How We Create Value
Business model
Our corporate purpose
We create chemistry for a sustainable future
Our targets
- Profitable growth
- Effective climate protection
- Product portfolio geared to innovation and sustainability
- Responsible procurement
- Resource-efficient and safe production
- Employee engagement and diversity
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.
Inputs
Financial
Innovation
Operations
Environment
1.3
million metric tons
Renewable raw materials
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1,695
million m3
Total water usage
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Employees
Partnerships
Output
Financial
Innovation
Operations
~ 45,000
Sales products
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7.3
million metric tons
CO2 avoided by the Verbund and combined heat and power generation
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Environment
47.0
%
Share of our waste recycled or thermally recovered
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78.5
%
Water demand recirculated
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Employees
25.6
%
Women in leadership positions
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82
%
Engagement index according to 2020 employee survey
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Partnerships
Outcome 1
Economic
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
Environmental
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)
Social
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
Impact
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.