Universal Standards
Organizational Profile
Strategy
Universal Standards |
Link |
Comment |
Global Compact Principles |
SDG |
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102-14 |
Statement from senior decision-maker |
Letter from the Chairman of the Board of Executive Directors |
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102-15 |
Key impacts, risks, and opportunities |
Our Sustainability Concept: Graphic: Identifying and assessing sustainability topics |
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Ethics and Integrity
Universal Standards |
Link |
Comment |
Global Compact Principles |
SDG |
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102-16 |
Values, principles, standards, and norms of behavior |
Our Strategy: Our Strategic Action Areas |
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 |
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10 |
16 |
Governance
Universal Standards |
Link |
Comment |
Global Compact Principles |
SDG |
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102-18 |
Governance structure |
Our Sustainability Concept: Our organizational and management structures |
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102-19 |
Delegating authority |
Our Sustainability Concept: Our organizational and management structures |
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102-20 |
Executive-level responsibility for economic, environmental, and social topics |
Our Sustainability Concept: Our organizational and management structures |
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102-21 |
Consulting stakeholders on economic, environmental, and social topics |
Our Strategy: Our Values and Global Standards |
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16 |
102-22 |
Composition of the highest governance body and its committees |
Management and Supervisory Boards: Board of Executive Directors, Supervisory Board |
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5, 16 |
102-23 |
Chair of the highest governance body |
Management and Supervisory Boards: Board of Executive Directors, Supervisory Board |
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16 |
102-24 |
Nominating and selecting the highest governance body |
Corporate Governance Report: Graphic: Two-tier management system of BASF SE |
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5, 16 |
102-25 |
Conflicts of interest |
Corporate Governance Report: Direction and management by the Board of Executive Directors |
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16 |
102-26 |
Role of highest governance body in setting purpose, values, and strategy |
Our Sustainability Concept: Our organizational and management structures |
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102-27 |
collective knowledge of highest governance body |
Our Sustainability Concept: Our organizational and management structures |
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4 |
102-28 |
Evaluating the highest governance body’s performance |
Corporate Governance Report: Graphic: Two-tier management system of BASF SE |
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102-29 |
Identifying and managing economic, environmental, and social impacts |
Our Sustainability Concept: Our strategic approach |
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. |
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16 |
102-30 |
Effectiveness of risk management processes |
Forecast: Opportunities and Risks |
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102-31 |
Review of economic, environmental, and social topics |
As a rule, the Corporate Sustainability Board meets quarterly. |
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102-32 |
Highest governance body’s role in sustainability reporting |
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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. |
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102-33 |
Communicating critical concerns |
Sustainability is integrated into our major decision-making processes. The Board of Executive Directors is informed as part of standard processes. |
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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. |
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102-35 |
Remuneration policies |
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102-36 |
Process for determining remuneration |
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102-37 |
Stakeholders’ involvement in remuneration |
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. |
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16 |
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102-38 |
Annual total compensation ratio |
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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. |
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102-39 |
Percentage increase in annual total compensation ratio |
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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. |
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Stakeholder Engagement
Universal Standards |
Link |
Comment |
Global Compact Principles |
SDG |
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102-40 |
List of stakeholder groups |
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102-41 |
Collective bargaining agreements |
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. |
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8 |
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102-42 |
Identifying and selecting stakeholders |
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). |
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102-43 |
Approach to stakeholder engagement |
Our Sustainability Concept: Our strategic approach |
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). |
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102-44 |
Key topics and concerns raised |
Our Sustainability Concept: Our stakeholder management |
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Reporting Practice
Universal Standards |
Link |
Comment |
Global Compact Principles |
SDG |
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102-45 |
Entities included in the consolidated financial statements |
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102-46 |
Defining report content and topic boundaries |
About This Report: Integrated reporting and online services |
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102-47 |
List of material topics |
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102-48 |
Restatements of information |
About This Report: Data |
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102-49 |
Changes in reporting |
Any significant changes to reporting on individual topics are explained in the relevant section. |
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102-50 |
Reporting period |
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102-51 |
Date of most recent report |
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102-52 |
Reporting cycle |
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102-53 |
Contact point for questions regarding the report |
Back cover |
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102-54 |
Claims of reporting in accordance with the GRI Standards |
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102-55 |
GRI content index |
https://report.basf.com/2021/en/overviews/gri-and-global-compact-index.html |
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102-56 |
External assurance |
About This Report: Content and structure |
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