GRI and Global Compact Index The guidelines organize topic-specific standards into three categories: economic, environmental and social. Within the specific standard disclosures, each indicator is allocated to the material topics. Topic-specific Standards Link Page Comment Global Compact-Principles SDG Economic GRI 201: Economic Performance GRI 103-1 Management approach: Explanation of the material topic and its boundary The BASF Group18-21Value-Based management29-30Employees110Energy and climate protection103 7,8,9 GRI 103-2 Management approach: The management approach and its components The BASF Group18-21Value-Based management29-30Employees110Energy and climate protection103 1 GRI 103-3 Management approach: Evaluation of the management approach The BASF Group18-21Value-Based management29-30Employees110Energy and climate protection103 GRI 201-1 Direct economic value generated and distributed Employees: Competition for talent113Personnel expenses114Table: BASF Group personnel expenses114 Graphic: Value added../../pics/img/value_added_2018.jpg 2, 5, 7, 8, 9 GRI 201-2 Financial implications and other risks and opportunities due to climate change Transportation and storage: Raw materials supply challenges due to low Rhine River102Energy and climate protection: Strategy103 We report comprehensively on the results in the CPD climate protection questionnaire. 7 13 GRI 201-3 Defined benefit plan obligations and other retirement plans The BASF Group's Business Year: Net Assets51-52Financial Position53-56Employees: Table: BASF Group personnel expenses114Consolidated Financial Statements: Independent Auditor's Report*170Consolidated Financial Statements: Balance Sheet BASF Group179 Consolidated Financial Statements: Note: Accounting policies199Consolidated Financial Statements: Note: Provisions for pensions and similar obligations240-244 *This is a translation of the German original. Solely the original text in German language is authoritative. GRI 201-4 Financial assistance received from government As well as numerous other factors, potential government incentive mechanisms are also evaluated and considered in the decision as part of site/investment analyses. No public institutions hold any major shares in BASF. BASF is involved in research projects that are also supported by the government. GRI 202: Market Presence GRI 103-1 Management approach: Explanation of the material topic and its boundary The BASF Group18-21Employees110 GRI 103-2 Management approach: The management approach and its components The BASF Group18-21Employees110 GRI 103-3 Management approach: Evaluation of the management approach The BASF Group18-21Employees110 GRI 202-1 Ratios of standard entry level wage by gender compared to local minimum wage 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 employee’s position, their individual performance and BASF's success. 6 1, 5, 8 GRI 202-2 Proportion of senior management hired from the local community As a globally operating company, BASF strives for further internationalization among its senior executives and aims to more systematically recruit across different countries and sites. 6 8 GRI 203: Indirect Economic Impacts GRI 103-1 Management approach: Explanation of the material topic and its boundary The BASF Group18-21Integration of Sustainability36Employees110 GRI 103-2 Management approach: The management approach and its components The BASF Group18-21Integration of Sustainability36Employees110 GRI 103-3 Management approach: Evaluation of the management approach The BASF Group18-21Integration of Sustainability36Employees110 GRI 203-1 Infrastructure investments and services supported Our Strategy: Corporate Strategy:25Integration of Sustainability: Social commitment: graphic: BASF Group donations, sponsorship and own projects in 201840Employees: Competition for talent113 Graphic: Value added../../pics/img/value_added_2018.jpg 2, 5, 7, 9, 11 GRI 203-2 Significant indirect economic impacts Integration of Sustainability: Strategy36-37Measuring value added by sustainability and harnessing business opportunities37Raw Materials: Mineral raw materials94Employees: Competition for talent113 1, 2, 3, 8, 10, 17 GRI 204: Procurement Practices GRI 103-1 Management approach: Explanation of the material topic and its boundary Supplier Management90 GRI 103-2 Management approach: The management approach and its components Supplier Management90 GRI 103-3 Management approach: Evaluation of the management approach Supplier Management90 GRI 204-1 Proportion of spending on local suppliers Supplier Management: Worldwide procurement90 BASF does not have any specific guidelines for local procurement. In order to ensure local supply security, raw materials must be purchased where they are available around the globe. Local providers of technical goods and services often 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).Around 90% of goods and services are locally sourced. 12 GRI 205: Anti-Corruption GRI 103-1 Management approach: Explanation of the material topic and its boundary Compliance140 GRI 103-2 Management approach: The management approach and its components Compliance140 GRI 103-3 Management approach: Evaluation of the management approach Compliance140 GRI 205-1 Operations assessed for risks related to corruption Compliance: Monitoring adherence to our compliance principles141 Due to BASF's matrix structure, the number of the audited business sites is not a steering-relevant indicator. Entire business divisions, which can comprise a large number of 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 16 GRI 205-2 Communication and training about anti-corruption policies and procedures Compliance: Compliance Program and Code of Conduct140Monitoring adherence to our compliance principles141 All employees receive training on our Code of Conduct upon joining the company. They are obligated to attend refresher trainings every three years.In addition, all leaders and employees not covered by collective agreements confirm their adherence to our Code of Conduct every year. Governance body members are familiar with our Code of Conduct.The entire Board of Executive Directors of BASF SE is contractually obligated to adhere to our Code of Conduct.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 must adhere to these. Based on the global guideline "Business Partner Due Diligence" introduced in 2015, all of our sales partners are audited for potential compliance risks. 10 16 GRI 205-3 Confirmed incidents of corruption and actions taken Compliance: Monitoring adherence to our compliance principles141 10 16 GRI 206: Anti-Competitive Behavior 2017 GRI 103-1 Management approach: Explanation of the material topic and its boundary Compliance: Compliance Program and Code of Conduct140 GRI 103-2 Management approach: The management approach and its components Compliance: Compliance Program and Code of Conduct140 GRI 103-3 Management approach: Evaluation of the management approach Compliance: Compliance Program and Code of Conduct140 GRI 206-1 Legal actions for anti-competitive behavior, anti-trust Consolidated Financial Statements: Notes: Risks from litigation and claims250 Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 16 Environmental GRI 301: Materials GRI 103-1 Management approach: Explanation of the material topic and its boundary The BASF Group: Sites and Verbund20Raw Materials92Energy and climate protection103 GRI 103-2 Management approach: The management approach and its components The BASF Group: Sites and Verbund20Raw Materials92Energy and climate protection103 GRI 103-3 Management approach: Evaluation of the management approach The BASF Group: Sites and Verbund20Raw Materials92Energy and climate protection103 GRI 301-1 Materials used by weight or volume Raw Materials: Strategy92 Due to the heterogeneity of our procurement portfolio, such an indicator (weight or volume) does not represent steering-relevant information. 7, 8 8, 12 GRI 301-2 Recycled input materials used Raw Materials: box: Chemical recycling92Renewable resources93 The percentage figure is not reported for reasons of immateriality. 8 8, 12 GRI 301-3 Reclaimed products and their packaging materials This indicator is not relevant to BASF’s product portfolio since most products are sold in bulk. The relevant legal regulations apply to the packaging used. In addition to the dual system for returning packaging for domestic goods, in Germany, for example, we organize the return and recycling of individual components of industrial and commercial packaging (plastics, steel, etc.) by recycling companies. We aim to offer our customers efficient disposal methods that are carried out professionally and responsibly for all packaging used. This is why we provide information about e.g. the companies that are available for returning and recycling industrial packaging. 8, 12 GRI 302: Energy GRI 103-1 Management approach: Explanation of the material topic and its boundary Energy and climate protection: Strategy103 GRI 103-2 Management approach: The management approach and its components Energy and climate protection: Strategy103 GRI 103-3 Management approach: Evaluation of the management approach Energy and climate protection: Strategy103 GRI 302-1 Energy consumption within the organization Energy and climate protection: graphic: Energy supply of the BASF Group 2018105 Each site worldwide 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 footprint; separate disclosure is not considered necessary. 7, 8 7, 8, 12, 13 GRI 302-2 Energy consumption outside of the organization Energy and climate protection: Carbon footprint and climate protection products106 8 7, 8, 12, 13 GRI 302-3 Energy intensity Energy and climate protection: table: Key indicators for energy and climate protection in BASF operations excluding Oil & Gas106 See GRI 302-1 – Calculation of energy efficiency 8 7, 8, 12, 13 GRI 302-4 Reduction of energy consumption Energy and climate protection: Global goals and measures104-105Energy supply and efficiency105Carbon footprint and climate protection products106 See GRI 302-1 – Calculation of energy efficiencyThe year 2002 was selected as the baseline for the goal of reducing greenhouse gas emissions; complete, global data on this topic has been available since then. 8, 9 7, 8, 12, 13 GRI 302-5 Reductions in energy requirements of products and services Energy and climate protection: Global goals and measures104-105Carbon footprint and climate protection products106 8, 9 7, 8, 12, 13 GRI 303: Water GRI 103-1 Management approach: Explanation of the material topic and its boundary Water108 GRI 103-2 Management approach: The management approach and its components Water108 GRI 103-3 Management approach: Evaluation of the management approach Water108 GRI 303-1 2018 Interaction with water as a shared resource Water: graphic: Water in the BASF Group 2018109 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. 7, 8 6 GRI 303-2 2018 Management of water discharge-related impacts Water: graphic: Water in the BASF Group 2018109 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. 8 6 GRI 303-3 2018 Water withdrawal Water: graphic: graphic: Water stress areas around the world108Water in the BASF Group 2018109 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. 8 6, 8, 12 GRI 303-4 2018 Water discharge Water: graphic: Water in the BASF Group 2018109Emissions to water109 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. GRI 303-5 2018 Water consumption Water: Strategy108 These new indicator is not yet reported in the Report 2018.“In addition, from 2019 onward we will report on the BASF Group’s water consumption, as well as on water consumption in water stress areas.” GRI 304: Biodiversity GRI 103-1 Management approach: Explanation of the material topic and its boundary Biodiversity has not been identified as a material topic. GRI 103-2 Management approach: The management approach and its components Biodiversity has not been identified as a material topic. GRI 103-3 Management approach: Evaluation of the management approach Biodiversity has not been identified as a material topic. GRI 304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas In the case of changes to the site portfolio due e.g. to investments or acquisitions, we review the potential impacts as part of the standardized evaluation process. GRI 304-2 Significant impacts of activities, products, and services In the case of changes to the site portfolio due e.g. to investments or acquisitions, we review the potential impacts as part of the standardized evaluation process. GRI 304-3 Habitats protected or restored Raw Materials: Renewable resources93 8 6, 14, 15 GRI 304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations In the case of changes to the site portfolio due e.g. to investments or acquisitions, we review the potential impacts as part of the standardized evaluation process. 8 GRI 305: Emissions GRI 103-1 Management approach: Explanation of the material topic and its boundary Responsible Care Management System95Energy and climate protection: Introduction: Strategy103 GRI 103-2 Management approach: The management approach and its components Responsible Care Management System95Energy and climate protection: Introduction: Strategy103 GRI 103-3 Management approach: Evaluation of the management approach Responsible Care Management System95Energy and climate protection: Introduction: Strategy103 GRI 305-1 Direct (Scope 1) GHG emissions Energy and climate protection: Strategy103Table: BASF Group’s greenhouse gas emissions according to the Greenhouse Gas Protocol104Table: Key indicators for energy and climate protection in BASF operations excluding Oil & Gas106graphic: Greenhouse gas emissions along the BASF value chain in 2018106 The goal has been defined for BASF operations excluding oil and gas to ensure a better comparability of operations, sector-specific measures for improvements and impact of corporate steering within the chemicals business. Moreover, this approach ensures that the very low emissions intensity of the oil and gas business does not have an artificially positive impact on the results of the chemicals business. 7, 8 3, 12, 13, 14, 15 GRI 305-2 Energy indirect (Scope 2) GHG emissions Energy and climate protection: table: BASF Group’s greenhouse gas emissions according to the Greenhouse Gas Protocol104graphic: Greenhouse gas emissions along the BASF value chain in 2018106 7, 8 3, 12, 13, 14, 15 GRI 305-3 Other indirect (Scope 3) GHG emissions Energy and climate protection: graphic: Greenhouse gas emissions along the BASF value chain in 2018106 7, 8 3, 12, 13, 14, 15 GRI 305-4 GHG emissions intensity Energy and climate protection: graphic: Reduction of greenhouse gas emissions per metric ton of sales product in BASF operations excluding Oil & Gas104 We report on the types of GHG emissions, which were included in the emissions intensity (Scope 1 + Scope 2). 8 13, 14, 15 GRI 305-5 Reduction of GHG emissions Energy and climate protection: Global goals and measures104-105Carbon footprint and climate protection products106 We report on the types of GHG emissions, which were included in the emissions intensity (Scope 1 + Scope 2). 8, 9 13, 14, 15 GRI 305-6 Emissions of ozone-depleting substances (ODS) Air and soil: Emissions to air107 Calculation based on the substances described in the reporting requirements (based on the Montreal Protocol). 7, 8 3, 12, 13 GRI 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions Air and soil: table: Emissions to air107 Calculation based on the methods described in the reporting requirements and includes CO, NOx, SOx, NMVOCs, PM, NH3 and other inorganic substances. 7, 8 3, 12, 13, 14, 15 GRI 306: Effluents and Waste GRI 103-1 Management approach: Explanation of the material topic and its boundary Responsible Care Management System95Transportation and storage102Air and soil: Management of waste and contaminated sites107Water: Strategy108 GRI 103-2 Management approach: The management approach and its components Responsible Care Management System95Transportation and storage102Air and soil: Management of waste and contaminated sites107Water: Strategy108 GRI 103-3 Management approach: Evaluation of the management approach Responsible Care Management System95Transportation and storage102Air and soil: Management of waste and contaminated sites107Water: Strategy108 GRI 306-1 Water discharge by quality and destination Water: Global goals and measures108-109graphic: Water in the BASF Group 2018109 8 3, 6, 12, 14 GRI 306-2 Waste by type and disposal method Air and soil: Management of waste and contaminated sites107Table: Waste generation in the BASF Group107 8 3, 6, 12 GRI 306-3 Significant spills Safety in production: Process safety97-98Transportation and storage: Transportation incidents102 In 2018, we recorded 3 transportation incidents with product spillage of more than 200 kilograms of dangerous goods outside the perimeters of BASF sites. None of these transportation incidents had a substantial impact on the environment.Emissions incidents from production are recorded and included in the Process Safety Incidents KPI in the “Production” chapter. 8, 9 3, 6, 9, 11, 12, 13, 14, 15 GRI 306-4 Transport of hazardous waste Air and soil: Management of waste and contaminated sites107Table: Waste generation in the BASF Group107 We ensure waste is disposed of properly. Either we dispose of hazardous waste ourselves or hire external service providers. We regularly audit these service providers; we therefore do not report on this indicator. 8 3, 12 GRI 306-5 Water bodies affected by water discharges and/or runoff Water: Global goals and measures108-109 No significant impact on biodiversity has been identified at sites that have implemented sustainable water management according to the EWS standard. 8 15, 6 GRI 307: Environmental Compliance GRI 103-1 Management approach: Explanation of the material topic and its boundary Responsible Care Management System95 GRI 103-2 Management approach: The management approach and its components Responsible Care Management System95 GRI 103-3 Management approach: Evaluation of the management approach Responsible Care Management System95 GRI 307-1 Non-compliance with environmental laws and regulations Consolidated Financial Statements: Notes: Risks from litigation and claims250 Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 8 16 GRI 308: Supplier Environmental Assessment GRI 103-1 Management approach: Explanation of the material topic and its boundary Supplier Management90-91 GRI 103-2 Management approach: The management approach and its components Supplier Management90-91 GRI 103-3 Management approach: Evaluation of the management approach Supplier Management90-91 GRI 308-1 New suppliers that were screened using environmental criteria Supplier Management: What we expect from our suppliers90Evaluating our suppliers91 Supplier requirements are defined in our Supplier Code of Conduct. Our suppliers must commit to complying with these requirements in the areas of environmental protection, human rights, labor and social standards, as well as antidiscrimination and anticorruption. Companies are only accepted as new suppliers once this has been done. 4,866 suppliers have already committed to the values in our new registration portal since 2018. We specifically ask new suppliers to do this, especially in South America and Asia. 8 GRI 308-2 Negative environmental impacts in the supply chain and actions taken Supplier Management: What we expect from our suppliers90Evaluating our suppliers91Audit results91Raw Materials: Renewable resources93 No business relationships with suppliers were terminated due to severe deficiencies in the areas of environmental protection, safety, security and health protection. 357 suppliers were asked for improvements in these areas, representing around 56% of all suppliers audited in 2018. 8 Social GRI 401: Employment GRI 103-1 Management approach: Explanation of the material topic and its boundary Employees110 GRI 103-2 Management approach: The management approach and its components Employees110 GRI 103-3 Management approach: Evaluation of the management approach Employees110 GRI 401-1 New employee hires and employee turnover Employees: Competition for talent113Table: BASF Group new hires in 2018113 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 steering-relevant indicators. New employees are hired based on qualification and suitability; age is irrelevant. 6 5, 8 GRI 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Employees: Compensation and benefits114 45.6% of all BASF Group employees work in Germany. All types of benefits that we provide in Germany are available to both full-time and part-time employees.We hire few temporary employees worldwide. 8 GRI 401-3 Parental leave We provide a wide range of offerings to help employees balance personal and professional life (e.g., flexible working hours, part-time employment, "LuMit" and childcare), especially at our Verbund site in Ludwigshafen, Germany. These are important measures to promote the family role of women and men. We also create the conditions for employees to make use of their legal entitlement to parental leave. More detailed disclosures are not relevant to steering processes. 6 5, 8 GRI 402: Labor Management Relations GRI 103-1 Management approach: Explanation of the material topic and its boundary Employees110 GRI 103-2 Management approach: The management approach and its components Employees110 GRI 103-3 Management approach: Evaluation of the management approach Employees110 GRI 402-1 Minimum notice periods regarding operational changes Employees: Dialog with employee representatives115 Compliance with national laws is a cornerstone of our business; in many cases, we exceed statutory requirements. We also adhere to the applicable notice periods based on national laws or local collective agreements. 3 8 GRI 403: Occupational Health and Safety GRI 103-1 Management approach: Explanation of the material topic and its boundary Responsible Care Management System95Safety in production: Introduction96Strategy96 GRI 103-2 Management approach: The management approach and its components Responsible Care Management System95Safety in production: Introduction96Strategy96 GRI 103-3 Management approach: Evaluation of the management approach Responsible Care Management System95Safety in production: Introduction96Strategy96 GRI 403-1 2016 Workers representation in formal joint management–worker health and safety committees. Responsible Care Management System: Responsible Care Management System95 Occupational safety and health protection standards are agreed with employee representatives in Ludwigshafen. Guidelines for the global workforce are developed based on these.At all Group companies with organized worker representation, regular meetings are held in accordance with local laws and regulations that enable worker representation on occupational health and safety topics. In addition, we encourage our local companies to regularly exchange experiences on the subject of health and safety.BASF monitors the national law of all of the countries in which it operates as part of a global management process and evaluates compliance with the International Labor Standards (ILSS). 8 GRI 403-2 2016 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities Safety in production: Occupational safety97 Lost working days and the absence rate are not steering-relevant indicators to evaluate 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. 3, 8 GRI 403-3 2016 Workers with high incidence or high risk of diseases related to their occupation Safety in production: Health protection98 Health risks at the workplace are systematically assessed according to the legal requirements. If there is potential exposure to relevant substances, minimization measures are taken such as risk mitigation concepts, personal protective equipment, regular medical examinations and human biomonitoring. Cases of occupational diseases are regularly reported in a global database. There are no indications of a higher incidence of specific illnesses in connection with existing exposure. 3, 8 GRI 403-4 2016 Health and safety topics covered in formal agreements with trade unions Responsible Care Management System: Responsible Care Management System95 Occupational safety and health protection standards are agreed with employee representatives in Ludwigshafen. Guidelines for the global workforce are developed based on these.At all Group companies with organized worker representation, regular meetings are held in accordance with local laws and regulations that enable worker representation on occupational health and safety topics. In addition, we encourage our local companies to regularly exchange experiences on the subject of health and safety.BASF monitors the national law of all of the countries in which it operates as part of a global management process and evaluates compliance with the International Labor Standards (ILSS). 8 GRI 404: Training and Education GRI 103-1 Management approach: Explanation of the material topic and its boundary Employees110 GRI 103-2 Management approach: The management approach and its components Employees110 GRI 103-3 Management approach: Evaluation of the management approach Employees110 GRI 404-1 Average hours of training per year per employee In 2018, each employee spent an average of 2.0 days on further training.The relevant indicators are further training days, not hours. Training needs are determined as part of individual employee development, independent of age or gender. The uniform BASF Group-wide system for further development applies to all employees.These disclosures do not include the new companies acquired from Bayer. 6 4, 5, 8 GRI 404-2 Programs for upgrading employee skills and transition assistance programs Employees: What we expect from our leaders111box: Leaders and the digital transformation111Inclusion of diversity112Learning and development113-114 8 GRI 404-3 Percentage of employees receiving regular performance and career development reviews Employees: Learning and development113 The BASF Group has a uniform system in place for conducting employee dialogs that applies to all employees, regardless of gender and employee type. 6 5, 8 GRI 405: Diversity and equal opportunity GRI 103-1 Management approach: Explanation of the material topic and its boundary Employees110 GRI 103-2 Management approach: The management approach and its components Employees110 GRI 103-3 Management approach: Evaluation of the management approach Employees110 GRI 405-1 Diversity of governance bodies and employees Employees: graphic: BASF Group employee age structure112Table: Leaders and professionals in the BASF Group112Inclusion of diversity112 We live inclusion of diversity, so that all employees are part of our team. Therefore, a different indicator for minorities is not a steering-relevant parameter for us. 6 5, 8 GRI 405-2 Ratio of basic salary and remuneration of women to men Representative evaluations for BASF SE have shown that there are no systematic differences between compensation of female and male employees in comparable roles and with comparable qualifications. 6 5, 8, 10 GRI 406: Non-Discrimination GRI 103-1 Management approach: Explanation of the material topic and its boundary Supplier Management90Employees110Compliance140 GRI 103-2 Management approach: The management approach and its components Supplier Management90Employees110Compliance140 GRI 103-3 Management approach: Evaluation of the management approach Supplier Management90Employees110Compliance140 GRI 406-1 Incidents of discrimination and corrective actions taken Integration of Sustainability: Responsibility for human rights39Employees: Global labor and social standards115Compliance: Monitoring adherence to our compliance principles141 Number of complaints and tip-offs received in 2018 on human rights: 231 (cases closed in reporting period: 175)Of these, pertaining to discrimination: 29 (cases closed in reporting period: 22)In all substantiated cases, countermeasures were taken on a case-by-case basis in line with the applicable legal and internal standards. 6 5, 8, 16 GRI 407: Freedom of Association and Collective Bargaining GRI 103-1 Management approach: Explanation of the material topic and its boundary Supplier Management90Employees110Compliance140 GRI 103-2 Management approach: The management approach and its components Supplier Management90Employees110Compliance140 GRI 103-3 Management approach: Evaluation of the management approach Supplier Management90Employees110Compliance140 GRI 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk Supplier Management: What we expect from our suppliers90Audit results91Employees: Global labor and social standards115 We did not identify any deficiencies in the areas of freedom of association and collective bargaining at our suppliers audited in 2018.For employees, see the description of the management process under “Employees: Global labor and social standards.” 3 8 GRI 408: Child Labor GRI 103-1 Management approach: Explanation of the material topic and its boundary Supplier Management90Employees110Compliance140 GRI 103-2 Management approach: The management approach and its components Supplier Management90Employees110Compliance140 GRI 103-3 Management approach: Evaluation of the management approach Supplier Management90Employees110Compliance140 GRI 408-1 Operations and suppliers at significant risk for incidents of child labor Supplier Management: Audit results91Employees: Global labor and social standards115 5 8, 16 GRI 409: Forced or Compulsory Labor GRI 103-1 Management approach: Explanation of the material topic and its boundary Supplier Management90Employees110Compliance140 GRI 103-2 Management approach: The management approach and its components Supplier Management90Employees110Compliance140 GRI 103-3 Management approach: Evaluation of the management approach Supplier Management90Employees110Compliance140 GRI 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Supplier Management: Audit results91Employees: Global labor and social standards115 4 8 GRI 410: Security Practices GRI 103-1 Management approach: Explanation of the material topic and its boundary Responsible Care Management System95Safety in production: Introduction96Strategy96 GRI 103-2 Management approach: The management approach and its components Responsible Care Management System95Safety in production: Introduction96Strategy96 GRI 103-3 Management approach: Evaluation of the management approach Responsible Care Management System95Safety in production: Introduction96Strategy96 GRI 410-1 Security personnel trained in human rights policies or procedures Safety in production: Emergency response and corporate security99 1 16 GRI 411: Rights of Indigenous People GRI 103-1 Management approach: Explanation of the material topic and its boundary Integration of Sustainability: Responsibility for human rights39 GRI 103-2 Management approach: The management approach and its components Integration of Sustainability: Responsibility for human rights39 GRI 103-3 Management approach: Evaluation of the management approach Integration of Sustainability: Responsibility for human rights39 GRI 411-1 Incidents of violations involving rights of indigenous peoples No (potential) violation of rights of indigenous communities has been identified, neither through our internal grievance mechanisms nor as part of our risk assessments for investment decisions. 1 2 GRI 412: Human Rights Assessment GRI 103-1 Management approach: Explanation of the material topic and its boundary Integration of Sustainability: Responsibility for human rights39 GRI 103-2 Management approach: The management approach and its components Integration of Sustainability: Responsibility for human rights39 GRI 103-3 Management approach: Evaluation of the management approach Integration of Sustainability: Responsibility for human rights39 GRI 412-1 Operations that have been subject to human rights reviews or impact assessments Integration of Sustainability: Strategy37Responsibility for human rights39Employees: Global labor and social standards115 1 GRI 412-2 Employee training on human rights policies or procedures Integration of Sustainability: Responsibility for human rights39Compliance: Compliance Program and Code of Conduct140 All employees receive training on our Code of Conduct upon joining the company. They are obligated to attend refresher trainings every three years. 1 GRI 412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening Integration of Sustainability: Strategy36Measuring value added by sustainability and harnessing business opportunities37Responsibility for human rights39 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. 2 GRI 413: Local Communities GRI 103-1 Management approach: Explanation of the material topic and its boundary Integration of Sustainability36-40 GRI 103-2 Management approach: The management approach and its components Integration of Sustainability36-40 GRI 103-3 Management approach: Evaluation of the management approach Integration of Sustainability36-40 GRI 413-1 Operations with local community engagement, impact assessments, and development programs Integration of Sustainability: Strategy36Stakeholder dialog39Responsibility for human rights39Social commitment40Raw Materials: Renewable resources93Raw Materials: Mineral raw materials94Safety in production: Process safety97-98Emergency response and corporate security98-99Employees: Global labor and social standards115 As a general rule, assessments are performed for all Group companies (as for labor and social standards) or as part of standardized evaluation processes for all material investment processes. 1 GRI 413-2 Operations with significant actual and potential negative impacts on local communities Graphic: How We Create Value22Integration of Sustainability: Measuring value added by sustainability and harnessing business opportunities37Raw Materials: Renewable resources93Raw Materials: Mineral raw materials94Safety in production: Process safety97-98 1 1, 2 GRI 414: Supplier Social Assessment GRI 103-1 Management approach: Explanation of the material topic and its boundary Supplier Management90 GRI 103-2 Management approach: The management approach and its components Supplier Management90 GRI 103-3 Management approach: Evaluation of the management approach Supplier Management90 GRI 414-1 New suppliers that were screened using social criteria Supplier Management: What we expect from our suppliers90Evaluating our suppliers91Audit results91 2 GRI 414-2 Negative social impacts in the supply chain and actions taken Supplier Management: What we expect from our suppliers90Evaluating our suppliers91Audit results91Raw Materials: Renewable resources93Raw Materials: Mineral raw materials94 No business relationships with suppliers were terminated due to severe deficiencies in the areas of environmental protection, safety, security and health protection. 357 suppliers were asked for improvements in these areas, representing around 56% of all suppliers audited in 2018.We did not identify any deficiencies in the areas of freedom of association and collective bargaining at our suppliers.No supplier relationships were terminated due to human rights reasons in 2018. 279 suppliers were asked for improvements in these areas, representing around 44% of all suppliers audited in 2018. 2 GRI 415: Public Policy GRI 103-1 Management approach: Explanation of the material topic and its boundary Integration of Sustainability: Stakeholder dialog36 GRI 103-2 Management approach: The management approach and its components Integration of Sustainability: Stakeholder dialog36 GRI 103-3 Management approach: Evaluation of the management approach Integration of Sustainability: Stakeholder dialog36 GRI 415-1 Political contributions Integration of Sustainability: Stakeholder dialog36 10 16 GRI 416: Customer Health and Safety GRI 103-1 Management approach: Explanation of the material topic and its boundary Product stewardship100 GRI 103-2 Management approach: The management approach and its components Product stewardship100 GRI 103-3 Management approach: Evaluation of the management approach Product stewardship100 GRI 416-1 Assessment of the health and safety impacts of product and service categories Integration of Sustainability: Measuring value added by sustainability and harnessing business opportunities37Portfolio management based on sustainability performance37box: Portfolio management: Increase Accelerator sales and discontinue marketing of Challenged products38Product stewardship: Global goal98 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. 7 GRI 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services Consolidated Financial Statements: Notes: Risks from litigation and claims250 Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 16 GRI 417: Marketing and Labeling GRI 103-1 Management approach: Explanation of the material topic and its boundary Product stewardship100 GRI 103-2 Management approach: The management approach and its components Product stewardship100 GRI 103-3 Management approach: Evaluation of the management approach Product stewardship100 GRI 417-1 Requirements for product and service information and labeling Integration of Sustainability: box: Portfolio management: Increase Accelerator sales and discontinue marketing of Challenged products38Product stewardship: Strategy100Product Stewardship: REACH and other legal requirements100 7 12, 16 GRI 417-2 Incidents of non-compliance concerning product and service information and labeling Consolidated Financial Statements: Notes: Risks from litigation and claims250 Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 16 GRI 417-3 Incidents of non-compliance concerning marketing communications Not a key indicator as BASF mainly does business in the B2B sector. Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. GRI 418: Customer Privacy GRI 103-1 Management approach: Explanation of the material topic and its boundary Not a key indicator as BASF mainly does business in the B2B sector. Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. GRI 103-2 Management approach: The management approach and its components Not a key indicator as BASF mainly does business in the B2B sector. Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. GRI 103-3 Management approach: Evaluation of the management approach Not a key indicator as BASF mainly does business in the B2B sector. Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. GRI 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data Not a key indicator as BASF mainly does business in the B2B sector. Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 16 GRI 419: Socioeconomic Compliance GRI 103-1 Management approach: Explanation of the material topic and its boundary Compliance140 GRI 103-2 Management approach: The management approach and its components Compliance140 GRI 103-3 Management approach: Evaluation of the management approach Compliance140 GRI 419-1 Non-compliance with laws and regulations in the social and economic area Consolidated Financial Statements: Notes: Risks from litigation and claims250 Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 16 back next