Glossary 3 a b c d e f g h i j k l m n o p q r s t u v w x y z 3 3Rs principle (replace, reduce, refine) Replace: prior to each project, Bayer checks whether an approved method is available that does not rely on animal studies and then applies it. Reduce: in case no alternative method exists, only as many animals are used as are needed to achieve scientifically meaningful results based on statutory requirements. Refine: Bayer ensures that animal studies are performed in a way that minimizes any suffering. A Access to Medicine (ATM) describes activities to promote general access to essential medicines and improve knowledge on health. B Biocides are substances and products that control pests such as insects, mice and rats, as well as algae, fungi and bacteria. Breakthrough innovation is a term used to describe disruptive innovations in the form of pioneering advances in technology and business models with the power to change markets. C CDP is a nonprofit organization that works on behalf of institutional investors to compile annual rankings of detailed environmental data, especially in respect of greenhouse gas emissions (CDP-Climate) and water management (CDP-Water), from over 2,400 companies worldwide. According to CDP, more than 650 investors representing fund assets of around US$87 trillion currently draw on this information for their investment decisions. Consumer-validated concepts are concepts that are assessed in terms of their potential for success through consumer surveys conducted as part of market research activities. (Corporate) compliance comprises the observance of statutory and company regulations on lawful and responsible conduct. Corruption Perceptions Index (CPI) Since 1995, NGO Transparency International has produced an annual index of countries by the perceived level of public-sector corruption. The CPI ranks countries according to the extent to which public servants and politicians are believed to engage in bribery and to grant or accept undue advantage. E Environmentally relevant sites are Bayer locations with annual net energy consumption of over 1.5 terajoules. G GHG Protocol The Greenhouse Gas Protocol is an internationally recognized tool for recording, quantifying and reporting greenhouse gas emissions. Its standards cover all emissions within a company’s value chain. Bayer aligns itself to the Corporate Standard for direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions and also to the Corporate Value Chain (Scope 3) Accounting and Reporting Standard, which covers further indirect emissions along the value chain. Dual reporting was introduced for Scope 2. Indirect emissions have to be reported using both the location-based and the market-based methods. The location-based method uses regional or national average emissions factors, while the market-based method applies provider- or product-specific emissions factors based on contractual instruments. Global commercial paper program Commercial paper (CP) issued under Bayer’s program is a short-term, unsecured debt instrument normally issued at a discount and redeemed at nominal value. It is a flexible way of obtaining short-term funding on the capital market. Bayer’s commercial paper program allows the company to issue commercial paper on both the U.S. and European markets. GxP is a collective term for all guidelines that govern “good working practice” and are particularly relevant for the fields of medicine, pharmacy and pharmaceutical chemistry. The “G” stands for “Good” and the “P” for “Practice,” while the “x” in the middle is replaced by the respective abbreviation for the specific area of application – such as Good Manufacturing Practice (GMP), Good Laboratory Practice (GLP), Good Clinical Practice (GCP) or Good Agricultural Practice (GAP). These guidelines are established by institutions such as the European Medicines Agency or the U.S. Food and Drug Administration. H HSEQ stands for health, safety, environment and quality. I ILO core labor standards The eight core labor standards of the ILO (International Labour Organization) that define the minimum requirements for humane working conditions are internationally recognized “qualitative social standards.” They represent universal human rights that are deemed valid in all countries regardless of their economic development status. L Local procurement at Bayer means that goods and services are ordered from suppliers that are based in the same country as the (Bayer) company that receives them. N Neonicotinoids are a chemical class of systemic insecticides. O OTC (over-the-counter) designates the business with nonprescription medicines. P Pharmacovigilance is defined as activities and the science they are based on that relate to the identification, assessment, comprehension and prevention of side effects or other problems associated with pharmaceutical products. Phase I-IV studies are clinical phases in the development of a drug product. The active ingredient candidate is generally tested in healthy subjects in Phase I, and in patients in Phases II and III. The studies test the therapeutic tolerability and efficacy of active ingredients in a specific indication. Phase IV studies are conducted following the approval of a new drug product to monitor its safety and efficacy over an extended period of time. The studies are subject to strict legal requirements and documentation procedures. S Significant locations of operation A selection of countries that accounted for more than 80% of total Bayer Group sales in 2018 (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Poland, Russia, Spain, Switzerland, Turkey, the United Kingdom and the United States) Social innovation To tackle the challenges of our time, we need to think and work in a way that goes beyond the boundaries of scientific disciplines and institutions – both in the science sector and social domain. The term defines the process by which new social practices emerge, prevail and become more widespread in various areas of society. V Vector control describes methods for the avoidance or targeted control of organisms that transmit pathogens triggering infectious diseases. Vectors include blood-sucking insects such as the Anopheles mosquito, which can transfer malaria parasites, for example.