GRI- and Global-Compact-Index

GRI Box

The GRI box shows all relevant indicators on this specific page.

To the complete GRI and Global Compact Index

General Standard Disclosures

Global Compact Principles

 

General Standard Disclosures

Link

Page

Comment

External assurance

 

 

Strategy and Analysis

 

 

G4-1

Letter from the Chairman of the Board of Executive Directors to the shareholders

7-9

 

 

 

G4-2

Strategy
Goals table
Working at BASF: Managing demographic changes
Opportunities and risk report

22-25
26-27
43
111-118

 

 

 

Organizational profile

 

 

G4-3

The BASF Group

19-21

 

 

 

G4-4

The BASF Group

19-21

 

 

 

G4-5

The BASF Group

19-21

 

 

 

G4-6

The BASF Group

19-21

 

 

 

G4-7

The BASF Group

19-21

 

 

 

G4-8

The BASF Group

19-21

 

 

 

G4-9

Employees and society
The BASF Group
Working at BASF: Number of employees
Financial Statements

Cover
19-21
41
157

 

6

 

G4-10

Working at BASF: Number of employees; Graphic: BASF Group employees by region
Working at BASF: Vocational training; Table: BASF Group employees by contract type

41; 41
42; 42

At our worldwide largest Verbund site in Ludwigshafen, Germany, we only deploy a small number (compared with the total number) of employees or authorized, instructed representatives of contractual parties. We only work together with contractual parties bound by a collective bargaining agreement.

3

 

G4-11

Working at BASF: Table: Survey of ILO core labor standards / human rights 2014

46

 

 

 

G4-12

Supply chain management: Worldwide procurement

93

The Procurement competence center supports the BASF business units in developing sustainable solutions so that they stand out from the competition in addressing market-specific requirements.

 

 

G4-13

The BASF Group: Organization of the BASF Group
Working at BASF: Number of employees
Supply chain management: Worldwide procurement

19
41
93

 

 

 

G4-14

Responsible Care Management System: Strategy; Audits
Transportation and storage: Accident prevention and assistance
Production: Introduction; Process safety; Hazard prevention and corporate security

97; 97
98
99; 100; 100

 

 

 

G4-15

Working at BASF: Global labor and social standards
Social commitment: Focus on education; BASF Stiftung projects

46
47; 47

 

 

 

G4-16

Sustainability management: Engaging stakeholders
Transportation and storage: Accident prevention and assistance; Activities in external networks

31
98; 98

 

 

 

Identified Material Aspects and Boundaries

 

 

G4-17

About this report: Data

4

 

 

 

G4-18

About this report: Content and structure
Sustainability management: Materiality analysis

3
29-30

 

 

 

G4-19

Sustainability management: Graphic: Material aspects and action priority areas along the value chain

30

 

 

 

G4-20

Sustainability management: Graphic: Material aspects and action priority areas along the value chain

30

 

 

 

G4-21

Sustainability management: Graphic: Material aspects and action priority areas along the value chain

30

 

 

 

G4-22

About this report: Data

4

 

 

 

G4-23

Sustainability management: Materiality analysis

29-30

 

 

 

Stakeholder Engagement

 

 

G4-24

Sustainability management: Engaging stakeholders

31

 

 

 

G4-25

Sustainability management: Engaging stakeholders

31

We have clearly defined persons in charge of the dialog with the relevant stakeholder groups. They conduct constructive exchange with stakeholders relevant for BASF (e.g., dialog between employee and employer representatives, business units and customers, dialog with politicians, investors, journalists, and other social agents).

 

 

G4-26

Sustainability management: Engaging stakeholders
Working at BASF: Global employee survey; Dialog with employee representatives

31
45; 46

 

 

 

G4-27

Sustainability management: Engaging stakeholders
Working at BASF: Global employee survey; Dialog with employee representatives

31
45; 46

 

 

 

Report Profile

 

 

G4-28

About this report: Data

4

 

 

 

G4-29

About this report: Data

4

 

 

 

G4-30

About this report: Data

4

 

 

 

G4-31

Report cover

Cover

 

 

 

G4-32

About this report: Content and structure

3

 

 

 

G4-33

About this report: External audit and evaluation

4

 

 

 

Governance

 

 

G4-34

Sustainability management: Strategy
Corporate governance: Direction and management by the Board of Executive Directors; Graphic: Two-tier management system of BASF SE

29
127; 128

 

 

 

G4-35

Sustainability management: Strategy

29

 

 

 

G4-36

Sustainability management: Strategy

29

 

 

 

G4-37

Sustainability management: Engaging stakeholders
Working at BASF: Global employee survey

31
45

 

 

 

G4-38

Management and Supervisory Boards: Board of Executive Directors
Management and Supervisory Boards: Supervisory Board

135
136

 

 

 

G4-39

Management and Supervisory Boards: Board of Executive Directors
Management and Supervisory Boards: Supervisory Board

135
136

 

 

 

G4-40

Corporate governance report: Graphic: Two-tier management system of BASF SE
Corporate governance report: Supervision of company management by the Supervisory Board; Objectives for the composition of the Supervisory Board

128
128; 130

 

 

 

G4-41

Corporate governance report: Direction and management by the Board of Executive Directors; Graphic: Two-tier management system of BASF SE
Corporate governance report: Supervision of company management by the Supervisory Board

127; 128
128

 

 

 

G4-42

Sustainability management: Strategy

29

 

 

 

G4-43

Sustainability management: Engaging stakeholder

31

 

 

 

G4-44

Corporate governance report: Graphic: Two-tier management system of BASF SE
Corporate governance report: Supervision of company management by the Supervisory Board
Compensation report

128
128
138-145

 

 

 

G4-45

Sustainability management: Materiality analysis

29

 

 

 

G4-46

Sustainability management: Strategy
Opportunities and risks report
Corporare governance: Direction and management by the Board of Executive Directors
Corporare governance: Supervision of company management by the Supervisory Board

29
111-118
127
128

 

 

 

G4-47

Sustainability management: Materiality analysis

29

Sustainability is integrated into our main decision-making processes. This is why the Board of Exceutive Directors regularly discusses and makes decisions about sustainability topics.

 

 

G4-48

 

 

The report is discussed and released in a reading by the entire Board of Executive Directors.

 

 

G4-49

Working at BASF

45

Sustainability aspects are integrated into our main decision-making processes. The Board of Exceutive Directors is informed as part of of the standard processes.

 

 

G4-50

 

 

This information is confidential.

 

 

G4-51

Compensation report

138-145

 

 

 

G4-52

Compensation report

138-145

 

 

 

G4-53

Corporate governance report: Supervision of company management by the Supervisory Board; Objectives for the composition of the Supervisory Board
Corporate governance report: Shareholders’ rights

128; 130
130

 

 

 

G4-54

 

 

Fair compensation is an important topic at BASF. This includes aspects of internal (distributive) fairness and socially acceptable minimum wage.
This is why our compensation is aligned with three principles: function, market and performance orientation. It is also of great importance to us that minimum wages are adhered to and, where possible, surpassed. As part of its global monitoring, BASF regularly reviews compliance with minimum standards. However, BASF does not consider the compensation indicators required by G4-54 & G4-55 significant in order to assess compensation structures in terms of fairness.

 

 

G4-55

 

 

Fair compensation is an important topic at BASF. This includes aspects of internal (distributive) fairness and socially acceptable minimum wage.
This is why our compensation is aligned with three principles: function, market and performance orientation. It is also of great importance to us that minimum wages are adhered to and, where possible, surpassed. As part of its global monitoring, BASF regularly reviews compliance with minimum standards. However, BASF does not consider the compensation indicators required by G4-54 & G4-55 significant in order to assess compensation structures in terms of fairness.

 

 

Ethics and Integrity

10

 

G4-56

Working at BASF: What we expect from our leaders
Working at BASF: Global and social standards
Compliance: Graphic: BASF’s Code of Conduct

44
46
134

Upon joining the company, all employees receive training on the contents of the Code of Conduct. They are obligated to take part in refresher courses every three years.
Furthermore, all managers and employees in contracts not subject to collective bargaining agreements sign an annual agreement to comply with the Code of Conduct. The members of the monitoring body are informed of the Code’s content.

10

 

G4-57

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

31
134

 

10

 

G4-58

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

31
134

 

GRI and Global Compact Index: General Standard Disclosures

Specific Standard Disclosures

Global Compact Principles

 

Specific Standard Disclosures

Link

Page

Comment

External assurance

 

 

Energy and climate protection

7, 8, 9

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

Energy and climate protection: Introduction; Strategy; Carbon footprint and climate protection products

103; 103; 106

 

 

 

Policies

Responsible Care Management System: Strategy
Energy and climate protection

97
103

Globally applicable policies for energy management are incorporated into 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 head of the Environment, Health and Safety Competence Center and member of the Corporate Sustainability Board. The role involves coordinating all of BASF’s climate protection activities, from reducing emissions along the entire value chain through to upgrading the climate protection product portfolio.
The Climate Protection Officer is also responsible for integrating operational issues and networking with research. This position emphasizes the importance of climate protection as part of BASF’s sustainability strategy.

Both aspects are embedded in the target agreements, where they are relevant for steering.

 

 

Resources

Energy and climate protection: Strategy

103

 

 

 

Specific Actions

Energy and climate protection: Energy supply and energy efficiency; Carbon footprint and climate protection products

105; 106

 

 

 

Mechanisms for Evaluation

Energy and climate protection: Strategy; Carbon footprint and climate protection products

103; 106

 

 

 

Results of Evaluation

Energy and climate protection: Strategy; Global goals

103; 104

 

7

 

EC2

Energy and climate protection: Strategy

103

We report comprehensively on the results in the Carbon Disclosure Project’s climate change questionnaire.

7, 8

 

EN1

Raw materials: Strategy
Energy and climate protection: Graphic: Energy supply of the BASF Group 2014; Energy supply and energy efficiency

95
105; 105

Due to the diversity of our purchasing portfolio, such key figures (weight or volume) are not considered steering-relevant information. Compared with 2013, BASF has enhanced the method for calculating the proportion of renewable raw materials in the purchasing volume of raw materials. Mineral raw materials are not included.

7, 8

 

EN3

Energy and climate protection: Graphic: Energy supply of the BASF Group 2014

105

Each site worldwide reports data on environmental and health protection, safety, and security according to the reporting requirements defined in the Responsible Care Management System.
Energy sold is included in the energy footprint. A separate indication is not necessary.

8

 

EN4

 

 

Scope 3 is described based on the carbon footprint, which contains complete energy usage.

8

 

EN5

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

106

See EN3 – Calculating energy efficiency

8, 9

 

EN6

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

104; 105

See EN3 – Calculating energy efficiency

2002 was determined as baseline for most goals for environmental and health protection, safety, and security, since a complete collection of most important data on this topic was then available worldwide.

8, 9

 

EN7

Energy and climate protection: Table: BASF Group’s greenhouse gas emissions according to the Greenhouse Gas Protocol

106

 

7, 8

 

EN15

Energy and climate protection: Strategy; Table: BASF Group’s greenhouse gas emissions according to the Greenhouse Gas Protocol; Global goals

103; 104; 104

Emission factors are used pursuant to IPCC 2007.
2002 was determined as baseline for most goals for environmental and health protection, safety, and security, since a complete collection of most important data on this topic was then available worldwide.

7, 8

 

EN16

Energy and climate protection: Table: BASF Group’s greenhouse gas emissions according to the Greenhouse Gas Protocol

104

Emission factors are used pursuant to IPCC 2007.
2002 was determined as baseline for most goals for environmental and health protection, safety, and security, since a complete collection of most important data on this topic was then available worldwide.

7, 8

 

EN17

Energy and climate protection: Graphic: Greenhouse gas emissions along the BASF value chain in 2014

106

 

8

 

EN18

Energy and climate protection: Graphic: Reduction of greenhouse gas emissions per metric ton of sales product in BASF operations excluding Oil & Gas; Global goals

103; 104

We report on different types of greenhouse gas emissions that were included in emission intensity (Scope 1 + Scope 2)

8, 9

 

EN19

Energy and climate protection: Global goals; Carbon footprint and climate protection products

104; 106

We report on different types of greenhouse gas emissions that were included in emission intensity (Scope 1 + Scope 2)

8

 

EN30

Energy and climate: Strategy; Carbon footprint and climate protection products

103; 106

For example, 60,000 metric tons of carbon emissions are avoided at the Ludwigshafen site each year through the intermodal transportation terminal.

7, 8, 9

 

EN31

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

97

 

8

 

EN34

 

 

As part of our SPIDER network, concerned residents can ask questions or place complaints around the clock. Most of the time these are not attributable to BASF and can therefore not be feasibly statistically evaluated.

 

 

Water

7, 8, 9

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

Water: Introduction; Strategy

107; 107

 

 

 

Policies

Responsible Care Management System: Strategy
Water: Strategy

97
107

 

 

 

Commitments

Water: Introduction; Strategy

107; 107

 

 

 

Goals and Targets

Water: Global goals

107

 

 

 

Responsibilities

Responsible Care Management System: Strategy

97

 

 

 

Resources

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

97

 

 

 

Specific Actions

Water: Strategy; Global goals; Further reduction of emissions; Water use

107; 107; 108; 108

 

 

 

Mechanisms for Evaluation

Water: Global goals

107

 

 

 

Results of Evaluation

Water: Global goals

107

 

7, 8

 

EN8

Water: Graphic: Water in the BASF Group in 2014

108

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

8

 

EN9

Water: Global goals

107

The EWS standard comprises, for example, the examination of any impact of production sites on surrounding areas for the protection of biodiversity.

8

 

EN10

Water: Graphic: Water in the BASF Group in 2014

108

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

8

 

EN22

Responsible Care Management System: Strategy
Water: Graphic: Water in the BASF Group in 2014

97
108

 

8

 

EN26

Water: Global goals

107

At all sites that have implemented sustainable water management as per EWS standard, no significant impact on biodiversity was determined.

7, 8, 9

 

EN31

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

97

 

8

 

EN34

 

 

As part of our SPIDER network, concerned residents can ask questions or place complaints around the clock. Most of the time these are not attributable to BASF and can therefore not be feasibly statistically evaluated.

 

 

Resources and ecosystems

1, 7, 8, 9

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

The BASF Group: Verbund
Corporate Strategy
Raw materials: Introduction; Strategy; Preserving ecosystems
Energy and climate protection: Energy supply and energy efficiency

20
22
95; 95; 96
105

 

 

 

Policies

 

 

Globally applicable policies for the approval and purchase of raw materials, technical goods and services and logistics solutions ensure compliance with the law.

 

 

Commitments

Raw materials: Strategy

95

 

 

 

Goals and Targets

Raw materials: Renewable resources

95

 

 

 

Responsibilities

 

 

The Procurement competence center supports the BASF business units in developing sustainable solutions so that they stand out from the competition in addressing market-specific requirements.

 

 

Resources

 

 

The Procurement competence center supports the BASF business units in developing sustainable solutions so that they stand out from the competition in addressing market-specific requirements.

 

 

Specific Actions

Sustainability management: Creating value for customers
Raw materials: Renewable resources

31
95

 

 

 

Mechanisms for Evaluation

Supply chain management: Evaluating our suppliers

94

 

 

 

Results of Evaluation

Raw materials: Mineral raw materials

96

 

7, 8

 

EN1

Raw materials: Strategy
Energy and climate protection: Graphic: Energy supply of BASF Group 2014; Energy supply and energy efficiency

95
105; 105

Due to the diversity of our purchasing portfolio, such key figures (weight or volume) are not considered steering-relevant information. Compared with 2013, BASF has enhanced the method for calculating the proportion of renewable raw materials in the purchasing volume of raw materials. Mineral raw materials are not included.

8

 

EN2

Raw materials: Renewable resources

95

Compared with 2013, BASF has enhanced the method for calculating the proportion of renewable raw materials in the purchasing volume of raw materials. Mineral raw materials are not included.

8

 

EN11

Raw materials: Preserving ecosystems

96

The results of our analysis show that further assessments are not necessary.

8

 

EN12

Raw materials: Preserving ecosystems

96

The results of our analysis show that further assessments are not necessary.

8

 

EN13

 

 

The results of our analysis show that further assessments are not necessary.

8

 

EN14

Raw materials: Preserving ecosystems

96

 

7, 8, 9

 

EN31

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

97

 

8

 

EN34

 

 

As part of our SPIDER network, concerned residents can ask questions or place complaints around the clock. Most of the time these are not attributable to BASF and can therefore not be feasibly statistically evaluated.

1

 

SO2

Raw materials: Mineral raw materials

96

 

 

 

Responsible production

1, 7, 8, 9

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

Production

99

 

 

 

Policies

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

97; 97
99; 100

 

 

 

Commitments

Responsible Care Management System
Production

97
99

 

 

 

Goals and Targets

Production: Global goals; Occupational safety

99; 99

 

 

 

Responsibilities

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

97
99; 100

Binding goals on occupational safety are integrated worldwide into the target agreements of employees with disciplinary responsibilities.

 

 

Resources

Responsible Care Management System

97

 

 

 

Specific Actions

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

99; 99; 100

 

 

 

Mechanisms for Evaluation

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

99; 99; 100; 100

 

 

 

Results of Evaluation

Responsible Care Management System: Audits

Production: Health protection

97

99

One result of the audits demonstrated the necessity of implementing new policies and processes in a timely manner.

The 5 components of the HPI are part of Responsible Care reporting as well as occupational medicine audits at our BASF sites. We check compliance with the Occupational Medicine & Health Protection directive and topic-specific requirements. Audits include determining the status quo, issuing necessary recommendations and advising the sites on how to achieve this.

 

 

EC8

Sustainability management: Creating value for customers

31, 32

 

7, 8

 

EN20

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

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

Responsible Care Management System: Strategy
Water: Graphic: Water in the BASF Group in 2014

97
108

 

8

 

EN23

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

109; 110

 

8

 

EN24

Production: Process safety

100

Incidents involving emissions in production are part of the FER key figure described in the production chapters. There was no significant release of substances in 2014.

8

 

EN25

Air and soil: Table: Waste management, BASF Group

110

We ensure professional disposal of our waste; we either dispose of hazardous waste ourselves or engage third parties. Audits are carried out to inspect external waste management plants. Therefore, we do not report on this indicator.

8

 

EN29

 

 

Any risks from legal disputes and proceedings are published in the Notes to the Consolidated Financial Statements.

7, 8, 9

 

EN31

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

97

 

8

 

EN34

 

 

As part of our SPIDER network, concerned residents can ask questions or place complaints around the clock. Most of the time these are not attributable to BASF and can therefore not be feasibly statistically evaluated.

 

 

LA6

Production: Occupational safety

99

For us, the number of missed days and the absenteeism rate are not steering-relevant figures for analyzing occupational safety performance, since, for example, BASF can only have limited influence over them due to local law. Differentiated reporting on individual employee categories (e.g., gender) is not conducted, out of antidiscrimination reasons.

 

 

LA7

Products: Management of new technologies

102

 

1

 

HR7

Production: Hazard prevention and corporate security

100

 

1

 

SO1

Sustainability management: Engaging stakeholders
Production: Hazard prevention and corporate security

31
100

We want to established systematic dialog with neighbors at all significant sites and will review and standardize our existing approaches worldwide.

 

 

Products and solutions

7, 8, 9

 

Disclosures on management approach

 

 

 

 

 

Description Why the Aspect is Material

Sustainability management: Creating value for customers
Products: Management of new technologies

29
102

 

 

 

Policies

Sustainability management: Creating value for customers
Products: Strategy; Management of new technologies

29
101; 102

 

 

 

Commitments

Products

101

 

 

 

Goals and Targets

Products: Global goals

101

 

 

 

Responsibilities

Responsible Care Management System: Strategy

97

Reponsibilities for product stewardship and product portfolio assessments are defined on both a central and decentral basis.

 

 

Resources

Products: Ecological and toxicological testing

102

 

 

 

Specific Actions

Products: Strategy; REACH and other legal requirements; Ecological and toxicological testing; Management of new technologies

101; 101; 102; 102

 

 

 

Mechanisms for Evaluation

Products: Strategy; Global goals; Ecological and toxicological testing; Management of new technologies

101; 101; 102; 102

 

 

 

Results of Evaluation

Sustainability management: Creating value for customers

31-32

 

 

 

EC8

Sustainability management: Creating value for customers

31, 32

 

7, 8, 9

 

EN27

Sustainability management: Creating value for customers

32

 

8

 

EN28

 

 

This indicator is not relevant due to BASF's product portfolio, in which the majority of products are sold in bulk. For used packaging, the corresponding legal regulations apply. In addition to the dual system for reclaiming packaging in household applications, the reclamation and recycling of industrial/commercial packaging is organized in Germany, for example, specifically for individual categories of packaging materials (plastic, steel, etc.). We want to offer our customers efficient methods for disposal of used packaging that are conducted in a professionally competent and responsible manner. That is why our data includes companies that are available for reclamation and recycling of industrial packaging.

7

 

PR1

Sustainability management: Creating value for customers
Products: Global goals

31
101

As a production company, we focus on assessing our products (here, the entire portfolio was assessed). Services are not relevant for a production company.

 

 

PR2

 

 

If risks arise from litigation and claims, these are published in the Notes to the Consolidated Financial Statements.

7

 

PR3

Products: REACH and other legal requirements

101

 

 

 

PR4

 

 

If risks arise from litigation and claims, these are published in the Notes to the Consolidated Financial Statements.

7

 

PR6

Sustainability management: Creating value for customers

31

 

 

 

PR7

 

 

This indicator is not relevant, as BASF mostly conducts business-to-business activities. If risks arise from litigation and claims, these are published in the Notes to the Consolidated Financial Statements.

 

 

PR8

 

 

This indicator is not relevant, as BASF mostly conducts business-to-business activities. If risks arise from litigation and claims, these are published in the Notes to the Consolidated Financial Statements.

 

 

PR9

 

 

If risks arise from litigation and claims, these 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

31

 

 

 

Policies

 

 

Our actions are dictated by our global Code of Conduct.
The “responsible partnering” aspect is managed by various units depending on the stakeholder group. This involves corresponding policies (such as for employee/employer dialogs) and clearly defined responsibilities and resources.

 

 

Commitments

Sustainability management: Engaging stakeholders

31

 

 

 

Goals and Targets

Strategy: Our strategic principles
Sustainability management: Engaging stakeholders

22
31

 

 

 

Responsibilities

 

 

“Responsible partnering” is managed by various units depending on the stakeholder group. This involves corresponding politices (such as for employee/employer dialogs) and clearly defined responsibilities and resources.

 

 

Resources

 

 

“Responsible partnering” is managed by various units depending on the stakeholder group. This involves corresponding politices (such as for employee/employer dialogs) and clearly defined responsibilities and resources.

 

 

Specific Actions

Sustainability management: Engaging stakeholders

31

 

 

 

Mechanisms for Evaluation

Sustainability management: Materiality analysis

29-30

 

 

 

Results of Evaluation

Sustainability management: Materiality analysis

29-30

 

 

 

EC1

Value added 2014
Corporate strategy: Business expansion in emerging markets

Cover
25

 

 

 

EC4

 

 

In 2014, BASF did not report on business-relevant public grants. Public offices have no major stake in BASF. BASF is involved in research projects that also receive government financial support.

 

 

EC7

Value added 2014
Corporate strategy: Business expansion in emerging markets
Working at BASF: Vocational training
Working at BASF: Compensation and benefits
Social commitment: Strategy; Graphic: BASF Group donations, sponsorship and own projects in 2014

Cover
25
42
45
47; 47

 

 

 

EC9

Supply chain management: Worldwide procurement

93

BASF has no specific guidelines for local purchasing. In order to ensure secure local supply, raw materials must be procured where they are globally available. For technical goods and services, the proximity of locally based suppliers often gives them a competitive advantage. “Local” means that supply is provided within the same region (per BASF definition) as the purchasing Group company.

8

 

EN32

Supply chain management: What we expect from our suppliers; Evaluating our suppliers

93; 94

In 2014, we surveyed around 700 new suppliers of raw materials and technical goods and services on the topics of environmental protection, upholding human rights, labor and social standards, and antidiscrimination and anticorruption in Asia and South America. This represents around 10% of our new suppliers in the regions Asia and South America.

8

 

EN33

Supply chain management: What we expect from our suppliers; Evaluating our suppliers

93; 94

Because of severe deficiencies in the areas of environmental protection, safety, security and health, 7 business relationships were terminated with suppliers. This represented around 3% of all suppliers audited in 2014. Improvements in these areas were called for in the case of 155 suppliers, or around 70% of all suppliers audited in 2014.

 

 

LA14

Supply chain management: Evaluating our suppliers

94

In 2014, we surveyed around 700 new suppliers of raw materials and technical goods and services on the topics of environmental protection, upholding human rights, labor and social standards, and antidiscrimination and anticorruption in Asia and South America. This represents around 10% of our new suppliers in the regions Asia and South America.

 

 

LA15

Supply chain management: Evaluating our suppliers; Audit results

94; 94

Because of severe deficiencies in the areas of environmental protection, safety, security and health, 7 business relationships were terminated with suppliers. This represented around 3% of all suppliers audited in 2014. Improvements in these areas were called for in the case of 155 suppliers, or around 70% of all suppliers audited in 2014.

2

 

HR1

Sustainability management: Strategy

29

The consideration of the three dimensions of sustainability is integrated into the standard processes for evaluating investment decisions in property, plant and equipment and capital investments. For this reason, aspects of human rights are also reviewed in all significant investment decisions.

1

 

HR2

Compliance

133

All employees are trained in the Code of Conduct upon joining our company. Every employee is obligated to take part in refresher courses every three years.

3

 

HR4

Working at BASF: Global labor and social standards; Table: Survey of ILO core labor standards / human rights 2014

46; 46

We found restrictions on freedom of association and collective bargaining at none of our suppliers.

5

 

HR5

Working at BASF: Global labor and social standards; Table: Survey of ILO core labor standards / human rights 2014
Supply chain management: Audit results

46; 46
94

 

4

 

HR6

Working at BASF: Global labor and social standards; Table: Survey of ILO core labor standards / human rights 2014
Supply chain management: Audit results

46; 46
94

 

1

 

HR8

 

 

No (potential) violation of the rights of indigenous peoples was found through our complaint systems or as part of our risk assessments for investment decisions.

2

 

HR10

Supply chain management: Evaluating our suppliers

94

In 2014, we surveyed around 700 new suppliers of raw materials and technical goods and services on the topics of environmental protection, upholding human rights, labor and social standards, and antidiscrimination and anticorruption in Asia and South America. This represents around 10% of our new suppliers in the regions Asia and South America.

2

 

HR11

Supply chain management: Evaluating our suppliers

94

No supplier relationships were terminated for human rights reasons in 2014. Improvements in these areas were called for in the case of 122 suppliers. This represented around 54% of all suppliers audited in 2014.

1

 

SO1

Sustainability management: Engaging stakeholders
Production: Hazard prevention and corporate security

31
100

We want to established systematic dialog with neighbors at all significant sites and will review and standardize our existing approaches worldwide.

10

 

SO3

Compliance: Monitoring adherence to compliance principles

134

Because of BASF’s matrix-like structure, the number of audited corporate sites is not a steering-relevant figure. Compliance audits evaluate entire business units, which can either comprise very few or numerous sites. Compliance topics are the focus of our corporate audits. This is how we aim to ensure compliance in our business processes worldwide and across the board.

10

 

SO4

Compliance: Introduction; Monitoring adherence to compliance principles

133; 134

Upon joining the company, all employees receive training on the contents of the Code of Conduct. Every employee is obligated to take part in refresher courses every three years.
Furthermore, all managers and employees in contracts not subject to collective bargaining agreements sign an annual agreement to comply with the Code of Conduct. The members of the monitoring body are informed of the Code’s content.
The entire BASF Board of Executive Directors is contractually obligated to comply with the Code of Conduct.
BASF’s contractors are also informed of changes.
All significant business partners, especially our suppliers and sales partners, are informed of our Code of Conduct and obligated to observe it. Starting in 2015, we are additionally introducing a company-internal policy for the mandatory audit of all sales partners with respect to compliant conduct (Business Partner Due Diligence).

10

 

SO5

Compliance: Monitoring adherence to compliance principles

134

 

10

 

SO6

Sustainability management: Engaging stakeholders

31

 

 

 

SO7

Consolidated Financial Statements: Risks from legal disputes and proceedings

209

Any risks from legal disputes and proceedings are published in the Notes to the Consolidated Financial Statements.

 

 

SO8

Consolidated Financial Statements: Risks from legal disputes and proceedings

209

Any risks from legal disputes and proceedings are published in the Notes to the Consolidated Financial Statements.

 

 

SO9

Supply chain management: Evaluating our suppliers

94

In 2014, we surveyed around 700 new suppliers of raw materials and technical goods and services on the topics of environmental protection, upholding human rights, labor and social standards, and antidiscrimination and anticorruption in Asia and South America. This represents around 10% of our new suppliers in the regions Asia and South America.

 

 

SO10

Supply chain management: Audit results

94

Because of severe deficiencies in the areas of environmental protection, safety, security and health, 7 business relationships were terminated with suppliers. This represented around 3% of all suppliers audited in 2014. Improvements in these areas were called for in the case of 155 suppliers, or around 70% of all suppliers audited in 2014.
We found restrictions on freedom of association and collective bargaining at none of our suppliers.
No supplier relationships were terminated for human rights reasons in 2014. Improvements in these areas were called for in the case of 122 suppliers. This represented around 54% of all suppliers audited in 2014.

 

 

SO11

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

31
134

 

 

 

PR5

Strategy: Our strategic principles
Business models and customer relations: Customer relations; Industry orientation

22
40; 40

Because of the diversity of our customer sectors and the corresponding variety in their requirements, there is no single uniform customer satisfaction survey across the BASF Group. Customer satisfaction is assessed 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

41; 41

 

 

 

Policies

Working at BASF: Strategy

41

 

 

 

Commitments

Working at BASF: Competition for talent

42

 

 

 

Goals and Targets

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

26
43
44

 

 

 

Responsibilities

Working at BASF: Inclusion of diversity

44

 

 

 

Resources

Working at BASF: Vocational training; Learning and development

42; 43

 

 

 

Specific Actions

Working at BASF: Competition for talent

42

 

 

 

Mechanisms for Evaluation

Working at BASF: Global employee survey

45

 

 

 

Results of Evaluation

Working at BASF: Global employee survey

45

 

 

 

EC1

Value added 2014
Working at BASF: Vocational training
Working at BASF: Compensation and benefits

Cover
42
45

 

 

 

EC3

Working at BASF: BASF Group personnel expenses
Consolidated Financial Statements: Provisions for pensions and similar obligations

45
199

 

6

 

EC5

 

 

This indicator is not relevant for the industry. As an employer in the chemical industry, BASF generally recruits highly qualified employees. Their pay is based on objective criteria worldwide, especially their position, individual performance, and the success of the company.

6

 

EC6

 

 

As a globally active company, BASF strives to increase the international proportion of ist (senior) executives and will recruit even more consistently on an international basis and across the different sites.

 

 

EC7

Value added 2014
Corporate strategy: Business expansion in emerging markets
Working at BASF: Vocational training
Working at BASF: Compensation and benefits
Social commitment: Strategy; Graphic: BASF Group donations, sponsorship and own projects in 2014

Cover
25
42
45
47; 47

 

6

 

LA1

Working at BASF: Table: BASF Group new hires in 2014
Working at BASF: Competition for talent

41
42

We report the absolute number of new hires and the early (three-year) fluctuation rate – both by region – because these represent steering-relevant figures. New employees are hired according to qualification and eligibility; age is not a factor.

 

 

LA2

Working at BASF: Compensation and benefits

45

From a global, company-wide perspective, we do not hire a significantly large number of employees through temporary contracts. All types of benefits granted in Germany are availabile to both full and part-time employees.

6

 

LA3

Working at BASF: Work-life balance; Combining career, family and personal life

44; 44

Especially at our largest Verbund site worldwide, we offer comprehensive opportunities for achieving work-life balance (such as flexible working hours, part-time employment, LuMit and child care). This is an important measure in promoting the family caretaking role of men and women. For this, we require that both male and female employees have the abilitiy to make use of parental leave. Further data is not steering-relevant for us.

3

 

LA4

Working at BASF: Dialog with employee representatives

46

Our actions are founded in upholding national law and, in many cases, exceeding it. This includes complying with important notice periods arising from national law or local collective bargaining agreements.

 

 

LA5

Responsible Care Management: Strategy

97

Requirements for occupational safety and health protection are agreed upon in Ludwigshafen with employee representatives. Based on these, policies are developed for the global workforce.

 

 

LA8

 

 

Requirements for occupational safety and health protection are agreed upon in Ludwigshafen with employee representatives. Based on these, policies are developed for the global workforce.

6

 

LA9

Working at BASF: Learning and development

43

The steering-relevant figure is the number days held for further training, and not hours. The need for training is determined according to the individual development of each employee and is independent of age and gender. The uniform, BASF Group-wide system for further training applies for all employees.

 

 

LA10

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

43
43

 

6

 

LA11

Working at BASF: Learning and development

43

In the BASF Group, there is one method for conducting employee dialogs that applies for all employees, independent of gender and employee category.

6

 

LA12

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

43
44
45
128

We practice inclusion so that all employees are a part of our team; that is why minority differentiation is not a steering-relevant indicator for us.

6

 

LA13

Working at BASF: Compensation and benefits

45

Analyses of the Ludwigshafen site have shown that, for contracts exempt from collective agreements, there are no systematic differences in pay between men and women, provided the positions and qualifications are comparable. Employeepay is based on objective criteria worldwide, especially the employee’s position, individual performance, and the success of the company.
A breakdown of employees by category is therefore not a steering-relevant figure for BASF and is therefore not reported. The information provided in the report refers to the entire workforce and not to individual employee categories.

 

 

LA16

Sustainability management: Engaging stakeholders
Working at BASF: Global labor and social standards; Table: Survey of ILO core labor standards / human rights 2014
Compliance: Monitoring adherence to compliance principles

31
46; 46
134

 

6

 

HR3

Working at BASF: Global labor and social standards; Table: Survey of ILO core labor standards / human rights 2014

46; 46

 

1

 

HR9

Working at BASF: Global labor and social standards; Table: Survey of ILO core labor standards / human rights 2014

46; 46

 

1

 

HR12

Working at BASF: Global labor and social standards; Table: Survey of ILO core labor standards / human rights 2014

46; 46

 

GRI and Global Compact Index: Specific Standard Disclosures