Amflora is a genetically modified starch potato developed by BASF which produces an optimized starch composition for industrial applications.

Audits are a strategic tool for managing safety and environmental protection standards. During a site or plant audit, a profile is created using clearly defined environmental, safety or health criteria.

A confirmed line of credit that can be drawn upon in connection with the issue of commercial paper if market liquidity is not sufficient, or for the purpose of general corporate financing. It is one of the instruments BASF uses to ensure it is able to make payments at all times.

An international standard for comparing the thermal energy of different fuels. A BOE is the equivalent of one barrel of crude oil or 6,000 cubic feet or 169 cubic meters of natural gas.

This term covers all processes and products that use living organisms, for example bacteria and yeasts, or their cellular constituents. Plant biotechnology and white biotechnology belong to the five growth clusters of BASF.

A parameter to describe the effect of greenhouse gas emissions. A factor known as the global warming potential (GWP) shows the effect of the individual gases compared with CO₂ as the reference value.

A framework agreement between BASF and banks regarding the issuing of debt obligations on the financial market (commercial paper). The commercial paper is issued under a rolling program for which the terms can be determined individually. A prerequisite for this is a good rating.

Compliance is an important element of corporate governance. It refers to the company’s behavior in accordance with laws, guidelines and voluntary codices.

The cost of capital reflects shareholders’ expectations regarding return (in the form of dividends or share price increases) and interest rates payable to providers of debt. To ensure its lasting success, a company should earn at least the return on invested capital expected by shareholders and creditors on a sustained basis.

The dividend yield is the return received by a shareholder in the form of a dividend in relation to the year-end share price. It is calculated by dividing the per-share dividend by the year-end share price and multiplying by 100.

Drilling describes the creation of boreholes to explore for and develop deposits.

Earnings before Interest and Taxes. At BASF, EBIT corresponds to the income from operations.

The EBIT after cost of capital is calculated by deducting the cost of capital from the operating income earned by BASF’s operating divisions. If the EBIT after cost of capital has a positive value, BASF has earned a premium on the expected return of its providers of debt and equity. The EBIT after cost of capital is the key performance and management indicator at BASF.

Earnings before Interest, Taxes, Depreciation and Amortization. At BASF, EBITDA corresponds to the income from operations before depreciation and amortization.

This is the margin that we earn on sales from our operating activities before depreciation and amortization. It is calculated as income from operations before depreciation and amortization as a percentage of sales.

Method for the evaluation of products and processes considering economic and environmental aspects. The aim is to compare products with regard to profitability and environmental performance.

Emollients are nurturing oil components that give skin a velvety feel. They are a common ingredient in skin and hair care products such as creams and hair masks.

An Exploration and Production Sharing Agreement is one of the prevalent types of contract between a national oil company and an international oil company in the exploration and production of hydrocarbons.

The equity method is an accounting technique used to include BASF’s investments in companies in which it has significant influence in the Consolidated Financial Statements. The book value of the investment changes depending on the equity of the company in question.

The European Water Partnership was founded in 2006 as an independent non-profit organization to promote sustainable water management. It serves as a discussion forum, promotes partnerships as well as the exchange of information among relevant stakeholders, and initiates and coordinates initiatives.

To investigate and explore an area in the search for mineral resources such as crude oil or natural gas. The exploration process involves using suitable geophysical processes to find structures that may contain oil and gas then proving a possible find by means of exploratory drilling.

Fermentation is a process in which substances are broken down with the aid of microorganisms such as bacteria, fungi or cell cultures.

Term for the installation of production facilities and the drilling of production wells for the commercial exploitation of oil and natural gas deposits.

Cash provided by operating activities less payments related to property, plant and equipment and intangible assets.

The Global Product Strategy aims to establish global product stewardship standards and practices for companies. The program, initiated by the International Council of Chemical Associations (ICCA), strives to minimize the negative impact of chemicals on human health and the environment, particularly in developing countries.

Goodwill is a term used to describe a company’s value. It represents the difference between the actual value of a company’s assets and the purchase price paid. Because goodwill takes potential earnings into account, it may exceed the book value.

BASF has brought together its research activities related to the important technology-driven issues of the future into five growth clusters: energy management, raw material change, plant biotechnology, nanotechnology and white (industrial) biotechnology.

The Greenhouse Gas Protocol, used by companies from different sectors, NGOs and governments, is a globally recognized standard to quantify and manage greenhouse gas emissions. The reporting standards and recommendations for the implementation of projects to reduce emissions are jointly developed by companies, governments and NGOs under the guidance of the World Resources Institute and the World Business Council for Sustainable Development.

Technology to produce propylene oxide (PO) from hydrogen peroxide (HP). HPPO technology is more environmentally friendly and economically viable than conventional PO methods of production, because no by-products are produced besides water. PO is an intermediate, for example, in the production of polyurethane.

International Accounting Standards (see also IFRS)

The International Financial Reporting Interpretations Committee is a committee that publishes proposed guidance on IFRS and IAS.

International Financial Reporting Standards (until 2001: International Accounting Standards, IAS) are developed and published by the International Accounting Standards Board (IASB) headquartered in London, United Kingdom. In accordance with the IAS Regulations, IFRS are mandatory for listed companies headquartered in the European Union since 2005.

The ILO Core Labor Standards are laid out in a declaration of the International Labor Organization (ILO). It comprises eight conventions which set minimum requirements for decent working conditions. BASF has a Group-wide system to monitor employees’ and suppliers’ adherence to these labor standards.

ISAE 3000 is published by the International Audit and Assurance Standards Board (IAASB). It provides guidelines for comprehensive audits, which contain non-financial data, for example for the audits of sustainability reports.

ISO 14001 is an international standard developed by the International Organization for Standardization (ISO) that determines the general requirements for an environmental management system for voluntary certification.

ISO 19011 is an international standard developed by the International Organization for Standardization (ISO) that determines requirements for audits of quality management and environmental management systems.

BASF uses materiality analysis to analyze and evaluate societal interest in sustainability topics as well as their potential significance for the company. The aim is to develop strategies at an early stage to address potential new risks and opportunities. In 2010, several hundred stakeholders participated in the analysis, the results of which are portrayed in a materiality matrix.

MDI stands for diphenylmethane diisocyanate and is one of the most important raw materials for the production of the plastic polyurethane. This plastic is used for applications ranging from the soles of high-tech jogging shoes, to car shock-absorbers, refrigerator insulation and even insulation for buildings.

The MEA is the core of a fuel cell. This is where hydrogen and oxygen react to form water, generating electrical energy and heat in the process.

Monitoring systems and tools serve to measure and ensure the adherence to standards. One area that is monitored is our voluntary commitments such as the adherence to human rights and internationally recognized labor standards.

Characterization, generation and utilization of structures and systems that are smaller than one hundred nanometers.

Petroleum that is produced during oil refining. Heavy naphtha is the starting point for gasoline production. Light naphtha is the most important feedstock for steam crackers.

The Organization for Economic Cooperation and Development is an international body, headquartered in Paris, France.

The Occupational Health and Safety Assessment Series (OHSAS) comprises, among other things, the standard OHSAS 18001 which includes a management system for occupational safety. This system can be integrated into an existing quality and environmental protection management system and certified accordingly.

The Patent Asset Index measures the strength of a company’s patent portfolio. It is made up of two factors: (1) “portfolio size” (the number of worldwide active patent families) and (2) “competitive impact,” which is the combination of technology relevance and market coverage (weighted by market size).

The payout ratio shows what proportion of earnings is distributed in the form of a dividend. It is calculated by dividing the total dividend paid by net income and multiplying by 100.

THF stands for tetrahydrofuran and is a starting compound for Polytetrahydrofuran (PolyTHF®), an important component for the production of elastomer fibers for textiles. Elastomer fibers are used in sports clothing, for example.

New or improved products and applications, which have been on the market for less than five years.

An E.U. regulatory framework for the registration, evaluation and authorization of chemicals.

A worldwide initiative by the chemical industry to continuously improve its performance in the fields of environmental protection, health and safety.

There are two applications for generated profits: distribution to shareholders or retention in the company.

This describes the return we make on the average assets employed during the year. It is calculated as income from operations (EBIT) plus interest expenses as a percentage of average assets.

This technology is used to convert harmful nitrogen oxide, which is found in the exhaust flow of heavy duty diesel engines, into water vapor and nitrogen, a natural constituent of the air.

SEEBALANCE refers to the Socio-Eco-Efficiency Analysis developed by BASF. This analysis considers the three dimensions of sustainability: economy, environment and society. This tool now allows the assessment of environmental impact and costs as well as the societal impacts of products and processes.

These are crop protection products applied with specific technologies directly on the seed and thus protect crops in the emerging stages against diseases and harmful insects.

The social business BASF Grameen Ltd. serves a social purpose. It should cover its own costs and recoup the partners’ initial investment. Any additional profits are reinvested fully in the social business.

One-time charges or one-time income that significantly affect the earnings of a segment or the BASF Group. Special items include, for example, charges arising from restructuring measures or earnings from divestitures.

A market where an agreed deal including delivery, acceptance and payment occurs immediately. In contrast to forward contracts where the delivery, acceptance and payment occurs at a point in time after the conclusion of the deal.

The term refers to persons or groups whose interests are interlinked with those of a company in a variety of ways. BASF’s stakeholders include shareholders, business partners, employees, neighbors and society.

A plant in which steam is used to “crack” naphtha (petroleum) or natural gas. The resulting petrochemicals are the starting materials used to manufacture most of BASF’s products.

The production of the precursor styrene is primarily for captive use (backward integration). Styrenics are used in many areas, for example, in the construction, packaging, automotive, electrical and leisure industries.

The objective of sustainable development is to meet the economic, environmental and social needs of society without harming the development opportunities of future generations.

An agreement between two parties to exchange goods or payment flows in the future. In an interest swap, a fixed (variable) interest rate is exchanged for a floating (fixed) rate for an agreed nominal amount.

Toluene diisocyanate is a starting material for the production of polyurethane.

Gas trapped in extremely low-permeable (tight) formations.

Delayed adjustment of natural gas prices to the movement in oil prices.

Traits are the genetically determined properties of plants, such as drought and disease resistance or higher yields.

TUIS is a transport accident information and emergency response system jointly operated by around 130 chemical companies. The member companies can be reached by the public authorities at any time and provide assistance over the telephone, expert on-site advice or special technical equipment.

Successive steps in a production process, from the raw materials through various intermediate steps to the finished product.

In the BASF Verbund, production facilities, energy flow, logistics and infrastructure are intelligently networked with each other, in order to increase production yields, save resources and energy and reduce logistic costs. A significant factor in the Verbund concept is the Know-how Verbund. In the latter, know-how is shared among BASF employees worldwide and expert knowledge is pooled in research platforms.

VOCs are substances of organic origin that exist as gases in the air at low temperatures. They include certain hydrocarbons, alcohols, aldehydes and organic acids. The use of volatile organic compounds is regulated by the VOC Solvents Emissions Directive of the European Union.

An area of biotechnology, also called industrial biotechnology, that uses microorganisms and/or enzymes to produce chemical products, utilized in many levels of the value-adding chain in the chemical industry. This involves, for example, the biotechnological production of chiral intermediates.