GRI and Global Compact Index The universal standards offer a general strategic overview of the organization’s sustainability. Universal Standards Link Page 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 Group18-21Integration of Sustainability: Portfolio management based on sustainability performance37-38 7 GRI 102-3 Location of headquarters About This Report: Data6The 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 structure13The 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 Group18-21Employees: Number of employees110Consolidated Financial Statements: Statement of Income176 GRI 102-8 Information on employees and other workers Employees: Number of employees110Graphic: 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, 201818New organization of the BASF Group as of January 1, 201919Employees: Number of employees110 GRI 102-11 Precautionary Principle or approach Integration of Sustainability: Strategy36Responsible Care Management System: Responsible Care Management System95Safety in production: Introduction96Global safety initiative96Occupational safety96Process safety97Emergency response and corporate security98Product stewardship: Strategy100REACH and other legal requirements100Transportation and storage: Strategy102Accident prevention and emergency response102 GRI 102-12 External initiatives Our Strategy: Corporate Strategy: Global standards28Integration of Sustainability: Stakeholder dialog38Responsibility for human rights39Supplier Management: Training and partnerships91Evaluating our suppliers91Raw Materials: Mineral raw materials94Energy and climate protection: Strategy103Employees: Global labor and social standards115Compliance: 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 safety98Transportation and storage: Activities in external networks102Compliance: 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: 25Our strategic action areas27-28Global standards28The BASF brand28Integration of Sustainability: Strategy36Employees: What we expect from our leaders111Inclusion of diversity112Global labor and social standards115Compliance: 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 standards28Integration of Sustainability: Strategy36Responsibility for human rights39Compliance: Monitoring adherence to our compliance principles141 10 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 standards28Integration of Sustainability: Strategy36Stakeholder 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 Directors142-143Supervisory Board144-145 5, 16 GRI 102-23 Chair of the highest governance body Management and Supervisory Boards: Board of Executive Directors142-143Supervisory Board144-145 16 GRI 102-24 Nominating and selecting the highest governance body Corporate Governance Report: graphic: Two-tier management system of BASF SE132Supervision of company management by the Supervisory Board133Competence 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 Directors132Graphic: Two-tier management system of BASF SE133Supervision 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 SE133Supervision of company management by the Supervisory Board134Compensation Report146 GRI 102-29 Identifying and managing economic, environmental, and social impacts Integration of Sustainability: Strategy36Measuring value added by sustainability and harnessing business opportunities37Portfolio 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 Risks123-130Corporate Governance Report: Direction and management by the Board of Executive Directors132Supervision 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. 3 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: Strategy36Stakeholder dialog39Employees: Employee engagement111Dialog with employee representatives115Customer 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 dialog39Supplier Management: Audit results91Employees: Employee engagement111Dialog with employee representatives115Customer 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 contentTopic 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 Measures41Safety in production: Occupational safety96Process 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 structure5External audit and evaluation6 back next