How We Create Value The overview provides examples of how we create value for our shareholders, our company, the environment and society. It is modeled on the framework of the International Integrated Reporting Council (IIRC). 1 1 The content of the graphic been audited within the scope of the relevant sections of the Management’s Report in which they appear. 2 The outcomes category shows examples of positive contributions as well as negative impacts and the measures we take to mitigate them. Download full graphic Inputs Business Model Outputs Wirkungen / Outcome Financial €80.3 billion Total assets Read more 42.8% Equity ratio Read more Innovation ~10,000 R&D employees Read more €2.1 billion R&D expenses Read more Operations €2.9 billion Capex Read more 55.0 million MWh Electricity and steam demand Read more Environment 1.2 MMT Renewable raw materials purchased Read more 1,728 million m3 Total water usage Read more Employees 110,302 Employees around the world Read more €10.6 billion Personnel expenses Read more Partnerships >250 Cooperations with research institutes Read more >70,000 Tier 1 suppliers Read more We create chemistry for a sustainable future Strategy Innovation Sustainability Operations Digitalization Portfolio People In focus: our customers ~90.000 customers from almost every sector and country Segments Chemicals Materials Industrial Solutions Surface Technologies Nutrition & Care Agricultural Solutions Our core values: creative, open, responsible, entrepreneurial How we conduct our business Innovative products and solutions help to use resources more efficiently and overcome global challenges Comprehensive product portfolio with high synergies from basic chemicals to high value-added specialty products Efficient production thanks to integrated value chains and our Verbund system Eleven divisions organized into six segments aligned with value chains, customer needs and market requirements Global, customer-focused presence with around 250 production sites worldwide, including six Verbund sites Differentiated business strategies from cost leadership to custom system solutions Effective corporate governance ensures responsible conduct along the value chain Financial €59.1 billion Sales Read more €3.6 billion EBIT before special items Read more Innovation ~950 New patents worldwide Read more €16.7 billion Sales from Accelerator products Read more Operations ~45,000 Sales products Read more 6.2 MMT CO2 avoided by the Verbund and combined heat and power generation Read more Environment 43.4% Share of our waste recycled or thermally recovered Read more 80.7% Cooling water recirculated Read more Employees 24.3% Women in leadership positions Read more 82% Engagement index according to 2020 employee survey Read more Partnerships 678 Suppliers screened through Together for Sustainability Read more 61 Internal audits on our compliance standards Read more Outcomes Economic We make positive contributions by Driving forward growth, progress and value creation Strengthening our customers’ competitiveness and innovative strength with products and technologies Accelerating the digital transformation of the industry Offering our investors an attractive dividend yield Potential negative impacts Weaker contributions to growth and value creation due to reduced demand from our customer industries as a result of the coronavirus pandemic A weaker share performance on the capital market We limit negative impacts through The disciplined implementation of our corporate strategy Active portfolio management The acceleration of our Excellence Program Systematic cost management Reducing the cost of capital Environmental We make positive contributions by operating our plants efficiently and creating products that Help to use natural resources more efficiently Enable climate-smart mobility Improve the capabilities of renewable energy Reduce emissions and resource consumption Negative impacts The emission of CO2 and other gases that damage the climate The consumption of raw materials and the creation of non-recyclable waste in our production The potential misuse of our products We limit negative impacts through Our carbon management Our Circular Economy Program Sustainable water and energy management Our Responsible Care management Product stewardship and training Social We make positive contributions because we Offer products that improve people’s quality of life Provide attractive jobs, train young people and promote lifelong learning, health and diversity Pay taxes and competitive wages and salaries Help to solve challenges (for example, COVID-19) Potential negative impacts The risk of our suppliers violating labor, environmental and social standards in the production of raw materials Lower demand for employees in some areas as a result of digitalization and efficiency gains We limit negative impacts through Our sustainability-oriented supply chain management Projects to improve sustainability in the supply chain Our compliance program and our Code of Conduct Our training programs for employees Impact BASF's contribution We achieve long-term business success by creating value for our shareholders, our company, the environment and society. 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