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Online Report 2016

Online Report 2016

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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	NO_x, SO_x, 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, NO_x, SO_x, 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.)