Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Diversity & Inclusion
• Resource Efficiency
• Sustainable Supply Chains

Environmental Achievements

• 100% of Group-wide electricity needs covered with renewable energies
• Greenhouse gas emissions (Scope 1 and 2) down 13% compared to 2017
• Energy consumption down 34% compared to 2017 (relative to EBITDA)
• Expansion of renewable energy generation capacity by almost 2 GW
• 226,994 tonnes of CO2 equivalents offset Group-wide (Scope 1, 2, 3)

Social Achievements

• Launched Connected Women network for high-potential female employees
• Implemented flexible working time models
• Provided resilience training to employees during the COVID-19 pandemic
• Restructured process for facilitating employees’ transition back into professional life after parental leave
• 5,500 warm meals delivered by the BayWa Foundation as part of the crisis heroes initiative

Governance Achievements

• Improved CDP climate rating from C to B
• Established a sustainability organization and a sustainability steering committee
• Implemented Group-wide sustainability software
• Initiated a Group-wide risk analysis on social and environmental factors in value chains
• Developed a Code of Conduct for suppliers

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the coronavirus pandemic
• Climate change impacts on agricultural trade activities and logistics
• Market price volatility for agricultural goods
• German Fertiliser Application Ordinance impacting agricultural input business
• Human rights risks in some supply chain locations

Mitigation Strategies

• Developed a holistic crisis management strategy
• Implemented measures to ensure the efficient and sustainable design of transport and logistic processes
• Developed a Group-wide climate strategy with fixed objectives
• Initiated a Group-wide risk analysis on social and environmental issues in value chains
• Developed a Code of Conduct for suppliers

Supply Chain Management

Responsible Procurement

• Sustainable cultivation methods
• Responsible collaboration with suppliers
• Sustainability criteria incorporated into supplier evaluation
• CRS, RTRS, ProTerra sustainability standards for soya
• Code of Conduct for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Low water levels impacting transport

Transition Risks

• Regulatory changes (e.g., German Fertiliser Application Ordinance)

Opportunities

• Development of climate-resistant products (e.g., apples)
• Expansion of renewable energies

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 14001 (some BayWa r.e. subsidiaries), ISO 50001 (BayWa Obst GmbH, Kressbronn location), ISO 27001 (BayWa IT GmbH), ISO 45001 (some BayWa r.e. subsidiaries)

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

BayWa's sustainability strategy contributes to 10 of the 17 SDGs; specific projects aligned with various SDGs are described in the report.

Sustainable Products & Innovation

• Climate-neutral heating oil
• Climate-resistant apples
• Agri-PV systems
• Dino agricultural weeding robot
• E-Pura electronic seed treatment
• Optifert Check soil analysis
• NEXT Farming LIVE digital solution

Environmental Metrics

ESG Focus Areas

• Value Creation
• Environment and Climate
• Employees
• Society

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1 and 2) by 10% compared to 2017 by 2021.
• Achieved 100% renewable energy for electricity needs since 2020.
• Connected 2.9 gigawatts of renewable energy generation capacity to the grid worldwide in 2021.

Social Achievements

• Launched BayWa Connected WoMen network to promote networking and communication among female employees.
• Implemented BayWa Business Mentoring program to support knowledge sharing and career development.
• BayWa Foundation funded 42 educational projects worldwide in 2021.

Governance Achievements

• Joined the United Nations Global Compact in 2021.
• Concluded a €1.7 billion syndicated loan with terms linked to BayWa’s sustainability performance.
• Implemented a Supplier Code of Conduct in 2021.

Climate Goals & Targets

Environmental Challenges

• Rising operating costs due to climate change, increasing carbon prices, and new climate protection laws.
• Supply bottlenecks due to low water in European rivers and resulting shortage of shipping capacity.
• Fluctuations in earnings due to droughts or extreme frosts.
• Shortage of agricultural commodities due to changed climate conditions.

Mitigation Strategies

• Creating optimum distribution structures in the Group network.
• Increasing diversification of the supply chain.
• Reducing transportation and emissions through route optimisations.
• Research and development strategy, including smart farming solutions.
• Modelling and forecasting of future earnings to react to decline in production capacity.
• Increasing electricity generation capacity through the Group’s own photovoltaic systems.
• Holistic analysis of climate-related risk and opportunity categories and drivers.
• Continuous process for regularly updating risks and opportunities.

Supply Chain Management

Supplier Audits: 19 compliance audits in 2021

Responsible Procurement

• Supplier Code of Conduct (implemented in 2021)
• Sustainability criteria included in supplier assessment (Agriculture segment)
• Procurement of certified products (e.g., PEFC-certified wood pellets, GMP+ certified feedstuffs, CRS-certified soya)

Climate-Related Risks & Opportunities

Physical Risks

• Rising average temperatures impacting logistics
• Supply bottlenecks due to low water in rivers
• Weather changes impacting agricultural product procurement
• Droughts and extreme frosts impacting earnings
• Shortage of agricultural commodities due to climate change

Transition Risks

• Rising operating costs due to climate change
• Increasing carbon prices
• New laws on climate protection

Opportunities

• Expansion of renewable energy sources
• Development of low-emission goods and services
• Agri-PV solutions

Reporting Standards

Frameworks Used: GRI Standards: Core option, German CSR Directive Implementation Act (CSR-RUG), EU Taxonomy Regulation

Certifications: ISO 14001 (6 BayWa r.e. subsidiaries), ISO 50001 (BayWa Obst GmbH, BayWa Rotor Service GmbH), PEFC (wood pellets), GMP+, GLOBAL G.A.P, QS, REDcert

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

• Not disclosed

The BayWa Foundation’s projects contribute to 11 of the 17 UN SDGs.

Sustainable Products & Innovation

• Agri-PV systems
• Floating solar parks
• Weeding robots
• VariableRain irrigation management
• Biodegradable lubricants
• Green hydrogen production
• Smart farming solutions
• Climate Farmer Initiative
• Certified Responsible Soya (CRS) standard
• Softripe® technology for fruit ripening
• Green roofs
• Low-emission building materials

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Value Creation
• Environment & Climate
• Employees
• Society

Environmental Achievements

• 23% reduction in Scope 1 and 2 GHG emissions compared to 2017.
• 100% of electricity needs covered by renewable energies since 2020.
• 4.1 GW of renewable energy generation capacity enabled globally.

Social Achievements

• Launched BayWa Pride network for LGBTQ+ community.
• 22.2% female representation in first and second levels of management.
• 1,010 employees received human rights training.

Governance Achievements

• Established Strategic Sustainability Board and Operational Sustainability Board.
• Implemented an internal carbon price of €50 per tonne of CO2e starting in 2023.
• Achieved an AA MSCI ESG rating in 2022.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the war in Ukraine, the pandemic, and climate-based natural catastrophes.
• Fluctuations in earnings due to droughts or extreme frosts.
• Shortage of agricultural raw materials due to climate change.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implemented measures to increase climate resilience in agriculture (e.g., VariableRain irrigation system).
• Increased electricity generation capacity through own photovoltaic plants.

Supply Chain Management

Supplier Audits: 8 compliance audits at 82 companies and 98 sites in 2022.

Responsible Procurement

• BayWa Supplier Code of Conduct
• Sustainability criteria integrated into supplier evaluation
• Self-disclosures from suppliers on sustainability aspects

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (droughts, floods)
• Supply bottlenecks due to low water levels in rivers
• Shortage of agricultural raw materials

Transition Risks

• Rising operating costs due to climate change
• Increasing carbon prices
• New laws on climate protection

Opportunities

• Expansion and marketing of renewable energy sources
• Development of low-emission products and services
• Marketing of drought-resistant seed and planting material

Reporting Standards

Frameworks Used: GRI Standards, EU Taxonomy Regulation

Certifications: ISO 14001 (10 BayWa r.e. subsidiaries), ISO 9001 (Energy Segment)

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

• Multiple SDGs (detailed in report)

The BayWa Foundation's projects contribute to 9 of the 17 UN SDGs.

Sustainable Products & Innovation

• Agrivoltaics solutions
• Biodegradable lubricants
• Eco-friendly frost protection for field sprayers
• VariableRain irrigation system
• Smart farming solutions
• Casafino1ONE modular construction element
• Timber bathroom modules

Awards & Recognition

• HR Energy Award for BayWa r.e.'s #socialandhealthy program

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate neutrality
• Human rights

Environmental Achievements

• Reduced greenhouse gas emissions by 23% by 2023 (base year 2017)
• Achieved 100% renewable energy for electricity needs by 2020 and maintained in 2023
• Exceeded energy consumption reduction target by 50% in 2023 (target 22% reduction by 2025, base year 2017)

Social Achievements

• Increased employee numbers by 3.4% to 23,050 in 2023
• 476 trainees started their careers at BayWa in 2023
• Implemented Social Responsibility and Human Rights Policy Statement in 2023

Governance Achievements

• Introduced internal carbon pricing of €50 per tonne of CO2 equivalents in 2023
• ESG-linked bonded loans totaling €631.0 million
• ESG-linked syndicated financing agreement of €2.0 billion
• €500.0 million green bond

Climate Goals & Targets

Environmental Challenges

• Ongoing war in Ukraine
• Sharp rise in interest rates and high inflation
• Sluggish economic recovery in Europe and China
• Overregulation of companies in Germany
• High energy prices in Germany
• Cyclone Gabrielle in New Zealand impacting Global Produce Segment
• Slump in German residential construction impacting Building Materials Segment
• Significant price declines in agricultural commodities and fertilizers impacting Agri Trade & Service Segment

Mitigation Strategies

• Optimising investment portfolio and selling non-core companies
• Closer integration of core companies to create a yield-oriented portfolio
• Group-wide optimisation of warehousing and working capital
• Cost-cutting and optimisation measures
• Suspension of dividend to reduce debt

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (drought, heavy rain, frost) impacting agriculture

Transition Risks

• Changes in agricultural policy, EU regulations, trade barriers

Opportunities

• Growth in renewable energies
• Demand for climate-friendly energy sources

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Recycled lubricants (re:source product line)
• Electric tractors and vehicles

Awards & Recognition

• German Sustainability Award