock market as a new company under the name of LANXESS in January 2005. By means of this spin off, the fundamental restructuring of Bayer is accomplished. The Bayer Group now presents itself as a Holding company with three globally operating subgroups (Bayer Crop Science AG, Bayer Health Care AG and Bayer Material Science AG) and three service companies that are supporting the subgroups’ activities.

The COP highlights “Science for a better life”, a guidance document, setting the framework for the New Bayer Group’s business ethic. The Guidance document describes perspective, strategy and values as well as business ethics of our company and is therewith providing a contribution to implement the ten Global Compact principles. It contains the Company’s commitment to respect and promote human rights within the sphere of influence, and to foster and actively contribute to sustainable development through operations and products. To implement the contents of the guidance document, appropriate structures have been developed within the company. The structures comprise of committees and boards where all management levels including Board Members of the Bayer Group are involved. As an example for the company’s commitment to sustainable development, the Bayer Crop Science Initiative “Sustainable Agriculture” is described.

Bayer is Organisational Stakeholder of the GRI since October 2004 and is continuously working towards reporting on progress measurement according to the GRI Indicators of the 2002 Guidelines. The COP mentions the improvements in the HSE (Health, Safety, and Environment) Performance according to the newly developed Key Performance Indicator concept.

The program for corporate responsibility and legal compliance obliges each member of the executive staff to comply with fair behaviour in the areas of (international) trade, competition and contracts. Appropriate structures have been established within the company to monitor and control compliance with this program to which executive staff has to commit by signature. This program is a powerful instrument to implement the tenth principle.

To foster the implementation of Sustainable Development, Bayer extended its cooperation with UNEP and started a program (funding of 1 million €/year) focusing on education and training of young people worldwide, focussing on Asia, Latin America and Eastern Europe.

Education is a centre point of Bayer’s activities, contributing with programmes facilitating the start for young people in the work environment in Germany and worldwide.

In fighting diseases, Bayer is actively contributing through various projects, some of the being named as examples:

-Fighting HIV/AIDS (Bayer is Member of GBC (Global Business
Coalition on HIV/AIDS):
- In China: Intense Cooperation with Chinese Government,
e.g. “Tsingua – Bayer Public Health and HIV/AIDS Media Studies
Program” with Tsingua University.
- In Africa: Cooperation with “Saint Egidio” Organisation in the
DREAM- Project (Drug Enhancement Resource Against AIDS
and Malnutrition)

- Supporting WHO in fighting the Chagas Disease in Latin America

- Support for the “World Federation of Hemophilia” by providing
Kogenate (representing a value of 10 Mill. USD)