BASF Report 2021

Targets and Target Achievement 2021

Business success tomorrow means creating value for the environment, society and business. That is why we have set ourselves ambitious targets along our entire value chain. We report transparently on our target achievement so that our stakeholders can track our progress. In order to grow profitably, we want to grow sales volumes faster than global chemical production, further increase our profitability, achieve a return on capital employed (ROCE) considerably above the cost of capital percentage and increase the dividend per share every year based on a strong free cash flow.

We also pursue broad sustainability targets. In this context, we significantly raised our CO2 reduction target in 2021. We want to strengthen the sustainability focus of our product portfolio and will update our portfolio steering targets in 2022. We also strive to strengthen the sustainability of our supply chains and use resources responsibly. We want to further improve safety in production. In addition, we aim to promote diversity within the company and create a working environment in which our employees feel that they can thrive and perform at their best.

The objective of these targets is to steer our business into a sustainable future, and at the same time, contribute to the implementation of the United Nations’ Sustainable Development Goals (SDGs). We are focusing on issues where we as a company can make a significant contribution, such as climate protection, sustainable consumption and production, and fighting hunger.

Status of Target Achievement

Profitable growth

Achieve a return on capital employed (ROCE) considerably above the cost of capital percentage every year5

2021 target

>9%

2021 status

13.5%

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Grow sales volumes faster than global chemical production every year

2021 target

>6.1%

2021 status

10.6%

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Increase EBITDA before special items 3%–5% per year

2021 target

3%–5%

2021 status

53%

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Increase the dividend per share every year based on a strong free cash flow

2021 target

>€3.30

2021 status

€3.401

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Effective climate protection

Reduce our absolute CO2 emissions2 by 25% by 20305

2030 target

16.4 MMT

2021 status

20.2 MMT

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Sustainable product portfolio

Achieve €22 billion in Accelerator sales by 20253, 5

2025 target

€22.0 billion

2021 status

€24.1 billion

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Responsible procurement

Cover 90% of our relevant spend with sustainability evaluations by 20256

2025 target

90%

2021 status

85%

Have 80% of our suppliers improve their sustainability performance upon re-evaluation6

2025 target

80%

2021 status

74%

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Resource efficiency and safe production

Reduce worldwide process safety incidents per 200,000 working hours to ≤0.1 by 20256

2025 target

≤0.1

2021 status

0.3

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Reduce the worldwide lost-time injury rate per 200,000 working hours to ≤0.1 by 20256

2025 target

≤0.1

2021 status

0.3

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Introduce sustainable water management at our production sites in water stress areas and at our Verbund sites by 2030

2030 target

100%

2021 status

53.5%

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Employee engagement and diversity

Increase the proportion of women in leadership positions with disciplinary responsibility to 30% by 20306

2030 target

30%

2021 status

25.6%

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More than 80% of our employees feel that at BASF, they can thrive and perform at their best6

2021 target

>80%

2021 status

82%4

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1 Dividend proposed by the Board of Executive Directors

2 Includes Scope 1 and Scope 2 emissions. In March 2021, we replaced our previous target of CO2-neutral growth until 2030 (baseline 2018: 21.9 million metric tons of CO2e) with a new, more ambitious climate protection target to reduce absolute CO2 emissions by 25% compared with 2018 (new target: 16.4 million metric tons of CO2e).

3 We already reached our 2025 sales target for Accelerator products in 2021. Consequently, we will update our product portfolio steering target over the course of 2022.

4 We regularly calculate the employee engagement level. The most recent survey was conducted in 2020. The next survey is planned for spring 2022.

5 Most important key performance indicator

6 Limited assurance

Value chain
A value chain describes the successive steps in a production process: from raw materials through various intermediate steps, such as transportation and production, to the finished product.