CDP 2010 CDP Water Disclosure 2010 Information Request

Carbon Disclosure Project CDP 2010 CDP Water Disclosure 2010 Information Request

Bayer AG

Module: Introduction - 2010 CDP Water Disclosure

Page: Introduction - 2010 CDP Water Disclosure

0.1

Introduction

Please give a general description and introduction to your organization.

Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech

materials. Our products and services are designed to benefit people and improve their quality of life. At

the same time, we want to create value through innovation, growth and high earning power. ***We are

firmly aligned to our mission statement “Bayer: Science For A Better Life” and continue to optimize our

portfolio, concentrating our activities in three high-potential, efficient subgroups with largely independent

operations: HealthCare, CropScience and MaterialScience. These provide us with access to major

global growth markets and are supported by our service companies. As an inventor company, we plan

to continue setting trends in research-intensive areas. *** Innovation is the foundation for

competitiveness and growth, and thus for our company’s success in the future. Our knowledge and our

products are helping to diagnose, alleviate or cure diseases; improving the quality and adequacy of the

global food supply; and contributing significantly to an active, modern lifestyle. *** Our expertise and

innovative capability also enable us to offer solutions for protecting the environment and using natural

resources (including water) efficiently. We are committed to the principles of sustainable development

and to our role as a socially and ethically responsible corporate citizen. For us, there is a clear link

between technical and economic expertise and corporate social responsibility. This, in turn, we define

as our responsibility to work for the benefit of humankind, engage in strengthening civil society and

make a lasting contribution to sustainable development. *** At Bayer, we regard economy, ecology and

social commitment as objectives of equal rank. We seek to retain society’s confidence through

performance, flexibility and open communication as we work in pursuit of our overriding goals: to

steadily create corporate value and generate high value-added for the benefit of our stockholders, our

employees and the community in every country in which we operate. *** Forward-Looking Statements:

This document may contain forward-looking statements based on current assumptions and forecasts

made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and

other factors could lead to material differences between the actual financial position, development or

performance of the company and the estimates given here. These factors include those discussed in

Bayer’s public reports, which are available on the Bayer website at https://www.wendangku.net/doc/b114895279.html,. The company

assumes no liability whatsoever to update these forward-looking statements or to conform them to

future events or developments.

0.2

Reporting Year Please state the start and end date of the year for which you are reporting data.

Enter the period that will be disclosed.

Thu 01 Jan 2009 - Thu 31 Dec 2009

0.3a

Reporting Boundary

Please indicate the category that describes the company, entities, or group for which you are reporting.

Companies over which financial control is exercised per consolidated audited financial statements

0.3b

Exclusions

Are there Are there any geographies, activities, facilities or types of water inputs/outputs within

any geographies, activities, facilities or types of water inputs/outputs within this boundary which are not included in your included in your disclosure?

No

0.4

Country/Region Configuration

Please select the countries or regions for which you will be supplying data. This selection will be carried forward to Please select the countries or regions for which you

assist you in completing your response.

assist

Further Information

The selected countries account for 99% of Bayer's water use. Overall, approximately 80% of the water

used by Bayer is once-through cooling water (including losses due to evaporation). This water is only

heated and does not come into contact with products. It can therefore simply be fed back into the

natural water cycle.

Module: 2010-Water-Management

Page: 2010-Water-1-ManagementGovernance

1.1

Does your company have a water policy, strategy or management plan?

Yes

1.2

Please describe your policy, strategy or plan here:

The protection of natural resources is an integral part of Bayer’s commitment to sustainability. For

Bayer, a business strategy based on the principles of sustainability is the key to lasting success. Bayer

defines sustainability as balancing commercial success with Bayer’s impact on the environment and

society. Sustainability is a key element of Bayer’s values and leadership principles, which include a will

to succeed and a passion for our employees, business partners, stockholders and society. Other values spelled out in our mission statement “Bayer: Science For A Better Life” include integrity, openness and

honesty; respect for people and nature; and sustainability of our actions. Our mission statement is

supplemented by the Bayer Sustainable Development Policy, our commitments to the global

Responsible Care initiative of the chemical industry and the 10 principles of the United Nations Global

Compact. Bayer’s commitment to protect resources is an integral part of these commitments: *** (1)

Responsible Care has long been a central objective of our business policy and is expressed in our

commitment to and signing of the Responsible Care Global Charter. Our Responsible Care policy

includes the commitment to use natural resources efficiently. It applies to all subgroups and service

companies. Within our 2006+ program of objectives, we set ambitious sustainability-relevant goals,

which are continuously monitored, e.g., targets to improve the quality of discharges into water. Several

sites have set site-specific water reduction goals as part of their environmental management measures

within their ISO 14001 certification or EMAS validation processes.*** (2) In accordance with the further

development of our sustainability strategy, we launched an extensive Group-wide Sustainability

Program in November 2009, also including water-related initiatives. In our Sustainability Program, we

concentrate on 3 focus issues: alliances for sustainable health care, partnerships to provide more

quality food, and solutions for climate protection and resource use. The program comprises 8 lighthouse projects with concrete objectives and action plans. *** One water-related lighthouse project focuses on

rice, one of the most important food staples in the Asia/Pacific region. In Indonesia, Bayer CropScience (BCS) has launched an integrated program for sustainable rice-growing with a combination of new

growing methods involving the direct seeding of pregerminated rice with the efficient use of pesticides

and fertilizers. This increases yields by about 10% and is expected to lower water consumption and

greenhouse gas emissions by about 30%. *** Another lighthouse project is our Food Chain Partnership

for Vegetables. The growing world population’s rising demand for food stands in contrast to the

increasing scarcity of arable land and natural resources, especially water and energy. BCS works

together with partners to develop solutions for sustainable vegetable growing, e.g., in India. The

objective of the project is to help a total of 65,000 Indian farmers grow vegetables on 50,000 hectares in

125 individual projects by 2011. By increasing crop yields, natural resources are used efficiently. This is

especially important in water-scarce regions such as India. *** Water-related initiatives are also pursued

within the focus issue “Climate protection and resource use.” One lighthouse project is the Resource

Efficiency Check, which is currently being developed by Bayer Technology Services. This methodology

contains a holistic analysis of production-relevant resources such as energy, water and raw materials

and leads to improvement measures for minimizing consumption and the resulting waste and emissions.

Water is included as one important module with the focus on minimizing overall water consumption and

reducing wastewater generation. The Resource Efficiency Check will be tested in pilot projects across

the Group. *** One important component of Bayer’s sustainability strategy is the Group-wide Bayer

Climate Program established in 2007. Bayer has set aside EUR 1 billion in its budget for investment in

climate-relevant R&D and projects between 2008 and 2010 to reduce greenhouse gas emissions and to

further exploit climate-related opportunities. By contributing to keeping global warming to below 2

degrees Celsius, we make an active contribution to maintaining water supplies in the future. *** (3) In

addition, Bayer subgroups enact systems and standards that address their specific requirements

regarding the water issue. In its corporate position “Our contribution to water use efficiency and

protection,” Bayer CropScience commits itself to a contribution to efficient water use at its own

production sites and to water use efficiency improvements for farmers. Bayer MaterialScience

incorporates its commitment to continually improve its environmental performance and resource

protection in its “Policy on Health, Safety, Environment and Quality.”

1.3

Where is the highest level of responsibility within your company for the policy, strategy or plan?

Board committee or other executive body

1.3a

Please specify who is responsible.

Individual Board Member

1.4

Does the policy, strategy or plan specify water reduction, quality or efficiency targets or other water-related goals?

Type of

target/goal

Target/goal Comments

Quality of discharges Target: Reduction in the discharge of TOC (total organic

carbon) into receiving waters by 10 percent per metric ton of

sales product, measured in kg per metric ton of sales product.

Base year: 2005. End year: 2010.

The target applies

to the company as

a whole.

Quality of discharges Target: Reduction in the discharge of nitrogen into receiving

waters by 10 percent per metric ton of sales product,

measured in kg per metric ton of sales product. Base year:

2005. End year: 2010.

The target applies

to the company as

a whole.

1.5

What water-related actions has your company taken in respect of its own operations?

1.6

What water-related actions has your company taken in respect of factors beyond its own operations?

and improvement of the grasslands, woodlands and hedgerows on the site, which had evolved their own biodiversity. For example, instead of cutting the grass, the site lets it grow, which encourages the growth of wildflowers and attracts rare plant and animal species to the site. Wildflower seeds have been planted together with schoolchildren and a large pond was put into the area, which created its own biodiversity. Each year, NWT issues a study to review the biodiversity improvements on site. The work is seen by ISO 14001 auditors as a demonstration that the site not only wishes to meet its requirements for environmental protection through its ‘chemical processing’ but also to enhance its environment.

Engaged with NGOs Bayer CropScience has partnered with the Mandalla Agency, an NGO from Jo?o Pessoa (state of Paraíba), in developing the Mandalla Project since 2004. The company supports the project, the purpose of which is to produce food for the sustenance of small family farmers living in rural settlements in needy regions, both financially and technically. The project's methodology focuses on three basic issues: guaranteeing quality of life, economic productivity, and environmental balance by means of actions that encourage the rational use of the existing potential, water, to produce quality food at high productivity and with a high level of social responsibility in the best way possible to combat hunger and misery. By building hotbeds around circular tanks, called "mandalas," the irrigation system allows for the planting of fruits and vegetables in these water-scarce regions. The water in the tank is also used to breed fish and birds. The UNICENTER Mandalla (the National Center for the Dissemination of Social Technologies) was established in Cutié (state of Paraíba) in 2005 and aims to train young people and adults to disseminate the Mandalla technology and, thus, continue developing other self-sustainable projects. The Mandalla Project has already benefited upwards of 1,500 small farmers in rural settlements in Brazilian States such as Paraíba and Minas Gerais.

Engaged with public policy makers Through its active involvement with policymakers on climate-related topics (e.g., at EU level), Bayer has played a considerable role in both increasing climate change awareness among policymakers and peers alike and in shaping the climate policies of the future. Bayer is also engaging in active dialogue with politicians at the local level. For example, Bayer is actively participating in the "Industry and environment" dialogue in North-Rhine Westphalia, Germany. In 2009, Bayer HealthCare hosted one of the dialogue events focusing on water protection.

Engaged in water management processes (e.g. consultations, user group discussions, conferences etc.)Bayer is an active member of the World Business Council for Sustainable Development. In 2010, Bayer CropScience (BCS) upgraded its membership and joined the WBCSD Water Leadership Group. As a member of the WBCSD Water Leadership Group Bayer wants to actively contribute to the further development of water management processes and platforms. *** BCS is also participating in several local water-related roundtables and initiatives. For example, in Germany BCS is a voluntary member of a Water Roundtable, involving water providers and the agrochemical industry association, to support water protection. A joint agreement between water providers and the industry association is currently being prepared. Similar initiatives also exist in the Netherlands.

Engaged in initiatives to develop standardized water accounting methodology Bayer is supporting several water-related research projects at Tongji University, China. One of these research projects is analyzing the Shanghai industry water footprint. The water footprint is an indicator of water use that looks at both the direct and indirect water use of a consumer or producer. In a water-stressed world, the water footprint of products will be a key environmental indicator in the drive towards increased sustainable development. The aim of this project is to develop the methodology and a model for a sustainability assessment of water and the related energy footprint in Shanghai, and to provide assistance in policy making. The project is running from January to December 2010.

Other: Water-related education As part of the Bayer Climate Program, seven schoolchildren in Germany received scholarships from the Bayer Science & Education Foundation to attend a two-week sustainability camp in Pittsburgh, United States, focusing on climate protection and sustainability. The camp was jointly organized by the Bayer USA Foundation and the environmental organization RiverQuest. The seven schoolchildren from Germany were joined by five children from the United States to focus on water as an ecosystem, the sustainable use of resources and the challenges posed by climate change. One scholarship student was also invited by Bayer to attend the Climate Summit in Copenhagen.

1.7

What water-related actions are you considering taking?

Bayer is considering several water-related actions in the future: (1) Planned water-related actions in our own operations: Several water-related actions are being planned at a site level, for example at major

Bayer MaterialScience sites. As mentioned above, at the Antwerp site (Belgium), the largest water user at Bayer MaterialScience, water usage was already reduced by approximately 10% in 2009. A second similar water-saving project is planned for the future. In Thailand, our Map Ta Phut site is in discussion with its chlorine suppliers to use salt containing wastewater from the polycarbonate plant in chlorine

electrolysis. In Spain, our Tarragona site is planning to reutilize rainwater in the closed cooling circuit

established at the site. Our Baytown site (US) has initiated a water sustainability project with the goal to identify water reuse and recycle opportunities at the site. *** Water reduction measures are also

planned at Bayer HealthCare sites. For example, in Istanbul, Turkey, the site will start to operate a new DI water treatment system and install a new container washing machine in 2010, reducing its total water use by 2% annually. *** Several wastewater optimization projects are being implemented at Bayer

CropScience’s sites. For example, in Kansas City, United States, discharges are currently being

reviewed for optimization in the future. Similarly, optimization projects are under way in Ankleswar and Vapi (both India) to adapt to future discharge factors for discharges into wastewater treatment plants. *** Following the start-up of a new wastewater pretreatment plant for Bayer CropScience at CHEMPARK Dormagen, Germany at the beginning of 2010, Currenta is planning further improvements of the

capacity of wastewater treatment plants in Dormagen until 2011. In addition, Currenta is also planning to supply environment-friendly energy generated from industrial wastewater treatment sludge and liquid waste to the plants at the CHEMPARK Leverkusen site. In a pilot project, it was shown that 20,000

metric tons of dehydrated wastewater treatment sludge generated each year in the biological treatment of chemical wastewater can be used to generate biogas despite its chemical contamination, provided that a treatment process newly developed by Currenta is placed upstream. *** Furthermore, Bayer

MaterialScience's Brunsbuettel site (Germany) is currently undertaking field tests to eliminate zinc from the wastewater of the TDI plant. *** To control the use of resources even more effectively Bayer

Technology Services developed the Resource Efficiency Check. The aim of the Resource Efficiency

Check is to identify measures in production processes and processing procedures enhancing the

resource efficiency of, for example, raw materials, water and solvents and thus limiting emissions and waste. This will lead to process optimizations in the field of increased yields (reducing raw material

usage and loss of products) as well as in recycling, the utilization of by-products, and wastewater or

waste air treatment. *** Bayer will also continue its efforts to include water-related decisions in its

sourcing decisions and involvement with suppliers. In 2010, we are continuing the rollout of our Supplier Code of Conduct and the related risk-focused assessments. We are planning to assess more than 150 further suppliers in 2010. Additional suppliers (e.g., 130 suppliers in India) are evaluated through

country-and subgroup-specific projects. *** (2) Further water-related actions beyond our own operations: As part of Bayer’s support for the Chair in Sustainable Development at Tongji University in China, work is under way on projects for the treatment of wastewater from the cassava bio-ethanol production

process. This process was generating strongly polluted wastewater due to a lack of process

technologies. The wastewater is now being treated using a new patented anaerobic process. ***

Another project at Tongji University which is supported by Bayer is a clean-water project in Gansu

province. In Huan County, Gansu Province, located in the northwest region of China, more than 30% of the local drinking water contains higher level of Cr(VI), which has imposed a serious threat to the safety of local people. The objective of this project is to develop zero-valent iron-modified filters for Cr(VI)

removal from drinking water. The lab experimental phase has now been completed, and a

demonstration plant is under construction in Gansu province.

1.8

What water-related initiatives does your company participate in and what tools or resources does it use?

Further Information

Further information re Q 1.3: Overall responsibility for sustainability – including water-related issues – lies with Dr. Wolfgang Plischke, the member of the Board of Management responsible for Innovation,

Technology and Environment. Dr. Wolfgang Plischke chairs the so called “Bayer Community Board for Sustainable Development” (CB SD), which is responsible for steering Bayer’s sustainability strategy

throughout the Bayer Group. Water-related topics are incorporated in its agenda. *** Based on the

Group-wide sustainability strategy, the CB SD each year defines goals, determines the corresponding Group directives and monitors the implementation of sustainability-related measures. The CB SD is

supported and advised by our Community Council for Sustainable Development (CC SD). The

Chairman of the CC SD closely works together with the sustainability officers in the subgroups and

service companies. The CC SD also regularly confers with other Group bodies, such as the Community

Council for Health, Safety, Environment & Quality (CC HSEQ), which meets three times a year. Once a

year, the CC HSEQ reviews the water-related targets and the degree of target achievement. *** The

Environment and Sustainability unit (Corporate Center E&S), headed by Dr. Wolfgang Gro?e Entrup

and reporting to Dr. Wolfgang Plischke, is responsible at the corporate level for the day-to-day

management of sustainability. This unit oversees and coordinates all sustainability-related topics

through the CB SD and CC SD. *** Further information re Q 1.8: As mentioned in Question 1.8, Bayer is

participating in several water-related initiatives. The following paragraph provides additional information

for each of the initiatives mentioned above. *** (1) At the beginning of 2009, Bayer signed the "CEO

Water Mandate" as a voluntary commitment to regularly report on our progress on water. We will

continue to support the UN Global Compact’s CEO Water Mandate and will be working with our

stakeholders to develop sustainable strategies for water use, implementing appropriate solutions and

reporting on the progress made. *** (2) In 2010, we started a Group-wide process to identify water-

related risks and opportunities. During this process, we used the WBCSD Global Water Tool to identify

Bayer sites in water-scarce regions. The results were discussed with each subgroup and served as a

starting point for a structured discussion on water-related risks and opportunities. *** (3) Bayer has been

an organizational stakeholder of the Global Reporting Initiative since 2004. Bayer’s sustainability

reporting is regularly checked by GRI. As in previous years, Bayer’s 2009 Sustainable Development

Report complies with the GRI guidelines in full. The GRI has checked the information provided and

confirmed level A+, the highest reporting level. *** (4) As mentioned above, Bayer has also upgraded its

WBCSD membership, joining the WBCSD Water Leadership Group in 2010. Through this membership

we want to actively contribute to knowledge-sharing on water-related issues and contribute to the further

development of water management processes. *** (5) The Bayer Site Information System (BaySIS) is

Bayer’s central system for monitoring water-related data. As mentioned above, several water-related

indicators are collected at site level and monitored via BaySIS allowing analyses of water use across a

variety of different dimensions such as geographic or site distribution. *** (6) As mentioned above,

Bayer CropScience entered into a research alliance with the Commonwealth Scientific and Industrial

Research Organisation (CSIRO) in Canberra, Australia, in 2009. CSIRO is among the world’s leading

institutions in the development of new wheat varieties, which is a new research focus area for Bayer

CropScience. The goal of this research alliance is to achieve higher yields, increase resistance and

improve nutrient uptake by wheat crops.

Attachments

https://https://www.wendangku.net/doc/b114895279.html,/Sites/2010/81/1581/CDP Water Disclosure 2010/Shared

Documents/Attachments/CDPWaterDisclosure2010/WaterManagementandGovernance/BCS_Water_Contribution.pd https://https://www.wendangku.net/doc/b114895279.html,/Sites/2010/81/1581/CDP Water Disclosure 2010/Shared

Documents/Attachments/CDPWaterDisclosure2010/WaterManagementandGovernance/Sustainability-at

-Bayer-2009.pdf

Module: 2010-Water-RisksOps

Page: 2010-Water-2-WaterStress

2.1

Are you able to identify which of your operations are located in water-stressed regions?

Yes

2.2

Please state (or estimate) the percentage of your operations located in these regions.

Unit used for calculation Percentage

Percentage of water withdrawals by volume Less than or equal to 10%

2.3

Please specify the method used to characterize water-stressed regions in questions 2.1 and 2.2.

Further Information

Page: 2010-Water-3-PhysicalRisks

3.1

Is your company exposed to significant physical risks related to water in its own operations?

Yes

3.2

What are the current and/or anticipated physical risks, and the associated locations and timescales?

Risk Location Timescale

(years)

Further details

Increased water stress or scarcity

leading to higher energy or commodity prices Germany> 50

According to the World Resources Institute, some

of Bayer's German sites are located in water-

stressed regions. Due to climate-related changes,

water supplies could decrease in the future.

Although no interruption of business operations is

expected as Bayer has appropriate measures in

place to ensure sufficient supply, a further

decrease of water supplies in the future could put

adaptive pressure on Bayer's energy supply and

management, e.g., in cooling towers.

Increased water stress or scarcity

leading to higher energy or commodity prices Spain> 50

Bayer's Tarragona site lies in an area classified as

water-scarce by the World Resources Institute.

Due to climate-related changes, water supplies

could decrease in the future. Although no

interruption of business operations is expected as

Bayer has appropriate measures in place to ensure

sufficient supply, a further decrease of water

supplies in the future could put adaptive pressure

on Bayer's energy supply and management, e.g.,

in cooling towers.

Increased water stress or scarcity

leading to higher energy or commodity prices Belgium> 50

According to the World Resources Institute, some

of Bayer's Belgian sites are located in water-scarce

regions. Although no interruption of business

operations is expected as Bayer has appropriate

measures in place to ensure sufficient supply, a

further decrease in water supplies could put

adaptive pressure on Bayer's energy supply and

management, e.g., in cooling towers.

Increased water stress or scarcity leading to higher Switzerland> 50

According to the World Resources Institute,

Bayer's Muttenz site is located in a water-stressed

region. Although no interruption of business

operations is expected as Bayer has appropriate

energy or commodity prices measures in place to ensure sufficient supply, a further decrease in water supplies could put adaptive pressure on Bayer's energy supply and management, e.g., in cooling towers.

Increased water

stress or scarcity leading to higher energy or commodity prices United

States of

America

> 50

According to the World Resources Institute, some

of Bayer's U.S. sites are located in water-scarce

regions. Although no interruption of business

operations is expected as Bayer has appropriate

measures in place to ensure sufficient supply, a

further decrease in water supplies could put

adaptive pressure on Bayer's energy supply and

management, e.g., in cooling towers.

Increased water stress or scarcity

leading to higher energy or commodity prices Mexico> 50

According to the World Resources Institute, some

of Bayer's Mexican sites are located in water-

stressed regions. Although no interruption of

business operations is expected as Bayer has

appropriate measures in place to ensure sufficient

supply, a further decrease in water supplies could

put adaptive pressure on Bayer's energy supply

and management, e.g., in cooling towers.

Increased water stress or scarcity

leading to higher energy or commodity prices China> 50

According to the World Resources Institute, some

of Bayer's Chinese sites are located in water-

scarce regions. Although no interruption of

business operations is expected as Bayer has

appropriate measures in place to ensure sufficient

supply, a further decrease in water supplies could

put adaptive pressure on Bayer's energy supply

and management, e.g., in cooling towers.

Increased water stress or scarcity

leading to higher energy or commodity prices India> 50

According to the World Resources Institute, some

of Bayer's Indian sites are located in water-scarce

regions. Although no interruption of business

operations is expected as Bayer has appropriate

measures in place to ensure sufficient supply, a

further decrease in water supplies could put

adaptive pressure on Bayer's energy supply and

management, e.g., in cooling towers.

Increased water stress or scarcity

leading to higher energy or commodity prices Indonesia> 50

According to the World Resources Institute,

Bayer's Indonesian sites are located in water-

scarce regions. Although no interruption of

business operations is expected as Bayer has

appropriate measures in place to ensure sufficient

supply, a further decrease in water supplies could

put adaptive pressure on Bayer's energy supply

and management, e.g., in cooling towers.

Increased water stress or scarcity

leading to higher energy or commodity prices Thailand> 50

Bayer's sites in Thailand are located in water-

scarce regions. Due to climate-related changes

and increasing urban and industrial water use,

water supplies could be scarce in the future.

Although no interruption of business operations is

expected at this point as Bayer has appropriate

measures in place to ensure sufficient supply, this

could put adaptive pressure on Bayer's energy

supply and management, e.g., in cooling towers.

Flooding (due to changing local hydrological

conditions) leading to disruption to operations Germany> 50

Some of our German sites are potentially

threatened by floods of the river Rhine.

Flooding (due to changing local hydrological

conditions) leading to disruption to operations Spain> 50

A potential increase in storms and floods could

affect our Tarragona site in the future.

Flooding (due to changing local

hydrological conditions) leading to disruption to operations United

States of

America

> 50

A potential increase in storms and floods could

affect, for example, our Baytown site in the future.

In addition to affecting our operations and

production facilities, storms and floods could also

lead to infrastructure and privacy losses.

Flooding (due to changing local hydrological

conditions) leading to disruption to operations China> 50

A potential increase in storms and floods could

affect our Caojing site in the future. In addition to

affecting our operations and production facilities,

storms and floods could also lead to infrastructure

and privacy losses.

Flooding (due to changing local hydrological

conditions) leading to disruption to operations India> 50

Our Indian sites could be subject to heavy

monsoons. In addition to affecting our operations

and production facilities, heavy monsoons could

also lead to infrastructure and privacy losses.

Flooding (due to changing local hydrological

conditions) leading to disruption to operations Thailand> 50

A potential increase in storms and floods could

affect our Map Ta Phut site in the future. In

addition to affecting our operations and production

facilities, storms and floods could also lead to

infrastructure and privacy losses.

Flooding (due to changing local hydrological

conditions) leading to disruption to operations Belgium> 50

A potential increase in storms and floods could

affect our Antwerp site in the future.

3.3

Please describe the ways in which the identified risks affect or could affect your own operations.

Bayer sites that are located in water-stressed regions are exposed to the potential risk of a further

decrease in water supplies in the future, e.g., due to changes in precipitation patterns. Although Bayer has several protective measures in place which would protect Bayer from a water shortage in its

operations itself, reduced water supplies could lead to shortages in energy supply. In addition, some sites are located in coastal areas that are exposed to storms and floods or close to rivers potentially

threatened by floods. A climate-change-related increase in extreme weather events could increase the risk of potential flooding at these sites. *** Although Bayer identifies these physical risks as significant and potentially apparent (as the climate-related risks are, for example, outlined by the IPCC), these risks have not materialized in the past. So far, there is no indication that the exposure of Bayer’s sites to

weather-related risks will increase in the future. The probability of a significant impact from these risks is thus rated extremely low. *** Further details: (1) Potential effects from reduced water supplies: Several Bayer sites are located in regions that are considered water-stressed or water-scarce according to the classification of the World Resources Institute (WRI). Using the WBCSD Global Water Tool, Bayer has mapped all production sites and sites that are especially environmentally relevant against the WRI water scarcity index (representing 99% of Bayer's water use). According to this analysis, Bayer sites are

especially affected by water stress or scarcity in the countries selected in question 3.2. The results of this analysis have been shared and discussed with site managers at the affected sites. Although water scarcity exists in several regions (e.g., around our Map Ta Phut site in Thailand), Bayer is currently not significantly affected by this risk as protective measures have been taken to ensure sufficient supplies.

Furthermore, 92% of Bayer’s total water use comes from sites in Germany, Belgium and the United

States. Although some of those sites are located in water-stressed regions according to the WRI

analysis, we are currently not experiencing any water shortages at these sites. Appropriate measures such as our water tower in Dormagen and storage tanks in Uerdingen and Leverkusen for desalinated water safeguard our operations from temporary water shortages. Currenta, the manager and operator of our German sites in Leverkusen, Uerdingen and Dormagen, is constantly monitoring water-related risks and involved in expert discussions. Furthermore, special operating plans exist for high and low tide in the Rhine to ensure constant water supply. *** (2) Potential effects from flooding: Bayer operates

several sites in coastal regions (e.g., Baytown, Map Ta Phut, Caojing) that are exposed to the risk of hurricanes. In addition, some production sites (e.g., Leverkusen, Uerdingen, Dormagen) are potentially

threatened by floods of the River Rhine or a potential rise in groundwater levels. Manufacturing sites in

some parts of the world (e.g., in India) may be subject to particularly heavy monsoons. A change in the

frequency of storms and floods could disrupt operations at these sites, possibly leading to a shut-down

of production plants or the destruction of our property. In addition, extreme weather conditions can

destroy the surrounding infrastructure with the result that employees are unable to reach their work-

place (e.g., due to destroyed roads or a lack of public transport). *** The financial risks from physical

events could be severe in the worst-case scenarios. Wherever possible and financially affordable, Bayer

has in place insurance coverage against weather-related risks such as storms or flooding. We also have

a denial of access coverage in place. *** To date, typical natural disasters have not caused major

damage to our production plants or resulted in a significant loss of production. Natural disasters are

limited local events with a statistical risk that is specific to each site. An evaluation of the last 50 years

showed that there have not been any changes related to our sites’ exposure to weather-related risk.

Also, the probabilities for worst-case scenarios and the need for additional protective measures are

estimated to be very low. *** The designs of our facilities and their existing preventive action plans have

proven to be sufficient to avoid major damage in cases of natural disaster, such as in the case when

cyclone IKE hit our Baytown site in 2008. Overall, due to the low probability of an increase of water-

related physical risks, Bayer does not consider that there is a significant financial implication from the

identified risks.

3.4

Are there financial implications to the identified risks?

No

3.6

Please describe any actions the company has taken or plans to take to manage or adapt to the risks that have been identified, including their impact on operating costs (positive or negative) and CAPEX programs.

Several measures are in place to safeguard Bayer from physical water-related risks such as our

emergency response systems, disaster management programs, insurance coverage, and other

preventive measures. *** Further details: (1) Among others, the Bayer Emergency Response System

BayERS also covers risks related to water shortages or flooding. This helps to protect employees, the

environment and production sites and consequently ensures Bayer’s business results. BayERS is a

mandatory element of the integrated HSEQ management system at Bayer production sites designed to

ensure appropriate crisis management in the event of unusual occurrences. For non-ad-hoc and non-

catastrophic events, Bayer closely monitors critical trends and is prepared to take action wherever the

situation requires. *** (2) Bayer has a total of three production sites (Baytown, Map Ta Phut and

Caojing) that are located in coastal regions exposed to the risk of hurricanes. These sites have

comprehensive disaster management programs in place, ensuring the safety of the workforce, the

environment and production assets. For example, the Caojing site has developed an extensive

emergency response plan (ERP) based on an environmental, safety and health impact assessment.

This ERP includes at least two training sessions per year for Bayer staff on how to act in case of an

emergency, including abnormal weather events such as earthquakes, rain storms, snow storms and

typhoons. *** In September 2008, Bayer benefited a great deal from its disaster management program

in Baytown when tropical cyclone “IKE” made landfall in Texas, United States. An evaluation of the IKE

incident showed that Bayer’s disaster management program and risk management was sufficient to

protect Bayer against risks from extreme weather events. *** (3) Bayer operates three production sites

(Leverkusen, Uerdingen and Dormagen) that are potentially threatened by flooding from the River

Rhine. All three sites are protected by dikes that have been reinforced in recent years. Germany as a

whole has a comprehensive flood monitoring system in place. Bayer has access to this system and

monitors developments closely. In the event of extreme weather conditions, it triggers the appropriate

measures at sites that are at risk. During the mid-1990s, a new flood protection system was developed

in the region. As an active member of CEFIC, our service company Currenta, which manages and

operates these sites, has accompanied the development and reinforcement of the protection concept.

Furthermore, we have reinforced the walls at our affected production sites as a protective measure. ***

(4) As mentioned above, manufacturing sites in some parts of the world (e.g., in India) may be subject to

particularly heavy monsoons. As described for the German facilities, comprehensive monitoring systems

are in place at these sites to ensure appropriate reaction times and risk management responses. *** (5)

To protect against financial losses due to natural disasters, Bayer spends approximately EUR 10 million

per annum on insurance coverage. Risk exposure is closely monitored. So far, there has not been any

increase in water-related risks and there is no increase expected in the foreseeable future. Therefore,

the current insurance coverage is sufficient to protect Bayer economically from physical risks and there

are no costs expected to arise from an increase in these risks, e.g., due to climate change. *** (6) To

safeguard our operations against water scarcity, we are constantly monitoring water levels at our sites

and take protective measures where appropriate. For example, at our Map Ta Phut site, water

reservoirs have been connected to bigger water reserves to protect against drought periods. We have

also built a water reserve of slightly less than one week and are running water saving projects at the site

to reduce our overall water use. *** The above-mentioned actions do not result in any significant costs

that are beyond the usual costs for protective measures as they are part of Bayer’s regular protective

measures against natural disasters and droughts.

Further Information

Page: 2010-Water-4-RegulatoryRisks

4.1

Is your company exposed to significant regulatory risks related to water in its own operations?

Yes

4.2

What are the current and/or anticipated regulatory risks, and the associated locations and timescales?

Risk Location Timescale

(years)

Further details

Regulation of discharge

quality/volumes leading to higher compliance costs Germany 1 - 5

Permits for wastewater discharge/regulations on

discharge quality are becoming more and more

stringent related to the implementation of the EU

Water Framework Directive. This could increase

wastewater treatment costs.

Regulation of discharge

quality/volumes leading to higher compliance costs Belgium 1 - 5

Permits for wastewater discharge/regulations on

discharge quality are becoming more and more

stringent related to the implementation of the EU

Water Framework Directive. This could increase

wastewater treatment costs.

Regulation of discharge

quality/volumes leading to higher compliance costs France 1 - 5

Permits for wastewater discharge/regulations on

discharge quality are becoming more and more

stringent related to the implementation of the EU

Water Framework Directive. This could increase

wastewater treatment costs.

Regulation of discharge

quality/volumes leading to higher compliance costs Spain 1 - 5

Permits for wastewater discharge/regulations on

discharge quality are becoming more and more

stringent related to the implementation of the EU

Water Framework Directive. This could increase

wastewater treatment costs.

Regulation of

discharge quality/volumes leading to higher compliance costs United

States of

America

1 - 5

A potential increase of regulations on discharge

quality could also occur under the U.S. Safe Drinking

Water Act. This could increase wastewater treatment

costs in U.S. operations.

Product standards leading to loss of

sales of existing products/costs developing new products Germany 1 - 5

Current discussions to derive Environmental Quality

Standards for active pharmaceutical ingredients

under the EU Water Framework Directive by 2011

might lead to enforcement of requirements for

production sites for Bayer active pharmaceutical

ingredients / products. *** Increasing requirements on

the use of crop protection products under existing

and up-coming EU Directives (e.g., new registration

directive 1107, water framework directive, sustainable

use directive) may lead to restrictions in some uses of

crop protection products and increasing needs for

measures to reduce the concentration of the

respective active ingredients mainly in surface water.

*** Additionally, market authorization of animal health

products may be limited or denied due to

environmental risks.

Product standards leading to loss of

sales of existing products/costs developing new products Belgium 1 - 5

Current discussions to derive Environmental Quality

Standards for active pharmaceutical ingredients

under the EU Water Framework Directive by 2011

might lead to enforcement of requirements for

production sites for Bayer active pharmaceutical

ingredients / products. *** Increasing requirements on

the use of crop protection products under existing

and up-coming EU Directives (e.g., new registration

directive 1107, water framework directive, sustainable

use directive) may lead to restrictions in some uses of

crop protection products and increasing needs for

measures to reduce the concentration of the

Risk Location Timescale

(years)

Further details

respective active ingredients mainly in surface water.

*** Additionally, market authorization of animal health

products may be limited or denied due to

environmental risks.

Product standards leading to loss of

sales of existing products/costs developing new products France 1 - 5

Current discussions to derive Environmental Quality

Standards for active pharmaceutical ingredients

under the EU Water Framework Directive by 2011

might lead to enforcement of requirements for

production sites for Bayer active pharmaceutical

ingredients / products. *** Increasing requirements on

the use of crop protection products under existing

and up-coming EU Directives (e.g., new registration

directive 1107, water framework directive, sustainable

use directive) may lead to restrictions in some uses of

crop protection products and increasing needs for

measures to reduce the concentration of the

respective active ingredients mainly in surface water.

*** Additionally, market authorization of animal health

products may be limited or denied due to

environmental risks.

Product standards leading to loss of

sales of existing products/costs developing new products Spain 1 - 5

Current discussions to derive Environmental Quality

Standards for active pharmaceutical ingredients

under the EU Water Framework Directive by 2011

might lead to enforcement of requirements for

production sites for Bayer active pharmaceutical

ingredients / products. *** Increasing requirements on

the use of crop protection products under existing

and up-coming EU Directives (e.g., new registration

directive 1107, water framework directive, sustainable

use directive) may lead to restrictions in some uses of

crop protection products and increasing needs for

measures to reduce the concentration of the

respective active ingredients mainly in surface water.

*** Additionally, market authorization of animal health

products may be limited or denied due to

environmental risks.

Product standards

leading to loss of sales of existing products/costs developing new products United

States of

America

1 - 5

Increasing requirements on the use of crop protection

products can also occur under the U.S. Clean Water

Act. This could lead to the prohibition of crop

protection substances and increase the needs for

measures to reduce the concentration of these

substances in ground and surface water.

Higher water

prices

Belgium 1 - 5Potential taxation based on water use.

Higher water prices United

States of

America

1 - 5Potential taxation based on water use.

Higher water prices China 1 - 5

Due to water scarcity, water prices have increased

over the past years and are expected to increase

further in the future.

4.3

Please describe the ways in which the identified risks affect or could affect your own operations.

Water-related regulations can impact Bayer two-fold. First, a potential taxation based on water use, e.g., in Belgium and the USA, and rising water prices in China could increase the costs for water use.

Second, increasing requirements regarding water discharge quality could lead to an increase in

wastewater treatment costs and product-related costs, especially for Bayer HealthCare and Bayer

CropScience’s business. Residues of pharmaceutical products can be released in the environment not only through industrial wastewater discharges, but more importantly by the dispersion of metabolites in the environment through human or animal sediments. Bayer is aware that these risks exist. *** Details:

(1) Taxation: A potential taxation for water could result from current discussions under the EU water

scarcity and droughts policy review, which is planned to be developed into a strategy by 2012. Similarly, federal legislation in the U.S. is increasingly tackling water use issues. For example, the site operator of our South Charleston site was already required to register as a high water user under legislation of the State of West Virginia. A potential taxation could result from the increasing focus of state legislation on the topic, increasing the prices for water use at affected Bayer sites. In addition, under increasing

environmental protection law in China, we have seen an increase in water prices in recent years, which

is expected to continue. *** (2) Discharge quality: Permit procedures for wastewater and regulations on

discharge quality are tightening under the EU Water Framework Directive. This could affect the

operations of all Bayer subgroups in the EU as decentralized process measures at site level would

become necessary to improve wastewater quality. For example, in Germany, increased regulations can

further limit the entry of HCB to the river Elbe. However, the risk exposure is rather limited as only 10 to

20% of Bayer’s wastewater needs to be treated. Critical water is extensively tested and treated in

treatment plants. 80% of Bayer’s water use is once-through cooling water. This water is only heated and

does not come into direct contact with chemical or pharmaceutical substances. It can simply be fed back

into the natural water cycle without any treatment. The regular monitoring of the heat level of rivers to

which cooling water is discharged ensures that there are no negative impacts on water quality in the

affected areas. *** In China, environmental protection is receiving increasing attention as well. The

central government, from the State Council to the Ministry of Environmental Protection (MEP), gives

much attention to environmental protection, emission reduction and energy saving. MEP may draft new

standards to restrict wastewater discharge: COD levels may be modified from 80-100 to 60-80 if

discharged into rivers and from 150 to 120 if discharged into the sea. However, due to Bayer's high

quality standards worldwide, Bayer would not be significantly affected. *** (3) Product standards: The

current discussion to derive Environmental Quality Standards for 10 to 15 additional substances under

the EU Water Framework Directive is particularly relevant for Bayer HealthCare’s ethinylestradiol and

estradiol active ingredients. Environmental Quality Standards define maximum concentrations in

environmental water bodies. As a result, monitoring programs as well as measures for reducing

discharges and emissions of these substances will be developed by EU member states. This may

increase site requirements in the EU, e.g., requiring certain wastewater treatment technologies or

standards, or enlarged monitoring obligations which could lead to higher wastewater treatment costs for

Bayer. *** With regard to our Animal Health division, there is also a certain risk that market authorization

or specific indications may be denied or limited based on environmental risks deriving from groundwater

and/or surface water assessments. *** Water quality standards are also a risk for Bayer CropScience’s

(BCS) business. Increasing requirements regarding contamination limits of crop protection products

under existing and upcoming EU Directives and the U.S. Clean Water Act pose a potential risk for

individual BCS products. So far, the impact on the BCS portfolio was very limited. Risk mitigation

measures with regard to point and non-point source (diffuse) pollution will become key elements in good

agricultural practice. Improved application technologies as well as appropriate land use techniques will

contribute to sustainable water protection. *** According to the EU Water Framework Directive the

targeted improvement in water quality should be measurable by 2015. The resulting country legislations

are still in the implementation phase. Thus, at this point it is not possible to predict if any increased

restrictions will apply to BCS products.

4.4

Are there financial implications to the identified risks?

Yes

4.5

Please describe them.

The described risks can have financial implications. Increasing requirements for wastewater treatment

can result in additional costs for wastewater improvement projects. This can amount to several million

euros in terms of CAPEX costs. *** Significant costs can arise from the increasing legislation affecting

crop protection products. In the past, there have been cases where Bayer CropScience products had to

be withdrawn from the market due to increasing requirements regarding their concentration in drinking

water. The potential financial impact on Bayer CropScience cannot be estimated as there is a high level

of uncertainty as to which products might be affected in the future. However, the increasing legislation

affecting crop protection products could also have positive financial effects for BCS. In the case that

competitor products are affected by the increasing requirements, BCS could benefit from increased

legislation if it can offer substitutes for the affected products. *** Risks from increased regulations with

regard to human active pharmaceutical ingredients in the environment have not materialized so far and

are not expected to have a significant financial impact on Bayer operations in the near future. Thus, we

do not expect any significant financial implications on Bayer HealthCare’s pharmaceuticals business in

terms of product withdrawals or potential sales decreases.

4.6

Please describe any actions the company has taken or plans to take to manage or adapt to the risks that have been identified, including their impact on operating costs (positive or negative) and CAPEX programs.

Actions to mitigate risks from water regulation especially include wastewater improvement projects and

specific subgroup actions regarding product standards. *** Details: (1) Bayer is constantly monitoring

emissions and adhering to high wastewater treatment standards to mitigate risks from increasing

regulation regarding discharges. Several wastewater improvement projects are undertaken at our sites.

For example, Bayer CropScience (BCS) commissioned a new wastewater treatment facility at its

formulation plant in Dormagen, Germany in 2009, which reduced absorbable organic halogen

compound (AOX) levels in process water by over 20%. The projects “new cascade biology” and

“improvement of nitrification” at the German CHEMPARK sites in Leverkusen and Dormagen resulted in

nitrogen reduction of 300 metric tons annually. Bayer MaterialScience's Antwerp site in Belgium is

undertaking a major wastewater improvement project in the polyether plant. *** (2) Bayer HealthCare is,

through the European association of the pharmaceutical industry EFPIA, involved in the EU process

with the aim of providing its knowledge on the environmental risk assessment of ethinylestradiol and

estradiol. BHC continuously engages in actions to analyze the impact of its products and active

ingredients in the environment and improve the scientific basis in this respect. Under current EU

legislation, Bayer conducts environmental risk assessments as a standard procedure for drug

applications. The assessment considers the introduction, use patterns, environmental pathways and

environmental effects to protect the ecosystems from irreversible changes through the introduction of

chemical substances. To improve the scientific basis for the analysis of the impact of active ingredients

in the environment and to understand the potential risks, BHC has set up a task force “Pharmaceuticals

in the Environment” (PIE). The PIE task force cooperates with associations and authorities to enable an

improved understanding and further development of Environmental Risk Assessments (e.g., EMEA,

FDA). Furthermore, BHC is engaging in different public projects. For example, BHC is represented in

the Advisory Council of the PILLS partnership, contributing its knowledge to the research project, which

runs from 2007 to 2011 with the purpose of conducting research on wastewater treatment. BHC also

actively engages with policymakers and industry associations on the topic, e.g., the EFPIA EHS ad hoc

group, the VFA group Environment and Safety. Bayer also participates in the expert working groups

“Environment and Safety” of the German Association for Animal Health (Bundesverband für

Tiergesundheit) and the IFAH Europe (International Federation for Animal Health) Environmental Safety

Group as well as in the respective coordinative and political bodies of these associations. *** (3) BCS’s

R&D organization initiated several actions to minimize the risk of water contamination; the BCS R&D

guideline takes this into account. The leaching behavior of products is analyzed in detail and only active

ingredients that pass the regulatory limits will be developed. As the EU legislation represents the

strictest regulation worldwide in this respect, the EU limits are used as an orientation for worldwide

Bayer research. Currently, a project is running in Belgium to analyze PPP concentrations in water

bodies to enhance BCS’s knowledge base. *** BCS also takes preventive action to ensure the correct

use of its products. Country specific training programs are provided to achieve a most safe and efficient

use under all agronomic conditions. BCS has started several years ago to phase out products in WHO

Class I. In the past five years alone, BCS has removed a substantial number of Class I products from its

portfolio, e.g., Methyl and Ethyl Parathion, Monocrothophos, Oxydemeton-Methyl, Amitraz and

Trichlorphon. The sale of endosulfan will be stopped globally by the end of 2010. BCS will

systematically maintain this approach. The development of new products offers solutions to meet safety

and farmer requirements. ***

Bayer is involved in discussions with the relevant authorities to support regulatory frameworks regarding

the inclusion of substances in the future list of priority substances. BCS is further engaged in a Water

Round Table and has recently joined the WBCSD Water Leadership Group.

Further Information

Page: 2010-Water-5-OtherRisks

5.1

Is your company exposed to other significant risks (such as product or reputational risks) related to water in its own operations?

Yes

5.2

What are the current and/or anticipated impacts or risks, and the associated locations and timescales?

excluded. A resulting negative media response could impact Bayer's reputation.

Reputational risk Belgium Current

There are several topics discussed in the public arena

that could pose potential reputational risks for Bayer,

e.g., thermal discharges of cooling water from production

into rivers and the detection of chemical substances in

ground and surface water. *** For example, the

occurrence of active pharmaceutical ingredients in the

environment is occasionally covered in mainstream

media. Broad public attention may additionally arise from

the fact that pharmaceuticals in the environment are

sometimes featured in connection with human health

risks via drinking water contamination. *** BCS is working

to achieve a proper use of plant protection products,

however the risk of an application failure, which could

result in detectible concentration in water, cannot be

excluded. A resulting negative media response could

impact Bayer's reputation.

Reputational risk France Current

There are several topics discussed in the public arena

that could pose potential reputational risks for Bayer,

e.g., thermal discharges of cooling water from production

into rivers and the detection of chemical substances in

ground and surface water. *** For example, the

occurrence of active pharmaceutical ingredients in the

environment is occasionally covered in mainstream

media. Broad public attention may additionally arise from

the fact that pharmaceuticals in the environment are

sometimes featured in connection with human health

risks via drinking water contamination. *** BCS is working

to achieve a proper use of plant protection products,

however the risk of an application failure, which could

result in detectible concentration in water, cannot be

excluded. A resulting negative media response could

impact Bayer's reputation.

Reputational risk Spain Current

There are several topics discussed in the public arena

that could pose potential reputational risks for Bayer,

e.g., thermal discharges of cooling water from production

into rivers and the detection of chemical substances in

ground and surface water. *** For example, the

occurrence of active pharmaceutical ingredients in the

environment is occasionally covered in mainstream

media. Broad public attention may additionally arise from

the fact that pharmaceuticals in the environment are

sometimes featured in connection with human health

risks via drinking water contamination. *** BCS is working

to achieve a proper use of plant protection products,

however the risk of an application failure, which could

result in detectible concentration in water, cannot be

excluded. A resulting negative media response could

impact Bayer's reputation.

Reputational risk Switzerland Current

There are several topics discussed in the public arena

that could pose potential reputational risks for Bayer,

e.g., thermal discharges of cooling water from production

into rivers and the detection of chemical substances in

ground and surface water. *** For example, the

occurrence of active pharmaceutical ingredients in the

environment is occasionally covered in mainstream

media. Broad public attention may additionally arise from

the fact that pharmaceuticals in the environment are

sometimes featured in connection with human health

risks via drinking water contamination. *** BCS is working

to achieve a proper use of plant protection products,

however the risk of an application failure, which could

result in detectible concentration in water, cannot be

excluded. A resulting negative media response could

impact Bayer's reputation.

Reputational risk United

States of

America

Current

There are several topics discussed in the public arena

that could pose potential reputational risks for Bayer,

e.g., thermal discharges of cooling water from production

5.3

Please describe the ways in which the identified risks affect or could affect your own operations.

The risks described can have a potential negative impact on Bayer’s reputation. Thermal discharges, active ingredients or crop protection products in water can lead to negative publicity for the entire

industry, regardless of whether substances are truly toxicological and caused by Bayer’s operations or operations of competitors or suppliers. *** Further details: (1) Reputational risk from thermal discharges: 80% of Bayer’s water use is once-through cooling water. This water is only heated and does not come into contact with products. It is therefore simply fed back into the natural water cycle. There have been discussions about potential warming up of rivers due to thermal discharges. A warming up of rivers can have negative ecological consequences on the river ecosystem. Bayer is constantly monitoring its

thermal discharges. Within the national implementation plans of the Water Framework Directive, the state of North-Rhine Westphalia has taken thorough measurements in the Rhine, where Bayer operates three of its largest sites – Leverkusen, Uerdingen and Dormagen. The measurements have shown that there are no signs of river warming in the Rhine. However, the topic could be taken up by NGOs and lead to increased media coverage in the future, which could have a potential negative impact on Bayer’s reputation. In addition, Bayer could be accused of potentially wasting energy. *** (2) Another potential reputational risk can arise from the detection of chemical substances in water. For example, two years ago, substances were found in surface water resulting in intense negative publicity even though it could be proven that the substances were not toxic. Such measurements and the resulting publicity could hurt Bayer’s reputation. *** (3) The use of crop protection products always bears a potential risk of detectible concentrations in water bodies, e.g., due to inappropriate product use. This can lead to negative media response and NGO attention with potential negative impacts on Bayer’s reputation. However, as

described above, Bayer is taking several measures to train and convince farmers on the correct use of plant protection products. In addition to the requested labelling, BCS is offering visuals (brochures,

flyers, videos) to demonstrate safe and efficient use. *** (4) Negative publicity, e.g., press coverage or NGO campaigns regarding the potential impact of pharmaceuticals in the environment and drinking

water, especially due to metabolites through human or animal sediments, might impact the overall

reputation of the pharmaceutical industry. However, so far, press coverage on this topic has not

targeted one pharmaceutical company in particular. The risk of a negative impact on Bayer’s reputation is today considered low and there is no reasonable financial impact to be estimated for this risk.

5.4

Are there financial implications to the identified risks?

No

5.6

Please describe any actions the company has taken or plans to take to manage or adapt to the risks that have been identified, including their impact on operating costs (positive or negative) and CAPEX programs.

To mitigate potential reputational risks from thermal and product discharges, we are constantly

monitoring the risk and taking action to reduce emissions into water. *** Further details: (1) Bayer is

constantly analyzing the concentrations of our substances in water and takes active measures to protect

ground and surface water. For example, our service company Currenta has an active groundwater

protection program and designated protection zones for drinking water exist in its water plants. To

reduce chemical residues in our discharges, water is treated using advanced water treatment

technologies. High-load wastewater from our pharmaceutical production is treated especially rigorously,

e.g., using UV activated wastewater oxidation by hydrogen peroxide or low-pressure wastewater

oxidation. For example, wastewater from API production (e.g., hormone production) and from contrast

media production in our German Bergkamen and Elberfeld plants is treated by wastewater incineration.

We strive to keep chemical residues in the soil and groundwater as low as possible and to closely

monitor the risks. We conduct tests on ecotoxicity and on the dispersal and degradation behavior of our

pharmaceuticals. *** (2) To manage potential reputational risks from the impact of pharmaceuticals in

the environment, Bayer is transparently communicating about the impact of Bayer substances in the

environment. For example, Bayer regularly reports on this subject in the Product Stewardship section of

its annual Sustainable Development Report. Bayer is also creating additional transparency by actively

publishing scientific studies. *** (3) Bayer also participates in important research projects. A specific

activity in the context of cooperation with various partners, primarily from the water resources industry,

is the European PILLS project (Pharmaceutical Input and Elimination from Local Sources) described

above, which is scheduled to run from 2007 to 2011. The PILLS partnership focuses on traces of human

pharmaceuticals in the context of wastewater treatment. As it seems efficient to undertake measures at

high-concentration point sources, the collaboration focuses on the development of local treatment

facilities for hospitals and nursing homes. Bayer Schering Pharma is represented in the scientific

advisory committee of PILLS. *** (4) As described above, Bayer CropScience is taking several actions

to ensure the correct application of its products. For example, Bayer is training farmers to correctly use

its products and is investing into research to constantly improve its products. *** (5) Bayer is also

actively engaged in continuous dialogue with Bayer stakeholders including employees, customers,

suppliers, investors, neighbors, non-governmental organizations, politicians and the general public. Our

stakeholder dialogue helps us to identify important stakeholder issues. We take the needs of our

stakeholders seriously and strive to contribute to solving the pressing issues of our time – based on our

values and in harmony with internal and external directives and laws. This also helps us to maintain our

reputation as a sustainable company. Examples of our dialogue with our stakeholders in 2009 include:

(a) active participation in international initiatives and associations, e.g., UN Global Compact “Caring for

Climate” and UN Global Compact CEO Water Mandate, ECONSENSE, VCI, ACC, ECPA, CEFIC and

our cooperation with UNEP; (b) cooperation with, and support of, science and research, e.g., strategic

alliances with Cologne, Tongji and Tsinghua Universities; cooperation with the International Rice

Research Institute; (c) active dialogue and cooperation with NGOs, politicians, and society, e.g., by

hosting a WEC roundtable on Climate Change in May 2009, a WEC roundtable on Water in April 2009,

and a water protection dialogue event in Germany; (d) 2009 worldwide stakeholder survey about

Bayer’s sustainable development activities and reporting. *** The above-mentioned actions do not result

in any significant costs that are exclusively dedicated to mitigating water-related risks. They are part of

Bayer’s usual business practices and our overall stakeholder dialogue and communication.

Further Information

Module: 2010-Water-RisksSC

Page: 2010-Water-6-SCWaterUse

6.1

Are you able to identify which of your key water-intensive inputs come from water-stressed regions?

Yes

6.2

Please state (or estimate) the percentage of your key water-intensive inputs that come from water-stressed regions.

常用增塑剂简介

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系统容灾解决方案

系统容灾解决方案 容灾基本概念 容灾是一个范畴比较广泛的概念，广义上，我们可以把所有与业务连续性相关的内容都纳入容灾。容灾是一个系统工程，它包括支持用户业务的方方面面。而容灾对于IT而言，就是提供一个能防止用户业务系统遭受各种灾难影响及破坏的计算机系统。容灾还表现为一种未雨绸缪的主动性，而不是在灾难发生后的“亡羊补牢”。 从狭义的角度，我们平常所谈论的容灾是指：除了生产站点以外，用户另外建立的冗余站点，当灾难发生，生产站点受到破坏时，冗余站点可以接管用户正常的业务，达到业务不间断的目的。为了达到更高的可用性，许多用户甚至建立多个冗余站点。 容灾系统是指在相隔较远的异地，建立两套或多套功能相同的IT系统，互相之间可以进行健康状态监视和功能切换，当一处系统因意外(如火灾、地震等)停止工作时，整个应用系统可以切换到另一处，使得该系统功能可以继续正常工作。容灾技术是系统的高可用性技术的一个组成部分，容灾系统更加强调处理外界环境对系统的影响，特别是灾难性事件对整个IT节点的影响，提供节点级别的系统恢复功能。 要实现容灾，首先要了解哪些事件可以定义为灾难？典型的灾难事件是自然灾难，如火灾、洪水、地震、飓风、龙卷风、台风等；还有其它如原提供给业务运营所需的服务中断，出现设备故障、软件错误、网络中断和电力故障等等；此外，人为的因素往往也会酿成大祸，如操作员错误、破坏、植入有害代码和病毒袭击等。现阶段，由于信息技术正处在高速发展的阶段，很多生产流程和制度仍不完善，加之缺乏经验，这方面的损失屡见不鲜。 容灾的七个层次 等级1： 被定义为没有信息存储的需求，没有建立备援硬件平台的需求，也没有发展应急计划的需求，数据仅在本地进行备份恢复，没有数据送往异地。这种方式是成本最低的灾难恢复解决方案，但事实上这种恢复并没有真正达到灾难恢复的能力。 一种典型等级1方式就是采用本地磁带库自动备份方案，通过制定相关的备份策略，可以实现系统等级1备份。 等级2： 是一种为许多站点采用的备份标准方式。数据在完成写操作之后，将会送到远离本地的地方，同时具备有数据恢复的程序。在灾难发生后，在一台未启动的计算机上重新完成。系统和数据将被恢复并重新与网络相连。这种灾难恢复方案相对来说成本较低，但同时有难以管理的问题，即很难知道什么样的数据在什么样的地方。这种情况下，恢复时间长短依赖于何时硬件平台能够被提供和准备好。

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上海文典国际文化艺术中心 影视部系列电视专题片策划上海文典国际文化艺术中心影视部是一家主要从事图书出版、影视节目策划、制作的专业单位。 2005年，中心将面向海外主流市场，拍摄制作一部系列专题片，从各个角度、各个方面立体展示当代中国的社会、文化、风格，以及当代中国人的思想、情感和生活状态。 基本理念 本系列专题片的主题，是向海外宣传中国，展示当代中国的社会、文化、风格，以及当代中国人的思想、情感和真实的生活状态。 节目应遵循新闻和传播规律，淡化宣传特别是政治色彩，增强节目的亲和力和传播效果。 通过我们的节目，使广大的海外观众（包括外国人和海外华人），特别是海外主流社会，了解中国社会的现状，了解中国人的生存情况，看到当代中国人的现实生活和情感世界。节目定位 节目的主体形态为记录片。节目展现的是当前时间正在发生的人物和事件。 把人作为节目的主体，从效果上讲是最佳的，最为生动、最容易引起共鸣。本系列专题片的每一集，都要以一个人物或有关联的群体人物以及围绕人物发生的事件为主要对象，作为我们描述的主体内容。 这样，人物既是主要信息，又承担着一种结构性的功能，我们通过人物进入事件的细部，并由此呈现更深层的人与社会诸因素之间的复杂关系。从某种意义上说，展示这种复杂关系才是叙述事件的真正目的，故事是一种包装和策略，文化在它的背后。只有这样，才能体现出人物背后所蕴含的时代特征和社会内涵。 每一集单独的专题片应有自己的独特视点和倾向性，但总体应遵循整个系列专题片的总体特征和思路，体现主流观点。 节目时长 每一集专题片的时间长度为24分钟。 这是一个能基本完整、全面地叙述人物故事与有关背景、刻划细节，充分表现人物性格的长度。 这一时长也有利于段落划分的节目兴奋点的设置。比如可以把24分钟的节目内容大致划分成3至4小节，每小节均具备相对完整的表现内容，有自身的兴奋点和高潮点。 选题方向 本系列专题片总的选题方向，是各行各业具有代表性的人物。 进入我们视野的人物，一种是他们的工作或多或少地在当今人们生活的某一方面产生着普遍效应，影响着人们的生活方式和生存形态。另一种是能代表当今社会人们的生活方式和生存状态的普通人。前者代者着社会的精英层面，后者代表着社会的平民层面，通过他们基本能真实、全面的反应中国现阶段人们的生活或状态。 表现手法 本系列专题片的表现手法以跟踪纪实拍摄为主，辅之以适量的采访。

数据中心容灾备份方案完整版

数据中心容灾备份方案 HEN system office room 【HEN16H-HENS2AHENS8Q8-HENH1688】

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容灾备份-解决方案方法

容灾备份系统2010-8-11

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什么是磷酸甲苯二苯酯(CDP)

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离生产系统的地方，镜像磁盘的数据与主磁盘数据以实时同步或实时异步方式保持一致。磁盘镜像可备份所有类型的数据。备份拓扑网络结构1.2（即东风东路院区中心机广州市第八人民医院具有两个不同地点的中心机房房和嘉禾院区中心机房），在这基础上是可以构建一个异地容灾的数据备份系统，以确保本单位的系统正常运营及对关键业务数据进行有效地保护，以下设计方案仅提供参考。嘉禾院区数据中心东风东院区数据中心 本方案中，我们采用EMC的CDP保护技术来实现数据的连续保护和容灾系统。 1.在东风东院区数据中心部署一台EMC 480统一存储平台，配置一个大容量光纤磁盘存储设备，作为整个系统数据集中存储平台。 2.在嘉禾院区数据中心部署一台EMC 480统一存储系统，配置一个大容量光纤磁盘存储设备，作为整个平台的灾备存储平台。 ） 3.两地各部署两台EMC RecoverPoint/SE RPA，采用CLR技术，即CDP（持续数据保护）+CRR（持续远程复制），实现并发的本地和远程数据保护。 4.在东风东院区数据中心本地采用EMC RecoverPoint/SE CDP（持续数据保护）技术实现本地的数据保护。． 5.两地采用EMC RecoverPoint/SE CRR（持续远程复制）技术，实现远程的数据保护。由于两地之间专线的带宽有限，可以采用EMC Recoverpoint/SE异步复制技术，将东风东院区数据中心EMC480上的数据定时复制到嘉禾院区数据中心。根据带宽的大小，如果后期专线带宽有所增加，RecoverPoint会自动切换同步、异步、快照时间点三种复制方式，尽最大可能保证数据的零丢失。 1.3本地数据数据保护（CDP）设计

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4.2备份容灾系统概述................................................. ................................................... .....................3容灾概念................................................. ................................................... ...................................3容灾与备份的关系................................................. ................................................... ...................3容灾的等级................................................. ................................................... ...............................4xxx项目背景................................................. ................................................... ...........................5xxx网络现状................................................. ................................................... ...........................6现网络设备拓扑图................................................. ................................................... ...................6建设目