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 Group20–23
Integration of Sustainability: Steering of product portfolio based on sustainability performance45–46

 

7

 

102-3

Location of headquarters

About This Report: Data6
The 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 structure13
The BASF Group: Corporate legal structure23

 

 

 

102-6

Markets served

The BASF Group: Procurement and sales markets23

 

 

 

102-7

Scale of the organization

The BASF Group20–23
Employees: Number of employees144
Consolidated Financial Statements: Statement of Income222

 

 

 

102-8

Information on employees and other workers

Employees: Number of employees144
Graphic: 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 Group20–21
Employees: Number of employees144

 

 

 

102-11

Precautionary Principle or approach

Integration of Sustainability: Strategy42
Responsible Care Management System121
Safety: Introduction122
Global safety initiative122
Occupational safety122–123
Process safety123–124
Emergency response, corporate security and cybersecurity125
Product stewardship: Strategy126
Global chemicals regulations126
Transportation and storage: Strategy129
Accident prevention and emergency response129

 

 

 

102-12

External initiatives

Our Strategy: Corporate Strategy: Global standards31
Integration of Sustainability: Stakeholder engagement46–47
Responsible Conduct Along the Value Chain: Responsibility for human rights111–112
Supplier management: What we expect from our suppliers113–114
Selection and evaluation of our suppliers114
Raw Materials: Mineral raw materials119–120
Energy and climate protection: Strategy130–131
Employees: Global labor and social standards150–151
Compliance: 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 safety123–124
Transportation and storage: Activities in external networks129
Compliance: 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 topics43
Forecast: Opportunities and Risks158–166

 

 

 

Ethics and Integrity

102-16

Values, principles, standards, and norms of behavior

Our Strategy: Corporate Strategy26–32
Customer Orientation27–29
Our strategic action areas28–29
Global standards31
The BASF brand29
Integration of Sustainability: Strategy42
Employees: What we expect from our leaders145–146
Inclusion of diversity146–147
International labor and social standards150–151
Compliance: 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 standards31
Integration of Sustainability: Strategy42
Responsible Conduct Along the Value Chain: Responsibility for human rights111–112
Compliance: 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 standards31
Integration of Sustainability: Strategy42
Stakeholder Engagement46–47
Employees: Employee engagement145

 

 

16

102-22

Composition of the highest governance body and its committees

Management and Supervisory Boards: Board of Executive Directors180
Supervisory Board181–182

 

 

5, 16

102-23

Chair of the highest governance body

Management and Supervisory Boards: Board of Executive Directors180
Supervisory Board181–182

 

 

16

102-24

Nominating and selecting the highest governance body

Corporate Governance Report: Graphic: Two-tier management system of BASF SE169
Supervision of company management by the Supervisory Board170
Competence 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 Directors168–169
Graphic: Two-tier management system of BASF SE169
Supervision 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 SE169
Supervision of company management by the Supervisory Board170
Compensation Report183–202

 

 

 

102-29

Identifying and managing economic, environmental, and social impacts

Integration of Sustainability: Strategy42
Harnessing business opportunities and measuring value added by sustainability43
Steering 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 Risks158–166
Corporate Governance Report: Direction and management by the Board of Executive Directors168–169
Supervision 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 focus27–29
Integration of Sustainability: Strategy42
Stakeholder engagement46–47
Employees: Employee engagement145
Dialog 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 focus27–29
Integration of Sustainability: Stakeholder engagement46–47
Supplier management: Audit results114–115
Employees: Employee engagement145
Dialog with employee representatives150

 

 

 

Reporting Practice

102-45

Entities included in the consolidated financial statements

About This Report: Data6
The BASF Group: Sites and Verbund22

 

 

 

102-46

Vorgehen zur Bestimmung des Berichtsinhalts und der Abgrenzung der Themen
Berichtsgrenzen

About This Report: Integrated reporting5
Integration of Sustainability: Our organizational and management structures42–43
Box: 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 divestitures50–51
Integration of Sustainability: Steering of product portfolio based on sustainability performance45
Energy and climate protection: Climate protection with carbon management135–136
Air, 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 structure5
External audit and evaluation6