GRI and Global Compact Index

Specific standard disclosures

Global Compact Principals

 

Specific Standard Disclosures

Link

Page

Comment

 

 

Energy and climate protection

7, 8, 9

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

Energy and climate protection: Introduction; Strategy;
Corporate carbon footprint and climate protection products

103
106

 

 

 

 

Policies

Responsible Care Management System: Strategy
Energy and climate protection

96
103

Global guidelines for energy management are part of our Responsible Care Management System.

 

 

 

Commitments

Energy and climate protection: Strategy

103

 

 

 

 

Goals and Targets

Energy and climate protection: Global goals

104

 

 

 

 

Responsibilities

 

 

The Climate Protection Officer is the leader of the competence center for Environment, Health, Safety and Security and member of the Corporate Sustainability Board. The officer coordinates all of BASF’s activities in terms of climate protection: from reducing emissions along the entire value chain, to further developing the climate protection product portfolio.

The officer is also responsible for involving the operating divisions and connecting with research. This approach emphasizes the importance of climate protection as part of BASF’s sustainability strategy.

Both aspects (reduction of emissions and further development of the climate protection product portfolio) are embedded in the target agreements where they are control-related.

 

 

 

Resources

Energy and climate protection: Strategy

103

 

 

 

 

Specific Actions

Energy and climate protection: Strategy;
Energy supply and efficiency;
Corporate carbon footprint and climate protection products

103
105
106

 

 

 

 

Mechanisms for Evaluation

Energy and climate protection: Strategy;
Corporate carbon footprint and climate protection products

103
106

 

 

 

 

Results of Evaluation

Energy and climate protection: Strategy;
Global goals

103
104

 

7

 

EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change

Energy and climate protection: Strategy

103

We comprehensively report on the results in the climate protection questionnaire of the CDP.

7, 8

 

EN1

Materials used by weight or volume


Raw materials: Strategy
Energy and climate protection: Graphic: Energy supply of the BASF Group 2016; Energy supply and efficiency

94
105

Due to our diverse procurement portfolio, such a key figure (weight or volume) does not represent control-related information.

7, 8

 

EN3

Energy consumption within the organization

Energy and climate protection: Graphic: Energy supply of the BASF Group 2016

105

Each site around the globe reports on environmental protection, safety, security and health protection in accordance with the reporting requirements defined in the Responsible Care Management System.

Sold energy is included in the energy balance; a separate indication is not considered necessary.

8

 

EN4

Energy consumption outside of the organization

 

 

Scope 3 is explained based on the carbon footprint, which includes the total energy used.

8

 

EN5

Energy intensity

Energy and climate protection: Table: Key indicators for Energy and climate protection in BASF operations excluding Oil & Gas

106

See EN3 – Calculation of energy efficiency

8, 9

 

EN6

Reduction of energy consumption

Energy and climate protection: Global goals;
Energy supply and efficiency

104
105

See EN3 – Calculation of energy efficiency

The year 2002 was selected as the baseline for the goal of reducing greenhouse gas emissions; since then, complete global information regarding this topic has been provided.

8, 9

 

EN7

Reductions in energy requirements of products and services

Energy and climate protection: Table: Key indicators for Energy and climate protection in BASF operations excluding Oil & Gas

106

 

7, 8

 

EN15

Direct greenhouse gas (GHG) emissions (Scope 1)

Energy and climate protection: Table: Greenhouse gas emissions of the BASF Group after Greenhouse Gas Protocol

104

 

7, 8

 

EN16

Energy indirect greenhouse gas (GHG) emissions (Scope 2)

Energy and climate protection: Table: Greenhouse gas emissions of the BASF Group after Greenhouse Gas Protocol

104

The BASF Report shows Scope 2 emissions according to the location-based approach. In 2016, Scope 2 emissions according to the market-based approach were 4.506 million metric tons of CO2.

7, 8

 

EN17

Other indirect greenhouse gas (GHG) emissions (Scope 3)

Energy and climate protection: Graphic: Greenhouse gas emissions along the BASF value chain in 2016

106

 

8

 

EN18

Greenhouse gas (GHG) emissions intensity

Energy and climate protection: Graphic: Reduction of greenhouse gas emissions per metric ton of sales product in BASF operations excluding Oil & Gas
Table: Key indicators for energy and climate protection in BASF operations excluding Oil & Gas

103
106

We report on the types of GHG emissions, which were included in the emissions intensity (Scope 1 + Scope 2).

8, 9

 

EN19

Reduction of greenhouse gas (GHG) emissions

Energy and climate protection: Global goals;
Corporate carbon footprint and climate protection products

104
106

We report on the types of GHG emissions, which were included in the emissions intensity (Scope 1 + Scope 2).

8

 

EN30

Significant environmental impacts of transporting products and other goods and materials for the organization’s operations, and transporting members of the workforce

Transportation and storage: Transportation incidents
Energy and climate: Corporate carbon footprint and climate protection products

97
106

For example, the intermodal transport terminal at the Ludwigshafen site prevented around 130,000 metric tons of carbon emissions in 2016.

7, 8, 9

 

EN31

Total environmental protection expenditures and investments by type

Responsible Care Management System: Table: Costs and provisions for environmental protection in the BASF Group

96

 

8

 

EN34

Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms

 

 

Through our SPIDER network, concerned residents can ask questions or raise complaints around the clock. These are mostly not attributable to BASF and can therefore not be statistically collected in a useful manner.

 

 

Water

7, 8, 9

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

Water: Introduction; Strategy

107

 

 

 

 

Policies

Responsible Care Management System: Strategy
Water: Strategy

96
107

 

 

 

 

Commitments

Water: Introduction; Strategy

107

 

 

 

 

Goals and Targets

Water: Global goal

107

 

 

 

 

Responsibilities

Responsible Care Management System: Strategy

96

 

 

 

 

Resources

Responsible Care Management System: Table: Costs and provisions for environmental protection in the BASF Group

96

 

 

 

 

Specific Actions

Water: Strategy; Global goal;
Emissions to water; Water use

107
108

 

 

 

 

Mechanisms for Evaluation

Water: Global goal

107

 

 

 

 

Results of Evaluation

Water: Global goal

107

 

7, 8

 

EN8

Total water withdrawal by source

Water: Graphic: Water in the BASF Group in 2016

108

Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System.

8

 

EN9

Water sources significantly affected by withdrawal of water

Water: Global goal

107

The EWS standard comprises, for example, the review of the production sites’ impact on surrounding areas to protect biodiversity.

8

 

EN10

Percentage and total volume of water recycled and reused

Water: Graphic: Water in the BASF Group in 2016

108

Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System.

8

 

EN22

Total water discharge by quality and destination

Responsible Care Management System: Strategy
Water: Graphic: Water in the BASF Group in 2016

96
108

 

8

 

EN26

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization’s discharges of water and runoff

Water: Global goal

107

At sites that have implemented sustainable water management according to the EWS standard, no significant impact on biodiversity has been identified.

7, 8, 9

 

EN31

Total environmental protection expenditures and investments by type

Responsible Care Management System: Table: Costs and provisions for environmental protection in the BASF Group

96

 

8

 

EN34

Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms

 

 

Through our SPIDER network, concerned residents can ask questions or raise complaints around the clock. These are mostly not attributable to BASF and can therefore not be statistically collected in a useful manner.

 

 

Resources and ecosystems

1, 7, 8, 9

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

The BASF Group: Verbund
Corporate strategy: Our main topics
Raw materials: Introduction; Strategy
Energy and climate protection: Energy supply and efficiency

20
23
94
105

 

 

 

 

Policies

 

 

Global guidelines for the approval and procurement of raw materials, technical goods and services as well as logistics solutions ensure conformity with the law.

 

 

 

Commitments

Raw materials: Strategy

94

 

 

 

 

Goals and Targets

Raw materials: Renewable raw materials

94

 

 

 

 

Responsibilities

 

 

The Procurement unit supports BASF’s business units in developing sustainable solutions so they can stand out from the competition in addressing market-specific requirements.

 

 

 

Resources

 

 

The Procurement unit supports BASF’s business units in developing sustainable solutions so they can stand out from the competition in addressing market-specific requirements.

 

 

 

Specific Actions

Sustainability management: Creating value
Raw materials: Renewable raw materials

30
94

 

 

 

 

Mechanisms for Evaluation

Suppliers: Evaluating our suppliers

92

 

 

 

 

Results of Evaluation

Raw materials: Mineral raw materials

95

 

7, 8

 

EN1

Materials used by weight or volume

Raw materials: Strategy

94

Due to our diverse procurement portfolio, such a key figure (weight or volume) does not represent control-related information.

8

 

EN2

Percentage of materials used that are recycled input materials

Raw materials: Renewable raw materials

94

 

8

 

EN11

Owned or leased sites that are operated in or bordering on protected areas and areas with a high value of biodiversity outside of protected areas

 

 

In the past years, BASF has analyzed data about sites in or bordering on protected areas as well as possible major impact on the protected areas annually. The results showed that no further evaluations are necessary since no relevant impact was identified. In case of changes in the site portfolio, e.g., due to investments or acquisitions, we audit the respective impact as part of the standardized evaluation process.

8

 

EN12

Description of severe impact on legal capacity, products and services for biodiversity in protected areas and areas with a high value of biodiversity outside of protected areas

 

 

In the past years, BASF has analyzed data about sites in or bordering on protected areas as well as possible major impact on the protected areas annually. The results showed that no further evaluations are necessary since no relevant impact was identified. In case of changes in the site portfolio, e.g., due to investments or acquisitions, we audit the respective impact as part of the standardized evaluation process.

8

 

EN13

Protected or renatured habitat

 

 

In the past years, BASF has analyzed data about sites in or bordering on protected areas as well as possible major impact on the protected areas annually. The results showed that no further evaluations are necessary since no relevant impact was identified. In case of changes in the site portfolio, e.g., due to investments or acquisitions, we audit the respective impact as part of the standardized evaluation process.

8

 

EN14

Total number of threatened species on the Red List of the International Union for Conservation of Nature and Natural Resources (IUCN) and on national lists of protected species whose habitat is in areas that are influenced by the organization’s business activities as per category of threat

 

 

In the past years, BASF has analyzed data about sites in or bordering on protected areas as well as possible major impact on the protected areas annually. The results showed that no further evaluations are necessary since no relevant impact was identified. In case of changes in the site portfolio, e.g., due to investments or acquisitions, we audit the respective impact as part of the standardized evaluation process.

7, 8, 9

 

EN31

Total environmental protection expenditures and investments by type

Responsible Care Management System: Table: Costs and provisions for environmental protection in the BASF Group

96

 

8

 

EN34

Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms

 

 

Through our SPIDER network, concerned residents can ask questions or raise complaints around the clock. These are mostly not attributable to BASF and can therefore not be statistically collected in a useful manner.

1

 

SO2

Operations with significant actual and potential negative impacts on local communities

Raw materials: Mineral raw materials

95

 

 

 

Responsible production

1, 7, 8, 9

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

Responsible Care Management System: Strategy
Production: Strategy

96
98

 

 

 

 

Policies

Responsible Care Management System: Strategy; Audits
Production: Health protection; Process safety

96
99

 

 

 

 

Commitments

Responsible Care Management System
Production

96
98

 

 

 

 

Goals and Targets

Production: Occupational safety

98

 

 

 

 

Responsibilities

Responsible Care Management System: Strategy
Production: Health protection;
Hazard prevention and corporate security

96
99
100

Mandatory goals in terms of occupational safety are integrated into the target agreements for employees worldwide with disciplinary responsibility.

 

 

 

Resources

Responsible Care Management System

96

 

 

 

 

Specific Actions

Production: Occupational safety;
Health protection;
Hazard prevention and corporate security

98
99
100

 

 

 

 

Mechanisms for Evaluation

Production: Health protection; Process safety;
Hazard prevention and corporate security

99
100

 

 

 

 

Results of Evaluation

Responsible Care Management System: Audits

Production: Health protection

96
99

A result of the audits is, for example, the necessity of implementing new guidelines and processes in the near future.

The five elements of HPI are part of the Responsible Care reporting and medical audits of our BASF sites. We audit compliance with the Occupational Medicine & Health Protection directive and requirements on specific topics. The conduct of the audits involves determining the status quo, preparing appropriate recommendations (if necessary) and advising sites on how this can be achieved.

 

 

EC8

Significant indirect economic impacts, including the extent of impacts

Sustainability management: Creating value

30

 

7, 8

 

EN20

Emissions of ozone-depleting substances (ODS)

Air and soil: Emissions to air

109

The calculation is made according to the substances described in the reporting requirements (based on the Montreal Protocol).

7, 8

 

EN21

NOx, SOx, and other significant air emissions

Air and soil: Table: Emissions to air

109

The calculation is made according to the methods described in the reporting requirements and includes CO, NOx, SOx, NMVOCs, PM, NH3 and other inorganic substances.

8

 

EN22

Total water discharge by quality and destination

Water: Graphic: Water in the BASF Group 2016

108

 

8

 

EN23

Total weight of waste by type and disposal method

Air and soil: Strategy;
Management of waste and contaminated sites

109
110

 

8

 

EN24

Total number and volume of significant spills

Transportation and storage: Transportation incidents
Production: Process safety

97
99

In 2016, we recorded two transportation incidents with product spillage in excess of 200 kilograms of dangerous goods outside the perimeters of BASF sites. None of these transportation incidents resulted in a substantial impact on the environment.

Emissions incidents from production are recorded and included in the KPI on Process Safety Incidents in the “Production” chapter. In 2016, there were no significant substance leaks.

8

 

EN25

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally

Air and soil: Table: Waste management in the BASF Group

110

We provide for proper waste disposal. Either we dispose of hazardous waste ourselves or hire external service providers. We regularly audit these service providers; this is why we do not report on this indicator.

8

 

EN29

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

 

 

Any litigation or claims are published in the Notes to the Consolidated Financial Statements.

7, 8, 9

 

EN31

Total environmental protection expenditures and investments by type

Responsible Care Management System: Table: Costs and provisions for environmental protection in the BASF Group

96

 

8

 

EN34

Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms

 

 

Through our SPIDER network, concerned residents can ask questions or raise complaints around the clock. These are mostly not attributable to BASF and can therefore not be statistically collected in a useful manner.

 

 

LA6

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender

Production: Occupational safety

98

Lost working days and the absence rate are not control-related parameters for us to evaluate the occupational safety performance since these parameters can only be partially influenced by BASF due to, for example, regional laws. We do not differentiate between individual employee categories (e.g., gender) due to reasons of non-discrimination.

 

 

LA7

Workers with high incidence or high risk of diseases related to their occupation

Product stewardship: Management of new technologies

102

 

1

 

HR7

Percentage of security personnel trained in the organization’s human rights policies or procedures that are relevant to operations

Production: Emergency response; Corporate security

100

 

1

 

SO1

Percentage of operations with implemented local community engagement, impact assessments, and development programs

Sustainability management: Engaging stakeholders
Production: Emergency response; Corporate security

30
100

In 2016, we developed new, globally applicable requirements for community advisory panels at our sites.

 

 

Products and solutions

7, 8, 9

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

Sustainability management: Creating value
Product stewardship: Management of new technologies

30
102

 

 

 

 

Policies

Sustainability management: Creating value
Product stewardship: Strategy;
Management of new technologies

30
101
102

 

 

 

 

Commitments

Product stewardship: Strategy

101

 

 

 

 

Goals and Targets

Product stewardship: Global goal

101

 

 

 

 

Responsibilities

Responsible Care Management System: Strategy

96

The responsibilities for our product stewardship and product portfolio evaluation are defined in both centralized and decentralized ways.

 

 

 

Resources

Product stewardship: Economical and toxicological testing

102

 

 

 

 

Specific Actions

Product stewardship: Strategy; REACH and other legal requirements;
Environmental and toxicological testing; Management of new technologies

101
102

 

 

 

 

Mechanisms for Evaluation

Product stewardship: Strategy; Global goal;
Environmental and toxicological testing; Management of new technologies

101
102

 

 

 

 

Results of Evaluation

Sustainability management: Creating value

30

 

 

 

EC8

Significant indirect economic impacts, including the extent of impacts

Sustainability management: Creating value

30

 

7, 8, 9

 

EN27

Extent of impact mitigation of environmental impacts of products and services

Sustainability management: Creating value

30

 

8

 

EN28

Percentage of products sold and their packaging materials that are reclaimed by category

 

 

Due to BASF’s product portfolio, this indicator is not relevant since most of the products are sold as bulk products. The respective legal regulations are applicable for the packages used. In addition to the dual system for the return of packages from domestic goods, in Germany, for example, the return and recycling of industrial or commercial packages through return companies is organized specifically for the individual fraction of the packaging materials (plastics, steel, etc.). We want to offer our customers efficient disposing methods, which are professionally and responsibly performed, for all packages used. This is why we inform, for example, about the companies that are available for returning and recycling industrial packages.

7

 

PR1

Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

Sustainability management: Creating value
Product stewardship: Global goal

30
101

As a producing company, we focus on the evaluation of our products (the entire portfolio has been evaluated here). Services are not relevant for a producing company.

 

 

PR2

Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes

 

 

Any litigation or claims are published in the Notes to the Consolidated Financial Statements.

7

 

PR3

Type of product and service information required by the organization’s procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements

Product stewardship: REACH and other legal requirements

101

 

 

 

PR4

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes

 

 

Any litigation or claims are published in the Notes to the Consolidated Financial Statements.

7

 

PR6

Sale of banned or disputed products

Sustainability management: Creating value

30

 

 

 

PR7

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes

 

 

The indicator is not material since BASF mainly does business in the B2B field. Any litigation or claims are published in the Notes to the Consolidated Financial Statements.

 

 

PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

 

 

The indicator is not material since BASF mainly does business in the B2B field. Any litigation or claims are published in the Notes to the Consolidated Financial Statements.

 

 

PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

 

 

Any litigation or claims are published in the Notes to the Consolidated Financial Statements.

 

 

Partnerships

1, 2, 3, 4, 5, 8, 10

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

Sustainability management: Engaging stakeholders

30

 

 

 

 

Policies

 

 

Our actions are based on our global Code of Conduct.

The Responsible Partnering aspect is managed by different units depending on the stakeholder group. This involves corresponding guidelines (e.g., for the dialog between employee and employer representatives) and is clearly defined responsibilities and resources.

 

 

 

Commitments

Sustainability management: Engaging stakeholders

30

 

 

 

 

Goals and Targets

Strategy: Our strategic principles
Sustainability management: Engaging stakeholders

22
30

 

 

 

 

Responsibilities

 

 

The Responsible Partnering aspect is managed by different units depending on the stakeholder group. This involves corresponding guidelines (e.g., for the dialog between employee and employer representatives) and is clearly defined responsibilities and resources.

 

 

 

Resources

 

 

The Responsible Partnering aspect is managed by different units depending on the stakeholder group. This involves corresponding guidelines (e.g., for the dialog between employee and employer representatives) and is clearly defined responsibilities and resources.

 

 

 

Specific Actions

Sustainability management: Engaging stakeholders

30

 

 

 

 

Mechanisms for Evaluation

Sustainability management: Engaging stakeholders

30

 

 

 

 

Results of Evaluation

Sustainability management: Engaging stakeholders

30

 

 

 

EC1

Direct economic value generated and distributed

Value added 2016

Cover

 

 

 

EC4

Financial assistance received from government

 

 

In 2016, BASF did not receive any government grants. No public sectors hold any major shares in BASF. BASF is involved in future research projects that are also supported by the government.

 

 

EC7

Development and impact of infrastructure investments and services supported


Value added 2016
Corporate strategy: Business expansion in emerging markets
Working at BASF: Vocational training
Social commitment: Graphic: BASF Group donations, sponsorship and own projects in 2016

Cover
25
41
46

 

 

 

EC9

Proportion of spending on local suppliers at significant locations of operation

Suppliers: Worldwide procurement

92

There are no specific guidelines for local procurement for BASF: In order to ensure local supply security, raw materials must be purchased where they are available around the globe. Local providers for technical goods and services have competitive advantages due to their location.

“Local” means that we purchase from suppliers that are located in the same region as the procuring Group company (as per BASF definition).

8

 

EN32

Percentage of new suppliers that were screened using environmental criteria

Suppliers: What we expect from our suppliers; Evaluating our suppliers

92

In 2016, we surveyed around 2,100 new suppliers for raw materials, technical goods and services on the topics of environmental protection, compliance with human rights, labor and social standards as well as antidiscrimination and anticorruption in Asia and South America. This represents around 30% of our new suppliers in the regions Asia and South America.

8

 

EN33

Significant actual and potential negative environmental impacts in the supply chain and actions taken

Suppliers: What we expect from our suppliers; Evaluating our suppliers

92

Due to severe deficiencies in the areas of environmental protection, safety, security and health protection, two business relations with suppliers were terminated. 395 suppliers were asked for improvements in these areas, representing around 60% of all suppliers audited in 2016.

 

 

LA14

Percentage of new suppliers that were screened using labor practices criteria

Suppliers: Evaluating our suppliers

92

In 2016, we surveyed around 2,100 new suppliers for raw materials, technical goods and services on the topics of environmental protection, compliance with human rights, labor and social standards as well as antidiscrimination and anticorruption in Asia and South America. This represents around 30% of our new suppliers in the regions Asia and South America.

 

 

LA15

Significant actual and potential negative impacts for labor practices in the supply chain and actions taken

Suppliers: Evaluating our suppliers;
Audit results

92
93

Due to severe deficiencies in the areas of environmental protection, safety, security and health protection, two business relations with suppliers were terminated. 395 suppliers were asked for improvements in these areas, representing around 60% of all suppliers audited in 2016.

2

 

HR1

Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

Sustainability management: Strategy

29

The consideration of all three dimensions of sustainability is integrated into our standard processes for evaluating investment decisions in property, plant and equipment as well as in financial assets. Therefore, human rights aspects are also reviewed for all significant investment decisions.

1

 

HR2

Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

Compliance: Compliance program and Code of Conduct

134

All employees are instructed on the contents of our Code of Conduct upon joining the company. They are obligated to attend refresher training every three years.

3

 

HR4

Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights

 

 

For two of the suppliers audited in 2016, we identified deficiencies in the areas of freedom of association and collective bargaining.

Due to the revision of the management process in the area of compliance with International Labor and Social Standards requirements, we are currently in a transition phase in which the old management system no longer exists and the new one has not yet been fully implemented. Analysis of the findings of a risk-based country questionnaire as well as a review of the proposed adjustment measures – based on a risk key – is planned for 2017.

(In a deviation from the scope of consolidation outlined in the annual report, these figures do not reflect the newly acquired Chemetall businesses.)

5

 

HR5

Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor

Suppliers: Audit results

93

Due to the revision of the management process in the area of compliance with International Labor and Social Standards requirements, we are currently in a transition phase in which the old management system no longer exists and the new one has not yet been fully implemented. Analysis of the findings of a risk-based country questionnaire as well as a review of the proposed adjustment measures – based on a risk key – is planned for 2017.

(In a deviation from the scope of consolidation outlined in the annual report, these figures do not reflect the newly acquired Chemetall businesses.)

4

 

HR6

Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor

Suppliers: Audit results

93

Due to the revision of the management process in the area of compliance with International Labor and Social Standards requirements, we are currently in a transition phase in which the old management system no longer exists and the new one has not yet been fully implemented. Analysis of the findings of a risk-based country questionnaire as well as a review of the proposed adjustment measures – based on a risk key – is planned for 2017.

(In a deviation from the scope of consolidation outlined in the annual report, these figures do not reflect the newly acquired Chemetall businesses.)

1

 

HR8

Total number of incidents of violations involving rights of indigenous peoples and actions taken

 

 

No (potential) violation of rights of indigenous communities was identified, neither through our internal complaint mechanisms nor as part of our risk evaluations for investment decisions.

2

 

HR10

Percentage of new suppliers that were screened using human rights criteria

Suppliers: What we expect from our suppliers; Evaluating our suppliers

92

In 2016, we surveyed around 2,100 new suppliers for raw materials, technical goods and services on the topics of environmental protection, compliance with human rights, labor and social standards as well as antidiscrimination and anticorruption in Asia and South America. This represents around 30% of our new suppliers in the regions Asia and South America.

2

 

HR11

Significant actual and potential negative human rights impacts in the supply chain and actions taken

Suppliers: Evaluating our suppliers;
Audit results

92
93

No supplier relations were terminated due to reasons of human rights. 315 suppliers were asked for improvements in these areas, representing around 48% of all suppliers audited in 2016.

1

 

SO1

Percentage of operations with implemented local community engagement, impact assessments, and development programs

Sustainability management: Engaging stakeholders
Social commitment: Strategy
Production: Emergency response and corporate security

30
46
100

We want to establish a systematic dialog with our neighbors at all important sites. For this purpose, we will review our previous procedures and standardize these worldwide.

10

 

SO3

Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

Compliance: Monitoring adherence to compliance principles

135

Due to BASF’s matrix structure, the number of the audited business sites is not a control-related indicator. Entire business divisions, which can comprise numerous or only a few sites, are audited as part of our compliance audits. Our corporate audits focus on compliance issues, ensuring compliance worldwide in our business processes.

10

 

SO4

Communication and training on anti-corruption policies and procedures

Compliance: Compliance program and Code of Conduct; Monitoring adherence to compliance principles

134
135

All employees are instructed on the contents of our Code of Conduct upon joining the company. They are obligated to attend refresher trainings every three years.

In addition, all leaders and non-tariff employees confirm their adherence to our Code of Conduct every year. The members of the controlling body are informed about the contents of our code of conduct.

The entire Board of Executive Directors of BASF SE is obligated to adhere to our Code of Conduct as per contract.

Contractors of BASF are also informed about our requirements.

All important business partners, especially our suppliers and sales partners, are informed about our compliance principles and are obligated to their adherence. Based on the global guideline “Business Partner Due Diligence” introduced in 2015, all of our sales partners are audited in regard to compliant behavior.

10

 

SO5

Confirmed incidents of corruption and actions taken

 

 

As of now, no justified cases are known in 2016.

10

 

SO6

Total value of political contributions by country and recipient/beneficiary

Sustainability management: Engaging stakeholders

30

 

 

 

SO7

Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes

Consolidated Financial Statements: Litigation and claims

207

Any litigation or claims are published in the Notes to the Consolidated Financial Statements.

 

 

SO8

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

Consolidated Financial Statements: Litigation and claims

207

Any litigation or claims are published in the Notes to the Consolidated Financial Statements.

 

 

SO9

Percentage of new suppliers that were screened using criteria for impacts on society

Suppliers: What we expect from our suppliers; Evaluating our suppliers

92

In 2016, we surveyed around 2,100 new suppliers for raw materials, technical goods and services on the topics of environmental protection, compliance with human rights, labor and social standards as well as antidiscrimination and anticorruption in Asia and South America. This represents around 30% of our new suppliers in the regions Asia and South America.

 

 

SO10

Significant actual and potential negative impacts on society in the supply chain and actions taken

Suppliers: Evaluating our suppliers;
Audit results

92
93

Due to severe deficiencies in the areas of environmental protection, safety, security and health protection, two business relations with suppliers were terminated. 395 suppliers were asked for improvements in these areas, representing around 60% of all suppliers audited in 2016.

We identified restrictions on the topics of freedom of association and collective bargaining for two of our suppliers audited.

No supplier relations were terminated due to reasons of human rights. 315 suppliers were asked for improvements in these areas, representing around 48% of all suppliers audited in 2016.

 

 

SO11

Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms

Sustainability management: Engaging stakeholders
Compliance: Monitoring adherence to compliance principles

30
135

 

 

 

PR5

Results of surveys measuring customer satisfaction

 

 

Due to our diverse customer sectors along with their different demands, there is no uniform customer satisfaction survey for the entire BASF Group. Customer satisfaction data is collected in a decentralized manner.

 

 

Employment and employability

1, 3, 6

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

Working at BASF: Introduction; Strategy

40

 

 

 

 

Policies

Working at BASF: Strategy

40

 

 

 

 

Commitments

Working at BASF: Competition for talent

41

 

 

 

 

Goals and Targets

Goals: Employees
Working at BASF: Learning and development
Working at BASF: Inclusion of diversity

26
42
43

 

 

 

 

Responsibilities

Working at BASF: Inclusion of diversity

43

 

 

 

 

Resources

Working at BASF: Vocational training;
Learning and development

41
42

 

 

 

 

Specific Actions

Working at BASF: Competition for talent

41

 

 

 

 

Mechanisms for Evaluation

Working at BASF: Global Employee Survey

44

 

 

 

 

Results of Evaluation

Working at BASF: Global Employee Survey

44

 

 

 

EC1

Direct economic value generated and distributed

Value added 2016
Working at BASF: Vocational training
Working at BASF: Compensation and benefits

Cover
41
44

 

 

 

EC3

Coverage of the organization’s defined benefit plan obligations

Working at BASF: BASF Group personnel expenses
The BASF Group business year: Net assets
The BASF Group business year: Financial position
Consolidated Financial Statements: Provisions for pensions and similar obligations

44
55
56
198

 

6

 

EC5

Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation

 

 

The indicator is not industry-relevant. As an employer in the chemical industry, BASF typically recruits highly qualified employees. Their compensation is based on objective criteria worldwide, especially the employees’ position, their individual performance and BASF’s success.

6

 

EC6

Proportion of senior management hired from the local community at significant locations of operation

 

 

BASF as globally operative company strives for further internationalization in the area of the upper management level and wants to recruit across different countries and sites in a more consequent way.

 

 

EC7

Development and impact of infrastructure investments and services supported

Value added 2016
Corporate strategy: Business expansion in emerging markets
Working at BASF: Vocational training
Social commitment: BASF Group donations, sponsorship and own projects in 2016

Cover
25
41
46

 

6

 

LA1

Total number and rates of new employee hires and employee turnover by age group, gender and region

Working at BASF: Table: BASF Group new hires in 2016

40

We report the total number of new hires and the early turnover rate (within the first three years), both by region since these are our internal control-related indicators. New hires depend on qualification and suitability; age is irrelevant.

 

 

LA2

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation

Working at BASF: Compensation and benefits

44

We hire only few temporary employees compared with our total workforce worldwide. All kinds of benefits that we provide in Germany are due to full-time as well as part-time employees.

6

 

LA3

Return to work and retention rates after parental leave, by gender

Working at BASF: Balancing personal and professional life, Graphic

44

At our worldwide largest Verbund site in particular, we provide a wide range of opportunities to combine our employees’ careers with family and personal life (e.g., flexible working hours, part-time employment, “LuMit” and childcare). These are important measures to promote the family role model of women and men. We create the prerequisites for employees to make use of their legal claim of parental leave. More detailed indications are not control-related for us.

3

 

LA4

Minimum notice periods regarding operational changes, including whether these are specified in collective agreements

Working at BASF: Dialog with employee representatives

45

The basis of our actions is complying with national laws and exceeding this. We also adhere to the applicable periods of notice that are based on national laws or local collective agreements.

 

 

LA5

Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs

Responsible Care Management System: Strategy

96

The occupational safety and health protection specifications are agreed on with employee representatives in Ludwigshafen. Guidelines for the global workforce are developed based on these.

 

 

LA8

Health and safety topics covered in formal agreements with trade unions

Responsible Care Management System: Strategy

96

The occupational safety and health protection specifications are agreed on with employee representatives in Ludwigshafen. Guidelines for the global workforce are developed based on these.

6

 

LA9

Average hours of training per year per employee by gender, and by employee category

Working at BASF: Learning and development

42

The relevant parameters are further training days, not hours. Training needs are determined as part of individual development of the employees, and are not dependent on age or gender. The BASF Group-wide uniform system for further training is applicable for all employees.

 

 

LA10

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Working at BASF: Learning and development
Working at BASF: Managing demographic changes

42
43

 

6

 

LA11

Percentage of employees receiving regular performance and career development reviews, by gender and by employee category

Working at BASF: Learning and development

42

The BASF Group has a uniform system in place for conducting employee dialogs that applies for all employees, regardless of gender and employee type.

(In a deviation from the scope of consolidation outlined in the annual report, these figures do not reflect the newly acquired Chemetall businesses.)

6

 

LA12

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

Working at BASF: Graphic: BASF Group employee age structure
Working at BASF: Inclusion of diversity
Working at BASF: Table: Leadership responsibility in the BASF Group
Corporate governance report: Graphic: Two-tier management system of BASF SE

42
43
43
128

We live inclusion of diversity, so that all employees are part of our team. Therefore, a different indication for minorities is not control-related for us.

6

 

LA13

Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation

Working at BASF: Compensation and benefits

44

 

 

 

LA16

Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms

Corporate Governance: Compliance: Monitoring adherence to our Compliance principles

135

35 complaints and tips pertained to general working practices. One was substantiated, 32 were concluded during the reporting period.

(In a deviation from the scope of consolidation outlined in the annual report, these figures do not reflect the newly acquired Chemetall businesses.)

6

 

HR3

Total number of incidents of discrimination and corrective actions taken

Corporate Governance: Compliance: Monitoring adherence to our Compliance principles

135

Number of complaints and tips received on human rights: 149 (concluded in reporting period: 133)

  • Of these, pertaining to labor and social standards: 22 (concluded in reporting period: 18)
  • Substantiated cases: 33, all related to labor and social standards, of which 3 were cases of discrimination

In all substantiated cases, countermeasures were taken on a case-by-case basis according to prevailing legal and internal requirements.

(In a deviation from the scope of consolidation outlined in the annual report, these figures do not reflect the newly acquired Chemetall businesses.)

1

 

HR9

Total number and percentage of operations that have been subject to human rights reviews or impact assessments

 

 

Due to the revision of the management process in the area of compliance with International Labor and Social Standards requirements, we are currently in a transition phase in which the old management system no longer exists and the new one has not yet been fully implemented. Analysis of the findings of a risk-based country questionnaire as well as a review of the proposed adjustment measures – based on a risk key – is planned for 2017.

(In a deviation from the scope of consolidation outlined in the annual report, these figures do not reflect the newly acquired Chemetall businesses.)

1

 

HR12

Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms

Corporate Governance: Compliance: Monitoring adherence to our Compliance principles

135

Number of complaints and tips received on human rights: 149 (concluded in reporting period: 133)

  • Of these, pertaining to labor and social standards: 22 (concluded in reporting period: 18)
  • Substantiated cases: 33, all related to labor and social standards, of which 3 were cases of discrimination

In all substantiated cases, countermeasures were taken on a case-by-case basis according to prevailing legal and internal requirements.

(In a deviation from the scope of consolidation outlined in the annual report, these figures do not reflect the newly acquired Chemetall businesses.)