Controversy Watch Bayer: Sustainalytics upgrade likely - Impact pillar the key swing factor for sustainable flows

Research evidence excerpt

Controversy Watch Bayer: Sustainalytics upgrade likely - Impact pillar the key swing factor for sustainable flows

J P M O R G A N Europe Equity Research

01 July 2026

Controversy Watch

Bayer: Sustainalytics upgrade likely - Impact pillar the

key swing factor for sustainable flows

About J.P. Morgan Controversy Watch: JPM CW is a publication designed to

address negative news related to environmental, social, or governance (ESG)

issues impacting companies. The product follows a structured pathway,

beginning with the facts and (if any) related company statements. Our

commentary leverages a robust playbook, grounded in our comprehensive

Controversy Watch Primer, to ensure a consistent, research-driven approach EMEA Sustainable Investing

Research

to ESG controversy management, with the aim of highlighting whether the

controversy is likely to result in a significant market impact. Noemie de la Gorce, CFA AC

(44-20) 7134-4229

noemie.delagorce@jpmorgan.com

Key Conclusion – Sustainalytics controversy score Jean-Xavier Hecker

upgrade likely; headline score impact more uncertain (33-1) 4015 4472

jean-xavier.hecker@jpmorgan.com

In our view, a likely scenario is that Sustainalytics upgrades Bayer’s Product Hugo Dubourg

Safety controversy score from 4 to 3 within the “Risk” pillar, which captures (33-1) 4015 4471

the potential financial impact of a controversy. The key swing factor, however, hugo.dubourg@jpmchase.com

would be an upgrade to the Impact score as well, as this would lift Bayer’s European Pharmaceuticals &

headline “Highest Score”. Such a move could help unlock additional demand, Biotechnology

as our primer on controversies suggests companies with controversy scores of Richard Vosser

4 or 5 tend to have lower ownership by Article 8 and Article 9 funds. (44-20) 7742-6652