limited assurance

Reporting Principles

This Annual Report provides comprehensive and transparent information on all the topics we believe are important for the company and its stakeholders.

The consolidated financial statements of the Bayer Group were prepared according to the International Financial Reporting Standards (IFRS) and the ­applicable provisions of the German Commercial Code. The combined management report complies with the German Commercial Code and German ­financial reporting standards.

The financial statements of Bayer AG were prepared according to the requirements of the German Commercial Code and Stock Corporation Act. The Compensation Report for the Board of Management and the Supervisory Board complies with the recommendations of the German Corporate Governance Code. The consolidated financial statements and the combined management report are published in line with statutory disclosure ­requirements.

The Bayer Group’s sustainability reporting is aligned to the G3.1 guidelines of the Global Reporting Initiative (GRI) and the ten principles of the UN Global Compact (UNGC). The GRI has checked and confirmed that level A+ has been maintained. The logo and a GRI index listing the corresponding UNGC principles can be found in the “Further Information” section under “GRI Index and UN Global Compact Principles.” A comprehensive overview of the GRI indicators and an outline of our progress in implementing the 10 UNGC principles (corresponding to the Advanced Level) are available online. Our ­reporting is also aligned to international guidelines and recommendations, including those on the ­definition and selection of non-financial indicators and on reporting.

We follow the OECD guidelines and comply with the ISO 26000 standard. In selecting and measuring our key data we also take into account the recommendations of the European Federation of Financial Analysts Societies (EFFAS) in the case of non-­financial indicators, and those of the Greenhouse Gas Protocol regarding greenhouse gas emissions. We also consider the recommendations of the World Business Council for Sustainable Development (WBCSD) and the European Chemical Industry Council (CEFIC). This year we will again submit a declaration of ­conformity with the German Sustainability Code.

Data collection for financial and non-financial indicators

Credible reporting is based on transparency and data validity. We collect the data of all relevant organizational units and companies worldwide that fall within the scope of the Bayer Group’s consolidated financial statements.

All HSE (health, safety and environmental protection) performance indicators for the Group are collated in our Group-wide site information system (BaySIS). The HSE data cover all fully consolidated companies in which Bayer owns at least 50% of the shares. The performance indicators of these companies are fully consolidated regardless of the exact proportion of the shares held by Bayer. Data on occupational ­injuries, transport accidents and environmental incidents are collected at all sites worldwide. Environmentally relevant indicators are measured at all production sites.

We mainly use SAP systems to collect financial data worldwide. We use the global SAP HR information ­system and the associated reporting application – the Sustainability Management Annual Reporting Tool (SMART) – to collect HR indicators and social data.

As the indicators in this report are stated in accordance with commercial rounding principles, totals and percentages may not always be exact.

External verification

PricewaterhouseCoopers Aktiengesellschaft Wirtschafts­prüfungsgesellschaft has audited the ­consolidated financial statements of Bayer AG, Leverkusen, and the combined management report for the fiscal year from January 1 to December 31, 2014, and has issued an unqualified opinion.

All of the online annexes that supplement the ­management report in the augmented online version of the Bayer Annual Report 2014 (“Annual ­Report 2014 – Augmented Version”) for the fiscal year from January 1 to December 31, 2014, and the parts of the Annual Report 2014 entitled “Investor Infor­mation” and “Reporting Principles” have been ­reviewed by PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft on a ­limited assurance basis.

Last updated: February 26, 2015  Copyright © Bayer AG