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. Topic-specific Standards Link Page Comment Global Compact Principles SDG Economic 201: Economic Performance 103-1 Management Approach: Explanation of the material topic and its Boundary The BASF Group20–23Value-Based Management33–34Corporate Strategy: Customer Focus27–29Employees144–151Energy and climate protection130–136 7,8,9 103-2 Management Approach: The management approach and its components The BASF Group20–23Value-Based Management33–34Corporate Strategy: Customer Focus27–29Employees144–151Energy and climate protection130–136 1 103-3 Management Approach: Evaluation of the management approach The BASF Group20–23Value-Based Management33–34Corporate Strategy: Customer Focus27–29Employees144–151Energy and climate protection130–136 201-1 Direct economic value generated and distributed Employees: Competition for talent147–148Personnel expenses149Table: BASF Group Personnel expenses149 Graphic: Value added 2020../../pics/img/value_added_2020.png 2, 5, 7, 8, 9 201-2 Financial implications and other risks and opportunities due to climate change Transportation and storage: Securing raw materials supply129Energy and climate protection: Strategy130–131Opportunities and Risks: Short-term opportunities and risks161–163Opportunities and Risks: Long-term opportunities and risks: Sustainability164–166 We report comprehensively on the results in the CPD climate protection questionnaire. 7 13 201-3 Defined benefit plan obligations and other retirement plans The BASF Group’s Business Year: Net Assets61–62Financial Position63–66Employees: Personnel expenses149Table: BASF Group Personnel expenses149Consolidated Financial Statements: Independent Auditor’s report214–221Consolidated Financial Statements: Balance Sheet for The BASF Group224–225Consolidated Financial Statements: Notes: Other comprehensive income: Accounting policies278Consolidated Financial Statements: Notes: Provisions for pensions and similar obligations282–287 201-4 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. 202: Market Presence 103-1 Management Approach: Explanation of the material topic and its Boundary The BASF Group20–23Employees144–151 103-2 Management Approach: The management approach and its components The BASF Group20–23Employees144–151 103-3 Management Approach: Evaluation of the management approach The BASF Group20–23Employees144–151 202-1 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, 8 202-2 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 8 203: Indirect Economic Impacts 103-1 Management Approach: Explanation of the material topic and its Boundary The BASF Group20–23Integration of Sustainability42–48Employees144–151 103-2 Management Approach: The management approach and its components The BASF Group20–23Integration of Sustainability42–48Employees144–151 103-3 Management Approach: Evaluation of the management approach The BASF Group20–23Integration of Sustainability42–48Employees144–151 203-1 Infrastructure investments and services supported Our Strategy: Corporate Strategy26–32Integration of Sustainability: Social commitment47–49Employees: Competition for talent147–148 Graphic: Value added 2020../../pics/img/value_added_2020.png 2, 5, 7, 9, 11 203-2 Significant indirect economic impacts Integration of Sustainability: Strategy42Harnessing business opportunities and measuring value added by sustainability43–45Raw Materials: Mineral raw materials119–120Employees: Competition for talent147–148 1, 2, 3, 8, 10, 17 Procurement Practices 103-1 Management Approach: Explanation of the material topic and its Boundary Supplier management113–115 103-2 Management Approach: The management approach and its components Supplier management113–115 103-3 Management Approach: Evaluation of the management approach Supplier management113–115 204-1 Proportion of spending on local suppliers Supplier management: Worldwide procurement113 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. 12 205: Anti-corruption 103-1 Management Approach: Explanation of the material topic and its Boundary Compliance177–179 103-2 Management Approach: The management approach and its components Compliance177–179 103-3 Management Approach: Evaluation of the management approach Compliance177–179 205-1 Operations assessed for risks related to corruption Compliance: Monitoring adherence to our compliance principles178–179 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. 30% 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 16 205-2 Communication and training about anti-corruption policies and procedures Compliance: Compliance Program and Code of Conduct177–178Monitoring adherence to our compliance principles178–179 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 16 205-3 Confirmed incidents of corruption and actions taken Compliance: Monitoring adherence to our compliance principles178–179 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 16 206: Anti-competitive Behavior 2016 103-1 Management Approach: Explanation of the material topic and its Boundary Compliance: Compliance Program and Code of Conduct177–178 103-2 Management Approach: The management approach and its components Compliance: Compliance Program and Code of Conduct177–178 103-3 Management Approach: Evaluation of the management approach Compliance: Compliance Program and Code of Conduct177–178 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices Consolidated Financial Statements: Notes: Risks from litigation and claims290 Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 16 301: Materials 103-1 Management Approach: Explanation of the material topic and its Boundary The BASF Group: Sites and Verbund22Raw Materials116–120Energy and climate protection130–136 103-2 Management Approach: The management approach and its components The BASF Group: Sites and Verbund22Raw Materials116–120Energy and climate protection130–136 103-3 Management Approach: Evaluation of the management approach The BASF Group: Sites and Verbund22Raw Materials116–120Energy and climate protection130–136 301-1 Materials used by weight or volume Raw Materials116–120 Due to the heterogeneity of our procurement portfolio, such an indicator (weight or volume) does not represent steering-relevant information. 7, 8 8, 12 301-2 Recycled input materials used Our Strategy: Circular economy30Raw Materials: Renewable resources117–119 8 8, 12 301-3 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, 12 302: Energy 103-1 Management Approach: Explanation of the material topic and its Boundary Energy and climate protection: Strategy130–131 103-2 Management Approach: The management approach and its components Energy and climate protection: Strategy130–131 103-3 Management Approach: Evaluation of the management approach Energy and climate protection: Strategy130–131 302-1 Energy consumption within the organization Energy and climate protection: Graphic: Energy supply of the BASF Group 2020132 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 "Energy and climate protection" section of the report shows the energy consumption of the central energy supply including the purchased final energies electricity and steam.With the additional inclusion of direct primary energy use in production, total energy consumption amounts to 56,3 million MWh.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. 7, 8 7, 12, 13 302-2 Energy consumption outside of the organization Energy and climate protection: Strategy130–131Carbon footprint and climate protection products133–134 8 7, 8, 12, 13 302-3 Energy intensity Energy and climate protection: Table: Additional key indicators for energy and climate protection in BASF operations133 See GRI 302-1 – Calculation of energy efficiency 8 12, 13 302-4 Reduction of energy consumption Energy and climate protection: Global goals and measures131–133Energy supply and efficiency133 See GRI 302-1 – Calculation of energy efficiency 8, 9 8, 12, 13 302-5 Reductions in energy requirements of products and services Energy and climate protection: Global goals and measures131–133Carbon footprint and climate protection products133–134 8, 9 8, 12, 13 303: Water and Effluents 103-1 Management Approach: Explanation of the material topic and its Boundary Water139–141 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. 103-2 Management Approach: The management approach and its components Water139–141 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. 103-3 Management Approach: Evaluation of the management approach Water139–141 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. 303-12018 Interactions with water as a shared resource Water: Responsible Care Management System121Section Water: Strategy, Global goal and measures139–140Global goals and measures139–140Graphic: Water in the BASF Group 2020140 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. 303-22018 Management of water discharge-related impacts Water: Responsible Care Management System121Water: Strategy139Global goals and measures139–140Graphic: Water in the BASF Group 2020140 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. 303-32018 Water withdrawal Water balance139Graphic: Water in the BASF Group 2020140 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System.The breakdown of water abstraction by quality is based on the following assumptions: drinking water contains ≤1,000 mg/L TDS, treated wastewater and produced water contain >1,000 mg/L TDS. Water abstraction in water stress areas represents a small percentage of the BASF Group’s entire water abstraction (approx. 1%); consequently, a detailed breakdown by source and quality is not considered necessary. 303-42018 Water discharge Graphic: Water in the BASF Group 2020140Water balance139Emissions to water140–141 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System.In the breakdown of wastewater by quality, we distinguish between wastewater from cooling processes with no product contact and wastewater from production. This breakdown better reflects wastewater types in the chemical industry than a breakdown by TDS content.Our wastewater can contain different substances from site to site, depending on the type of production. Requirements for individual substances are defined by local authorities. If discharge limits are exceeded, this is documented locally. We have defined heavy metals, nutrients and COD as substances of concern at global level and report on emissions of these. 303-52018 Water consumption Water: Responsible Care Management System121Water balance139Graphic: Water in the BASF Group 2020140 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System and in the methodology paper. 304: Biodiversity 103-1 Management Approach: Explanation of the material topic and its Boundary Biodiversity142–143 103-2 Management Approach: The management approach and its components Biodiversity142–143 103-3 Management Approach: Evaluation of the management approach Biodiversity142–143 304-1 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. 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. 304-3 Habitats protected or restored Raw Materials: Renewable resources117–119Integration of Sustainability: Box: Identifying and assessing sustainability topics43Harnessing business opportunities and measuring value added by sustainability43–45Business Review by Segment – Agricultural Solutions100–105 8 6, 14, 15 304-4 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. 305: Emissions 103-1 Management Approach: Explanation of the material topic and its Boundary Responsible Care Management System121Energy and climate protection: Introduction, Strategy130–131Energy and climate protection: Climate protection with carbon management135–136 103-2 Management Approach: The management approach and its components Responsible Care Management System121Energy and climate protection: Introduction, Strategy130–131Energy and climate protection: Climate protection with carbon management135–136 103-3 Management Approach: Evaluation of the management approach Responsible Care Management System121Energy and climate protection: Introduction, Strategy130–131Energy and climate protection: Climate protection with carbon management135–136 305-1 Direct (Scope 1) GHG emissions About This Report5–6Energy and climate protection: Strategy130–131Table: BASF Group’s greenhouse gas emissions according to the Greenhouse Gas Protocol131Graphic: Greenhouse gas emissions along the BASF value chain in 2020134Additional key indicators for energy and climate protection in BASF operations133 7, 8 3, 12, 13, 14, 15 305-2 Energy indirect (Scope 2) GHG emissions Energy and climate protection: Table: BASF Group’s greenhouse gas emissions according to the Greenhouse Gas Protocol131Graphic: Greenhouse gas emissions along the BASF value chain in 2020134 7, 8 3, 12, 13, 14, 15 305-3 Other indirect (Scope 3) GHG emissions Energy and climate protection: Graphic: Greenhouse gas emissions along the BASF value chain in 2020134 7, 8 3, 12, 13, 14, 15 305-4 GHG emissions intensity Energy and climate protection: Graphic: Specific greenhouse gas emissions from BASF operations131Table: Additional key indicators for energy and climate protection in BASF operations133 8 3, 12, 13, 14, 15 305-5 Reduction of GHG emissions Energy and climate protection: Graphic: Development of the BASF Group’s CO2 emissions130Global goals and measures131–133Carbon footprint and climate protection products133–134Climate protection with carbon management135–136 8, 9 3, 12, 13, 14, 15 305-6 Emissions of ozone-depleting substances (ODS) Air, waste and soil: Emissions to air137 Calculation based on the substances described in the reporting requirements (based on the Montreal Protocol). 7, 8 3, 12, 13 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions Air, waste and soil: Table: Emissions to air137Management of waste and contaminated sites137–138 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, 15 306: Effluents and Waste 103-1 Management Approach: Explanation of the material topic and its Boundary Responsible Care Management System121Transportation and storage129Air, waste and soil: Management of waste and contaminated sites137–138Water: Strategy139 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. 103-2 Management Approach: The management approach and its components Responsible Care Management System121Transportation and storage129Air, waste and soil: Management of waste and contaminated sites137–138Water: Strategy139 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. 103-3 Management Approach: Evaluation of the management approach Responsible Care Management System121Transportation and storage129Air, waste and soil: Management of waste and contaminated sites137–138Water: Strategy139 Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System. 306-2 Waste by type and disposal method Air, waste and soil: Management of waste and contaminated sites137–138Table: Waste generation in the BASF Group138 No material changes compared with the previous reporting year 8 3, 6, 12 306-3 Significant spills Transportation and storage: Transportation incidents129 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, 15 306-4 Transport of hazardous waste Air, waste and soil: Management of waste and contaminated sites137–138Table: Waste generation in the BASF Group138 8 3, 6, 12, 13, 14 307: Environmental Compliance 103-1 Management Approach: Explanation of the material topic and its Boundary Responsible Care Management System121 103-2 Management Approach: The management approach and its components Responsible Care Management System121 103-3 Management Approach: Evaluation of the management approach Responsible Care Management System121 307-1 Non-compliance with environmental laws and regulations Consolidated Financial Statements: Notes: Risks from litigation and claims290 Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 8 16 308: Supplier Environmental Assessment 103-1 Management Approach: Explanation of the material topic and its Boundary Supplier management113–115 103-2 Management Approach: The management approach and its components Supplier management113–115 103-3 Management Approach: Evaluation of the management approach Supplier management113–115 308-1 New suppliers that were screened using environmental criteria Supplier management: What we expect from our suppliers113–114Evaluating our suppliers114 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 2020, 4,918 suppliers of technical goods, services and investment goods committed to these values in our newly launched registration portal. 308-2 Negative environmental impacts in the supply chain and actions taken Supplier management: What we expect from our suppliers113–114Evaluating our suppliers114Audit results114–115Raw Materials: Renewable resources117–119 Four business relationships with suppliers were terminated due to severe deficiencies or non-disclosure of information in the areas of environmental protection, safety, security and health protection, and social matters. 329 suppliers were asked for improvements in the areas of environment, health and safety, representing around 49% of all suppliers audited in 2020. Social 401: Employment 103-1 Management Approach: Explanation of the material topic and its Boundary Employees144–151 103-2 Management Approach: The management approach and its components Employees144–151 103-3 Management Approach: Evaluation of the management approach Employees144–151 401-1 New employee hires and employee turnover Employees: Competition for talent147–148Table: BASF Group new hires in 2020148 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, 8 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Employees: Compensation and benefits149 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. 8 401-3 Parental leave Employees: Balancing personal and professional life149–150 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, 8 402: Labor/Management Relations 103-1 Management Approach: Explanation of the material topic and its Boundary Employees144–151 103-2 Management Approach: The management approach and its components Employees144–151 103-3 Management Approach: Evaluation of the management approach Employees144–151 402-1 Minimum notice periods regarding operational changes Employees: Dialog with employee representatives150 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 8 403: Occupational Health and Safety 103-1 Management Approach: Explanation of the material topic and its Boundary Responsible Care Management System121Responsible Conduct Along the Value Chain: Responsibility for human rights111–112 103-2 Management Approach: The management approach and its components Responsible Care Management System121Responsible Conduct Along the Value Chain: Responsibility for human rights111–112 103-3 Management Approach: Evaluation of the management approach Responsible Care Management System121Responsible Conduct Along the Value Chain: Responsibility for human rights111–112 403-12018 Occupational health and safety management system Responsible Care Management System121 Our Responsible Care Management System contains occupational safety and health protection elements, which covers all employees and temporary employees of BASF and its contractors. In addition, 47% of our Group companies are certified according to ISO 45001. 3, 8 403-22018 Hazard identification, risk assessment, and incident investigation Safety: Occupational safety122–123 We encourage and promote a culture of safety where everyone is mindful of hazards and helps to resolve and avoid them by doing the right thing. A systematic process has been established for all routine tasks and workplaces to identify and assess potential hazards, to derive appropriate safety measures, and to ensure that these are implemented and effective. Separate hazard assessments are used to manage non-routine tasks as part of a separate approval process.Incidents are investigated according to a risk-based approach, which is likewise uniformly regulated internally. Designated officers within the organization ensure that all causes are identified and that measures are implemented in full and in a timely manner. Significant incidents are shared globally by Corporate EHS to prevent them from happening again.All processes are reviewed according to statutory requirements on a regular and ad hoc basis.They apply to our employees and third parties with whom we interact at our sites. 3, 8 403-32018 Occupational health services Safety: Health protection124 We offer our employees a comprehensive range of medical services, from preventive occupational medicine and emergency care to health promotion. We do not offer this service to our contractors. BASF’s corporate health management has been established for all Group companies worldwide and serves to improve and promote the health and productivity of our employees. Worldwide standards for occupational health are specified in a binding Group-wide directive that is implemented by a global network of experts. We regularly review our performance, for example with occupational health audits. In addition, we have established an expanded indicator for our global health management: the Health Performance Index (HPI). 3, 8 403-42018 Worker participation, consultation, and communication on occupational health and safety Responsible Care Management System121 We offer our employees around the world a large amount of information on various health topics in German and English. At all sites, employees can consult medical professionals as needed on health matters in the workplace. Appropriate committees on health and safety topics are established at the local level.BASF’s and leasing staff at all sites are involved in developing task-related risk assessments and establishing operating procedures.Contractors are involved in work authorization procedures to reduce interaction risks. 3, 8 403-52018 Worker training on occupational health and safety Safety: Occupational safety122–123 In addition to the legally required briefings, BASF requires new employees and contractors to complete additional compulsory health and safety training, as well as regular training on the safe handling of chemicals and the correct use of personal protective equipment for employees at our production sites. We train BASF employees and the employees of contractors/local partners as first aiders. We also hold training on health topics (see also GRI 403-4 2018).First aid is one of five core elements of the Health Performance Index (HPI), which BASF uses to measure its performance in occupational medicine and health protection every year.All employees receive training before starting work and at regular intervals, and are tested to ensure that this training was understood. Training needs are based on an employee’s individual field of work and tasks, as well as the statutory requirements. 3, 8 403-62018 Promotion of worker health Safety: Health protection124 BASF employees and managers have access to various offerings to maintain or improve their health through the global health promotion program. The program comprises three elements: BASF health check (regular individual offering for our employees)Global health campaign with different prevention topics every yearLocal health promotion offerings at BASF sitesHealth promotion is one of five core elements of the Health Performance Index (HPI), which BASF uses to measure its performance in occupational medicine and health protection every year.The program applies only to direct BASF employees. 3, 8 403-72018 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Supplier management113–115Safety: Occupational safety122–123 In general, BASF takes a preventative approach to occupational health and safety risks. This approach is based on the elements of the Responsible Care Management System and is likewise used by our contract manufacturers, and regularly audited by us. The safety and environmental performance of suppliers and contractors are considered during the procurement process. 3, 8 403-82018 Workers covered by an occupational health and safety management system Responsible Care Management System121 The occupational health and safety elements of our Responsible Care Management System cover all BASF, temporary and contractors’ employees.The coverage by certified health and safety management system is explained in GRI 403-1. 3, 8 403-92018 Work-related injuries Safety: Occupational safety122–123 Our aim is to avoid lost-time injuries. We investigate all incidents with major accident potential worldwide to determine the main causes, independent of the outcome of the actual incident. Using a wide range of data enables us to better identify necessary measures for continuous improvement and to assess their implementation/effectiveness. In general, BASF does not differentiate between employees (BASF, leasing or contractors), as there is no differentiation in our company health and safety management system.Further details of most events occurring are not considered relevant.For BASF, chemical-related incidents are considered most specific to our own operations and are therefore communicated in our report. 3, 8 403-102018 Work-related ill health Safety: Health protection124 Our aim is to avoid work-related illness completely through appropriate prevention.Regular site inspections or workplace visits are the basis for the overall occupational health assessment. Qualified risk assessments are the basis for evaluations and improvements to be derived. Occupational medical expertise is already incorporated into the planning of technical and organizational innovations in the company. The results of occupational medical examinations regarding possible health hazards from the workplace are analyzed.Relevant findings from examinations and site inspections are taken into account when revising the health risk assessment.Chemical, biological and physical hazards (including noise, vibration, radiation, exposure to heat and cold at the workplace), ergonomics and psychosocial hazards are assessed and controlled in regular operations.According to the hierarchy of control, the following measures are part of our health risk management:Elimination or substitution of health hazards.Implementation or improvement of technical/engineering control measuresOptimization of work organization (including minimization of frequency and duration of activities)Availability and proper use of personal protective equipment (PPE)In the reporting year 2020, 26 work-related diseases were documented as recognized occupational diseases among our direct employees worldwide. Deaths from work-related recognized diseases are not reported to BASF Group. The main work-related recognized diseases are occupational asthma, hearing loss, skin disease, musculoskeletal disease and cancer. 3, 8 404: Training and Education 103-1 Management Approach: Explanation of the material topic and its Boundary Employees144–151 103-2 Management Approach: The management approach and its components Employees144–151 103-3 Management Approach: Evaluation of the management approach Employees144–151 404-1 Average hours of training per year per employee In 2020, each employee spent an average of 1,5 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, 8 404-2 Programs for upgrading employee skills and transition assistance programs Employees: What we expect from our leaders145–146Box:CORE Leadership Values145Inclusion of diversity146–147Learning and development148 8 404-3 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, 8 405: Diversity and Equal Opportunity 103-1 Management Approach: Explanation of the material topic and its Boundary Employees144–151 103-2 Management Approach: The management approach and its components Employees144–151 103-3 Management Approach: Evaluation of the management approach Employees144–151 405-1 Diversity of governance bodies and employees Employees: Graphic: BASF Group employee age structure146Table: Leaders and professionals in the BASF Group147Inclusion of diversity146–147 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, 8 405-2 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 worldwide evaluation does not take place 6 5, 8, 10 406: Non-discrimination 103-1 Management Approach: Explanation of the material topic and its Boundary Supplier management113–115Employees144–151Compliance177–179 103-2 Management Approach: The management approach and its components Supplier management113–115Employees144–151Compliance177–179 103-3 Management Approach: Evaluation of the management approach Supplier management113–115Employees144–151Compliance177–179 406-1 Incidents of discrimination and corrective actions taken Responsible Conduct Along the Value Chain: Responsibility for human rights111–112Employees: Global labor and social standards150–151Compliance: Monitoring adherence to our compliance principles178–179 Number of complaints and tip-offs received in 2020 on human rights: 261 (of which resolved in the reporting period: 208)Of these, pertaining to discrimination: 40 (resolved in the reporting period: 29)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, 16 407: Freedom of Association and Collective Bargaining 103-1 Management Approach: Explanation of the material topic and its Boundary Supplier management113–115Employees144–151Compliance177–179 103-2 Management Approach: The management approach and its components Supplier management113–115Employees144–151Compliance177–179 103-3 Management Approach: Evaluation of the management approach Supplier management113–115Employees144–151Compliance177–179 407-1 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 suppliers113–114Audit results114–115Employees: Global labor and social standards150–151 We identified deficiencies in the areas of freedom of association and collective bargaining at one of the suppliers audited in 2020.For employees, see the description of the management process under “Working at BASF: Global labor and social standards.” 3 8 408: Child Labor 103-1 Management Approach: Explanation of the material topic and its Boundary Supplier management113–115Employees144–151Compliance177–179 103-2 Management Approach: The management approach and its components Supplier management113–115Employees144–151Compliance177–179 103-3 Management Approach: Evaluation of the management approach Supplier management113–115Employees144–151Compliance177–179 408-1 Operations and suppliers at significant risk for incidents of child labor Supplier management: Audit results114–115Employees: Global labor and social standards150–151 5 8, 16 409: Forced or Compulsory Labor 103-1 Management Approach: Explanation of the material topic and its Boundary Supplier management113–115Employees144–151Compliance177–179 103-2 Management Approach: The management approach and its components Supplier management113–115Employees144–151Compliance177–179 103-3 Management Approach: Evaluation of the management approach Supplier management113–115Employees144–151Compliance177–179 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Supplier management: Audit results114–115Employees: Global labor and social standards150–151 4 8 410: Security Practices 103-1 Management Approach: Explanation of the material topic and its Boundary Responsible Care Management System121Safety: Introduction122Strategy122 103-2 Management Approach: The management approach and its components Responsible Care Management System121Safety: Introduction122Strategy122 103-3 Management Approach: Evaluation of the management approach Responsible Care Management System121Safety: Introduction122Strategy122 410-1 Security personnel trained in human rights policies or procedures Safety: Emergency response, corporate security and cybersecurity125 1 16 411: Rights of Indigenous Peoples 103-1 Management Approach: Explanation of the material topic and its Boundary Responsible Conduct Along the Value Chain: Responsibility for human rights111–112 103-2 Management Approach: The management approach and its components Responsible Conduct Along the Value Chain: Responsibility for human rights111–112 103-3 Management Approach: Evaluation of the management approach Responsible Conduct Along the Value Chain: Responsibility for human rights111–112 411-1 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 2 412: Human Rights Assessment 103-1 Management Approach: Explanation of the material topic and its Boundary Responsible Conduct Along the Value Chain: Responsibility for human rights111–112 103-2 Management Approach: The management approach and its components Responsible Conduct Along the Value Chain: Responsibility for human rights111–112 103-3 Management Approach: Evaluation of the management approach Responsible Conduct Along the Value Chain: Responsibility for human rights111–112 412-1 Operations that have been subject to human rights reviews or impact assessments Integration of Sustainability: Strategy42Responsible Conduct Along the Value Chain: Responsibility for human rights111–112Employees: Global labor and social standards150–151 1 412-2 Employee training on human rights policies or procedures Responsible Conduct Along the Value Chain: Responsibility for human rights111–112Compliance: Compliance Program and Code of Conduct177–178 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. 1 412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening Integration of Sustainability: Strategy42Harnessing business opportunities and measuring value added by sustainability43–45Responsible Conduct Along the Value Chain: Responsibility for human rights111–112 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. 2 413: Local Communities 103-1 Management Approach: Explanation of the material topic and its Boundary Integration of Sustainability42–48 103-2 Management Approach: The management approach and its components Integration of Sustainability42–48 103-3 Management Approach: Evaluation of the management approach Integration of Sustainability42–48 413-1 Operations with local community engagement, impact assessments, and development programs Integration of Sustainability: Strategy42Stakeholder engagement46–47Social commitment47–49Responsible Conduct Along the Value Chain: Responsibility for human rights111–112Raw Materials: Renewable resources117–119Mineral raw materials119–120Safety: Process safety123–124Emergency response, corporate security and cybersecurity125Employees: Global labor and social standards150–151 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. 1 413-2 Operations with significant actual and potential negative impacts on local communities Graphic: How We Create Value24–25Integration of Sustainability: Harnessing business opportunities and measuring value added by sustainability43–45Raw Materials: Renewable resources117–119Mineral raw materials119–120Safety: Process safety123–124 1 1, 2 414: Supplier Social Assessment 103-1 Management Approach: Explanation of the material topic and its Boundary Supplier management113–115 103-2 Management Approach: The management approach and its components Supplier management113–115 103-3 Management Approach: Evaluation of the management approach Supplier management113–115 414-1 New suppliers that were screened using social criteria Supplier management: What we expect from our suppliers113–114Evaluating our suppliers114Audit results114–115 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 2020, 4,918 suppliers of technical goods, services and investment goods committed to these values in our newly launched registration portal. 414-2 Negative social impacts in the supply chain and actions taken Supplier management: What we expect from our suppliers113–114Evaluating our suppliers114Audit results114–115Raw Materials: Renewable resources117–119Mineral raw materials119–120 Four business relationships with suppliers were terminated due to severe deficiencies or non-disclosure of information in the areas of environmental protection, safety, security and health protection, and social matters. 329 suppliers were asked for improvements in the areas of environmental protection, safety and security, and health protection, representing around 49% of all suppliers audited in 2020.We identified one case of deficiencies in the areas of freedom of association and collective bargaining at our suppliers.234 suppliers were asked for improvements regarding social topics representing around 35% of all suppliers audited in 2020. 415: Public Policy 103-1 Management Approach: Explanation of the material topic and its Boundary Integration of Sustainability: Stakeholder engagement46–47 103-2 Management Approach: The management approach and its components Integration of Sustainability: Stakeholder engagement46–47 103-3 Management Approach: Evaluation of the management approach Integration of Sustainability: Stakeholder engagement46–47 415-1 Political contributions Integration of Sustainability: Stakeholder engagement46–47 Focus areas of political campaigning and lobbying: https://www.basf.com/global/en/who-we-are/sustainability/management-goals-and-dialog/political-communication-and-advocacy.html 10 16 416: Customer Health and Safety 103-1 Management Approach: Explanation of the material topic and its Boundary Product stewardship126–128 103-2 Management Approach: The management approach and its components Product stewardship126–128 103-3 Management Approach: Evaluation of the management approach Product stewardship126–128 416-1 Assessment of the health and safety impacts of product and service categories Integration of Sustainability: Harnessing business opportunities and measuring value added by sustainability43–45Steering of product portfolio based on sustainability performance45 As a producing company, we focus on the evaluation of our products (98.4% of the relevant portfolio has been evaluated here). Services are not relevant for a producing company. 7 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services Consolidated Financial Statements: Notes: Risks from litigation and claims290 Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 16 417: Marketing and Labeling 103-1 Management Approach: Explanation of the material topic and its Boundary Product stewardship126–128 103-2 Management Approach: The management approach and its components Product stewardship126–128 103-3 Management Approach: Evaluation of the management approach Product stewardship126–128 417-1 Requirements for product and service information and labeling Integration of Sustainability: Steering of product portfolio based on sustainability performance45Product stewardship: Strategy126Global chemicals regulations126 7 12, 16 417-2 Incidents of non-compliance concerning product and service information and labeling Consolidated Financial Statements: Notes: Risks from litigation and claims290 16 417-3 Incidents of non-compliance concerning marketing communications 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. 418: Customer Privacy 103-1 Management Approach: Explanation of the material topic and its Boundary 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. 103-2 Management Approach: The management approach and its components 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. 103-3 Management Approach: Evaluation of the management approach 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. 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 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. 16 419: Socioeconomic Compliance 103-1 Management Approach: Explanation of the material topic and its Boundary Compliance177–179 103-2 Management Approach: The management approach and its components Compliance177–179 103-3 Management Approach: Evaluation of the management approach Compliance177–179 419-1 Non-compliance with laws and regulations in the social and economic area Consolidated Financial Statements: Notes: Risks from litigation and claims290 Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements. 16 back next