Content and structure

• As an integrated report, the BASF Report also serves as a U.N. Global Compact progress report
• Sustainability reporting is based on the international standards issued by the Global Reporting Initiative (GRI)

The BASF Report combines the major financial and nonfinancial 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 section.

Our sustainability reporting has been based on Global Reporting Initiative (GRI) standards since 2003. The BASF Report 2017 was prepared in accordance with the “Comprehensive” application option of the new Global Reporting Initiative Standards.

We have been active in the International Integrated Reporting Council (IIRC) since 2014 in order to discuss our experiences of integrated reporting 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, providing an illustrative overview of how we create value or demonstrating the relationships between financial and nonfinancial performance in the sections on the segments. The information in the BASF Report 2017 also serves as a progress report on BASF’s implementation of the 10 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 and provides information on GRI indicators, topics relevant to the U.N. Global Compact principles and the results of the audit of this information in the form of an assurance report by KPMG AG Wirtschaftsprüfungsgesellschaft.

Requirements and topics

• Financial reporting according to International Financial Reporting Standards (IFRS), the German Commercial Code and German Accounting Standards (GAS)
• Sustainability reporting focused on material topics

The information on the financial position and performance of the BASF Group comply with the requirements of International Financial Reporting Standards (IFRS), and, where applicable, the German Commercial Code, 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 of sustainability reporting and the limits of this report are based on our materiality analysis together with a strategic internal evaluation defining focus areas along the value chain.