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. Universal 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 Group19–22 Value-Based Management30 Corporate Strategy: Customer Orientation25–26 Employees126–132 Energy and climate protection116–122 7,8,9 GRI 103-2 Management Approach: The management approach and its components The BASF Group19–22 Value-Based Management30 Corporate Strategy: Customer Orientation25–26 Employees126–132 Energy and climate protection116–122 1 GRI 103-3 Management Approach: Evaluation of the management approach The BASF Group19–22 Value-Based Management30 Corporate Strategy: Customer Orientation25–26 Employees126–132 Energy and climate protection116–122 GRI 201-1 Direct economic value generated and distributed Employees: Competition for talent129 Personnel expenses130–131 Table: BASF Group personnel expenses131 Graphic: Value added../../pics/img/value_added_2019.jpg 2, 5, 7, 8, 9 GRI 201-2 Financial implications and other risks and opportunities due to climate change Transportation and storage: Securing raw materials supply via the Rhine River115 Energy and climate protection: Strategy116–117 Opportunities and Risks: Short-term risks142–144 Opportunities and Risks: Sustainability147 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 Assets 52-5352–53 Financial Position 54-5754–57 Employees: Personnel expenses, Table: BASF Group personnel expenses 131131 Consolidated Financial Statements: Independent Auditor’s Report 187-193187–193 Consolidated Financial Statements: Balance Sheet for the BASF Group 197-198197–198 Consolidated Financial Statements: Notes: Other comprehensive income: Accounting policies 252252 Consolidated Financial Statements: Notes: Provisions for pensions and similar obligations 253-258253–258 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 Group19–22 Employees126–132 GRI 103-2 Management Approach: The management approach and its components The BASF Group19–22 Employees126–132 GRI 103-3 Management Approach: Evaluation of the management approach The BASF Group19–22 Employees126–132 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 Group19–22 Integration of Sustainability36 Employees126–132 GRI 103-2 Management Approach: The management approach and its components The BASF Group19–22 Integration of Sustainability36 Employees126–132 GRI 103-3 Management Approach: Evaluation of the management approach The BASF Group19–22 Integration of Sustainability36 Employees126–132 GRI 203-1 Infrastructure investments and services supported Our Strategy: Corporate Strategy:24–29 Integration of Sustainability: Social commitment Graphic: BASF Group donations, sponsorship and own projects in 201941 Employees: Competition for talent129 Graphic: Value added../../pics/img/value_added_2019.jpg 2, 5, 7, 9, 11 GRI 203-2 Significant indirect economic impacts Integration of Sustainability: Strategy36–37 Harnessing business opportunities and measuring value added by sustainability37–38 Raw Materials: Mineral raw materials107 Employees: Competition for talent129 1, 2, 3, 8, 10, 17 GRI 204: Procurement Practices GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Supplier management102–104 GRI 103-2 Management Approach: The management approach and its components Supplier management102–104 GRI 103-3 Management Approach: Evaluation of the management approach Supplier management102–104 GRI 204-1 Proportion of spending on local suppliers Supplier management: Worldwide procurement102 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 Compliance157–158 GRI 103-2 Management Approach: The management approach and its components Compliance157–158 GRI 103-3 Management Approach: Evaluation of the management approach Compliance157–158 GRI 205-1 Operations assessed for risks related to corruption Compliance: Monitoring adherence to our compliance principles158 Due to BASF's matrix structure, the number of the audited business sites is not a steering-relevant indicator. Group companies, which include several sites and business areas, are audited as part of compliance audits. Cross-business topics are also audited (e.g. donations and sponsorship). Our corporate audits focus on compliance issues. 20-25% of all audits performed under the risk-based annual audit plan are compliance audits. In addition, ad hoc audits are performed if there are grounds for suspicion. This regular auditing is an essential part of ensuring compliance worldwide in our business processes and identifying weaknesses or non-compliant behavior to derive appropriate measures.Various compliance risks, e.g. risks related to corruption, are audited as part of our compliance audits. Which compliance risks are the focus of an audit is determined based on materiality, which can also be derived from the risk assessments of each country and business area. Consequently, BASF does not report on the number of audits solely related to corruption. 10 16 GRI 205-2 Communication and training about anti-corruption policies Compliance: Compliance Program and Code of Conduct157 Monitoring adherence to our compliance principles158 All employees receive training on our Code of Conduct upon joining the company. They are obligated to attend refresher training every three years.Target group-specific training is also offered. For instance, all newly appointed senior executives receive scenario-based training on various relevant compliance risks. 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 principles158 Compliance and responsible, forward-looking conduct are of central significance for BASF. According to our risk-based evaluation, we do not consider corruption a significant compliance risk. We operate almost exclusively in the B2B sector and, in particular, do not participate in competitive bidding, for example for major projects. If individual cases of corruption are uncovered, these generally relate to passive corruption to the detriment of our company. Consequently, BASF does not report on cases of corruption unless they are considered material. 10 16 GRI 206: Anti-competitive Behavior 2016 GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Compliance: Compliance Program and Code of Conduct157 GRI 103-2 Management Approach: The management approach and its components Compliance: Compliance Program and Code of Conduct157 GRI 103-3 Management Approach: Evaluation of the management approach Compliance: Compliance Program and Code of Conduct157 GRI 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices Consolidated Financial Statements: Notes: Risks from litigation and claims265–266 Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 16 GRI 301: Materials GRI 103-1 Management Approach: Explanation of the material topic and its Boundary The BASF Group: Sites and Verbund21 Raw Materials105–107 Energy and climate protection116–122 GRI 103-2 Management Approach: The management approach and its components The BASF Group: Sites and Verbund21 Raw Materials105–107 Energy and climate protection116–122 GRI 103-3 Management Approach: Evaluation of the management approach The BASF Group: Sites and Verbund21 Raw Materials105–107 Energy and climate protection116–122 GRI 301-1 Materials used by weight or volume Raw Materials: Strategy105 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: ChemCycling project105 Renewable resources105–107 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: Strategy116–117 GRI 103-2 Management Approach: The management approach and its components Energy and climate protection: Strategy116–117 GRI 103-3 Management Approach: Evaluation of the management approach Energy and climate protection: Strategy116–117 GRI 302-1 Energy consumption within the organization Energy and climate protection: Graphic: Energy supply of the BASF Group 2019118 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.The use of fuels from renewable sources (biomass) does not currently represent a material share of total fuel consumption and is therefore not disclosed separately. However, the resulting CO2 emissions are reported separately in the greenhouse gas footprint.Cooling consumption is not presented separately. This is largely generated internally. The required energy demand is included in the figures for the Group. Cooling water demand is taken into account in water use.Sold energy is included in the energy footprint; separate disclosure is not considered necessary. 7, 8 7, 12, 13 GRI 302-2 Energy consumption outside of the organization Energy and climate: Strategy116 Carbon footprint and climate protection products119–120 8 7, 8, 12, 13 GRI 302-3 Energy intensity Energy and climate protection: Table: Additional key indicators for energy and climate protection in BASF operations119 See GRI 302-1 – Calculation of energy efficiency 8 12, 13 GRI 302-4 Reduction of energy consumption Energy and climate protection: Global goals and measures117–118 Energy supply and efficiency119 See GRI 302-1 – Calculation of energy efficiency 8, 9 8, 12, 13 GRI 302-5 Reductions in energy requirements of products and services Energy and climate protection: Global goals and measures117–118 Carbon footprint and climate protection products119–120 8, 9 8, 12, 13 GRI 303: Water and Effluents GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Water124–125 GRI 103-2 Management Approach: The management approach and its components Water124–125 GRI 103-3 Management Approach: Evaluation of the management approach Water124–125 GRI 303-1 2016 Water withdrawal by source Water: Graphic: Water in the BASF Group 2019125 GRI 303-2 2016 Water sources significantly affected by withdrawal of water Water: Graphic: Water in the BASF Group 2019125 Responsible Care Management System108 GRI 303-3 2016 Water recycled and reused Water: Graphic: Water stress areas around the world124 Water in the BASF Group 2019125, Responsible Care Management System108 GRI 303-5 2018 Water consumption Water: Water footprint124 Graphic: Water stress areas around the world125, Responsible Care Management System108 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System and in the methodology paper. GRI 304: Biodiversity GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Raw Materials105–107 GRI 103-2 Management Approach: The management approach and its components Raw Materials105–107 GRI 103-3 Management Approach: Evaluation of the management approach Raw Materials105–107 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 on biodiversity 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 resources105–107 Integration of Sustainability: Materiality analysis box36 Harnessing business opportunities and measuring value added by sustainability37–38 Business Review by Segment – Agricultural Solutions91–96 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 System108 Energy and climate protection: Introduction, Strategy116–117 Energy and climate protection: Carbon management as a climate protection tool121–122 GRI 103-2 Management Approach: The management approach and its components Responsible Care Management System108 Energy and climate protection: Introduction, Strategy116–117 Energy and climate protection: Carbon management as a climate protection tool121–122 GRI 103-3 Management Approach: Evaluation of the management approach Responsible Care Management System108 Energy and climate protection: Introduction, Strategy116–117 Energy and climate protection: Carbon management as a climate protection tool121–122 GRI 305-1 Direct (Scope 1) GHG emissions About This Report5–6 Energy and climate protection: Strategy116 Table: BASF Group’s greenhouse gas emissions according to the Greenhouse Gas Protocol117 Graphic: Greenhouse gas emissions along the BASF value chain in 2019120 Additional key indicators for energy and climate protection in BASF operations119 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 Protocol117 Graphic: Greenhouse gas emissions along the BASF value chain in 2019120 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 2019120 7, 8 3, 12, 13, 14, 15 GRI 305-4 GHG emissions intensity Energy and climate protection: Graphic: Specific greenhouse gas emissions from BASF operations118 Table: Additional key indicators for energy and climate protection in BASF operations119 8 3, 12, 13, 14, 15 GRI 305-5 Reduction of GHG emissions Energy and climate protection: Global goals and measures117–118 Carbon footprint and climate protection products119–120 Carbon management as a climate protection tool: Graphic: Development of carbon emissions in the BASF Group121 8, 9 3, 12, 13, 14, 15 GRI 305-6 Emissions of ozone-depleting substances (ODS) Air and soil: Emissions to air123 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 air123 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 System108 Transportation and storage115 Air and soil: Management of waste and contaminated sites123 Water: Strategy124 GRI 103-2 Management Approach: The management approach and its components Responsible Care Management System108 Transportation and storage115 Air and soil: Management of waste and contaminated sites123 Water: Strategy124 GRI 103-3 Management Approach: Evaluation of the management approach Responsible Care Management System108 Transportation and storage115 Air and soil: Management of waste and contaminated sites123 Water: Strategy124 GRI 306-1 Water discharge by quality and destination Water: Emissions to water125 Graphic: Water in the BASF Group 2019125 8 3, 6, 12, 14 GRI 306-2 Waste by type and disposal method Air and soil: Management of waste and contaminated sites123 Table: Waste generation in the BASF Group123 8 3, 6, 12 GRI 306-3 Significant spills Transportation and storage: Transportation incidents115 In 2019, 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 sites123 Table: Waste generation in the BASF Group123 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, 6, 12 GRI 306-5 Water bodies affected by water discharges and/or runoff Water: Global goal and measures124–125 No significant impact on biodiversity has been identified at sites that have implemented sustainable water management according to the EWS standard. 8 3, 6, 12, 14 GRI 307: Environmental Compliance GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Responsible Care Management System108 GRI 103-2 Management Approach: The management approach and its components Responsible Care Management System108 GRI 103-3 Management Approach: Evaluation of the management approach Responsible Care Management System108 GRI 307-1 Non-compliance with environmental laws and regulations Consolidated Financial Statements: Notes: Risks from litigation and claims265–266 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 management102–104 GRI 103-2 Management Approach: The management approach and its components Supplier management102–104 GRI 103-3 Management Approach: Evaluation of the management approach Supplier management102–104 GRI 308-1 New suppliers that were screened using environmental criteria Supplier management: What we expect from our suppliers102–103 Evaluating our suppliers103 The requirements for our suppliers 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 fighting discrimination and corruption. Only then are companies accepted as new suppliers. In 2019, 1,596 suppliers of technical goods, services and investment goods committed to these values in our newly launched registration portal. We specifically ask raw material suppliers to commit to our Supplier Code of Conduct. GRI 308-2 Negative environmental impacts in the supply chain and actions taken Supplier management: What we expect from our suppliers102–103 Evaluating our suppliers103 Audit results103–104 Raw Materials: Renewable resources105–107 No business relationships with suppliers were terminated due to severe deficiencies in the areas of environmental protection, safety, security and health protection. 326 suppliers were asked for improvements in these areas, representing around 53% of all suppliers audited in 2019. Social GRI 401: Employment GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Employees126–132 GRI 103-2 Management Approach: The management approach and its components Employees126–132 GRI 103-3 Management Approach: Evaluation of the management approach Employees126–132 GRI 401-1 New employee hires and employee turnover Employees: Competition for talent129 Table: BASF Group new hires in 2019129 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 benefits130 We hire few temporary employees worldwide. All types of benefits that we provide in Germany are available to both full-time and part-time employees. 8 GRI 401-3 Parental leave Employees: Balancing personal and professional life131 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 Employees126–132 GRI 103-2 Management Approach: The management approach and its components Employees126–132 GRI 103-3 Management Approach: Evaluation of the management approach Employees126–132 GRI 402-1 Minimum notice periods regarding operational changes Employees: Dialog with employee representatives131 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 System108 Safety in production: Introduction109 Strategy109 GRI 103-2 Management Approach: The management approach and its components Responsible Care Management System108 Safety in production: Introduction109 Strategy109 GRI 103-3 Management Approach: Evaluation of the management approach Responsible Care Management System108 Safety in production: Introduction109 Strategy109 GRI 403-12016 Workers representation in formal joint management–worker health and safety committees. Responsible Care Management System108 BASF monitors the national law of all 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 safety109–110 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 protection111 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 System108 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 Employees126–132 GRI 103-2 Management Approach: The management approach and its components Employees126–132 GRI 103-3 Management Approach: Evaluation of the management approach Employees126–132 GRI 404-1 Average hours of training per year per employee In 2019, each employee spent an average of 1.9 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. 6 4, 5, 8 GRI 404-2 Programs for upgrading employee skills and transition assistance programs Employees: What we expect from our leaders127 Box: Dialog and self-reflection with FEEDback&forward127 Inclusion of diversity128 Learning and development129–130 8 GRI 404-3 Percentage of employees receiving regular performance and career development reviews 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 Employees126–132 GRI 103-2 Management Approach: The management approach and its components Employees126–132 GRI 103-3 Management Approach: Evaluation of the management approach Employees126–132 GRI 405-1 Diversity of governance bodies and employees Employees: Graphic: BASF Group employee age structure128 Table: Leaders and professionals in the BASF Group129 Inclusion of diversity128–129 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. A global evaluation is not conducted. 6 5, 8, 10 GRI 406: Non-discrimination GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Supplier management102–104 Employees126–132 Compliance157–158 GRI 103-2 Management Approach: The management approach and its components Supplier management102–104 Employees126–132 Compliance157–158 GRI 103-3 Management Approach: Evaluation of the management approach Supplier management102–104 Employees126–132 Compliance157–158 GRI 406-1 Incidents of discrimination and corrective actions taken Integration of Sustainability: Responsibility for human rights40–41 Employees: Global labor and social standards131–132 Compliance: Monitoring adherence to our compliance principles158 Number of complaints and tip-offs received in 2019 on human rights: 228 (of which resolved in the reporting period: 195)Of these, pertaining to discrimination: 36 (resolved in the reporting period: 31)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 management102–104 Employees126–132 Compliance157–158 GRI 103-2 Management Approach: The management approach and its components Supplier management102–104 Employees126–132 Compliance157–158 GRI 103-3 Management Approach: Evaluation of the management approach Supplier management102–104 Employees126–132 Compliance157–158 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 suppliers102–103 Audit results103–104 Employees: Global labor and social standards131–132 We did not identify any deficiencies in the areas of freedom of association and collective bargaining at our suppliers audited in 2019. However, further audits will be conducted at two suppliers due to lack of documentation.For employees, see the description of the management process under “Working at BASF: 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 management102–104 Employees126–132 Compliance157–158 GRI 103-2 Management Approach: The management approach and its components Supplier management102–104 Employees126–132 Compliance157–158 GRI 103-3 Management Approach: Evaluation of the management approach Supplier management102–104 Employees126–132 Compliance157–158 GRI 408-1 Operations and supplier at significant risk for incidents Supplier management: Audit results103–104 Employees: Global labor and social standards131–132 5 8, 16 GRI 409: Forced or Compulsory Labor GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Supplier management102–104 Employees126–132 Compliance157–158 GRI 103-2 Management Approach: The management approach and its components Supplier management102–104 Employees126–132 Compliance157–158 GRI 103-3 Management Approach: Evaluation of the management approach Supplier management102–104 Employees126–132 Compliance157–158 GRI 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Supplier management: Audit results103–104 Employees: Global labor and social standards131–132 4 8 GRI 410: Security Practices GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Responsible Care Management System108 Safety in production: Introduction109 Strategy109 GRI 103-2 Management Approach: The management approach and its components Responsible Care Management System108 Safety in production: Introduction109 Strategy109 GRI 103-3 Management Approach: Evaluation of the management approach Responsible Care Management System108 Safety in production: Introduction109 Strategy109 GRI 410-1 Security personnel trained in human rights policies or procedures Safety in production: Emergency response, corporate security and cybersecurity111–112 1 16 GRI 411: Rights of Indigenous Peoples GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Integration of Sustainability: Responsibility for human rights40–41 GRI 103-2 Management Approach: The management approach and its components Integration of Sustainability: Responsibility for human rights40–41 GRI 103-3 Management Approach: Evaluation of the management approach Integration of Sustainability: Responsibility for human rights40–41 GRI 411-1 Incidents of violations involving rights of indigenous peoples Our internal grievance mechanisms have not identified any (potential) violation of rights of indigenous communities. We operate in countries with indigenous peoples, both in our supply chain and in our own operations. We take this into account in our investment activities. 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 rights40–41 GRI 103-2 Management Approach: The management approach and its components Integration of Sustainability: Responsibility for human rights40–41 GRI 103-3 Management Approach: Evaluation of the management approach Integration of Sustainability: Responsibility for human rights40–41 GRI 412-1 Operations that have been subject to human rights reviews or impact assessments Integration of Sustainability: Strategy36–37 Responsibility for human rights40–41 Employees: Global labor and social standards131–132 1 GRI 412-2 Employee training on human rights policies or procedures Integration of Sustainability: Responsibility for human rights40–41 Compliance: Compliance Program and Code of Conduct157 All employees receive training on our Code of Conduct upon joining the company. They are obligated to attend refresher training every three years. The relevant human rights topics are addressed in this training. 1 GRI 412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening Integration of Sustainability: Strategy36–37 Harnessing business opportunities and measuring value added by sustainability37–38 Responsibility for human rights40–41 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 Sustainability36–41 GRI 103-2 Management Approach: The management approach and its components Integration of Sustainability36–41 GRI 103-3 Management Approach: Evaluation of the management approach Integration of Sustainability36–41 GRI 413-1 Operations with local community engagement, impact assessments, and development programs Integration of Sustainability: Strategy36–37 Stakeholder engagement39–40 Responsibility for human rights40–41 Social commitment41 Raw Materials: Renewable resources105–107 Mineral raw materials107 Safety in production: Process safety110–111 Emergency response, corporate security and cybersecurity111–112Employees: Global labor and social standards131–132 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 Value23 Integration of Sustainability: Harnessing business opportunities and measuring value added by sustainability37–38 Raw Materials: Renewable resources105–107 Mineral raw materials107 Safety in production: Process safety110–111 1 1, 2 GRI 414: Supplier Social Assessment GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Supplier management102–104 GRI 103-2 Management Approach: The management approach and its components Supplier management102–104 GRI 103-3 Management Approach: Evaluation of the management approach Supplier management102–104 GRI 414-1 New suppliers that were screened using social criteria Supplier management: What we expect from our suppliers102–103 Evaluating our suppliers103 Audit results103–104 The requirements for our suppliers 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 fighting discrimination and corruption. Only then are companies accepted as new suppliers. Since 2019, 1,596 suppliers of technical goods, services and investment goods have committed to these values in our newly launched registration portal. We specifically ask raw material suppliers to commit to our Supplier Code of Conduct. GRI 414-2 Negative social impacts in the supply chain and actions taken Supplier management: What we expect from our suppliers102–103 Evaluating our suppliers103 Audit results103–104 Raw Materials: Renewable resources105–107 Mineral raw materials107 No business relationships with suppliers were terminated due to severe deficiencies in the areas of environmental protection, safety, security and health protection. 326 suppliers were asked for improvements in these areas, representing around 53% of all suppliers audited in 2019.We did not identify any deficiencies in the areas of freedom of association and collective bargaining at our suppliers. However, further audits will be conducted at two suppliers due to lack of documentation.No supplier relationships were terminated due to human rights reasons in 2019. 268 suppliers were asked for improvements in these areas, representing around 42% of all suppliers audited in 2019. GRI 415: Public Policy GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Integration of Sustainability: Stakeholder engagement39–40 GRI 103-2 Management Approach: The management approach and its components Integration of Sustainability: Stakeholder engagement39–40 GRI 103-3 Management Approach: Evaluation of the management approach Integration of Sustainability: Stakeholder engagement39–40 GRI 415-1 Political contributions Integration of Sustainability: Stakeholder engagement39–40 Focus areas of political campaigning and lobbying: https://www.basf.com/global/en/who-we-are/sustainability/management-goals-and-dialog/stakeholder-dialog/political-communication-and-advocacy.htmlYour position on these topics and any discrepancies between your lobbying position and your stated standards, goals and other public statements: https://www.basf.com/global/en/who-we-are/sustainability/management-goals-and-dialog/stakeholder-dialog/political-communication-and-advocacy/basf-point-of-view.html 10 16 GRI 416: Customer Health and Safety GRI 103-1 Management Approach: Explanation of the material topic and its Boundary Product stewardship113–114 GRI 103-2 Management Approach: The management approach and its components Product stewardship113–114 GRI 103-3 Management Approach: Evaluation of the management approach Product stewardship113–114 GRI 416-1 Assessment of the health and safety impacts of product and service categories Integration of Sustainability: Harnessing business opportunities and measuring value added by sustainability37–38 Steering of product portfolio based on sustainability performance38–39 As a producing company, we focus on the evaluation of our products (96.3% of the relevant 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 claims265–266 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 stewardship113–114 GRI 103-2 Management Approach: The management approach and its components Product stewardship113–114 GRI 103-3 Management Approach: Evaluation of the management approach Product stewardship113–114 GRI 417-1 Requirements for product and service information and labeling Integration of Sustainability: Steering of product portfolio based on sustainability performance38–39 Product stewardship: Strategy113 Global chemicals regulations113 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 claims265–266 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 operates 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 operates 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 operates 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 operates 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 operates 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 Compliance157–158 GRI 103-2 Management Approach: The management approach and its components Compliance157–158 GRI 103-3 Management Approach: Evaluation of the management approach Compliance157–158 GRI 419-1 Non-compliance with laws and regulations in the social and economic area Consolidated Financial Statements: Notes: Risks from litigation and claims265–266 Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 16 back next