GRI and Global Compact Index

The universal standards offer a general strategic overview of the organization’s sustainability.

Universal Standards

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Comment

Global Compact-Principles

SDG

Organizational Profile

GRI 102-1

Name of the organization

The BASF Group18

 

 

 

GRI 102-2

Activities, brands, products, and services

The BASF Group18-21
Integration of Sustainability: Portfolio management based on sustainability performance37-38

 

7

 

GRI 102-3

Location of headquarters

About This Report: Data6
The BASF Group: Sites and Verbund20

 

 

 

GRI 102-4

Location of operations

The BASF Group: Sites and Verbund20

 

 

 

GRI 102-5

Ownership and legal form

BASF on the capital market: graphic: Shareholder structure13
The BASF Group: Corporate legal structure21

 

 

 

GRI 102-6

Markets served

The BASF Group: Procurement and sales markets21

 

 

 

GRI 102-7

Scale of the organization

The BASF Group18-21
Employees: Number of employees110
Consolidated Financial Statements: Statement of Income176

 

 

 

GRI 102-8

Information on employees and other workers

Employees: Number of employees110
Graphic: BASF Group employees by region110

At BASF SE, we only deploy relatively few staff from employment agencies (compared with the number of our own employees). We only work together with counterparties that are bound by collective agreements.

6

8

GRI 102-9

Supply chain

Supplier Management: Worldwide procurement90

The Procurement competence center supports BASF’s business units in developing sustainable solutions so they can stand out from the competition in addressing market-specific requirements.

 

 

GRI 102-10

Significant changes to the organization and its supply chain

The BASF Group: Organization of the BASF Group until December 31, 201818
New organization of the BASF Group as of January 1, 201919
Employees: Number of employees110

 

 

 

GRI 102-11

Precautionary Principle or approach

Integration of Sustainability: Strategy36
Responsible Care Management System: Responsible Care Management System95
Safety in production: Introduction96
Global safety initiative96
Occupational safety96
Process safety97
Emergency response and corporate security98
Product stewardship: Strategy100
REACH and other legal requirements100
Transportation and storage: Strategy102
Accident prevention and emergency response102

 

 

 

GRI 102-12

External initiatives

Our Strategy: Corporate Strategy: Global standards28
Integration of Sustainability: Stakeholder dialog38
Responsibility for human rights39
Supplier Management: Training and partnerships91
Evaluating our suppliers91
Raw Materials: Mineral raw materials94
Energy and climate protection: Strategy103
Employees: Global labor and social standards115
Compliance: Monitoring adherence to our compliance principles141

Overview of networks in which BASF is active: https://www.basf.com/global/en/who-we-are/sustainability/responsible-partnering/networks.html

 

 

GRI 102-13

Membership of associations

Safety in production: Process safety98
Transportation and storage: Activities in external networks102
Compliance: Monitoring adherence to our compliance principles141

 

 

 

Strategy

GRI 102-14

Statement from senior decision-maker

Letter from the Chairman of the Board of Executive Directors8-10

 

 

 

GRI 102-15

Key impacts, risks, and opportunities

Forecast Opportunities and Risks117-130

 

 

 

Ethics and Integrity

GRI 102-16

Values, principles, standards, and norms of behavior

Our Strategy: Corporate Strategy: 25
Our strategic action areas27-28
Global standards28
The BASF brand28
Integration of Sustainability: Strategy36
Employees: What we expect from our leaders111
Inclusion of diversity112
Global labor and social standards115
Compliance: graphic: BASF’s 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.

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.

10

16

GRI 102-17

Mechanisms for advice and concerns about ethics

Our Strategy: Corporate Strategy: Global standards28
Integration of Sustainability: Strategy36
Responsibility for human rights39
Compliance: Monitoring adherence to our compliance principles141

 

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16

Governance

GRI 102-18

Governance structure

Integration of Sustainability: Strategy36

 

 

 

GRI 102-19

Delegating authority

Integration of Sustainability: Strategy36

 

 

 

GRI 102-20

Executive-level responsibility for economic, environmental, and social topics

Integration of Sustainability: Strategy36

 

 

 

GRI 102-21

Consulting stakeholders on economic, environmental, and social topics

Our Strategy: Corporate Strategy: Global standards28
Integration of Sustainability: Strategy36
Stakeholder dialog38-39
Employees: Employee engagement111

 

 

16

GRI 102-22

Composition of the highest governance body and its committees

Management and Supervisory Boards: Board of Executive Directors142-143
Supervisory Board144-145

 

 

5, 16

GRI 102-23

Chair of the highest governance body

Management and Supervisory Boards: Board of Executive Directors142-143
Supervisory Board144-145

 

 

16

GRI 102-24

Nominating and selecting the highest governance body

Corporate Governance Report: graphic: Two-tier management system of BASF SE132
Supervision of company management by the Supervisory Board133
Competence profile, diversity concept and objectives for the composition of the Supervisory Board134-135

 

 

5, 16

GRI 102-25

Conflicts of interest

Corporate Governance Report: Direction and management by the Board of Executive Directors132
Graphic: Two-tier management system of BASF SE133
Supervision of company management by the Supervisory Board134

 

 

16

GRI 102-26

Role of highest governance body in setting purpose, values, and strategy

Integration of Sustainability: Strategy36

 

 

 

GRI 102-27

Collective knowledge of highest governance body

Integration of Sustainability: Strategy36

 

 

4

GRI 102-28

Evaluating the highest governance body’s performance

Corporate Governance Report: graphic: Two-tier management system of BASF SE133
Supervision of company management by the Supervisory Board134
Compensation Report146

 

 

 

GRI 102-29

Identifying and managing economic, environmental, and social impacts

Integration of Sustainability: Strategy36
Measuring value added by sustainability and harnessing business opportunities37
Portfolio management based on sustainability performance37-38

Our strategic evaluation process to define new focus topics along the value chain was discussed by the Corporate Sustainability Board, the Stakeholder Advisory Panel as well as by the Board of Executive Directors, among other bodies. The Board of Executive Directors resolved on the further course of action.

 

16

GRI 102-30

Effectiveness of risk management processes

Forecast Opportunities and Risks123-130
Corporate Governance Report: Direction and management by the Board of Executive Directors132
Supervision of company management by the Supervisory Board134

 

 

 

GRI 102-31

Review of economic, environmental, and social topics

Integration of Sustainability: Strategy36

As a rule, the Corporate Sustainability Board meets four times per year.

 

 

GRI 102-32

Highest governance body’s role in sustainability reporting

 

The report is discussed and released in a reading by the entire Board of Executive Directors.

The Supervisory Board approves the Report and thus the Nonfinancial Statement as part of the accounts meeting.

 

 

GRI 102-33

Communicating critical concerns

Employees: Employee engagement111

Sustainability is integrated into our major decision-making processes. The Board of Executive Directors is informed as part of standard processes.

 

 

GRI 102-34

Nature and total number of critical concerns

 

This information is confidential.

 

 

GRI 102-35

Remuneration policies

Compensation Report146

 

 

 

GRI 102-36

Process for determining remuneration

Compensation Report146

 

 

 

GRI 102-37

Stakeholders’ involvement in remuneration

Employees: Dialog with employee representatives115

 

 

16

GRI 102-38

Annual total compensation ratio

 

Fair compensation is an important topic for BASF. This includes aspects of internal (distribution) equity and socially acceptable minimum compensation.

Our compensation is based on three principles: function, market and performance orientation. Furthermore, it is important to us that minimum standards for compensation are complied with and, where possible, exceeded. BASF regularly monitors compliance with minimum standards around the world.

However, BASF does not consider the compensation indicators required by GRI 102-38 and GRI 102-39 to be a meaningful assessment of the fairness of compensation structures.

 

 

GRI 102-39

Percentage increase in annual total compensation ratio

 

Fair compensation is an important topic for BASF. This includes aspects of internal (distribution) equity and socially acceptable minimum compensation.

Our compensation is based on three principles: function, market and performance orientation. Furthermore, it is important to us that minimum standards for compensation are complied with and, where possible, exceeded. BASF regularly monitors compliance with minimum standards around the world.

However, BASF does not consider the compensation indicators required by GRI 102-38 and GRI 102-39 to be a meaningful assessment of the fairness of compensation structures.

 

 

Stakeholder engagement

GRI 102-40

List of stakeholder groups

Integration of Sustainability: Stakeholder dialog38

 

 

 

GRI 102-41

Collective bargaining agreements

 

93% of employees are employed by a company at which working conditions are based on a collective agreement negotiated with trade unions or agreements with internal workers’ representatives.

These disclosures do not include the new companies acquired from Bayer.

We have reported a consistently high figure since the indicator was introduced. 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), including freedom of association. This is why, from next year, we will respond to this indicator with a reference to the ILSS management process instead of the above figure.

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8

GRI 102-42

Identifying and selecting stakeholders

Integration of Sustainability: Stakeholder dialog38

We have defined persons responsible for dialog with individual stakeholder groups. They engage in constructive dialog with the stakeholders relevant to BASF (for example between employee and employer representatives, between business units and customers, dialog with politicians, investors, journalists and other societal stakeholders).

 

 

GRI 102-43

Approach to stakeholder engagement

Integration of Sustainability: Strategy36
Stakeholder dialog39
Employees: Employee engagement111
Dialog with employee representatives115
Customer Focus: Customer industry orientation116

Due to the heterogeneity of our customer sectors and thus their different demands, there is no uniform customer satisfaction survey for the entire BASF Group. Customer satisfaction data is collected in a decentralized manner.

 

 

GRI 102-44

Key topics and concerns raised

Integration of Sustainability: Stakeholder dialog39
Supplier Management: Audit results91
Employees: Employee engagement111
Dialog with employee representatives115
Customer Focus: Customer industry orientation116

 

 

 

Reporting Practice

GRI 102-45

Entities included in the consolidated financial statements

About This Report: Data6

 

 

 

GRI 102-46

Defining report content
Topic boundaries

About This Report: Integrated reporting5

 

 

 

GRI 102-47

List of material topics

Integration of Sustainability: Strategy36

Our material topics are: energy, water, resources and ecosystems, responsible production, products and solutions, partnerships, employment and employability.

 

 

GRI 102-48

Restatements of information

BASF Group's Business Year, Material Investments and Portfolio Measures41
Safety in production: Occupational safety96
Process safety97

 

 

 

GRI 102-49

Changes in reporting

About This Report5

Any significant changes to reporting on individual topics are explained in the relevant section.

 

 

GRI 102-50

Reporting period

About This Report: Data6

 

 

 

GRI 102-51

Date of most recent report

About This Report: Data6

 

 

 

GRI 102-52

Reporting cycle

About This Report: Data6

 

 

 

GRI 102-53

Contact point for questions regarding the report

Report cover

 

 

 

GRI 102-54

Claims of reporting in accordance with the GRI Standards

About This Report: Content and structure5

 

 

 

GRI 102-55

GRI content index

GRI and Global Compact Index

http://report.basf.com/2018/en/overviews/gri-and-global-compact-index.html

 

 

GRI 102-56

External assurance

About This Report: Content and structure5
External audit and evaluation6