The Management’s Report comprises the chapter of the same name on pages 17 to 124, as well as the disclosures required by takeover law, the Compensation Report and the Declaration of Corporate Governance, which are presented in the Corporate Governance chapter. The nonfinancial statement (NFS) is integrated into the Management’s Report.

Nonfinancial statement (NFS) in accordance with sections 315b and 315c of the German Commercial Code (HGB)

The NFS disclosures can be found in the relevant sections of the Management’s Report. A table in the section Integration of sustainability indicates where the individual disclosures can be found. In addition to a description of the business model, the NFS includes disclosures on the following matters, to the extent that they are required to understand the development and performance of the business, the Group’s position and the impact of business development on the following matters:

  • Environmental matters
  • Employee-related matters
  • Social matters
  • Respect for human rights
  • Anti-corruption and bribery matters

Within the scope of the audit of the annual financial statements, the external auditor KPMG checked pursuant to section 317(2) sentence 4 HGB that the NFS was presented in accordance with the statutory requirements. The Supervisory Board also engaged KPMG with a substantive audit with limited assurance of the NFS. An assurance report on this substantive audit can be found online at basf.com/nfs-audit and is part of the BASF Report 2017. The audit was conducted in accordance with ISAE 3000 (Assurance Engagements other than Audits or Reviews of Historical Financial Information) and ISAE 3410 (Assurance Engagements on Greenhouse Gas Statements), the relevant international auditing standards for sustainability reporting.

Compensation Report and disclosures in accordance with section 315a HGB

The Compensation Report can be found in the Corporate Governance chapter from page 140 onward, and the disclosures required by takeover law in accordance with section 315a(1) HGB from page 132 onward. They form part of the Management’s Report audited by the external auditor.

Declaration of Corporate Governance in accordance with section 315d HGB in connection with section 289f HGB

The Declaration of Corporate Governance can be found in the Corporate Governance chapter from page 125 onward and is a component of the Management’s Report. It comprises:

  • The Corporate Governance Report including the description of the diversity concept for the composition of the Board of Executive Directors and the Supervisory Board (excluding the disclosures required by takeover law in accordance with section 315a(1) HGB)
  • Compliance reporting
  • The Declaration of Conformity pursuant to section 161 of the German Stock Corporation Act

Pursuant to section 317(2) sentence 6 HGB, the external auditor checked that the disclosures according to section 315d HGB were made.