Data Collection and Reporting Thresholds

We collected the data of all relevant organizational units and companies worldwide that fell within the scope of the Bayer Group’s consolidated financial statements between January 1, 2016, and December 31, 2016. Covestro has established its own corporate organization that functions according to a similar system and comparable processes to those at Bayer. Facts and figures pertaining to Covestro are included in all chapters unless otherwise stated.

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. 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.

Data on occupational injuries, transport accidents and environmental incidents are collected at all sites worldwide. Environmentally relevant indicators are measured at all production sites and at relevant research and development sites. In accordance with IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations), financial indicators are given for Continuing operations Sales and earnings reporting for continuing operations pertains only to business operations that are expected to remain in the company’s portfolio for the foreseeable future; opposite of discontinued operations. unless otherwise explicitly stated. The same applies to HR indicators and our social data. In the case of HSE indicators, the value shown is the total for the Bayer Group unless otherwise reported. In 2016, the Bayer Group amended its regions. Europe is reported together with the Middle East and Africa. Latin America is a separate region. This reflects the regional responsibilities of the individual members of the Board of Management of Bayer AG. The prior-year figures are restated accordingly. 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 AG Wirtschaftsprüfungsgesellschaft has audited the consolidated financial statements (including the notes thereto) of Bayer AG, Leverkusen, and the combined management report for the fiscal year from January 1, 2016, to December 31, 2016, and has issued an unqualified opinion. All the online annexes that supplement the management report in the augmented online version of the Bayer Annual Report 2016 (“Annual Report 2016 – Augmented Version”) for the fiscal year from January 1 to December 31, 2016, have been reviewed by PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft on a limited assurance basis.