BASF Report 2021

Universal Standards

Organizational Profile

Universal Standards

Link

Comment

Global Compact Principles

SDG

102-1

Name of the organization

BASF Group

 

 

 

102-2

Activities, brands, products, and services

BASF Group
Sustainability Along the Value Chain: We Drive Sustainable Solutions

 

7

 

102-3

Location of headquarters

About This Report: Data
BASF Group: Sites and Verbund

 

 

 

102-4

Location of operations

BASF Group: Sites and Verbund

 

 

 

102-5

Ownership and legal form

BASF on the Capital Market: Graphic: Shareholder structure
BASF Group: Corporate legal structure

 

 

 

102-6

Markets served

BASF Group: Procurement and sales markets

 

 

 

102-7

Scale of the organization

BASF Group
Employees: Number of employees
Consolidated Financial Statements: Statement of Income

 

 

 

102-8

Information on employees and other workers

Employees: Number of employees
Employees: Number of employees: Graphic: Employees by region

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 procurement

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

BASF Group: Organization of the BASF Group
Employees: Number of employees

 

 

 

102-11

Precautionary Principle or approach

Our Sustainability Concept: Our strategic approach
Our Management Systems: Responsible Care Management System
Health and Safety, Emergency Response: Introduction
Health and Safety, Emergency Response: Strategy
Health and Safety, Emergency Response: Occupational safety
Health and Safety, Emergency Response: Process safety
Health and Safety, Emergency Response: Emergency response, corporate security and cybersecurity
Product Safety: Strategy
Product Safety: Global chemicals regulations
Product Stewardship for Crop Protection Products and Seeds
Transportation Safety: Strategy
Transportation Safety: Preventive safety measures

 

 

 

102-12

External initiatives

Our Strategy: Our Values and Global Standards
Our Sustainability Concept: Our stakeholder management
Sustainability Along the Value Chain: Stakeholder Engagement
Sustainability Along the Value Chain: Responsibility for Human Rights
Supplier management: What we expect from our suppliers
Supplier management: Selection and evaluation of our suppliers
Raw Materials: Mineral raw materials
Energy and Climate Protection: Strategy
Employees: International labor and social standards
Compliance: Monitoring adherence to our compliance principles
Biodiversity
Water

Overview of networks in which BASF is active: https://www.basf.com/global/en/who-we-are/sustainability/management-goals-and-dialog/networks.html

 

 

102-13

Membership of associations

Health and Safety, Emergency Response: Process safety
Health and Safety, Emergency Response: Emergency response, corporate security and cybersecurity
Compliance: Monitoring adherence to our compliance principles
Innovation

 

 

 

Strategy

Universal Standards

Link

Comment

Global Compact Principles

SDG

102-14

Statement from senior decision-maker

Letter from the Chairman of the Board of Executive Directors

 

 

 

102-15

Key impacts, risks, and opportunities

Our Sustainability Concept: Graphic: Identifying and assessing sustainability topics
Forecast: Opportunities and Risks

 

 

 

Ethics and Integrity

Universal Standards

Link

Comment

Global Compact Principles

SDG

102-16

Values, principles, standards, and norms of behavior

Our Strategy: Our Strategic Action Areas
Our Strategy: Our Values and Global Standards
Our Sustainability Concept: Our strategic approach
Employees: What we expect from our leaders
Employees: Inclusion of diversity
Employees: International labor and social standards
Compliance: Graphic: BASF’s Code of Conduct

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: Our Values and Global Standards
Our Sustainability Concept: Our strategic approach
Sustainability Along the Value Chain: Responsibility for Human Rights
Compliance: Monitoring adherence to our compliance principles

 

10

16

Governance

Universal Standards

Link

Comment

Global Compact Principles

SDG

102-18

Governance structure

Our Sustainability Concept: Our organizational and management structures

 

 

 

102-19

Delegating authority

Our Sustainability Concept: Our organizational and management structures

 

 

 

102-20

Executive-level responsibility for economic, environmental, and social topics

Our Sustainability Concept: Our organizational and management structures

 

 

 

102-21

Consulting stakeholders on economic, environmental, and social topics

Our Strategy: Our Values and Global Standards
Our Sustainability Concept: Our strategic approach
Stakeholder Engagement
Employees: Employee engagement

 

 

16

102-22

Composition of the highest governance body and its committees

Management and Supervisory Boards: Board of Executive Directors, Supervisory Board

 

 

5, 16

102-23

Chair of the highest governance body

Management and Supervisory Boards: Board of Executive Directors, Supervisory Board

 

 

16

102-24

Nominating and selecting the highest governance body

Corporate Governance Report: Graphic: Two-tier management system of BASF SE
Corporate Governance Report: Supervision of company management by the Supervisory Board
Corporate Governance Report: Competence profile, diversity concept and objectives for the composition of the Supervisory Board

 

 

5, 16

102-25

Conflicts of interest

Corporate Governance Report: Direction and management by the Board of Executive Directors
Corporate Governance Report: Graphic: Two-tier management system of BASF SE
Corporate Governance Report: Supervision of company management by the Supervisory Board

 

 

16

102-26

Role of highest governance body in setting purpose, values, and strategy

Our Sustainability Concept: Our organizational and management structures

 

 

 

102-27

collective knowledge of highest governance body

Our Sustainability Concept: Our organizational and management structures

 

 

4

102-28

Evaluating the highest governance body’s performance

Corporate Governance Report: Graphic: Two-tier management system of BASF SE
Corporate Governance Report: Supervision of company management by the Supervisory Board
Compensation Report

 

 

 

102-29

Identifying and managing economic, environmental, and social impacts

Our Sustainability Concept: Our strategic approach
Our Sustainability Concept: Measuring sustainable value added
Sustainability Along the Value Chain: We Drive Sustainable Solutions

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: https://www.basf.com/global/en/who-we-are/sustainability/we-produce-safely-and-efficiently/environmental-protection/resources-and-ecosystems/engagement-against-plastic-waste/Alliance-to-end-plastic-waste.html

 

16

102-30

Effectiveness of risk management processes

Forecast: Opportunities and Risks
Corporate Governance Report: Direction and management by the Board of Executive Directors
Corporate Governance Report: Supervision of company management by the Supervisory Board

 

 

 

102-31

Review of economic, environmental, and social topics

Our Sustainability Concept: Our strategic approach

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 engagement

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

Compliance: Monitoring adherence to our compliance principles

Critical concerns or complaints can be addressed through channels such as our global grievance mechanisms (external hotlines). We carefully investigated all cases of suspected misconduct that came to our attention and took countermeasures on a case-by-case basis. The exact content of any complaints is sensitive due to regulatory or legal restrictions.

 

 

102-35

Remuneration policies

Compensation Report

 

 

 

102-36

Process for determining remuneration

Compensation Report

 

 

 

102-37

Stakeholders’ involvement in remuneration

Employees: Dialog with employee representatives

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

Universal Standards

Link

Comment

Global Compact Principles

SDG

102-40

List of stakeholder groups

Our Sustainability Concept: Our stakeholder management

 

 

 

102-41

Collective bargaining agreements

Employees: International labor and social standards

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. If a country’s national law contains no or lower requirements, action plans are drawn up to successively close these gaps in a reasonable time frame. If conflicts with national law or practices arise, we ensure that we act in accordance with our values and internationally recognized principles and do not violate the law of the country concerned. For example, if the internationally recognized right to freedom of association and collective bargaining is restricted by law, systematic internal dialog with employees in accordance with national law can make a positive contribution to the value of social dialog. Due to a risk-based approach to the management process implemented in 2021, reporting of data will resume in the next 1-2 years.

3

8

102-42

Identifying and selecting stakeholders

Our Sustainability Concept: Our stakeholder management

We have defined persons responsible for dialog with individual stakeholder groups. These engage in constructive dialog with stakeholders relevant to BASF (e.g., between employee and employer representatives, between business units and customers, with politics, investors, the media and other social stakeholders).

 

 

102-43

Approach to stakeholder engagement

Our Sustainability Concept: Our strategic approach
Our Sustainability Concept: Our stakeholder management
Employees: Employee engagement
Employees: Dialog with employee representatives
Our Management Systems: Quality management

To even better understand our customer's needs, we regularly ask them for feedback on our performance. We 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 Sustainability Concept: Our stakeholder management
Supplier management: Audit results
Employees: Employee engagement
Employees: Dialog with employee representatives
Our Management Systems: Quality management

 

 

 

Reporting Practice

Universal Standards

Link

Comment

Global Compact Principles

SDG

102-45

Entities included in the consolidated financial statements

About This Report: Data
BASF Group: Sites and Verbund

 

 

 

102-46

Defining report content and topic boundaries
Report Boundaries

About This Report: Integrated reporting and online services
Our Sustainability Concept: Our organizational and management structures
Graphic: Identifying and assessing sustainability topics

https://www.basf.com/global/en/who-we-are/sustainability/management-goals-and-dialog/management/topics.html

 

 

102-47

List of material topics

Our Sustainability Concept: Our strategic approach

https://www.basf.com/global/en/who-we-are/sustainability/management-goals-and-dialog/management/topics.html

 

 

102-48

Restatements of information

About This Report: Data
Our Steering Concept
Energy and Climate Protection: Strategy, Graphic: Energy supply of the BASF Group 2021, Graphic: BASF Group's greenhouse gas emissions according to the Greenhouse Gas Protocol
Emissions to Air, Waste and Remediation: Graphic: Emissions to air
Raw Materials: Renewable resources

 

 

 

102-49

Changes in reporting

About This Report

Any significant changes to reporting on individual topics are explained in the relevant section.

 

 

102-50

Reporting period

About This Report: Data

 

 

 

102-51

Date of most recent report

About This Report: Data

 

 

 

102-52

Reporting cycle

About This Report: Data

 

 

 

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 structure

 

 

 

102-55

GRI content index

GRI and Global Compact Index

https://report.basf.com/2021/en/overviews/gri-and-global-compact-index.html

 

 

102-56

External assurance

About This Report: Content and structure
About This Report: External audit