GRI and Global Compact Index The universal standards offer a general strategic overview of the organization’s sustainability. Universal Standards Link Page Comment Global Compact Principles SDG Organizational Profile 102-1 Name of the organization The BASF Group20–23 102-2 Activities, brands, products, and services The BASF Group20–23Integration of Sustainability: Steering of product portfolio based on sustainability performance45–46 7 102-3 Location of headquarters About This Report: Data6The BASF Group: Sites and Verbund22 102-4 Location of operations The BASF Group: Sites and Verbund22 102-5 Ownership and legal form BASF on the Capital Market: Graphic: Shareholder structure13The BASF Group: Corporate legal structure23 102-6 Markets served The BASF Group: Procurement and sales markets23 102-7 Scale of the organization The BASF Group20–23Employees: Number of employees144Consolidated Financial Statements: Statement of Income222 102-8 Information on employees and other workers Employees: Number of employees144Graphic: BASF Group employees by region144 At BASF SE, we only deploy relatively few staff from employment agencies (compared with the number of our own employees). We only work together with counterparties that are bound by collective agreements. 6 8 102-9 Supply chain Supplier management: Worldwide procurement113 The procurement competence center supports BASF’s business units in developing sustainable solutions so they can stand out from the competition in addressing market-specific requirements. 102-10 Significant changes to the organization and its supply chain The BASF Group: Organization of the BASF Group20–21Employees: Number of employees144 102-11 Precautionary Principle or approach Integration of Sustainability: Strategy42Responsible Care Management System121Safety: Introduction122Global safety initiative122Occupational safety122–123Process safety123–124Emergency response, corporate security and cybersecurity125Product stewardship: Strategy126Global chemicals regulations126Transportation and storage: Strategy129Accident prevention and emergency response129 102-12 External initiatives Our Strategy: Corporate Strategy: Global standards31Integration of Sustainability: Stakeholder engagement46–47Responsible Conduct Along the Value Chain: Responsibility for human rights111–112Supplier management: What we expect from our suppliers113–114Selection and evaluation of our suppliers114Raw Materials: Mineral raw materials119–120Energy and climate protection: Strategy130–131Employees: Global labor and social standards150–151Compliance: Monitoring adherence to our compliance principles178–179 Overview of networks in which BASF is active: https://www.basf.com/global/en/who-we-are/sustainability/responsible-partnering/networks.html 102-13 Membership of associations Safety: Process safety123–124Transportation and storage: Activities in external networks129Compliance: Monitoring adherence to our compliance principles178–179 Strategy 102-14 Statement from senior decision-maker Letter from the Chairman of the Board of Executive Directors8–10 102-15 Key impacts, risks, and opportunities Integration of Sustainability: Box: Identifying and assessing sustainability topics43Forecast: Opportunities and Risks158–166 Ethics and Integrity 102-16 Values, principles, standards, and norms of behavior Our Strategy: Corporate Strategy26–32Customer Orientation27–29Our strategic action areas28–29Global standards31The BASF brand29Integration of Sustainability: Strategy42Employees: What we expect from our leaders145–146Inclusion of diversity146–147International labor and social standards150–151Compliance: Graphic: BASF’s Code of Conduct177 All employees receive training on our Code of Conduct upon joining the company. They are obligated to attend refresher training every three years.In addition, all leaders and employees not covered by collective agreements confirm their adherence to our Code of Conduct every year. Governance body members are familiar with our Code of Conduct. 10 16 102-17 Mechanisms for advice and concerns about ethics Our Strategy: Corporate Strategy: Global standards31Integration of Sustainability: Strategy42Responsible Conduct Along the Value Chain: Responsibility for human rights111–112Compliance: Monitoring adherence to our compliance principles178–179 10 16 Governance 102-18 Governance structure Integration of Sustainability: Strategy42 102-19 Delegating authority Integration of Sustainability: Strategy42 102-20 Executive-level responsibility for economic, environmental, and social topics Integration of Sustainability: Strategy42 102-21 Consulting stakeholders on economic, environmental, and social topics Our Strategy: Corporate Strategy: Global standards31Integration of Sustainability: Strategy42Stakeholder Engagement46–47Employees: Employee engagement145 16 102-22 Composition of the highest governance body and its committees Management and Supervisory Boards: Board of Executive Directors180Supervisory Board181–182 5, 16 102-23 Chair of the highest governance body Management and Supervisory Boards: Board of Executive Directors180Supervisory Board181–182 16 102-24 Nominating and selecting the highest governance body Corporate Governance Report: Graphic: Two-tier management system of BASF SE169Supervision of company management by the Supervisory Board170Competence profile, diversity concept and objectives for the composition of the Supervisory Board172–173 5, 16 102-25 Conflicts of interest Corporate Governance Report: Direction and management by the Board of Executive Directors168–169Graphic: Two-tier management system of BASF SE169Supervision of company management by the Supervisory Board170 16 102-26 Role of highest governance body in setting purpose, values, and strategy Integration of Sustainability: Strategy42 102-27 Collective knowledge of highest governance body Integration of Sustainability: Strategy42 4 102-28 Evaluating the highest governance body’s performance Corporate Governance Report: Graphic: Two-tier management system of BASF SE169Supervision of company management by the Supervisory Board170Compensation Report183–202 102-29 Identifying and managing economic, environmental, and social impacts Integration of Sustainability: Strategy42Harnessing business opportunities and measuring value added by sustainability43Steering of product portfolio based on sustainability performance45 Our strategic evaluation process to define new focus topics along the value chain was discussed by the Corporate Sustainability Board, the Stakeholder Advisory Panel as well as by the Board of Executive Directors, among other bodies. The Board of Executive Directors resolved on the further course of action.AEPW website: https://www.basf.com/global/en/who-we-are/sustainability/we-produce-safely-and-efficiently/resources-and-ecosystems/engagement-against-plastic-waste/Alliance-to-end-plastic-waste.html 16 102-30 Effectiveness of risk management processes Forecast: Opportunities and Risks158–166Corporate Governance Report: Direction and management by the Board of Executive Directors168–169Supervision of company management by the Supervisory Board170 102-31 Review of economic, environmental, and social topics Integration of Sustainability: Strategy42 As a rule, the Corporate Sustainability Board meets quarterly. 102-32 Highest governance body’s role in sustainability reporting The report is discussed and released in a reading by the entire Board of Executive Directors.The Supervisory Board approves the Report and thus the Nonfinancial Statement as part of the accounts meeting. 102-33 Communicating critical concerns Employees: Employee engagement145 Sustainability is integrated into our major decision-making processes. The Board of Executive Directors is informed as part of standard processes. 102-34 Nature and total number of critical concerns This information is confidential. 102-35 Remuneration policies Compensation Report183–202 102-36 Process for determining remuneration Compensation Report183–202 102-37 Stakeholders’ involvement in remuneration Employees: Dialog with employee representatives150 Due to the heterogenous nature of legal requirements around the world, this dialog is implemented in accordance with the statutory framework by the countries and companies responsible in each case. 16 102-38 Annual total compensation ratio Fair compensation is an important topic for BASF. This includes aspects of internal (distribution) equity and socially acceptable minimum compensation.Our compensation is based on three principles: function, market and performance orientation. Furthermore, it is important to us that minimum standards for compensation are complied with and, where possible, exceeded. BASF regularly monitors compliance with minimum standards around the world.However, BASF does not consider the compensation indicators required by GRI 102-38 and GRI 102-39 to be a meaningful assessment of the fairness of compensation structures. 102-39 Percentage increase in annual total compensation ratio Fair compensation is an important topic for BASF. This includes aspects of internal (distribution) equity and socially acceptable minimum compensation.Our compensation is based on three principles: function, market and performance orientation. Furthermore, it is important to us that minimum standards for compensation are complied with and, where possible, exceeded. BASF regularly monitors compliance with minimum standards around the world.However, BASF does not consider the compensation indicators required by GRI 102-38 and GRI 102-39 to be a meaningful assessment of the fairness of compensation structures. Stakeholder Engagement 102-40 List of stakeholder groups Integration of Sustainability: Stakeholder engagement46–47 102-41 Collective bargaining agreements Employees: Global labor and social standards150–151 BASF monitors the national law of all of the countries in which it operates as part of a global management process and evaluates compliance with the International Labor Standards (ILSS), including freedom of association. 3 8 102-42 Identifying and selecting stakeholders Integration of Sustainability: Stakeholder engagement46–47 We have defined persons responsible for dialog with individual stakeholder groups. They engage in constructive dialog with the stakeholders relevant to BASF (for example between employee and employer representatives, between business units and customers, dialog with politicians, investors, journalists and other societal stakeholders). 102-43 Approach to stakeholder engagement Our Strategy: Customer focus27–29Integration of Sustainability: Strategy42Stakeholder engagement46–47Employees: Employee engagement145Dialog with employee representatives150 Due to the heterogeneity of our customer sectors and thus their different demands, there is no uniform customer satisfaction survey for the entire BASF Group. Customer satisfaction data is collected in a decentralized manner.We have introduced the Net Promoter System® worldwide to establish an ongoing and more intensive dialog with our customers as well as to further increase customer satisfaction and loyalty. Via a digital platform, we are creating a framework for learning from feedback and acting quickly.We also worked on an expanded IT-based solution for managing our customer relationships (customer relationship management system). 102-44 Key topics and concerns raised Our Strategy: Customer focus27–29Integration of Sustainability: Stakeholder engagement46–47Supplier management: Audit results114–115Employees: Employee engagement145Dialog with employee representatives150 Reporting Practice 102-45 Entities included in the consolidated financial statements About This Report: Data6The BASF Group: Sites and Verbund22 102-46 Vorgehen zur Bestimmung des Berichtsinhalts und der Abgrenzung der ThemenBerichtsgrenzen About This Report: Integrated reporting5 Integration of Sustainability: Our organizational and management structures42–43Box: Identifying and assessing sustainability topics43 102-47 List of material topics Integration of Sustainability: Strategy42 https://www.basf.com/global/en/who-we-are/sustainability/management-goals-and-dialog/management/topics.html 102-48 Restatements of information Investments, acquisitions and divestitures50–51Integration of Sustainability: Steering of product portfolio based on sustainability performance45Energy and climate protection: Climate protection with carbon management135–136Air, waste and soil137–138 102-49 Changes in reporting About This Report5–6 Any significant changes to reporting on individual topics are explained in the relevant section. 102-50 Reporting period About This Report: Data6 102-51 Date of most recent report About This Report: Data6 102-52 Reporting cycle About This Report: Data6 102-53 Contact point for questions regarding the report Back cover 102-54 Claims of reporting in accordance with the GRI Standards About This Report: Content and structure5 102-55 GRI content index GRI and Global Compact Index http://report.basf.com/2020/en/overviews/gri-and-global-compact-index.html 102-56 External assurance About This Report: Content and structure5External audit and evaluation6 back next