Our Targets and Status of Target Achievement in 2020

Business success tomorrow means creating value for the environment, society and business. That is why we have set ourselves ambitious global targets along our entire value chain and the three dimensions of sustainability. We report transparently on our target achievement so that our customers, investors, employees and other stakeholders can track our progress.

We want to grow faster than the market, further increase our profitability, achieve a return on capital employed (ROCE) considerably above the cost of capital percentage and increase the dividend per share every year based on a strong free cash flow. In addition to these financial targets, we pursue broad sustainability targets. For example, we have resolved to limit total greenhouse gas emissions from our production sites and our energy purchases to the 2018 level while growing production volumes. We want to strengthen the sustainability focus of our product portfolio and significantly increase sales of Accelerator products. We also strive to strengthen sustainability in our supply chains and use natural resources responsibly. We want to further improve safety in production. In addition, we aim to promote diversity within the company and create a working environment in which our employees feel that they can thrive and perform at their best.

The objective of these targets is to steer our business into a sustainable future, and at the same time, contribute to the implementation of the United Nations’ Sustainable Development Goals (SDGs). We are focusing on issues where we as a company can make a significant contribution, such as climate protection, sustainable consumption and production, and fighting hunger.

Status of Target Achievement in 2020

Profitable growth

ROCE above the cost of capital percentage

Achieve a return on capital employed
(ROCE)
considerably above the cost of capital percentage every year

Target

>9%

2020 status

1.7%

SDG8 – Decent Work and Economic Growth (Icon) SDG9 – Industry, innovation and infrastructure (Icon)
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Grow sales volumes

Grow sales volumes faster than global chemical production every year

Target

>–0.4%

2020 status

–0.5%

SDG8 – Decent Work and Economic Growth (Icon) SDG9 – Industry, innovation and infrastructure (Icon)
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Increase EBITDA before special items

Increase EBITDA before special items by 3%–5% per year

Target

3%–5%

2020 status

–10.7%

SDG8 – Decent Work and Economic Growth (Icon) SDG9 – Industry, innovation and infrastructure (Icon)
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Increase dividend per share

Increase the dividend per share every year based on a strong free cash flow

Target

>€3.30

2020 status

€3.302

SDG8 – Decent Work and Economic Growth (Icon) SDG9 – Industry, innovation and infrastructure (Icon)
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Effective climate protection

Grow CO2-neutrally

Grow CO2-neutrally until 2030
(Development of carbon emissions compared with baseline 2018)

Target

≤21.9 MMT

2020 status

20.8 MMT

SDG13 – Climate action (Icon)
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Sustainable product portfolio

Increase Accelerator sales

Achieve €22 billion in Accelerator sales by 2025.

Target

€22.0 billion

2020 status

€16.7 billion

SDG 2 – Zero hunger SDG6 – Clean water and sanitation (Icon) SDG12 – Responsible consumption and production (Icon) SDG13 – Climate action (Icon)
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Responsible procurement

Improve sustainability in the supply chain

Cover 90% of our relevant spend with sustainability evaluations by 2025

Target

90%

2020 status

80%

Have 80% of our suppliers improve their sustainability performance upon re-evaluation

Target

80%

2020 status

68%

SDG8 – Decent Work and Economic Growth (Icon) SDG12 – Responsible consumption and production (Icon)

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Resource efficiency and safe production

Reduce process safety incidents

Reduce worldwide process safety incidents per 200,000 working hours to ≤0.1 by 2025

Target

≤0.1

2020 status

0.3

SDG6 – Clean water and sanitation (Icon) SDG8 – Decent Work and Economic Growth (Icon)
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Lower lost-time injury rate

Reduce the worldwide lost-time injury rate per 200,000 working hours to ≤0.1 by 2025

Target

≤0.1

2020 status

0.3

SDG8 – Decent Work and Economic Growth (Icon)
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Expand sustainable water management

Introduce sustainable water management at our production sites in water stress areas and at our Verbund sites by 2030

Target

100%

2020 status

46.2%

SDG6 – Clean water and sanitation (Icon) SDG12 – Responsible consumption and production (Icon)
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Employee engagement and diversity

Increase share of women in leadership positions

Increase the proportion of women in leadership positions with disciplinary responsibility to 30% by 2030

Target

30%

2020 status

24.3%

SDG5 – Gender equality (Icon)
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High satisfaction of our employees

More than 80% of our employees feel that at BASF, they can thrive and perform at their best

Target

>80%

2020 status

82%

SDG8 – Decent Work and Economic Growth (Icon)
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Most important key performance indicators

1 For more information on the Sustainable Development Goals (SDGs), see sustainabledevelopment.un.org

2 Dividend proposed by the Board of Executive Directors