Content and structure

• As an integrated report, the BASF Report also serves as a progress report in terms of U.N. Global Compact
• Sustainability reporting follows Global Reporting Initiative’s G4 “comprehensive” international guidelines

The BASF Report combines the major financial and non-financial information necessary to thoroughly evaluate our performance. We select the report’s topics based on the following reporting principles: materiality, sustainability context, completeness, balance, and stakeholder inclusion. In addition to our integrated report, we publish further information online. Links to this supplementary information are provided in each chapter.

Our sustainability reporting has been based on Global Reporting Initiative (GRI) standards since 2003 already. For the BASF Report 2016, we have chosen the GRI’s “comprehensive” disclosure criteria.

In addition, we served as a pilot enterprise in the development of the framework for integrated reporting of the International Integrated Reporting Council (IIRC). Following this pilot phase, we have been active in the IR Business Network since 2014 in order to discuss our experience with other stakeholders and at the same time receive inspiration for enhancing our reporting. This report addresses elements of the IIRC framework by, for example, using graphics to illustrate how we create value or demonstrate the relationships between financial and nonfinancial performance in the chapters for the segments. The information in the BASF Report 2016 also serves as a progress report on BASF’s implementation of the ten principles of the United Nations Global Compact and takes into consideration the Blueprint for Corporate Sustainability Leadership of the Global Compact LEAD platform.

The GRI and Global Compact Index can be found in the online report, providing information on GRI indicators and topics relevant to the Global Compact principles.

Requirements and topics

• Financial reporting according to International Financial Reporting Standards, German Commercial Code and German Accounting Standards
• Sustainability reporting focused on material topics

The information on the financial position and performance of the BASF Group is based on the requirements of International Financial Reporting Standards (IFRS), and, where applicable, the German Commercial Code, the German Accounting Standards (GAS), and the guidelines on alternative performance measures from the European Securities and Markets Authority (ESMA). Internal control mechanisms ensure the reliability of the information presented in this report. BASF’s management confirmed the effectiveness of the internal control measures and compliance with the regulations for financial reporting.

The focus and boundaries of this report are based on the results of the materiality analysis together with a strategic evaluation defining key aspects of the value chain.