2009-08-20 - Letter From Bayer To The Global Compact Office

Dr. Wolfgang Große Entrup

Mr. Georg Kell Executive Director United Nations NewYork, NY 10017 USA

Dear Mr. Kell, Thank you very much for providing us with information about a matter that has been raised under the UN Global Compact’s Integrity Measures by Mr. Philipp Mimkes from the CBG (Germany) mentioning our company in reference to an accident at the Bayer CropScience plant in Institute, West Virginia. An open dialogue with our stakeholders is an important element of our corporate policy at Bayer and we believe in this as an indispensable modus operandi in an open society. We very much support such a dialogue, as long as it is conducted in good faith and with respect for each other’s position. Unlike with most non-governmental organizations, a constructive dialogue with the local activist group “Coalition Against Bayer Dangers” (CBG), who have written to you in this matter, has never been possible. The CBG has a long history of using every event and incident to defame our company in open letters and protest actions. In short, this group criticizes all Bayer activities – be they commercial, ecological or social – in a most subjective and insidious manner. The policy of this group is to vilify not only our company but also those partners who cooperate with us. With its protests against Bayer, the CBG defames not only the management but also Bayer employees and other respectable stakeholders. With regard to the above-mentioned accident, we have responded to queries by the CBG most recently at our public Annual Shareholders Meeting in May this year. We have prepared a translation of the original German language statement provided by Bayer Group Chairman Werner Wenning to the CBG on that day for your information. Allow us to briefly summarize the situation in our production site in Institute, West Virginia.

2009-08-20 Senior Vice President Bayer AG Corporate Center Environment & Sustainability Building K 9 51368 Leverkusen Germany Phone +49 (0) 214-30-57772 Fax +49 (0) 214-30-66392 wolfgang.grosseentrup.wg@ bayer-ag.de Board of Management: Werner Wenning, Chairman of the Board Klaus Kühn Wolfgang Plischke Richard Pott

Chairman of the Supervisory Board: Manfred Schneider Registered Office: Leverkusen Local Court Köln: HRB 48248

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In August of last year an explosion occurred at the Institute site in a residue treater. Tragically, two of our employees lost their lives in this accident. Bayer CropScience supported the authorities involved in their investigations into the causes of the accident. Our Company also undertook its own investigation and has initiated steps to further improve occupational safety and communication in emergencies.The goal of all these measures, which have been developed and implemented in close cooperation with the authorities, is to ensure the safety of employees and neighbors and limit impact on the environment. In April 2009, a sub-committee of the US Congress scheduled a hearing on the explosion. At the request of the sub-committee, representatives of Bayer CropScience replied to questions on this tragic accident. Bayer CropScience took part at the hearing and cooperated with the subcommittee on the preparation for the hearing. The main reason that triggered the hearing was a difference in the legal opinion on the interpretation of certain provisions of the US Maritime Transportation Safety Act by which a company would be prevented from making so-called “Security Sensitive Information – SSI –“ accessible to the public. While Bayer was publicly criticized for taking a too restrictive approach on this question, it was also recognized at the hearing that the proper use of SSI is an area in need of further regulatory education and guidance. In any event, Bayer firmly stated that it did not withhold any information required by the authorities at any time. Health, Safety, Environment and Quality (HSEQ) are highly important issues for the Bayer Group. Bayer is a global company with numerous sites and subsidiaries. HSEQ management systems have therefore been established to ensure uniformly high health, safety, environmental protection and quality standards. Our aim is to ensure the identification of potential risks that could affect people and the environment or the image and profitability of Bayer, to support compliance with relevant external and internal regulations and achieve adequate health, safety, environmental protection and quality standards worldwide. We are convinced that our sites are operated on highest safety standard and our employees have been trained appropriately. Nevertheless, we continuously learn and improve in order to eliminate the slightest risk of human error. This is why we have immediately taken measures to prevent such an accident to happen again in future.

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I hope these comments help you to gain a perspective on the letter you received from Mr. Mimkes on behalf of the CBG. Let me assure you that Bayer is doing its utmost to inform various stakeholders on the safety efforts and is trying everything to prevent harm to people or the environment. In Institute especially we are in close contact with our neighborhood for years. We remain fully committed to our long-time practice of open dialogue and outreach to our neighbors, civic officials and other organizations. Should you have any further questions, please do not hesitate to contact me. Best regards

Dr. W. Große Entrup