BASF Report 2021

How We Create Value

Business model

Our corporate purpose

We create chemistry for a sustainable future

Our targets

How we operate

  • Our customers are at the core of our strategy.
  • Sustainability and innovation is at the center of everything we do and a driver for growth and value.
  • Safety is always our number one priority.
  • BASF’s Verbund structure is the backbone of our efficient and reliable production.
  • Our six segments are aligned with value chains and address customer needs with differentiated solutions and business strategies.
  • We have a global, customer-focused presence.
  • Effective corporate governance ensures responsible conduct.
  • We value our stakeholders and treat them with respect.

Outcome 1



We make positive contributions by

  • Driving forward growth, progress and value creation
  • Strengthening our customers’ competitiveness and innovative strength
  • Accelerating the digital transformation of the industry
  • Offering our investors an attractive dividend yield

Potential negative impacts

  • Weaker growth stimulus due to the coronavirus pandemic, the ongoing trade conflict between the United States and China, and an escalation of geopolitical conflicts
  • A weaker share performance

Our countermeasures

  • Disciplined implementation of our corporate strategy
  • Active portfolio management
  • Systematic cost management
  • Optimizing the cost of capital



We make positive contributions by creating products that

  • Contribute to climate protection
  • Conserve resources, avoid waste and strengthen circularity
  • Pave the way for climate-friendly mobility
  • Are environmentally friendly and safe to use

Negative impacts

  • The emission of CO2 and other gases that affect the climate
  • Resource consumption and non-recyclable waste
  • Potential misuse or spillage of products

Our countermeasures

  • Carbon management
  • Circular Economy Program
  • Sustainable water and energy management
  • Responsible Care management (including product stewardship)


We make positive contributions because we

  • Offer products that improve people’s quality of life
  • Provide attractive jobs and promote diversity
  • Pay taxes and competitive wages and salaries
  • Promote integration and help overcome social challenges

Potential negative impacts

  • Risk of violation of labor, environmental and social standards in the production of the raw materials we procure
  • Lower demand for employees in some areas

Our countermeasures

  • Careful selection, evaluation and development of suppliers
  • Projects to improve sustainability in the supply chains
  • Compliance Program and Code of Conduct
  • Employee training program


We achieve long-term business success by creating value for our shareholders, our company, the environment and society

1 The outcomes category shows examples of positive contributions as well as negative impacts and the measures we take to mitigate them.